IBJNews

Interactive Intelligence shares fall on smaller profit

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Interactive Intelligence fell as much 10 percent in early trading Thursday after the Indianapolis-based software maker reported lower earnings Wednesday after the market closed.

Interactive's profit in the first quarter fell to $189,000, or 1 cent per share, compared with $3 million, or 16 cents per share, in the same quarter of 2011.

Revenue grew 11 percent, to $52.8 million, compared to the previous year.

The company reported profit of 9 cents per share on a non-GAAP (generally accepted accounting principles) basis, missing analyst estimates by 6 cents per share.

Interactive's short-term results appeared to be dinged by a higher percentage of cloud-based product orders, which resulted in more revenue being deferred to future quarters.

The company increasingly is making its communications software available as a service that is hosted and managed off-site instead of at the customer’s premises. The appeal of such cloud computing is that customers don’t have to allocate costly space on their own IT systems.

“For the first quarter, a higher mix of cloud-based orders and the structure of certain product orders resulted in more revenues being deferred to future quarters,” Interactive founder and CEO Donald Brown said in a prepared statement. "We are optimistic about our outlook for the remainder of the year, and we are maintaining our revenue, order growth and profitability guidance for 2012."

Unbilled future cloud-based revenues in the quarter jumped to $40.6 million, from $18.6 million during the first quarter of 2011.

Interactive stock fell as low as $27.27 per share Thursday morning before rebounding to $28.49, down 7.4 percent from Wednesday's closing price.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT