Interactive Intelligence reports Q2 2011 financial results

Interactive Intelligence Group Inc., a global provider of unified IP business communications solutions, has announced operating results for the three and six months ended June 30, 2011.

The company reported revenues of $52.0 million, an increase of 34 percent over the second quarter of 2010. Product revenues were up 34 percent, recurring revenues increased by 35 percent, and services revenues increased 30 percent compared to the same quarter last year.

The company reported operating income on a generally accepted accounting principles (GAAP) basis of $5.5 million for the 2011 second quarter, up 18 percent from $4.7 million in the same quarter last year. Non-GAAP operating income was $7.3 million for the second quarter of 2011, up 29 percent from $5.7 million in the second quarter of 2010.

“We are executing on our primary strategic initiatives,” said Dr. Donald E. Brown, Interactive Intelligence founder and CEO. “We are moving up-market with more sales to larger customers, rapidly increasing revenues from our cloud-based solutions, successfully expanding our presence internationally, performing well in our targeted vertical markets, and seeing increased interest in our process automation capability.”

GAAP net income was $3.8 million, with diluted earnings per share (EPS) of $0.19, compared to $2.5 million, or EPS of $0.13, for the second quarter of 2010. Net income on a non-GAAP basis was $6.3 million, with EPS of $0.32, compared to $5.0 million, or EPS of $0.27, for the same quarter last year.

Non-GAAP net income and EPS for the 2011 second quarter exclude purchase accounting adjustments of $496,000, or EPS of $0.03, charges for stock-based compensation of $1.3 million, or EPS of $0.06, and non-cash income tax expense of approximately $727,000, or EPS of $0.04. For the second quarter of 2010, non-GAAP net income and EPS exclude charges for stock-based compensation of $964,000, or EPS of $0.06, and non-cash income tax expense of $1.5 million, or EPS of $0.08.

Cash and investment balances as of June 30, 2011 increased to $94.4 million. The company has no debt.

First-half 2011 results included the following:

• Total revenues of $99.7 million, a 35 percent increase over revenues of $73.8 million for the first half of 2010.
• GAAP operating income of $10.4 million, up from $8.6 million for the first half of 2010.
• Non-GAAP operating income of $14.0 million, compared to $10.7 million for the first half of 2010.
• GAAP net income of $6.9 million, or EPS of $0.35, compared to $4.3 million, or EPS of $0.23, for the first half of 2010.
• Non-GAAP net income of $11.8 million, or EPS of $0.59, compared to $9.1 million, or EPS of $0.49, for the same period last year.

For the first six months of 2011, non-GAAP net income and EPS exclude charges for purchase accounting adjustment of $1.0 million, or EPS of $0.05, stock-based compensation of $2.6 million, or EPS of $0.13, and non-cash income tax expense of $1.3 million, or EPS of $0.06. For the first half of 2010, non-GAAP net income and EPS exclude charges for stock-based compensation of $2.0 million, or EPS of $0.11, and non-cash income tax expense of $2.8 million, or EPS of $0.15.

Additional highlights in the second quarter of 2011 include the following:

• Certification by Joint Interoperability Test Command (JITC) for U.S. federal government deployments.
• Announcement of the upcoming release of CIC 4.0.
• Named by the Indiana Chamber of Commerce as a Best Place to Work.
• Inclusion in Gartner’s Contact Center Infrastructure leaders quadrant.

As previously announced on July 5, 2011, the company acquired CallTime Solutions, a partner in the Australia and New Zealand markets to expand sales, support and service capabilities for direct customers and resellers throughout the region.

Interactive Intelligence will host a conference call July 25 at 4:30 p.m. Eastern time (EDT) featuring Dr. Brown and the company’s CFO, Stephen R. Head. A live Q&A session will follow opening remarks.

To access the teleconference, please dial 1 877.324.1969 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: “Interactive Intelligence second-quarter earnings call.”