EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
 
Exhibit 99.1
Interactive Intelligence Reports Record Results

Fourth quarter revenues up 22 percent with improved profitability

INDIANAPOLIS Jan. 30, 2006 - Interactive Intelligence Inc. (Nasdaq: ININ), a global developer of business communications software, today reported results for its quarter and fiscal year ending Dec. 31, 2005.

Total revenues for the company’s 2005 fourth quarter increased 22 percent to $17.5 million compared to $14.4 million for the fourth quarter of 2004. Net income for the fourth quarter of 2005 was $1.8 million, up from $514,000 in the same quarter of the previous year. Diluted earnings per share (EPS) for the fourth quarter of 2005 were $0.10, up from $0.03 in the same period of 2004.

Revenues for the 2005 fiscal year totaled $62.9 million, an increase of 14 percent from $55.1 million in 2004. Net income for 2005 was $2.1 million, up from $1.0 million for 2004, with diluted EPS of $0.13 for 2005, compared to $.06 for 2004.

Cash and short-term investments increased to $15.1 million at year-end, up from $11.6 million, net of borrowings on the line of credit, at the end of 2004.

“The fourth quarter is traditionally our strongest quarter and this year we executed remarkably well,” said Interactive Intelligence president and CEO, Dr. Donald E. Brown. “Our net income numbers improved sharply as a result of increased revenues and effective cost management. Sales performance was particularly good in North America and Europe as we saw continued growth and penetration in the large-sized contact center market and solid demand across all product lines. Additionally, our Vonexus subsidiary continued its strong growth ramp, and during the quarter we successfully launched the latest version of our contact center automation software -- Customer Interaction Center® (CIC). We closed out a record year with a solid fourth quarter finish. These results provide strong momentum for the company and our partners as we move into 2006.”
 
Fourth quarter highlights included new and follow-on customer contracts signed by DialAmerica Marketing (the largest privately owned telemarketing company in the U.S.), Harrah's Operating Company, Inc., University of California, San Diego, and many others.

The company’s products continue to be applauded in the market. TMCnet, an online industry authority, praised the most recent version of CIC as “a mix of functionality, scalability, and improved ROI.” Communité®, the company’s unified communications and messaging software, received Network Computing magazine’s Editor’s Choice award based on a comparative lab test in which it beat out products from 3COM and Siemens. And Enterprise Interaction Center® (EIC), the flagship product of subsidiary, Vonexus, received INTERNET TELEPHONY magazine’s Excellence Award for its standards-based, all-Microsoft IP PBX solution.

Brown added: “These results reflect the plan that we have been executing on during the past two years. We are encouraged by the increase in orders, which demonstrates that more and more customers see the strong value in our contact center and enterprise IP telephony products. We will continue on the path of driving innovation into all aspects of our products and business processes. Overall, we are pleased with our progress and excited about the growth strategy we have in place for 2006.”

-More-


Interactive Intelligence will host an earnings conference call today at 4:30 p.m. Eastern time (EST), featuring Dr. Brown and the company's CFO, Stephen R. Head. There will be a live Q&A session following opening remarks. The teleconference is expected to last approximately 45 minutes.

To access the teleconference, please dial 1 888.313.7413 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: “Interactive Intelligence fourth quarter and year-end earnings call.”

The teleconference will also be broadcast live on the company's investor relations' page at http://www.ININ.com/investors. An archive of the teleconference will be posted following the call.

To receive a copy of the earnings release, please call 317.872.3000 and press "4" for investor relations, or e-mail investorrelations@inin.com.

About Interactive Intelligence
Interactive Intelligence Inc. (Nasdaq: ININ) offers business communications software solutions for contact center automation, enterprise IP telephony, unified communications, and self-service automation. The company was founded in 1994 and has more than 1,500 customers worldwide. Recent awards include Software Magazine’s 2005 Top 500 Global Software and Services Companies, Miercom’s 2005 Best Integrated Multimedia IP Contact Center product award, and Frost & Sullivan’s 2005 Excellence in Technology of the Year Award. Interactive Intelligence employs approximately 350 people and is headquartered in Indianapolis. The company has 12 offices throughout North America, Europe and Asia Pacific. Interactive Intelligence can be reached at +1 317.872.3000 or info@inin.com; on the Net: http://www.inin.com.

This release contains certain forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: rapid technological changes in the industry; volatility in the market price of the company's common stock; the company's ability to maintain profitability, to manage successfully its growth and increasingly complex third party relationships, to maintain successful relationships with its current and any new resellers, to maintain and improve its current products and to develop new products and to protect its proprietary rights adequately; and other factors described in the company's SEC filings, including the company's latest annual report on Form 10-K and its quarterly reports on Form 10-Q.

Interactive Intelligence Inc. is the owner of the marks INTERACTIVE INTELLIGENCE, its associated LOGO and numerous other marks. All other trademarks mentioned in this document are the property of their respective owners.

Contacts:
Stephen R. Head
Chief Financial Officer
Interactive Intelligence Inc.
+1 317.715.8412
steve.head@inin.com

Christine Holley
Director, Market Communications
Interactive Intelligence Inc.
+1 317.715.8220
christine.holley@inin.com


-More-


Interactive Intelligence, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

   
December 31,
2005
  
December 31,
2004
  
           
Assets
          
Current assets:
              
Cash and cash equivalents
  
$
11,551
  
$
14,603
  
Short-term investments
    
3,576
    
--
  
Accounts receivable, net
   
14,927
    
10,251
  
Prepaid expenses
    
2,939
    
2,119
  
Other current assets
    
789
    
836
  
Total current assets
    
33,782
    
27,809
  
Property and equipment, net
    
4,013
    
4,071
  
Other assets, net
    
603
    
618
  
Total assets
  
$
38,398
  
$
32,498
  
               
Liabilities and Shareholders’ Equity
              
Current liabilities:
              
Line of credit
  
$
--
  
$
3,000
  
Accounts payable and accrued liabilities
    
6,676
    
5,894
  
Accrued compensation and related expenses
    
1,906
    
1,200
  
Deferred product revenues
    
5,195
    
4,484
  
Deferred services revenues
    
16,828
    
12,884
  
Total current liabilities
    
30,605
    
27,462
  
Shareholders’ equity:
              
Preferred stock
    
--
    
--
  
Common stock
    
161
    
159
  
Additional paid-in capital
    
65,826
    
65,179
  
Accumulated deficit
    
(58,194
)
  
(60,302
)
Total shareholders’ equity
    
7,793
    
5,036
  
Total liabilities and shareholders’ equity
  
$
38,398
  
$
32,498
  
               


-More-


Interactive Intelligence, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)

   
Three Months Ended
December 31,
  
Twelve Months Ended
December 31,
  
   
2005
  
2004
  
2005
  
2004
  
Revenues:
                          
Product
  
$
9,031
  
$
7,240
  
$
33,296
  
$
28,187
  
Services
    
8,503
    
7,118
    
29,641
    
26,932
  
Total revenues
    
17,534
    
14,358
    
62,937
    
55,119
  
Cost of revenues:
                          
Product
    
1,824
    
948
    
4,661
    
2,399
  
Services
    
2,872
    
2,668
    
11,025
    
10,756
  
Total cost of revenues
    
4,696
    
3,616
    
15,686
    
13,155
  
Gross profit
    
12,838
    
10,742
    
47,251
    
41,964
  
Operating expenses:
                          
Sales and marketing
    
5,961
    
5,200
    
24,149
    
20,492
  
Research and development
    
2,915
    
3,114
    
12,383
    
12,858
  
General and administrative
    
2,118
    
1,965
    
8,327
    
7,631
  
Total operating expenses
    
10,994
    
10,279
    
44,859
    
40,981
  
Operating income
    
1,844
    
463
    
2,392
    
983
  
Other income (expense):
                          
Interest income, net
    
87
    
65
    
269
    
125
  
Other income (expense)
    
(32
)
  
(12
)
  
(288
)
  
70
  
Total other income (expense)
    
55
    
53
    
(19
)
  
195
  
Income before income taxes
    
1,899
    
516
    
2,373
    
1,178
  
Income taxes
    
134
    
2
    
265
    
138
  
Net income
  
$
1,765
  
$
514
  
$
2,108
  
$
1,040
  
                           
Net income per share:
                          
Basic
  
$
0.11
  
$
0.03
  
$
0.13
  
$
0.07
  
Diluted
    
0.10
    
0.03
    
0.13
    
0.06
  
                           
Shares used to compute net income per share:
                          
Basic
    
16,085
    
15,806
    
16,020
    
15,857
  
Diluted
    
16,860
    
16,700
    
16,754
    
16,605