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. inContact Inc. has a market cap of $79.6 million; its shares were traded at around $2.56 with and P/S ratio of 1. Highlight of Business Operations: Total revenues increased $1.1 million or 6% to $21.0 million during the three months ended March 31, 2009 compared to revenues of $19.9 million during the same period in 2008. The increase relates to an increase of $2.4 million in Software segment revenue due to our focus on sales and marketing efforts on our all-in-one hosted inContact suite. This increase is offset by a decrease of $1.3 million in Telecom segment revenue due to expected attrition.
Depreciation and amortization expense decreased $200,000 or 13% to $1.3 million during the three months ended March 31, 2009 from $1.5 million during the same period in 2008. The decrease is due to a reduction of $416,000 of amortization expense as a result of an intangible asset becoming fully amortized in the fourth quarter of 2008 offset by additional depreciation and amortization as a result of additional equipment purchases and capitalized software.
Other expense increased $388,000 to $423,000 during the three months ended March 31, 2009 from $35,000 during the same period in 2008. Of this increase, net interest expense increased $152,000 due to a higher outstanding balance on our revolving credit facility in the first quarter of 2009 as compared to the first quarter of 2008. The remaining $236,000 of the increase is due to the adoption of a new accounting pronouncement on January 1, 2009. This non-cash charge taken in the first quarter of 2009 represents the change in fair value of warrants during the period. See Note 5 to the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for a more detailed explanation of the accounting for this new accounting pronouncement.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market and supporting new customers. As a result, selling and marketing expenses in the Software segment increased $200,000 or 6% to $3.0 million during the three months ended March 31, 2009 compared to $2.8 million during the same period in 2008. General and administrative expenses increased $200,000 or 11% to $2.2 million during the three months ended March 31, 2009 compared to $2.0 million during the same period in 2008. Depreciation and amortization expense decreased $296,000 or 40% to $443,000 during the three months ended March 31, 2009 from $739,000 during the same period in 2008. The decrease is a result of an intangible asset becoming fully amortized in the fourth quarter of 2008. We also continue to develop the services provided in the Software segment by investing in research and development. During the three months ended March 31, 2009, we spent $930,000 in research and development costs as compared to $958,000 during the same period in 2008 and have capitalized an additional $721,000 of costs incurred during the three months ended March 31, 2009 related to our internally developed software compared to $440,000 during the same period in 2008.
Our working capital of $716,000 at March 31, 2009 remained essentially unchanged from our working capital of $714,000 at December 31, 2008. The change in working capital caused by an $810,000 increase in accrued liabilities and accrued commissions, a $50,000 liquidation of short-term investments, and a $165,000 reclassification of our cash and cash equivalents to long-term restricted cash was fully offset by a $929,000 increase in accounts receivable and other current assets, a $60,000 decrease in current deferred revenue, and a $159,000 decrease in cash and cash equivalents.
During the three months ended March 31, 2009, we generated $1.1 million of cash from financing activities. We obtained cash from financing activities primarily by borrowing $1.5 million from our revolving credit facility. During the three months ended March 31, 2009, we used $116,000 and $1.2 million of cash in operating and investing activities, respectively. Cash used in investing activities was used to acquire property and equipment and obtain letters of credit as described in Note 4 to the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. We had an overall net decrease in cash of $159,000 during the three months ended March 31, 2009. The amount that we have invested in our expansion has provided additional network capacity and additional resources to help grow our inContact suite.
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