Interactive stock gains after earnings report.

Shares of Interactive Intelligence Inc. are up 16.1 percent, to $17.75, this morning after reporting yesterday that first-quarter profit increased to nearly $1.7 million from $1 million a year earlier.

The Indianapolis software developer, which has launched an expansion that will add ? workers to its northwest-side offices, attributed the boost to strong sales of new and existing product lines.

Morgan Keegan today upgraded its recommendation on the stock to “outperform” from “market perform.”