inContact Inc. (SAAS, Financial) filed Quarterly Report for the period ended 2007-09-30.
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 $4.4 million or 7% to $59.4 million for the nine months ended September 30, 2007 from $63.8 million compared to the same period in 2006. The decrease is primarily due to the continued revenue decrease in our Telecom segment, which was down $14.9 million or 28% compared to the same period in 2006. The decrease in our Telecom segment is due to the discontinuation of services to several high volume, low margin customers during the second quarter of 2006 which has affected each subsequent quarter. These losses in the Telecom segment were offset by significant increases in inContact segment revenue, which increased $10.5 million or 100% to $21.0 million through September 30, 2007 compared to $10.5 million during the same period in 2006. The two first quarter acquisitions augment our all-in-one hosted inContact solution and added an additional $2.7 million in year-to-date revenue to the segment. Excluding the revenue added through the acquisition, our revenue decreased $7.1 million or 11% compared to the same period in 2006.
General and administrative expenses for the three months ended September 30, 2007 increased 38% or $1.3 million to $4.6 million compared to $3.3 million in the same period in 2006. The increase is primarily due to an overall increase in salaries and benefits during the year due to the growth of the company. Our general and administrative staff grew substantially through the addition of employees related to the BenchmarkPortal and ScheduleQ acquisitions closed during the first quarter of 2007. During the first quarter of 2007, UCN granted a significant number of stock options to certain senior members of management, which added an additional $202,000 of stock-based compensation expense for a total of $231,000 during the three months ended September 30, 2007 compared to $29,000 during the same period in 2006.
For the three months ended September 30, 2007, the inContact segment revenue of $7.7 million includes $3.9 million of related long distance voice and data services and $3.8 million of inContact technology services. For the three months ended September 30, 2006, the inContact segment revenue of $3.9 million includes $2.8 million of long distance voice and data services and $1.1 million of inContact technology services. Management will continue to evaluate the components of the inContact segment as future strategic initiatives are implemented.
For the nine months ended September 30, 2007, the inContact segment revenue of $21.0 million includes $11.5 million of related long distance voice and data services and $9.5 million of inContact technology services. For the nine months ended September 30, 2006, the inContact segment revenue of $10.5 million includes $7.8 million of long distance voice and data services and $2.7 million of inContact technology services. Management will continue to evaluate the components of the inContact segment as future strategic initiatives are implemented.
In addition to the cash amount listed on the condensed consolidated balance sheets, we also have access to additional available borrowings under the revolving credit facility. The available borrowings under the revolving credit facility increased $2.8 million to $7.0 million at September 30, 2007 compared to only $4.2 million available at December 31, 2006, resulting in total cash and additional availability under the revolving credit facility of $13.7 million at the end of the quarter. The working capital position would have been $11.3 million if the entire $7.0 million amount available was drawn under our revolving credit facility that is due in May 2010.
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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 revenues decreased $577,000 or 3% to $19.6 million for the three months ended September 30, 2007 from $20.2 million compared to the same period in 2006. The decrease is primarily due to the continued revenue decrease in our Telecom segment, which was down $4.4 million or 27% compared to the same period in 2006. The decrease in our Telecom segment is due to the discontinuation of several high-volume, low margin customers during the second quarter of 2006 which has affected each subsequent quarter. These losses were offset by significant increases in inContact segment revenue, which increased $3.8 million or 96% from the third quarter of 2006. The BenchmarkPortal acquisition allows us to provide customers a hosted process for measuring the effectiveness of agent interactions with clients. The ScheduleQ acquisition allows 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 augment our all-in-one hosted inContact solution and added an additional $1.1 million in quarterly revenue to the segment.Consolidated revenues decreased $4.4 million or 7% to $59.4 million for the nine months ended September 30, 2007 from $63.8 million compared to the same period in 2006. The decrease is primarily due to the continued revenue decrease in our Telecom segment, which was down $14.9 million or 28% compared to the same period in 2006. The decrease in our Telecom segment is due to the discontinuation of services to several high volume, low margin customers during the second quarter of 2006 which has affected each subsequent quarter. These losses in the Telecom segment were offset by significant increases in inContact segment revenue, which increased $10.5 million or 100% to $21.0 million through September 30, 2007 compared to $10.5 million during the same period in 2006. The two first quarter acquisitions augment our all-in-one hosted inContact solution and added an additional $2.7 million in year-to-date revenue to the segment. Excluding the revenue added through the acquisition, our revenue decreased $7.1 million or 11% compared to the same period in 2006.
General and administrative expenses for the three months ended September 30, 2007 increased 38% or $1.3 million to $4.6 million compared to $3.3 million in the same period in 2006. The increase is primarily due to an overall increase in salaries and benefits during the year due to the growth of the company. Our general and administrative staff grew substantially through the addition of employees related to the BenchmarkPortal and ScheduleQ acquisitions closed during the first quarter of 2007. During the first quarter of 2007, UCN granted a significant number of stock options to certain senior members of management, which added an additional $202,000 of stock-based compensation expense for a total of $231,000 during the three months ended September 30, 2007 compared to $29,000 during the same period in 2006.
For the three months ended September 30, 2007, the inContact segment revenue of $7.7 million includes $3.9 million of related long distance voice and data services and $3.8 million of inContact technology services. For the three months ended September 30, 2006, the inContact segment revenue of $3.9 million includes $2.8 million of long distance voice and data services and $1.1 million of inContact technology services. Management will continue to evaluate the components of the inContact segment as future strategic initiatives are implemented.
For the nine months ended September 30, 2007, the inContact segment revenue of $21.0 million includes $11.5 million of related long distance voice and data services and $9.5 million of inContact technology services. For the nine months ended September 30, 2006, the inContact segment revenue of $10.5 million includes $7.8 million of long distance voice and data services and $2.7 million of inContact technology services. Management will continue to evaluate the components of the inContact segment as future strategic initiatives are implemented.
In addition to the cash amount listed on the condensed consolidated balance sheets, we also have access to additional available borrowings under the revolving credit facility. The available borrowings under the revolving credit facility increased $2.8 million to $7.0 million at September 30, 2007 compared to only $4.2 million available at December 31, 2006, resulting in total cash and additional availability under the revolving credit facility of $13.7 million at the end of the quarter. The working capital position would have been $11.3 million if the entire $7.0 million amount available was drawn under our revolving credit facility that is due in May 2010.
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