EX-99.1 3 d07025exv99w1.txt PRESS RELEASE EXHIBIT 99.1 [INTERVOICE LOGO] NEWS RELEASE FOR IMMEDIATE RELEASE CONTACTS Intervoice, Inc. Rob-Roy J. Graham Chief Financial Officer +1 (972) 454-8712 17-03 INTERVOICE ANNOUNCES FIRST QUARTER RESULTS Sales of $38.4 M, Profit of $0.03 Per Share DALLAS --JUNE 25, 2003 -- Intervoice, Inc. (Nasdaq: INTV) is pleased to announce sales of $38.4 million for its first quarter fiscal 2004, which ended May 31, 2003. Sales during the quarter included $1.9 million for a cash-basis, international managed services customer. Net income for the quarter was $0.9 million ($0.03 per share) and includes a previously announced $1.3 million restructuring charge. "We performed very well in nearly all respects during the quarter," said David Brandenburg, the Company's Chairman and CEO. "Our cash balances increased by $1.6 million while our debt was reduced by $0.8 million. We held the balance sheet gains made in previous quarters. Systems backlog was $29.5 million, and we enjoyed excellent bookings in our managed services business." "Needless to say, we are very happy to report an operating profit ahead of expectations. Our focus going forward is to maintain profitable operations through diversifying and expanding our pipeline of sales opportunities, and through managing costs and our balance sheet. As we look forward through the remainder of the fiscal year, we see many opportunities in front of us. We look forward to discussing a few of these opportunities and highlights of Q1 in tomorrow's conference call." "We want to thank our customers for their continued confidence during the unprecedented challenges of the last few years. Our appreciation also extends to our employees for their loyalty and dedication. Finally, we thank our shareholders for their support and patience as we work to return the Company to sustainable profitability." The Company has scheduled a conference call for 10:30 a.m., central daylight time, Thursday, June 26, 2003 to discuss its first quarter results and its outlook for the future. To participate in the call, dial 719-457-2650. The conference call confirmation code is 679014. A replay of the call will be available at the Company's web site: www.intervoice.com. This press release contains forward-looking statements, which are based on Company management's current beliefs. Readers are cautioned to read the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to vary materially from the forward-looking statements in this press release. ABOUT INTERVOICE With more than 21,000 systems deployed around the globe, Intervoice is a world leader in converged voice and data solutions. Intervoice provides the applications, tools and infrastructure that enable enterprises and carriers to attract and retain customers and promote profitability. Omvia(TM), our open, standards-based product suite, is transforming the way people and information connect. Omvia offers speech-enabled IVR applications, multimedia and network-grade portals, wireless application gateways, and enhanced services such as unified messaging, short messaging services (SMS), voicemail, prepaid services and interactive alerts. Intervoice is headquartered in Dallas with offices in Europe, the Middle East, South America, and Asia Pacific. For more information, visit www.intervoice.com. InterVoice, Inc. Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data) May 31, February 28, ASSETS 2003 2003 --------------------------------------------------------- --------- ------------ (Unaudited) Current Assets Cash and cash equivalents $ 27,804 $ 26,211 Trade accounts receivable, net of allowance for doubtful accounts of $2,744 in fiscal 2004 and $2,527 in fiscal 2003 26,290 25,853 Inventory 7,827 8,895 Prepaid expenses and other current assets 5,689 5,277 --------- --------- 67,610 66,236 --------- --------- Property and Equipment Building 16,747 16,708 Computer equipment and software 34,171 32,660 Furniture, fixtures and other 2,761 2,667 Service equipment 9,293 8,744 --------- --------- 62,972 60,779 Less allowance for depreciation 42,434 40,406 --------- --------- 20,538 20,373 Other Assets Intangible assets, net of amortization of $32,172 in fiscal 2004 and $32,218 in fiscal 2003 8,624 9,326 Goodwill 3,401 3,401 Other assets 1,368 1,655 --------- --------- $ 101,541 $ 100,991 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY --------------------------------------------------------- Current Liabilities Accounts payable $ 11,939 $ 12,513 Accrued expenses 12,404 12,705 Customer deposits 8,824 9,061 Deferred income 26,366 25,478 Current portion of long term borrowings 3,333 3,333 Income taxes payable 7,036 6,240 --------- --------- 69,902 69,330 Long term borrowings 14,944 15,778 Other long term liabilities 585 856 Deferred income taxes 91 44 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: 34,111,101 issued and outstanding in fiscal 2004 and fiscal 2003 17 17 Additional capital 65,144 65,144 Retained earnings (deficit) (45,832) (46,768) Accumulated other comprehensive loss (3,310) (3,410) --------- --------- Stockholders' equity 16,019 14,983 --------- --------- $ 101,541 $ 100,991 ========= =========
InterVoice, Inc. Consolidated Statements of Operations (Unaudited)
(In Thousands, Except Per Share Data) Three Months Ended ----------------------------------- May 31, May 31, 2003 2002 -------- -------- Sales Systems $ 18,031 $ 21,635 Services 20,371 16,781 -------- -------- 38,402 38,416 -------- -------- Cost of goods sold Systems 11,213 16,118 Services 6,731 6,671 -------- -------- 17,944 22,789 -------- -------- Gross margin Systems 6,818 5,517 Services 13,640 10,110 -------- -------- 20,458 15,627 Research and development expenses 3,870 6,005 Selling, general and administrative expenses 13,471 17,693 Amortization of acquisition related intangible assets 705 1,776 -------- -------- Income (loss) from operations 2,412 (9,847) Other income (expense) (187) (48) Interest expense (545) (1,465) -------- -------- Income (loss) before taxes 1,680 (11,360) Income taxes (benefit) 744 (2,681) -------- -------- Income (loss) before the cumulative effect of a change in accounting principle 936 (8,679) Cumulative effect on prior years of a change in accounting principle -- (15,791) -------- -------- Net income (loss) $ 936 $(24,470) ======== ======== Per Basic Share: Income (loss) before the cumulative effect of a change in accounting principle $ .03 $ (0.26) Cumulative effect on prior years of a change in accounting principle -- (0.46) -------- -------- Net income (loss) $ .03 $ (0.72) ======== ======== Per Diluted Share: Income (loss) before the cumulative effect of a change in accounting principle $ .03 $ (0.26) Cumulative effect on prior years of a change in accounting principle -- (0.46) -------- -------- Net income (loss) $ .03 $ (0.72) ======== ========
InterVoice, Inc. Consolidated Statements of Cash Flows (Unaudited)
(In Thousands) Three Months Ended ------------------------ May 31, May 31, 2003 2002 -------- -------- Operating activities Income (loss) before the cumulative effect of a change in accounting principle $ 936 $ (8,679) Adjustments to reconcile income (loss) before the cumulative effect of a change in accounting principle to net cash provided by (used in) operating activities: Depreciation and amortization 2,382 4,176 Other changes in operating activities 284 2,841 -------- -------- Net cash provided by (used in) operating activities 3,602 (1,662) -------- -------- Investing activities Proceeds from sale of assets -- 1,852 Purchases of property and equipment (1,263) (601) -------- -------- Net cash provided by (used in) investing activities (1,263) 1,251 -------- -------- Financing activities Paydown of debt (834) (26,000) Debt issuance costs -- (1,632) Borrowings -- 24,000 Exercise of stock options -- 88 -------- -------- Net cash used in financing activities (834) (3,544) -------- -------- Effect of exchange rates on cash 88 302 -------- -------- Increase (decrease) in cash and cash equivalents 1,593 (3,653) Cash and cash equivalents, beginning of period 26,211 17,646 -------- -------- Cash and cash equivalents, end of period $ 27,804 $ 13,993 ======== ========
InterVoice, Inc. Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (In Thousands, Except Share Data)
Retained Accumulated Common Stock Earnings/ Other ----------------------------- Additional (Accumulated Comprehensive Shares Amount Capital Deficit) Loss Total ------------------------------------------------------------------------------------------------- Balance at February 28, 2003 34,111,101 $ 17 $ 65,144 $ (46,768) $ (3,410) $ 14,983 Net income -- -- -- 936 -- 936 Foreign currency translation adjustment -- -- -- -- 100 100 ------------------------------------------------------------------------------------------------- Balance at May 31, 2003 34,111,101 $ 17 $ 65,144 $ (45,832) $ (3,310) $ 16,019 =================================================================================================
INTERVOICE, INC. RECONCILIATION OF NET INCOME TO EBITDA FOR THE QUARTER ENDED MAY 31, 2003 The Company recognizes that its shareholders are interested in its performance against certain of the covenants associated with its debt facilities, particularly its earnings before interest, taxes, depreciation and amortization (EBITDA) covenant. A reconciliation of net income to EBITDA follows:
($000s) ---------- Net income $ 936 Add back EBITDA elements Interest 545 Taxes 744 Depreciation and amortization 2,382 ---------- EBITDA 4,607 ==========
INTERVOICE, INC. REVENUES BY MARKET AND GEOGRAPHY FOR THE QUARTER ENDED MAY 31, 2003 ($S IN 000S)
North Rest of America World Total ----------------- ---------------- -------------------- Systems $ 12,026 66.7% $ 6,005 33.3% $ 18,031 100.0% Customer Support 10,361 76.3% 3,225 23.7% 13,586 100.0% Managed Services 1,858 27.4% 4,927 72.6% $ 6,785 100.0% --------- ----- --------- ----- ---------- ------ Total Sales $ 24,245 63.1% $ 14,157 36.9% $ 38,402 100.0% ========= ===== ========= ===== ========== ====== IVR/Portal $ 11,906 31.0% Messaging 4,600 12.0% Payment 1,525 3.9% ---------- -------- Total Systems 18,031 46.9% ---------- -------- Customer Support 13,586 35.4% Managed Services 6,785 17.7% ---------- -------- Total Services 20,371 53.1% ---------- -------- Total Sales $ 38,402 100.0% ========== ========