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inContact Inc. Reports Operating Results (10-Q)

August 07, 2009 | About:

inContact Inc. (SAAS) filed Quarterly Report for the period ended 2009-06-30.

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. inContact Inc. has a market cap of $111.3 million; its shares were traded at around $3.58 with and P/S ratio of 1.4.

Highlight of Business Operations:

Total revenues increased $2.1 million or 11% to $21.4 million during the three months ended June 30, 2009 compared to revenues of $19.3 million during the same period in 2008. The increase relates to an increase of $2.5 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 $330,000 in Telecom segment revenue due to expected attrition.

Research and development expense decreased $108,000 or 9% to $1.1 million during the three months ended June 30, 2009 from $1.2 million during the same period in 2008. This decrease primarily relates to increased capitalization of labor costs associated with software development efforts. During the three months ended June 30, 2009, we capitalized an additional $808,000 of costs related to our internally developed software compared to $278,000 during the same period in 2008.

Other expense increased $233,000 to $335,000 during the three months ended June 30, 2009 from $102,000 during the same period in 2008. Of this increase, net interest expense increased $83,000 due to a higher outstanding balance on our revolving credit

Total revenues increased $3.2 million or 8% to $42.4 million during the six months ended June 30, 2009 compared to revenues of $39.2 million during the same period in 2008. The increase relates to an increase of $4.9 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 $1.7 million in Telecom segment revenue due to expected attrition.

Research and development expense decreased $130,000 or 6% to $2.2 million during the three months ended June 30, 2009 from $2.3 million during the same period in 2008. This decrease primarily relates to increased capitalization of labor costs associated with software development efforts. During the six months ended June 30, 2009, we capitalized an additional $1.6 million of costs related to our internally developed software compared to $619,000 during the same period in 2008.

Other expense increased $621,000 to $758,000 during the six months ended June 30, 2009 from $137,000 during the same period in 2008. Of this increase, net interest expense increased $245,000 due to a higher outstanding balance on our revolving credit facility in the first half of 2009 as compared to the first half of 2008. The remaining $376,000 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 half 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.

Read the The complete Report

Rating: 3.3/5 (4 votes)

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