Interactive Intelligence Slips To Loss On Expenses; Stock Down - Update

(RTTNews) - Software company Interactive Intelligence Group Inc (ININ), Monday reported a slip to loss in the first quarter, hurt by increased operating expenses that offset an eight percent increase in revenues, with results falling short of Wall Street estimates.

Following the announcement, the stock plunged over 14 percent in after-hours trade on the Nasdaq.

CEO Donald Brown said that the company's short-term profitability is being impacted as it shifts to a higher proportion of cloud-based orders and more of its business deferred to future quarters.

Interactive Intelligence provides contact center, unified communications, and business process automation services.

The Indianapolis, Indiana-based company posted a first-quarter net loss of $2.6 million or $0.12 per share, compared to a profit of $1.5 million or $0.07 per share last year.

Excluding items, adjusted loss for the quarter was $0.4 million or $0.02 per share, compared to earnings of $3.6 million or $0.17 per share a year ago.

On average, six analysts polled by Thomson Reuters expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $79.4 million from $73.2 million last year. Analysts expected revenues of $79.67 million.

Recurring revenues, including support fees from on-premises license agreements and fees from cloud-based customers, increased 28 percent and Cloud-based revenues increased 85 percent, while Product revenues slumped.

Results were impacted by operating expenses that climbed to $52 million from $44 million a year ago.

In April, Interactive Intelligence signed a letter of intent to acquire OrgSpan Inc., a privately held company that offers cloud-based enterprise social communications solutions.

Interactive Intelligence stock closed Monday at $62.10, down $0.96 or 1.52%, on a volume of about 0.22 million shares on the Nasdaq. In after hours, the stock dropped $8.80 or 14.17%, to trade at $53.30.