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inContact Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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inContact Inc. (SAAS) filed Quarterly Report for the period ended 2010-09-30.

Incontact Inc. has a market cap of $91.2 million; its shares were traded at around $2.65 with a P/E ratio of 86.7 and P/S ratio of 1.1. SAAS is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management.

Highlight of Business Operations:

Total revenues decreased $666,000 or 3% to $20.3 million during the three months ended September 30, 2010 compared to revenues of $20.9 million during the same period in 2009. The decrease relates to a decrease of $1.6 million in Telecom segment revenue due to anticipated attrition. The decrease is offset by an increase of $922,000 in Software revenue related to our increased sales and marketing efforts for our inContact suite of services.

Research and development expense increased $172,000 or 13% to $1.5 million during the three months ended September 30, 2010 from $1.3 million during the same period in 2009. The increase relates to our efforts to expand our content offerings, upgrade and extend our service offerings and develop new technologies. In addition, during the three months ended September 30, 2010, we capitalized $787,000 of costs related to our internally developed software compared to $941,000 during the same period in 2009.

Other income was $0 during the three months ended September 30, 2010 compared to an expense of $197,000 during the same period in 2009. Net interest expense decreased $62,000 for the third quarter of 2010 compared to the comparable period in 2009 due to a lower outstanding balance on our revolving credit agreement in 2010 as compared to 2009. The remaining increase of $135,000 primarily relates to the change in fair value of our warrant liability. During the three months ended September 30, 2010, the fair value of our warrant liability decreased $83,000 and the fair value of our warrant liability increased $54,000 during the three months ended September 30, 2009.

Total revenues decreased $1.5 million or 2% to $61.9 million during the nine months ended September 30, 2010 compared to revenues of $63.4 million during the same period in 2009. The decrease relates to a decrease of $5.3 million in Telecom segment revenue due to anticipated attrition. The decrease is offset by an increase of $3.8 million in Software revenue related to our increased sales and marketing efforts for our inContact suite of services.

Research and development expense increased $426,000 or 12% to $3.9 million during the nine months ended September 30, 2010 from $3.5 million during the same period in 2009. The increase relates to our efforts to expand our content offerings, upgrade and extend our service offerings and develop new technologies. In addition, during the nine months ended September 30, 2010 and 2009, we capitalized $2.6 million of costs related to our internally developed software.

Other income increased $1.2 million to $218,000 during the nine months ended September 30, 2010 from an expense of $955,000 during the same period in 2009. Net interest expense decreased $329,000 for the nine months ended September 30, 2010 compared to the comparable period in 2009 due to a lower outstanding balance on our revolving credit agreement in 2010 as compared to 2009. The remaining increase of $844,000 primarily relates to the change in fair value of our warrant liability. During the nine months ended September 30, 2010, the fair value of our warrant liability decreased $419,000 and the fair value of our warrant liability increased $430,000 during the nine months ended September 30, 2009.

Read the The complete Report

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