[February 04, 2013] |
|
Interactive Intelligence Reports Fourth-Quarter and Full Year 2012 Financial Results
INDIANAPOLIS --(Business Wire)--
Interactive Intelligence Group Inc. (Nasdaq: ININ), a global provider of
unified IP business communications solutions, has announced financial
results for the fourth quarter and full year ended Dec. 31, 2012.
"Our strong performance during the fourth quarter led to a record year
for orders and revenues," said Interactive Intelligence founder and CEO,
Dr. Donald Brown. "In 2012, we have further extended our product
leadership position and gained even more momentum in cloud-based
offerings, which is the fastest growing segment of the contact center
market. The number of our new cloud-based customers reached record
levels in the fourth quarter and the total dollar amount of contracts
continues growing at a rate significantly higher than the overall market.
"While continuing to add some of the most recognized global companies as
customers, we remain committed to maintaining our pace of innovation,
with several new products scheduled for release this year," continued
Brown. "Looking forward, given our strong global pipeline of
opportunities, we are reaffirming our 2013 total order growth forecast
of 20 percent and expect cloud-based orders to represent approximately
50 percent of total 2013 orders. We remain focused on innovation,
product leadership and cloud-based growth and are confident in our
long-term financial profile, which will be driven by growth in recurring
revenues."
Fourth Quarter 2012 Financial Highlights:
-
Orders: Total orders grew by 119 percent from the fourth
quarter of 2011, while cloud-based orders were up 311 percent over the
fourth quarter of 2011 and comprised 39 percent of total orders. The
company signed 68 contracts over $250,000, which included 19 orders
over $1.0 million, up from 37 and six, respectively, in the fourth
quarter of 2011.
-
Revenues: Total revenues were $70.5 million, an increase of 22
percent over the fourth quarter of 2011. Recurring revenues, which
include both maintenance and support from perpetual license agreements
and cloud-based revenues, increased 31 percent to $33.1 million and
accounted for 47 percent of total revenues. Cloud-based revenues
increased 47 percent to $6.6 million. Product revenues were $27.2
million and services revenues were $10.2 million, compared to $26.5
million and $6.0 million, respectively, in the fourth quarter of 2011.
-
Total Deferred Revenues: Deferred revenues increased to $91.9
million as of Dec. 31, 2012, from $75.4 million as of Dec. 31, 2011.
In addition, the amount of unbilled future cloud-based revenues as of
Dec. 31, 2012 increased to $89.5 million from $34.6 million as of Dec.
31, 2011. The combination of deferred revenues and unbilled future
cloud-based revenues was $181.4 million, up 65 percent from $110.0
million as of Dec. 31, 2011.
-
Operating Income: GAAP operating income was $3.5 million for
the fourth quarter of 2012, compared to $6.5 million in the fourth
quarter of 2011. Non-GAAP* operating income was $5.9 million for the
fourth quarter of 2012, with a non-GAAP operating margin of 8.4
percent, compared to $8.7 million and a non-GAAP operating margin of
15.0 percent in the fourth quarter of 2011. The year-over-year decline
in operating income resulted from the deferral of revenues due to an
increase in cloud-based orders, certain premises-based orders received
in the fourth quarter of 2012 for which revenues were deferred to
future periods, and the increased investment in sales, marketing, and
research and development to expand the company's product leadership
and share in the cloud-based market.
-
Net Income: GAAP net income for the fourth quarter of 2012 was
$2.3 million, or $0.11 per diluted share based on 20.3 million
weighted average diluted shares outstanding. This compares to GAAP net
income for the same quarter in 2011 of $4.6 million, or $0.23 per
diluted share based on 19.9 million weighted average diluted shares
outstanding.
Non-GAAP net income for the fourth quarter of
2012 was $5.7 million, or $0.28 per diluted share. This compares to
non-GAAP net income of $7.3 million, or $0.37 per diluted share for
the same quarter in 2011.
-
Cash, Cash Equivalents and Investments: As of Dec. 31, 2012, we
had cash, cash equivalents and investments of $80.6 million.
-
Cash Flows: During the fourth quarter of 2012, the company
generated $3.6 million in cash flow from operations and used $2.9
million for capital expenditures, which included expansion of its
cloud infrastructure.
Full Year 2012 Financial Highlights:
-
Orders: Total orders increased 48 percent in 2012 compared to
2011, while cloud-based orders were up 123 percent year-over-year. The
company signed 158 contracts over $250,000, which included 42 orders
over $1.0 million, up from 113 and 17, respectively, in 2011.
Cloud-based orders were 35 percent of total orders, up from 23 percent
in 2011.
-
Revenues: Total revenues were $237.4 million in 2012, an
increase of 13 percent over 2011. Recurring revenues increased 27
percent to $118.3 million. Cloud-based revenues increased 54 percent
year-over-year to $22.0 million. Product revenues were $88.6 million
and services revenues were $30.4 million in 2012, compared to $92.8
million and $23.4 million, respectively, in 2011.
-
Operating Income: GAAP operating income in 2012 was $1.1
million, compared to $21.6 million in 2011. Non-GAAP operating income
in 2012 was $10.2 million, with a non-GAAP operating margin of 4.3
percent, compared to $29.3 million and a non-GAAP operating margin of
13.9 percent in 2011. The year-over-year decline in operating income
resulted from deferral of revenues due to an increase in cloud-based
orders, certain premises-based orders received in 2012 for which
revenues were deferred to future periods, and the increased investment
in sales, marketing, and research and development to expand the
company's product leadership and share in the cloud-based market.
-
Net Income: GAAP net income was $906,000, or $0.04 per diluted
share based on 20.2 million weighted average diluted shares
outstanding. This compares to GAAP net income in 2011 of $14.8
million, or $0.74 per diluted share based on 19.9 million weighted
average diluted shares outstanding. The annual effective tax rate was
46 percent and includes a tax reserve on certain tax positions of the
company, offset by one-time benefits recorded in 2012 principally
related to a change in the company's treatment of its officer
compensation.
Non-GAAP net income was $10.1 million, or
$0.50 per diluted share, compared to non-GAAP net income in 2011 of
$24.9 million, or $1.25 per diluted share.
-
Cash Flows: During the full year of 2012, the company generated
$20.0 million in cash flow from operations, used $22.7 million for
acquisitions, and used $15.6 million for capital expenditures, which
included expansion of its cloud infrastructure.
* A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included with this press
release. An explanation of these measures is also included below under
the heading "Non-GAAP Measures."
Additional Fourth-Quarter 2012 and Recent
Highlights:
-
Interactive Intelligence was honored with a 2012 Cloud Computing
Excellence Award from TMC's Cloud Computing Magazine.
-
Interactive Intelligence launched Interaction Mobilizer™
for Windows 8, a software platform that enables mid-size to large
contact centers and enterprises to rapidly deploy customer service
applications for tablets and other mobile devices.
-
Interactive Intelligence released Interaction Dialer®
version 4.0, a major predictive dialer software upgrade which was
designed to improve ease-of-use, simplify management, and help contact
centers more effectively execute dialing campaigns.
-
The company launched an e-commerce website, the Interactive
Intelligence Marketplace?, giving customers and
resellers fast and easy access to products that complement the
vendor's all-in-one IP communications software suite.
Interactive Intelligence will host a conference call today at 4:30 p.m.
Eastern time (EST) 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 fourth-quarter earnings
call." The teleconference will also be broadcast live on the company's
investor relations' page at http://investors.inin.com.
An archive of the teleconference will be posted following the call.
About Interactive Intelligence
Interactive Intelligence Group Inc. (Nasdaq: ININ) is a global provider
of contact center, unified communications, and business process
automation software and services. The company's unified IP business
communications solutions, which can be deployed on-premise or via the
cloud, are ideal for industries such as financial services, insurance,
outsourcers, collections, and utilities. Interactive Intelligence was
founded in 1994 and has more than 5,000 customers worldwide. The company
is among Forbes Magazine's 2011 Best Small Companies in America and
Software Magazine's 2012 Top 500 Global Software and Service Providers.
It employs approximately 1,400 people and is headquartered in
Indianapolis, Indiana. The company has offices throughout North America,
Latin America, Europe, Middle East, Africa and Asia Pacific. Interactive
Intelligence can be reached at +1 317.872.3000 or [email protected];
on the Net: www.inin.com.
Non-GAAP Measures
The non-GAAP measures shown in this release include revenue which was
not recognized on a GAAP basis due to purchase accounting adjustments
and exclude non-cash stock-based compensation expense, the amortization
of certain intangible assets related to acquisitions by the company and
non-cash income tax expense. Reconciliations of these non-GAAP measures
to the most directly comparable GAAP measures are included with the
financial information included in this press release. These measures are
not in accordance with, or an alternative for, GAAP and may be different
from non-GAAP measures used by other companies. Stock-based compensation
expense and amortization of intangibles related to acquisitions are
non-cash and certain amounts of income tax expense are non-cash.
Management believes that the presentation of non-GAAP results, when
shown in conjunction with corresponding GAAP measures, provides useful
information to management and investors regarding financial and business
trends related to the company's results of operations. Further,
management believes that these non-GAAP measures improve management's
and investors' ability to compare the company's financial performance
with other companies in the technology industry. Because stock-based
compensation expense, non-cash income tax expense amounts and
amortization of intangibles related to acquisitions can vary
significantly between companies, it is useful to compare results
excluding these amounts. Management also uses financial statements that
exclude stock-based compensation expense related to stock options,
non-cash income tax amounts and amortization of intangibles related to
acquisitions for its internal budgets.
Forward Looking Statements
This release may contain 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; the company's ability to maintain
profitability; to manage successfully its growth; to manage successfully
its increasingly complex third-party relationships resulting from the
software and hardware components being licensed or sold with its
solutions; to maintain successful relationships with certain suppliers
which may be impacted by the competition in the technology industry; to
maintain successful relationships with its current and any new partners;
to maintain and improve its current products; to develop new products;
to protect its proprietary rights adequately; to successfully integrate
acquired businesses; and other factors described in the company's SEC
filings, including the company's latest annual report on Form 10-K.
Interactive Intelligence 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.
Interactive Intelligence Group, Inc.
|
Condensed Consolidated Statements of Income
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
27,207
|
|
|
$
|
26,538
|
|
|
$
|
88,626
|
|
|
$
|
92,786
|
|
|
Recurring
|
|
|
33,120
|
|
|
|
25,186
|
|
|
|
118,343
|
|
|
|
93,363
|
|
|
Services
|
|
|
10,215
|
|
|
|
5,951
|
|
|
|
30,396
|
|
|
|
23,377
|
|
|
|
Total revenues
|
|
|
70,542
|
|
|
|
57,675
|
|
|
|
237,365
|
|
|
|
209,526
|
|
Costs of revenues:
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
6,742
|
|
|
|
5,818
|
|
|
|
24,329
|
|
|
|
25,095
|
|
|
Recurring
|
|
|
9,053
|
|
|
|
6,227
|
|
|
|
32,227
|
|
|
|
23,801
|
|
|
Services
|
|
|
6,796
|
|
|
|
4,600
|
|
|
|
22,868
|
|
|
|
16,389
|
|
|
Amortization of intangible assets
|
|
|
58
|
|
|
|
35
|
|
|
|
163
|
|
|
|
140
|
|
|
|
Total cost of revenues
|
|
|
22,649
|
|
|
|
16,680
|
|
|
|
79,587
|
|
|
|
65,425
|
|
Gross profit
|
|
|
47,893
|
|
|
|
40,995
|
|
|
|
157,778
|
|
|
|
144,101
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
23,172
|
|
|
|
18,339
|
|
|
|
79,770
|
|
|
|
63,039
|
|
|
Research and development
|
|
|
12,386
|
|
|
|
9,522
|
|
|
|
45,682
|
|
|
|
35,626
|
|
|
General and administrative
|
|
|
8,312
|
|
|
|
6,284
|
|
|
|
29,722
|
|
|
|
22,729
|
|
|
Amortization of intangible assets
|
|
|
494
|
|
|
|
306
|
|
|
|
1,521
|
|
|
|
1,066
|
|
|
|
Total operating expenses
|
|
|
44,364
|
|
|
|
34,451
|
|
|
|
156,695
|
|
|
|
122,460
|
|
Operating income
|
|
|
3,529
|
|
|
|
6,544
|
|
|
|
1,083
|
|
|
|
21,641
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
207
|
|
|
|
134
|
|
|
|
772
|
|
|
|
434
|
|
|
Other income (expense)
|
|
|
(123
|
)
|
|
|
(118
|
)
|
|
|
(189
|
)
|
|
|
144
|
|
Total other income
|
|
|
84
|
|
|
|
16
|
|
|
|
583
|
|
|
|
578
|
|
Income before income taxes
|
|
|
3,613
|
|
|
|
6,560
|
|
|
|
1,666
|
|
|
|
22,219
|
|
Income tax expense
|
|
|
1,343
|
|
|
|
1,965
|
|
|
|
760
|
|
|
|
7,421
|
|
Net income
|
|
$
|
2,270
|
|
|
$
|
4,595
|
|
|
$
|
906
|
|
|
$
|
14,798
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
$
|
129
|
|
|
$
|
710
|
|
|
$
|
(645
|
)
|
|
$
|
(73
|
)
|
|
Net unrealized investment gain (loss)
|
|
|
(191
|
)
|
|
|
(89
|
)
|
|
|
163
|
|
|
|
93
|
|
Comprehensive income
|
|
$
|
2,208
|
|
|
$
|
5,216
|
|
|
$
|
424
|
|
|
$
|
14,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.12
|
|
|
$
|
0.24
|
|
|
$
|
0.05
|
|
|
$
|
0.79
|
|
Diluted
|
|
|
0.11
|
|
|
|
0.23
|
|
|
|
0.04
|
|
|
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
19,367
|
|
|
|
18,908
|
|
|
|
19,241
|
|
|
|
18,714
|
|
Diluted
|
|
|
20,308
|
|
|
|
19,850
|
|
|
|
20,162
|
|
|
|
19,885
|
|
|
|
|
|
|
|
|
|
|
Interactive Intelligence Group, Inc.
|
Reconciliation of Supplemental Financial Information
|
(in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Recurring revenue, as reported
|
|
$
|
33,120
|
|
|
$
|
25,186
|
|
|
$
|
118,343
|
|
|
$
|
93,363
|
|
Purchase accounting adjustments
|
|
|
178
|
|
|
|
309
|
|
|
|
522
|
|
|
|
471
|
|
Non-GAAP recurring revenue
|
|
$
|
33,298
|
|
|
$
|
25,495
|
|
|
$
|
118,865
|
|
|
$
|
93,834
|
|
|
|
|
|
|
|
|
|
|
|
Recurring revenue gross profit as reported
|
|
$
|
24,067
|
|
|
$
|
18,959
|
|
|
$
|
86,116
|
|
|
$
|
69,562
|
|
Purchase accounting adjustments
|
|
|
178
|
|
|
|
309
|
|
|
|
522
|
|
|
|
471
|
|
Non-cash stock-based compensation expense
|
|
|
135
|
|
|
|
89
|
|
|
|
523
|
|
|
|
422
|
|
Non-GAAP recurring revenue gross profit
|
|
$
|
24,380
|
|
|
$
|
19,357
|
|
|
$
|
87,161
|
|
|
$
|
70,455
|
|
Non-GAAP recurring revenue gross margin
|
|
|
73.2
|
%
|
|
|
75.9
|
%
|
|
|
73.3
|
%
|
|
|
75.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue, as reported
|
|
$
|
10,215
|
|
|
$
|
5,951
|
|
|
$
|
30,396
|
|
|
$
|
23,377
|
|
Purchase accounting adjustments
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
54
|
|
Non-GAAP services revenue
|
|
$
|
10,215
|
|
|
$
|
5,957
|
|
|
$
|
30,396
|
|
|
$
|
23,431
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue gross profit as reported
|
|
$
|
3,419
|
|
|
$
|
1,351
|
|
|
$
|
7,528
|
|
|
$
|
6,988
|
|
Purchase accounting adjustments
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
54
|
|
Non-cash stock-based compensation expense
|
|
|
27
|
|
|
|
35
|
|
|
|
147
|
|
|
|
101
|
|
Non-GAAP services revenue gross profit
|
|
$
|
3,446
|
|
|
$
|
1,392
|
|
|
$
|
7,675
|
|
|
$
|
7,143
|
|
Non-GAAP services revenue gross margin
|
|
|
33.7
|
%
|
|
|
23.4
|
%
|
|
|
25.3
|
%
|
|
|
30.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Total revenue, as reported
|
|
$
|
70,542
|
|
|
$
|
57,675
|
|
|
$
|
237,365
|
|
|
$
|
209,526
|
|
Purchase accounting adjustments
|
|
|
178
|
|
|
|
315
|
|
|
|
522
|
|
|
|
525
|
|
Non-GAAP total revenue
|
|
$
|
70,720
|
|
|
$
|
57,990
|
|
|
$
|
237,887
|
|
|
$
|
210,051
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
$
|
47,893
|
|
|
$
|
40,995
|
|
|
$
|
157,778
|
|
|
$
|
144,101
|
|
Purchase accounting adjustments
|
|
|
178
|
|
|
|
315
|
|
|
|
522
|
|
|
|
525
|
|
Operating expenses
|
|
|
58
|
|
|
|
35
|
|
|
|
163
|
|
|
|
140
|
|
Non-cash stock-based compensation expense
|
|
|
162
|
|
|
|
124
|
|
|
|
670
|
|
|
|
523
|
|
Non-GAAP gross profit
|
|
$
|
48,291
|
|
|
$
|
41,469
|
|
|
$
|
159,133
|
|
|
$
|
145,289
|
|
Non-GAAP gross margin
|
|
|
68.3
|
%
|
|
|
71.5
|
%
|
|
|
66.9
|
%
|
|
|
69.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
$
|
3,529
|
|
|
$
|
6,544
|
|
|
$
|
1,083
|
|
|
$
|
21,641
|
|
Purchase accounting adjustments
|
|
|
769
|
|
|
|
849
|
|
|
|
2,487
|
|
|
|
2,331
|
|
Non-cash stock-based compensation expense
|
|
|
1,650
|
|
|
|
1,294
|
|
|
|
6,677
|
|
|
|
5,298
|
|
Non-GAAP operating income
|
|
$
|
5,948
|
|
|
$
|
8,687
|
|
|
$
|
10,247
|
|
|
$
|
29,270
|
|
Non-GAAP operating margin
|
|
|
8.4
|
%
|
|
|
15.0
|
%
|
|
|
4.3
|
%
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interactive Intelligence Group, Inc.
|
Reconciliation of Supplemental Financial Information
|
(in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net income, as reported
|
|
$
|
2,270
|
|
$
|
4,595
|
|
$
|
906
|
|
$
|
14,798
|
Purchase accounting adjustments:
|
|
|
|
|
|
|
|
|
Increase to revenues:
|
|
|
|
|
|
|
|
|
|
Recurring
|
|
|
178
|
|
|
309
|
|
|
522
|
|
|
471
|
|
Services
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
54
|
Reduction of operating expenses:
|
|
|
|
|
|
|
|
|
|
Customer Relationships
|
|
|
449
|
|
|
261
|
|
|
1,341
|
|
|
886
|
|
Technology
|
|
|
58
|
|
|
35
|
|
|
163
|
|
|
140
|
|
Non-compete agreements
|
|
|
46
|
|
|
45
|
|
|
180
|
|
|
180
|
|
Acquisition Costs
|
|
|
38
|
|
|
193
|
|
|
281
|
|
|
600
|
|
Total
|
|
|
769
|
|
|
849
|
|
|
2,487
|
|
|
2,331
|
Non-cash stock-based compensation expense:
|
|
|
|
|
|
|
|
|
|
Cost of recurring revenues
|
|
|
135
|
|
|
89
|
|
|
523
|
|
|
422
|
|
Cost of services revenues
|
|
|
27
|
|
|
35
|
|
|
147
|
|
|
101
|
|
Sales and marketing
|
|
|
543
|
|
|
394
|
|
|
2,250
|
|
|
1,677
|
|
Research and development
|
|
|
510
|
|
|
374
|
|
|
1,886
|
|
|
1,570
|
|
General and administrative
|
|
|
435
|
|
|
402
|
|
|
1,871
|
|
|
1,528
|
|
Total
|
|
|
1,650
|
|
|
1,294
|
|
|
6,677
|
|
|
5,298
|
Non-cash income tax expense
|
|
|
1,039
|
|
|
522
|
|
|
-
|
|
|
2,434
|
Non-GAAP net income
|
|
$
|
5,728
|
|
$
|
7,260
|
|
$
|
10,070
|
|
$
|
24,861
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as reported
|
|
$
|
0.11
|
|
$
|
0.23
|
|
$
|
0.04
|
|
$
|
0.74
|
Purchase accounting adjustments
|
|
|
0.04
|
|
|
0.04
|
|
|
0.12
|
|
|
0.12
|
Non-cash stock-based compensation expense
|
|
|
0.08
|
|
|
0.07
|
|
|
0.34
|
|
|
0.27
|
Non-cash income tax expense
|
|
|
0.05
|
|
|
0.03
|
|
|
-
|
|
|
0.12
|
Non-GAAP diluted EPS
|
|
$
|
0.28
|
|
$
|
0.37
|
|
$
|
0.50
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interactive Intelligence Group, Inc.
|
Condensed Consolidated Balance Sheets
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
Assets
|
|
|
(unaudited)
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
45,057
|
|
|
$
|
28,465
|
|
|
Short-term investments
|
|
|
23,816
|
|
|
|
40,589
|
|
|
Accounts receivable, net
|
|
|
68,409
|
|
|
|
56,331
|
|
|
Deferred tax assets, net
|
|
|
16,600
|
|
|
|
8,952
|
|
|
Prepaid expenses
|
|
|
15,565
|
|
|
|
11,474
|
|
|
Other current assets
|
|
|
5,958
|
|
|
|
4,966
|
|
|
|
Total current assets
|
|
|
175,405
|
|
|
|
150,777
|
|
Long-term investments
|
|
|
11,757
|
|
|
|
23,415
|
|
Property and equipment, net
|
|
|
26,816
|
|
|
|
18,304
|
|
Goodwill
|
|
|
|
38,723
|
|
|
|
22,696
|
|
Intangible assets, net
|
|
|
22,676
|
|
|
|
15,029
|
|
Other assets, net
|
|
|
6,419
|
|
|
|
2,581
|
|
Total assets
|
|
$
|
281,796
|
|
|
$
|
232,802
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
8,795
|
|
|
$
|
5,434
|
|
|
Accrued liabilities
|
|
|
23,008
|
|
|
|
11,111
|
|
|
Accrued compensation and related expenses
|
|
|
13,640
|
|
|
|
8,870
|
|
|
Deferred product revenues
|
|
|
5,999
|
|
|
|
3,870
|
|
|
Deferred services revenues
|
|
|
67,893
|
|
|
|
57,423
|
|
|
|
Total current liabilities
|
|
|
119,336
|
|
|
|
86,708
|
|
Long-term deferred revenues
|
|
|
18,000
|
|
|
|
14,141
|
|
Deferred tax liabilities, net
|
|
|
99
|
|
|
|
1,688
|
|
Other long-term liabilities
|
|
|
244
|
|
|
|
291
|
|
Total liabilities
|
|
$
|
137,679
|
|
|
$
|
102,828
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
194
|
|
|
|
190
|
|
|
Additional paid-in-capital
|
|
|
133,359
|
|
|
|
119,644
|
|
|
Accumulated other comprehensive loss
|
|
|
(675
|
)
|
|
|
(193
|
)
|
|
Retained earnings
|
|
|
11,239
|
|
|
|
10,333
|
|
|
|
Total shareholders' equity
|
|
|
144,117
|
|
|
|
129,974
|
|
Total liabilities and shareholders' equity
|
|
$
|
281,796
|
|
|
$
|
232,802
|
|
|
|
|
|
|
|
|
|
|
Interactive Intelligence Group, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
(unaudited)
|
|
Operating activities:
|
|
|
|
|
Net income
|
|
$
|
906
|
|
|
$
|
14,798
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
7,975
|
|
|
|
5,669
|
|
|
Amortization
|
|
|
1,776
|
|
|
|
1,209
|
|
|
Other non-cash items
|
|
|
(757
|
)
|
|
|
37
|
|
|
Stock-based compensation expense
|
|
|
6,676
|
|
|
|
5,298
|
|
|
Tax benefits from stock-based payment arrangements
|
|
|
(1,586
|
)
|
|
|
(3,336
|
)
|
|
Deferred income tax
|
|
|
(12,311
|
)
|
|
|
(524
|
)
|
|
Amortization (accretion) of investment income
|
|
|
846
|
|
|
|
(1,165
|
)
|
|
Loss (gain) on disposal of fixed assets
|
|
|
(74
|
)
|
|
|
4
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(10,166
|
)
|
|
|
(13,313
|
)
|
|
|
Prepaid expenses
|
|
|
(3,918
|
)
|
|
|
(2,888
|
)
|
|
|
Other current assets
|
|
|
(975
|
)
|
|
|
(85
|
)
|
|
|
Other assets
|
|
|
(3,838
|
)
|
|
|
(1,778
|
)
|
|
|
Accounts payable
|
|
|
5,071
|
|
|
|
(7,700
|
)
|
|
|
Accrued liabilities
|
|
|
11,941
|
|
|
|
6,918
|
|
|
|
Accrued compensation and related expenses
|
|
|
4,400
|
|
|
|
(918
|
)
|
|
|
Deferred product revenues
|
|
|
1,190
|
|
|
|
489
|
|
|
|
Deferred services revenues
|
|
|
12,850
|
|
|
|
18,675
|
|
Net cash provided by operating activities
|
|
|
20,006
|
|
|
|
21,390
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Sales of available-for-sale investments
|
|
|
58,234
|
|
|
|
73,118
|
|
Purchases of available-for-sale investments
|
|
|
(30,348
|
)
|
|
|
(98,205
|
)
|
Purchases of property and equipment
|
|
|
(15,554
|
)
|
|
|
(13,280
|
)
|
Acquisitions, net of cash
|
|
|
(22,651
|
)
|
|
|
(13,376
|
)
|
Unrealized gain (loss) on investment
|
|
|
(138
|
)
|
|
|
1
|
|
Net cash used in investing activities
|
|
|
(10,457
|
)
|
|
|
(51,742
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Proceeds from stock options exercised
|
|
|
5,030
|
|
|
|
6,671
|
|
Proceeds from issuance of common stock
|
|
|
680
|
|
|
|
510
|
|
Employee taxes withheld for restricted stock units
|
|
|
(253
|
)
|
|
|
-
|
|
Tax benefits from stock-based payment arrangements
|
|
|
1,586
|
|
|
|
3,336
|
|
Net cash provided by financing activities
|
|
|
7,043
|
|
|
|
10,517
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
16,592
|
|
|
|
(19,835
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
28,465
|
|
|
|
48,300
|
|
Cash and cash equivalents, end of period
|
|
$
|
45,057
|
|
|
$
|
28,465
|
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
Interest
|
|
$
|
5
|
|
|
$
|
3
|
|
Income taxes
|
|
|
3,213
|
|
|
|
2,835
|
|
|
|
|
|
|
|
|
Other non-cash item:
|
|
|
|
|
Purchases of property and equipment payable at end of period
|
|
|
44
|
|
|
|
70
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
(Dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2012
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
Margins (GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
70.2%
|
|
73.6%
|
|
69.1%
|
|
78.1%
|
|
73.4%
|
|
70.9%
|
|
69.5%
|
|
73.4%
|
|
75.2%
|
|
72.5%
|
|
Recurring
|
|
74.5%
|
|
74.0%
|
|
73.8%
|
|
75.3%
|
|
74.0%
|
|
73.8%
|
|
72.4%
|
|
72.3%
|
|
72.7%
|
|
72.8%
|
|
Services
|
|
40.3%
|
|
28.0%
|
|
27.9%
|
|
22.7%
|
|
29.9%
|
|
19.7%
|
|
22.6%
|
|
18.9%
|
|
33.5%
|
|
24.8%
|
|
Overall
|
|
68.1%
|
|
68.9%
|
|
66.7%
|
|
71.1%
|
|
68.8%
|
|
66.8%
|
|
65.2%
|
|
65.6%
|
|
67.9%
|
|
66.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year Revenue Growth (GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
31.5%
|
|
33.7%
|
|
7.3%
|
|
9.0%
|
|
18.7%
|
|
-4.8%
|
|
-18.8%
|
|
3.3%
|
|
2.5%
|
|
-6.2%
|
|
Recurring
|
|
30.3%
|
|
35.1%
|
|
45.7%
|
|
22.8%
|
|
33.0%
|
|
31.1%
|
|
27.2%
|
|
17.9%
|
|
31.5%
|
|
29.1%
|
|
Services
|
|
87.7%
|
|
30.4%
|
|
26.3%
|
|
4.3%
|
|
31.6%
|
|
-8.4%
|
|
23.5%
|
|
34.7%
|
|
71.7%
|
|
30.0%
|
|
Overall
|
|
36.3%
|
|
33.9%
|
|
24.6%
|
|
13.9%
|
|
26.0%
|
|
10.6%
|
|
5.4%
|
|
13.7%
|
|
22.3%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over $1 million
|
|
3
|
|
5
|
|
3
|
|
6
|
|
17
|
|
6
|
|
8
|
|
9
|
|
19
|
|
42
|
|
Between $250,000 and $1 million
|
|
24
|
|
27
|
|
14
|
|
31
|
|
96
|
|
11
|
|
28
|
|
28
|
|
49
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of new customers
|
|
65
|
|
81
|
|
55
|
|
103
|
|
304
|
|
60
|
|
67
|
|
65
|
|
110
|
|
302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average new customer order:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall
|
|
$ 275
|
|
$ 240
|
|
$ 314
|
|
$ 259
|
|
$ 267
|
|
$ 240
|
|
$ 349
|
|
$ 409
|
|
$ 623
|
|
$ 440
|
|
Cloud-based
|
|
488
|
|
282
|
|
3,691
|
|
642
|
|
693
|
|
761
|
|
557
|
|
822
|
|
1,134
|
|
866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ININ-G
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