Interactive’s Preannouncement Beats

Interactive Intelligence Inc. (ININ - Snapshot Report) announced preliminary third-quarter results after the closing bell yesterday. The company expects GAAP net income between $2.5 million and $2.9 million and earnings per share between 13 cents and 16 cents, compared to $924,000 − or 5 cents per share − in the year-ago quarter. 

Excluding a stock-based compensation expense of about $975,000 and a non-cash income tax expense of approximately $1.8 million to $2.0 million, the company anticipates pro forma earnings of $5.2 million to $5.8 million, or 28 to 31 cents per share. The result came in well ahead of the Zacks Consensus Estimate of 11 cents per share derived from 3 covering analysts. 

The Indianapolis-based company said it expects to post quarterly revenues of $32.0 million to $34.0 million, compared to $30.1 million in the year-ago period as both product and services revenue witnessed solid growth. The revenue expansion was primarily driven by 2 license orders of more than $1 million each, coupled with 8 other orders worth more than $250,000 each. 

During the second quarter, the company’s net income more than doubled to $2.1 million, compared to $845,000 in the year-ago quarter. However, earnings per share of 12 cents missed the Zacks Consensus Estimate by a penny. The company recorded a growth of 7.5% year over year to $32.9 million driven by 3 significant orders exceeding $1 million each. 

Meanwhile, the Zacks Consensus Estimate on the company’s full-year earnings, derived from 3 covering analysts, is currently pegged at 57 cents per share, which has remained stagnant over the past 2 months. The Zacks Consensus Estimate for the next year’s earnings has climbed 5 cents over the past 2 months and currently stands at 71 cents per share. 

Interactive Intelligence is a provider of software application suites for voice over Internet protocol (VoIP) business communications to enterprises. The company offers a pre-integrated all-software Internet Protocol Private Branch Exchange (IP PBX) phone and communications solution for enterprises. It also offers software products and services for multi-channel contact management, business communications, messaging using the session initiation protocol (SIP) global communications standard that supports VoIP. 

Shares of Interactive Intelligence have more than tripled since their low levels in January this year and jumped more than 14% in premarket trading on the Nasdaq. The company is scheduled to report full results for the third quarter on Oct 26. We currently have a Neutral recommendation on the stock.

Read the full analyst report on ININ