inContact Inc. (SAAS, Financial) filed Quarterly Report for the period ended 2008-06-30.
inContact Inc. operates as a hosted software as a service company offering a range of hosted contact handling and performance management software services in addition to a variety of connectivity options for carrying an inbound call into its inContact suite of services.The Company sells telecom services unbundled from its inContact service offering including dedicated switched toll free and data lines.The company also operates as a reseller of domestic and international long distance and other services provided by national and regional wholesale providers.It was formerly known as UCN Inc. and is based in Midvale Utah..
Consolidated revenues decreased $629,000 to $39.2 million for the six months ended June 30, 2008 from $39.8 million for the same period in 2007. This decrease is due to decreased revenue in our Telecom segment which was down $3.9 million or 11% compared to the same period in 2007. The decrease in our Telecom segment is due to expected attrition as we have focused our sales and marketing efforts on increasing customers in our SaaS segment. The decrease is offset by significant increases in SaaS segment revenue which increased $3.3 million or 58% from the same period in 2007. The BenchmarkPortal acquisition in first quarter 2007 allowed us to provide customers a hosted process for measuring the effectiveness of agent interactions with clients. The ScheduleQ acquisition allowed us to provide our customers a hosted solution for automating the scheduling, forecasting and alert notification functions common to most contact center/customer service type operations. These additions augmented our all-in-one hosted inContact solution and accounted for $490,000 of the $3.3 million increase in SaaS segment revenue.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $556,000 or 23% during the quarter compared to the same period in 2007. General and administrative expenses increased $878,000 or 75% during the quarter ended June 30, 2008 compared to the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the quarter ended June 30, 2008, we spent $1.1 million in research and development costs as compared to $447,000 for the same period in 2007 and have capitalized an additional $365,000 of costs incurred during the quarter ended June 30, 2008 related to our internally developed software.
The SaaS segment revenue increased by $3.3 million or 58% to $8.9 million during the six months ended June 30, 2008 compared to $5.6 million for the same period in 2007. The increase is a result of the selling and promotional efforts we have undertaken to expand these services in the market. Revenue related to sales of services acquired in the BenchmarkPortal and Schedule Q acquisitions in February 2007 provided $2.1 million of revenue in the current six months ended June 30, 2008, an additional $490,000 of revenue as compared to the six months ended June 30, 2007.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $1.5 million or 34% during the six months ended June 30, 2008 compared to the same period in 2007. General and administrative expenses increased $2.1 million or 107% during the six months ended June 30, 2008 compared to the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the six months ended June 30, 2008, we spent $2.0 million in research and development costs as compared to $875,000 for the same period in 2007 and have capitalized an additional $779,000 of costs incurred during the six months ended June 30, 2008 related to our internally developed software.
Our working capital surplus of $3.3 million at December 31, 2007 decreased to $108,000 at June 30, 2008. The decrease is primarily due to a $1.8 million dollar reduction in accounts receivable, a $596,000 increase in deferred revenue and a $890,000 reclassification of our investments from short-term to long-term. These factors were offset by a $963,000 increase in cash and cash equivalents and a decrease of $181,000 in accounts payable and accrued liabilities.
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inContact Inc. operates as a hosted software as a service company offering a range of hosted contact handling and performance management software services in addition to a variety of connectivity options for carrying an inbound call into its inContact suite of services.The Company sells telecom services unbundled from its inContact service offering including dedicated switched toll free and data lines.The company also operates as a reseller of domestic and international long distance and other services provided by national and regional wholesale providers.It was formerly known as UCN Inc. and is based in Midvale Utah..
Highlight of Business Operations:
Consolidated revenue decreased $690,000 to $19.3 million for the three months ended June 30, 2008 from $20.0 million for the same period in 2007. The decrease is due to a decrease of $1.7 million in Telecom segment revenue due to expected attrition. We have focused more of our sales and marketing efforts on increasing SaaS segment revenue which increased $1.0 million compared to the same period in 2007.Consolidated revenues decreased $629,000 to $39.2 million for the six months ended June 30, 2008 from $39.8 million for the same period in 2007. This decrease is due to decreased revenue in our Telecom segment which was down $3.9 million or 11% compared to the same period in 2007. The decrease in our Telecom segment is due to expected attrition as we have focused our sales and marketing efforts on increasing customers in our SaaS segment. The decrease is offset by significant increases in SaaS segment revenue which increased $3.3 million or 58% from the same period in 2007. The BenchmarkPortal acquisition in first quarter 2007 allowed us to provide customers a hosted process for measuring the effectiveness of agent interactions with clients. The ScheduleQ acquisition allowed us to provide our customers a hosted solution for automating the scheduling, forecasting and alert notification functions common to most contact center/customer service type operations. These additions augmented our all-in-one hosted inContact solution and accounted for $490,000 of the $3.3 million increase in SaaS segment revenue.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $556,000 or 23% during the quarter compared to the same period in 2007. General and administrative expenses increased $878,000 or 75% during the quarter ended June 30, 2008 compared to the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the quarter ended June 30, 2008, we spent $1.1 million in research and development costs as compared to $447,000 for the same period in 2007 and have capitalized an additional $365,000 of costs incurred during the quarter ended June 30, 2008 related to our internally developed software.
The SaaS segment revenue increased by $3.3 million or 58% to $8.9 million during the six months ended June 30, 2008 compared to $5.6 million for the same period in 2007. The increase is a result of the selling and promotional efforts we have undertaken to expand these services in the market. Revenue related to sales of services acquired in the BenchmarkPortal and Schedule Q acquisitions in February 2007 provided $2.1 million of revenue in the current six months ended June 30, 2008, an additional $490,000 of revenue as compared to the six months ended June 30, 2007.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $1.5 million or 34% during the six months ended June 30, 2008 compared to the same period in 2007. General and administrative expenses increased $2.1 million or 107% during the six months ended June 30, 2008 compared to the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the six months ended June 30, 2008, we spent $2.0 million in research and development costs as compared to $875,000 for the same period in 2007 and have capitalized an additional $779,000 of costs incurred during the six months ended June 30, 2008 related to our internally developed software.
Our working capital surplus of $3.3 million at December 31, 2007 decreased to $108,000 at June 30, 2008. The decrease is primarily due to a $1.8 million dollar reduction in accounts receivable, a $596,000 increase in deferred revenue and a $890,000 reclassification of our investments from short-term to long-term. These factors were offset by a $963,000 increase in cash and cash equivalents and a decrease of $181,000 in accounts payable and accrued liabilities.
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