For More Information Please Contact:
Michael J. Tavlin
Senior Vice President and Chief Financial Officer
Interactive Intelligence Inc.
Company also announces voluntary stock option exchange program for employees
INDIANAPOLIS (April 19, 2001) - Interactive Intelligence Inc. (NASDAQ: ININ), a global developer of interaction management software, reported record revenues of $12.7 million for the quarter ended March 31, 2001. This is an increase of 80 percent over revenues of $7.0 million in the same quarter a year ago.
The net loss for the first quarter of 2001 was $1.7 million, or $0.11 per share. This compares with a net loss of $1.6 million, or $0.12 per share for the first quarter of 2000.
Dr. Donald E. Brown, president and chief executive officer for Interactive Intelligence, said: "We are very pleased with our financial performance for the first quarter of 2001. This was our 12th consecutive quarter of 80 percent or better top line revenue growth. This record of outstanding financial performance is to us especially noteworthy considering all of the recent reports of a global economic downturn. Our focus for the future continues to be revenue expansion, cost control and the path to profitability, which we believe can occur by the third quarter of this year."
Fundamental to Interactive Intelligence`s growth last quarter was its ability to continue to sign brand name customers and improve its reseller base. New customers in the Americas included Peoplesoft, Computershare, Walgreens, Key Benefits Group, Sears Mexico and Lan Chile. Follow-on business was also excellent, with important first quarter sales involving Bell Industries, Ceridian and Blue Cross Blue Shield.
The company improved its North American reseller channel in the first quarter by signing Kent Datacomm, a division of Kent Electronics Corporation, which is among the largest publicly traded specialty electronics distributors and network integrators in the U.S. Kent Datacomm specializes in IP telephony integration and is also a national Cisco partner.
Interactive Intelligence signed several new Asia Pacific customers, including Shinsei Bank in Japan, Taipei Water Department, Pacific Access in Sydney and Sitel in New Zealand. Said Dr. Brown, "Asia Pacific continues to be a market with a lot of potential for us. With major partners coming on board, including most recently WorldGroup Consulting in Malaysia and Iverson Computer Associates in Singapore, we believe we can maintain rapid penetration here."
Interactive Intelligence continued to lay the foundation for additional market penetration in Europe, signing data network supplier and major Cisco partner, DLink in Germany. The company also signed Dimension Data in Europe, which has been a very successful reseller for Interactive Intelligence in South Africa since 1998.
Interactive Intelligence made notable headway on the product front as well, announcing a major upgrade to its add-on dialer product for contact centers, Interaction Dialer(tm). Also of note was its OEM agreement with Nuance, designed to improve voice recognition integration to the company`s call center and e-business products.
Interactive Intelligence officially expanded its direct presence in Asia Pacific in the first quarter by opening its Kuala Lumpur office to better support South Asia and Australasia operations. Also in the first quarter the company hired its 400th employee and announced the commencement of construction for its new campus-style headquarters in Indianapolis to support its continued growth.
The company also announced today that its Board of Directors has approved a voluntary stock option exchange program for its employees. Interactive Intelligence employees will have the opportunity, if they so choose, to cancel previously granted options under the Company`s 1999 Stock Option and Incentive Plan in exchange for an equal number of new options to be granted on a specified future date. The exercise or strike price of these new options will be set at the fair market value of the Company`s common stock as of the new grant date, which is expected to occur late this year.
"We believe that our company`s opportunities for growth are excellent and that employee retention and motivation are cornerstones to building long-term shareholder value," said Dr. Brown. "I believe that this program is an important indication of our commitment to our future success."
The exchange program has been organized to comply with FASB Interpretation No. 44 "Accounting for Certain Transactions Involving Stock Compensation" and, accordingly, there will be no variable compensation charges as a result of this voluntary stock option exchange program.
Business and Financial Outlook
The following statements are based on Interactive Intelligence`s current expectations as of April 19, 2001. These statements are forward-looking statements and actual results may differ materially. A discussion on forward-looking statements and potential risks and uncertainties that may arise to affect these statements is included at the end of this press release.
Said Dr. Brown, "We are very aware of the general uncertainty concerning business conditions in the markets we seek to serve. Reports of a deteriorating macro-economic environment resulting in serious challenges to incoming order rates amid signs of a sector slowdown are rampant among technology companies. Nevertheless, we believe we are well positioned for the future and we are cautiously optimistic concerning the current fiscal quarter and year. As we look forward to the June 2001 quarter, we expect revenue of $14.3 million to $14.5 million and a loss per share of $0.04 to $0.05 based on 15.1 million shares. For the year 2001, we expect revenue of $61 million to $63 million and fully diluted earnings per share of $0.00 to $0.02 based on 16.5 million shares. Having just achieved our strongest quarter ever in terms of net cash provided by operating activities, we continue to rigorously focus on our goal of achieving overall profitability in the third quarter of 2001."
About Interactive Intelligence Inc.