Intervoice, Inc. (Nasdaq:INTV) today reported revenues
of $45.7 million for its first fiscal quarter ended May 31, 2006, up
12.6 percent from $40.5 million of revenues posted in the prior
quarter and 5.6 percent from $43.3 million of revenues recorded in the
same quarter of the prior year. Current quarter net loss of $0.4
million, or $0.01 per share, declined from net income of $4.3 million,
or $0.11 per share from the prior quarter, and $3.9 million, or $0.10
per share in the same quarter of the prior year.
Effective March 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" (SFAS 123R). The impact of this adoption was an increase in the Company's first quarter operating costs of $1.3 million related to non-cash stock compensation expenses. Of this amount, $0.3 million is reflected in cost of goods sold, $0.1 million is included in research and development expenses, and $0.9 million is reflected in selling, general and administrative expenses.
The Company's solutions backlog of $41.2 million at May 31, 2006 was up 22 percent from $33.9 million at the end of the fourth quarter of fiscal 2006, and up 45 percent from the same quarter of the prior year. The backlog for voice automation solution sales in North America was up 50 percent sequentially to $26.3 million.
"During the quarter, we have seen positive momentum build within our sales channels. I am very excited about increases in our solutions and managed services bookings," said Bob Ritchey, Intervoice President and CEO. "Our new innovative products and services are driving our success as we continue to manage the transition to a converged voice and data market. We believe the Company's long-term outlook continues to be favorable and I currently believe revenues for the second quarter of fiscal 2007 will be in the $44 million to $49 million range. I look forward to discussing details of our first fiscal quarter and outlook for the future in tomorrow's conference call with investors."
"After a challenging year, I am pleased that the Company posted a nice increase in revenues during the quarter," said Craig Holmes, the Company's Executive Vice President and Chief Financial Officer. "I am encouraged by the uplift in our solutions backlog and I continue to believe our financial strength and strong customer base provide a solid foundation for future growth."
The Company incurred approximately $0.7 million of expenses in the first fiscal quarter relating to acquisition intangible amortization charges and restructuring expenses for severance in connection with organizational changes, down from $2.3 million in the fourth quarter. In the first quarter, approximately $0.1 million was recorded in selling, general and administrative expenses and $0.6 million is reflected as amortization of acquisition related intangible assets.
The Company has scheduled a conference call for 9:00 a.m. Central Time on Friday, June 23, 2006, to discuss its first fiscal quarter results and its outlook for the future. To participate in the call, dial 719-457-2693. The conference call confirmation code is 4605040. A webcast and replay of the call will be available at the Company's Web site: www.intervoice.com.
Intervoice has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning its business and operations that are based on management's current beliefs. All statements other than statements of historical fact in this press release are forward-looking statements. Readers are cautioned to read the risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, including without limitation, the risks and uncertainties set forth under the caption entitled "Cautionary Disclosures to Qualify Forward Looking Statements" in the Company's Annual Report filed on Form 10-K and Quarterly Reports filed on Form 10-Q. Intervoice cautions current and potential investors that such risks and uncertainties could result in material differences from the forward-looking statements in this press release.
About Intervoice
Intervoice, Inc. (Nasdaq:INTV) provides leading enterprises and network operators with the Intervoice Solutions Framework, including the platform, software, applications and services necessary to optimize the customer experience through the delivery of voice automation solutions. Intervoice Media Exchange, the open, standards-based multi-media platform, offers unparalleled flexibility for advanced multi-media messaging, portal, IVR and payment applications. The Company is focused on the enterprise and network markets, providing solutions that improve operational efficiencies, drive revenue and increase customer satisfaction and loyalty. Building on more than 20 years of systems integration and service delivery experience, the Professional Services Agility Suite from Intervoice is designed to provide proven best practices toward design, implementation, and optimization of voice applications. Intervoice systems have been proven in more than 23,000 implementations worldwide at companies across a variety of industries. A Microsoft Certified Partner and Certified Partner for Learning Solutions, Intervoice is headquartered in Dallas with offices in Europe, the Middle East, South America, Africa and Asia-Pacific. For more information, visit www.intervoice.com. -0- INTERVOICE, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Data) ASSETS May 31, 2006 February 28, 2006 --------------------------------------- ------------ ----------------- (Unaudited) Current Assets Cash and cash equivalents $41,462 $42,076 Trade accounts receivable, net of allowance for doubtful accounts of $2,363 in fiscal 2007 and $1,701 in fiscal 2006 25,623 25,745 Inventory 10,237 9,439 Prepaid expenses and other current assets 4,789 4,406 Deferred income taxes 3,047 3,047 ------------ ----------------- 85,158 84,713 ------------ ----------------- Property and Equipment, net of accumulated depreciation of $61,245 in fiscal 2007 and $59,002 in fiscal 2006 31,382 28,893 Other Assets Intangible assets, net of accumulated amortization of $17,959 in fiscal 2007 and $17,343 in fiscal 2006 9,668 10,284 Goodwill 32,461 32,461 Long term deferred income taxes 1,718 1,330 Other assets 484 454 ------------ ----------------- $160,871 $158,135 ============ ================= LIABILITIES AND STOCKHOLDERS' EQUITY --------------------------------------- Current Liabilities Accounts payable $10,813 $10,154 Accrued expenses 14,494 15,176 Customer deposits 5, 437 6,157 Deferred income 33,818 32,172 Income taxes payable (136) 484 Deferred income taxes 692 270 ------------ ----------------- 65,118 64,413 Stockholders' Equity Preferred stock, $100 par value-- 2,000,000 shares authorized: none issued Common stock, no par value, at nominal assigned value-- 62,000,000 shares authorized: 38,519,536 issued and outstanding in fiscal 2007 and 38,470,087 issued and outstanding in fiscal 2006 19 19 Additional capital 93,580 92,050 Retained earnings 3,153 3,558 Accumulated other comprehensive loss (999) (1,905) ------------ ----------------- 95,753 93,722 ------------ ----------------- $160,871 $158,135 ============ ================= INTERVOICE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In Thousands, Except Per Share Data) Three Months Ended ------------------------- May 31, 2006 May 31, 2005 ------------ ------------ Sales Solutions $19,469 $21,370 Recurring services 26,199 21,893 ------------ ------------ 45,668 43,263 ------------ ------------ Cost of goods sold Solutions 12,304 12,804 Recurring services 7,474 6,112 ------------ ------------ 19,778 18,916 ------------ ------------ Gross margin Solutions 7,165 8,566 Recurring services 18,725 15,781 ------------ ------------ 25,890 24,347 ------------ ------------ Research and development expenses 5,782 4,195 Selling, general and administrative expenses 20,800 15,433 Amortization of acquisition related intangible assets 581 252 ------------ ------------ Income from operations (1,273) 4,467 Interest income 499 497 Interest expense --- (25) Other income (expense) 207 126 ------------ ------------ Income before taxes (567) 5,065 Income taxes (benefit) (162) 1,146 ------------ ------------ Net income $(405) $3,919 ============ ============ Net income per share -- basic $(0.01) $0.10 ============ ============ Shares used in basic per share computation 38,504 37,530 ============ ============ Net income per share -- diluted $(0.01) $0.10 ============ ============ Shares used in diluted per share computation 38,504 39,103 ============ ============ INTERVOICE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands) Three Months Ended -------------------------- May 31, 2006 May 31, 2005 ------------- ------------ Operating activities Net income $(405) $3,919 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,678 1,722 Stock compensation expense 1,339 -- Non-cash compensation - restricted stock units 42 -- Other changes in operating activities 373 (2,669) ------------- ------------ Net cash provided by operating activities 4,027 2,972 ------------- ------------ Investing activities Purchases of property and equipment (4,407) (3,132) Purchase of Edify Corporation (836) -- Other -- (300) ------------- ------------ Net cash used in investing activities (5,243) (3,432) ------------- ------------ Financing activities Paydown of debt -- (1,733) Exercise of stock options 149 1,493 Exercise of warrants -- 2,500 ------------- ------------ Net cash provided by financing activities 149 2,260 ------------- ------------ Effect of exchange rates on cash 453 (626) ------------- ------------ Increase in cash and cash equivalents (614) 1,174 Cash and cash equivalents, beginning of period 42,076 60,242 ------------- ------------ Cash and cash equivalents, end of period $41,462 $61,416 ============= ============ INTERVOICE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (In Thousands, Except Share Data) Accum. Other Common Stock Addl Retained Comp. Shares Amount Capital Earnings Loss Total ------------------------------------------------------ Balance at Feb. 28, 2006 38,470,087 $19 $92,050 $3,558 $(1,905) $93,722 Net income --- --- --- (405) --- (405) Foreign currency translation adjustment --- --- --- --- 906 906 Comprehensive income 501 Exercise of stock options 49,449 --- 149 --- --- 149 Non-cash compensation --- --- 1,381 --- --- 1,381 ------------------------------------------------------ Balance at May 31, 2006 38,519,536 $19 $93,580 $3,153 $(999) $95,753 ====================================================== INTERVOICE, INC. REVENUES BY PRODUCT AND GEOGRAPHY FOR THE QUARTER ENDED MAY 31, 2006 (Unaudited) (In thousands) North Rest of America World Total ----------------- ----------------- --------------- Solutions $8,222 42.2% $11,247 57.8% $19,469 100.0% Customer and Software Support 15,409 76.3% 4,776 23.7% 20,185 100.0% Managed Services 3,410 56.7% 2,604 43.3% 6,014 100.0% -------- -------- -------- -------- -------- ------ Total Sales $27,041 59.2% $18,627 40.8% $45,668 100.0% ======== ======== ======== ======== ======== ====== Voice Automation/IVR $12,723 27.9% Network Portal 1,021 2.2% Messaging 3,718 8.1% Payment 2,007 4.4% -------- ------ Total Solutions 19,469 42.6% -------- ------ Customer and Software Support 20,185 44.2% Managed Services 6,014 13.2% -------- ------ Total Recurring Services 26,199 57.4% -------- ------ Total Sales $45,668 100.0% ======== ======
Effective March 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" (SFAS 123R). The impact of this adoption was an increase in the Company's first quarter operating costs of $1.3 million related to non-cash stock compensation expenses. Of this amount, $0.3 million is reflected in cost of goods sold, $0.1 million is included in research and development expenses, and $0.9 million is reflected in selling, general and administrative expenses.
The Company's solutions backlog of $41.2 million at May 31, 2006 was up 22 percent from $33.9 million at the end of the fourth quarter of fiscal 2006, and up 45 percent from the same quarter of the prior year. The backlog for voice automation solution sales in North America was up 50 percent sequentially to $26.3 million.
"During the quarter, we have seen positive momentum build within our sales channels. I am very excited about increases in our solutions and managed services bookings," said Bob Ritchey, Intervoice President and CEO. "Our new innovative products and services are driving our success as we continue to manage the transition to a converged voice and data market. We believe the Company's long-term outlook continues to be favorable and I currently believe revenues for the second quarter of fiscal 2007 will be in the $44 million to $49 million range. I look forward to discussing details of our first fiscal quarter and outlook for the future in tomorrow's conference call with investors."
"After a challenging year, I am pleased that the Company posted a nice increase in revenues during the quarter," said Craig Holmes, the Company's Executive Vice President and Chief Financial Officer. "I am encouraged by the uplift in our solutions backlog and I continue to believe our financial strength and strong customer base provide a solid foundation for future growth."
The Company incurred approximately $0.7 million of expenses in the first fiscal quarter relating to acquisition intangible amortization charges and restructuring expenses for severance in connection with organizational changes, down from $2.3 million in the fourth quarter. In the first quarter, approximately $0.1 million was recorded in selling, general and administrative expenses and $0.6 million is reflected as amortization of acquisition related intangible assets.
The Company has scheduled a conference call for 9:00 a.m. Central Time on Friday, June 23, 2006, to discuss its first fiscal quarter results and its outlook for the future. To participate in the call, dial 719-457-2693. The conference call confirmation code is 4605040. A webcast and replay of the call will be available at the Company's Web site: www.intervoice.com.
Intervoice has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning its business and operations that are based on management's current beliefs. All statements other than statements of historical fact in this press release are forward-looking statements. Readers are cautioned to read the risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, including without limitation, the risks and uncertainties set forth under the caption entitled "Cautionary Disclosures to Qualify Forward Looking Statements" in the Company's Annual Report filed on Form 10-K and Quarterly Reports filed on Form 10-Q. Intervoice cautions current and potential investors that such risks and uncertainties could result in material differences from the forward-looking statements in this press release.
About Intervoice
Intervoice, Inc. (Nasdaq:INTV) provides leading enterprises and network operators with the Intervoice Solutions Framework, including the platform, software, applications and services necessary to optimize the customer experience through the delivery of voice automation solutions. Intervoice Media Exchange, the open, standards-based multi-media platform, offers unparalleled flexibility for advanced multi-media messaging, portal, IVR and payment applications. The Company is focused on the enterprise and network markets, providing solutions that improve operational efficiencies, drive revenue and increase customer satisfaction and loyalty. Building on more than 20 years of systems integration and service delivery experience, the Professional Services Agility Suite from Intervoice is designed to provide proven best practices toward design, implementation, and optimization of voice applications. Intervoice systems have been proven in more than 23,000 implementations worldwide at companies across a variety of industries. A Microsoft Certified Partner and Certified Partner for Learning Solutions, Intervoice is headquartered in Dallas with offices in Europe, the Middle East, South America, Africa and Asia-Pacific. For more information, visit www.intervoice.com. -0- INTERVOICE, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Data) ASSETS May 31, 2006 February 28, 2006 --------------------------------------- ------------ ----------------- (Unaudited) Current Assets Cash and cash equivalents $41,462 $42,076 Trade accounts receivable, net of allowance for doubtful accounts of $2,363 in fiscal 2007 and $1,701 in fiscal 2006 25,623 25,745 Inventory 10,237 9,439 Prepaid expenses and other current assets 4,789 4,406 Deferred income taxes 3,047 3,047 ------------ ----------------- 85,158 84,713 ------------ ----------------- Property and Equipment, net of accumulated depreciation of $61,245 in fiscal 2007 and $59,002 in fiscal 2006 31,382 28,893 Other Assets Intangible assets, net of accumulated amortization of $17,959 in fiscal 2007 and $17,343 in fiscal 2006 9,668 10,284 Goodwill 32,461 32,461 Long term deferred income taxes 1,718 1,330 Other assets 484 454 ------------ ----------------- $160,871 $158,135 ============ ================= LIABILITIES AND STOCKHOLDERS' EQUITY --------------------------------------- Current Liabilities Accounts payable $10,813 $10,154 Accrued expenses 14,494 15,176 Customer deposits 5, 437 6,157 Deferred income 33,818 32,172 Income taxes payable (136) 484 Deferred income taxes 692 270 ------------ ----------------- 65,118 64,413 Stockholders' Equity Preferred stock, $100 par value-- 2,000,000 shares authorized: none issued Common stock, no par value, at nominal assigned value-- 62,000,000 shares authorized: 38,519,536 issued and outstanding in fiscal 2007 and 38,470,087 issued and outstanding in fiscal 2006 19 19 Additional capital 93,580 92,050 Retained earnings 3,153 3,558 Accumulated other comprehensive loss (999) (1,905) ------------ ----------------- 95,753 93,722 ------------ ----------------- $160,871 $158,135 ============ ================= INTERVOICE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In Thousands, Except Per Share Data) Three Months Ended ------------------------- May 31, 2006 May 31, 2005 ------------ ------------ Sales Solutions $19,469 $21,370 Recurring services 26,199 21,893 ------------ ------------ 45,668 43,263 ------------ ------------ Cost of goods sold Solutions 12,304 12,804 Recurring services 7,474 6,112 ------------ ------------ 19,778 18,916 ------------ ------------ Gross margin Solutions 7,165 8,566 Recurring services 18,725 15,781 ------------ ------------ 25,890 24,347 ------------ ------------ Research and development expenses 5,782 4,195 Selling, general and administrative expenses 20,800 15,433 Amortization of acquisition related intangible assets 581 252 ------------ ------------ Income from operations (1,273) 4,467 Interest income 499 497 Interest expense --- (25) Other income (expense) 207 126 ------------ ------------ Income before taxes (567) 5,065 Income taxes (benefit) (162) 1,146 ------------ ------------ Net income $(405) $3,919 ============ ============ Net income per share -- basic $(0.01) $0.10 ============ ============ Shares used in basic per share computation 38,504 37,530 ============ ============ Net income per share -- diluted $(0.01) $0.10 ============ ============ Shares used in diluted per share computation 38,504 39,103 ============ ============ INTERVOICE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands) Three Months Ended -------------------------- May 31, 2006 May 31, 2005 ------------- ------------ Operating activities Net income $(405) $3,919 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,678 1,722 Stock compensation expense 1,339 -- Non-cash compensation - restricted stock units 42 -- Other changes in operating activities 373 (2,669) ------------- ------------ Net cash provided by operating activities 4,027 2,972 ------------- ------------ Investing activities Purchases of property and equipment (4,407) (3,132) Purchase of Edify Corporation (836) -- Other -- (300) ------------- ------------ Net cash used in investing activities (5,243) (3,432) ------------- ------------ Financing activities Paydown of debt -- (1,733) Exercise of stock options 149 1,493 Exercise of warrants -- 2,500 ------------- ------------ Net cash provided by financing activities 149 2,260 ------------- ------------ Effect of exchange rates on cash 453 (626) ------------- ------------ Increase in cash and cash equivalents (614) 1,174 Cash and cash equivalents, beginning of period 42,076 60,242 ------------- ------------ Cash and cash equivalents, end of period $41,462 $61,416 ============= ============ INTERVOICE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (In Thousands, Except Share Data) Accum. Other Common Stock Addl Retained Comp. Shares Amount Capital Earnings Loss Total ------------------------------------------------------ Balance at Feb. 28, 2006 38,470,087 $19 $92,050 $3,558 $(1,905) $93,722 Net income --- --- --- (405) --- (405) Foreign currency translation adjustment --- --- --- --- 906 906 Comprehensive income 501 Exercise of stock options 49,449 --- 149 --- --- 149 Non-cash compensation --- --- 1,381 --- --- 1,381 ------------------------------------------------------ Balance at May 31, 2006 38,519,536 $19 $93,580 $3,153 $(999) $95,753 ====================================================== INTERVOICE, INC. REVENUES BY PRODUCT AND GEOGRAPHY FOR THE QUARTER ENDED MAY 31, 2006 (Unaudited) (In thousands) North Rest of America World Total ----------------- ----------------- --------------- Solutions $8,222 42.2% $11,247 57.8% $19,469 100.0% Customer and Software Support 15,409 76.3% 4,776 23.7% 20,185 100.0% Managed Services 3,410 56.7% 2,604 43.3% 6,014 100.0% -------- -------- -------- -------- -------- ------ Total Sales $27,041 59.2% $18,627 40.8% $45,668 100.0% ======== ======== ======== ======== ======== ====== Voice Automation/IVR $12,723 27.9% Network Portal 1,021 2.2% Messaging 3,718 8.1% Payment 2,007 4.4% -------- ------ Total Solutions 19,469 42.6% -------- ------ Customer and Software Support 20,185 44.2% Managed Services 6,014 13.2% -------- ------ Total Recurring Services 26,199 57.4% -------- ------ Total Sales $45,668 100.0% ======== ======