Contact Center Solutions Featured Article

New Customers, CaaS Demand Propel Interactive Intelligence's Revenues Up 18 Percent

July 26, 2010

As the rest of the economy and other businesses slowly build and regain profitability, Interactive Intelligence appears to have struck in gold in that its unified IP business communications solutions, among them communications-as-a-service (CaaS) are attracting higher demand including from new customers to make a major impact on its bottom line. New buyers were likely among the record number of attendees at the 2010 Interactive Intelligence User Forum in May 2010.


The company reported second quarter 2010 (2Q 2010) revenues of $38.8 million: an 18 percent increase over 2Q 2009. Product revenues were up 10 percent and services revenues increased 26 percent compared with the same quarter last year. During the 2Q 2010, the company's analysis of the collectability of invoiced services increased current quarter services revenues by $673,000.

Interactive Intelligence also reported operating income on a generally accepted accounting principles (GAAP) basis of $4.7 million for 2Q 2010, up 56 percent from $3 million in 2Q 2009. Non-GAAP operating income was $5.6 million, compared to $3.7 million over the same periods.

2Q 2010 GAAP net income climbed to $2.5 million, with diluted earnings per share (EPS) of $0.13 from $2.1 million, or EPS of $0.12, for the second quarter of 2009. Net income on a non-GAAP basis hiked up to $5.0 million, with EPS of $0.26, from $4.4 million, or EPS of $0.24, for the same quarter last year.

Interactive Intelligence’s financial performance would have been slightly better were it not for foreign exchange losses: $523,000 in 2Q 2010 primarily due to it compared to other income of $722,000 in the same quarter last year. In the second quarter of 2010, the company instituted a currency hedging program to help mitigate future effects of fluctuations in the foreign exchange rates on cash and receivables.

If the last quarter is any indication, future quarters for Interactive Intelligence should be even brighter as the economy bounces back and as its new product innovations and enhancements to its existing solutions are released and take hold in the marketplace. Examples of the latter group include:

*          The signing of a partnership with Buzzient offer integrated social media monitoring, routing and reporting solutions

*          Enhancements to its CaaS offering with a new Web portal, along with hosted workforce management and agentless dialing applications

*          Upgrades to the Interaction Dialer, an outbound/blended dialing add-on application to the company’s standards-based, all-in-one IP communications software suite, Customer Interaction Center (CIC). Interaction Dialer version 3.0 for the credit and collection industry now includes skills-based dialing, "just-in-time" DNC (do-not-call) functionality, enhanced call analysis and increased scalability

*          Introduction last fall of Interaction SIP Station, a new communications endpoint device designed as an affordable, reliable and simple alternative to IP desk phones. With a dedicated chip-set delivering high quality audio, theInteraction SIP Stationhas no hand set, display, or dial pad. Instead, the device is designed to work in conjunction with a headset and with the Interactive Intelligence Interaction Client, which is a PC-based call control software

“We again experienced an increase in the dollar amount of orders from last year, which is what drives the growth in our revenues," said Interactive Intelligence founder and CEO, Dr. Donald E. Brown. "CaaS continues to gain momentum, representing 14 percent of orders received. CaaS revenues were up 87 percent this quarter compared to the second quarter of 2009. The ongoing signing of new customers in turn is driving increases in support and professional services revenue.”


Brendan B. Read is ContactCenterSolutions’s Senior Contributing Editor. To read more of Brendan’s articles, please visit his columnist page.

Edited by Erin Harrison



Home