EX-99.1 2 d26389exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1

(INTERVOICE LETTERHEAD)

       

CONTACT
Intervoice, Inc.
Corbin Baumel
+ 1 (972) 454-8737
  FOR IMMEDIATE RELEASE

26-05

Intervoice Announces Results for the First Quarter of Fiscal 2006
Sales of $43.3 Million and Net Income of $0.10 Per Diluted Share

DALLAS — June 20, 2005 — Intervoice, Inc. (NASDAQ: INTV) today reported revenues of $43.3 million for its first fiscal quarter ended May 31, 2005, a 3.2 percent increase from $41.9 million of revenues posted in the same quarter last year. Net income for the first quarter of fiscal 2006 was $3.9 million, or $0.10 per diluted share. Net income reflects a 23 percent improvement from net income of $3.2 million, or $0.08 per diluted share, posted in the first quarter of last year.

Cash balances increased by $1.2 million to $61.4 million during the first quarter of fiscal 2006, and the Company reduced its total debt balance to zero through repayments totaling $1.7 million. Working capital increased from $43.8 million at February 28, 2005 to $47.5 million at May 31, 2005.

“Our financial strength and profitability provide a strong foundation for growth,” said Craig Holmes, the Company’s Executive Vice President and Chief Financial Officer. “I am pleased that our business model continued to deliver solid profitability during a challenging quarter.”

The Company’s solutions backlog of $28.5 million at May 31, 2005, is down from $43.2 million at May 31, 2004 and down from $35.4 million at the end of last quarter. The Company’s May 31, 2005 backlog excludes a purchase order for $5.8 million received prior to quarter end for which the associated signed contract was not received until after quarter end.

“The current softness in the market for our enterprise solutions is disappointing, but we are very pleased with our sales and pipeline for our new Omvia Media Exchange solution,” said Bob Ritchey, the Company’s President and CEO. “We believe the Company’s long-term outlook continues to be favorable, and I currently believe revenues for the second quarter of fiscal 2006 will be in the $40 million to $45 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.”

 


 

(INTERVOICE LOGO)

The Company has scheduled a conference call for 9:00 a.m. central time on Tuesday, June 21, 2005, to discuss its first fiscal quarter results and its outlook for the future. To participate in the call, dial 719-457-2637. The conference call confirmation code is 4244375. 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 platform, software, applications and services necessary to optimize the customer experience through voice automation solutions. Omvia®, the open, standards-based Intervoice product suite, offers unparalleled flexibility for advanced multi-media messaging, portal, IVR and payment applications. The Company’s two market units focus on 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 including: Ameritrade, Amtrak, Atmos Energy, Citibank, CSX Transportation, MasterCard, O2, Rogers Wireless, SBC, Travelocity, Verizon and Vodafone. 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.

# # #

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(INTERVOICE LOGO)

INTERVOICE, INC.
CONSOLIDATED BALANCE SHEETS

                 
    (In Thousands, Except Share and Per Share Data)  
ASSETS   May 31, 2005     February 28, 2005  
    (Unaudited)          
Current Assets
               
Cash and cash equivalents
  $ 61,416     $ 60,242  
Trade accounts receivable, net of allowance for doubtful accounts of $1,008 in fiscal 2006 and $799 in fiscal 2005
    30,781       32,605  
Inventory
    8,290       7,642  
Prepaid expenses and other current assets
    4,134       4,339  
 
           
 
    104,621       104,828  
 
           
Property and Equipment
               
Land and buildings
    16,915       16,932  
Computer equipment and software
    49,011       46,514  
Furniture, fixtures and other
    3,226       3,345  
Service equipment
    9,160       9,267  
 
           
 
    78,312       76,058  
Less allowance for depreciation
    54,809       54,303  
 
           
 
    23,503       21,755  
Other Assets
               
Intangible assets, net of accumulated amortization of $16,161 in fiscal 2006 and $15,840 in fiscal 2005
    4,686       4,707  
Goodwill
    3,401       3,401  
Other assets
    168       168  
 
           
 
  $ 136,379     $ 134,859  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 9,777     $ 11,485  
Accrued expenses
    8,689       13,745  
Customer deposits
    7,461       6,871  
Deferred income
    26,813       24,448  
Current portion of long-term borrowings
          400  
Income Taxes payable
    4,404       4,129  
 
           
 
    57,144       61,078  
Long-Term Borrowings
          1,333  
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: 38,076,411 issued and outstanding in fiscal 2006 and 37,196,216 issued and outstanding in fiscal 2005
    19       19  
Additional capital
    89,414       85,421  
Accumulated deficit
    (9,012 )     (12,931 )
Accumulated other comprehensive loss
    (1,186 )     (61 )
 
           
Stockholders’ equity
    79,235       72,448  
 
           
 
  $ 136,379     $ 134,859  
 
           

3


 

(INTERVOICE LOGO)

INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

                 
    (In Thousands, Except Per Share Data)  
    Three Months Ended  
    May 31, 2005     May 31, 2004  
Sales
               
Solutions
  $ 21,370     $ 21,145  
Recurring services
    21,893       20,771  
 
           
 
    43,263       41,916  
 
           
Cost of goods sold
               
Solutions
    12,804       11,980  
Recurring services
    6,112       7,081  
 
           
 
    18,916       19,061  
 
           
Gross margin
               
Solutions
    8,566       9,165  
Recurring services
    15,781       13,690  
 
           
 
    24,347       22,855  
 
           
Research and development expenses
    4,195       3,743  
Selling, general and administrative expenses
    15,433       14,152  
Amortization of acquisition related intangible assets
    252       705  
 
           
Income from operations
    4,467       4,255  
Other income (expense)
    623       367  
Interest expense
    (25 )     (274 )
 
           
Income before taxes
    5,065       4,348  
Income taxes
    1,146       1,171  
 
           
Net income
  $ 3,919     $ 3,177  
 
           
Net income per share — basic
  $ 0.10     $ 0.09  
 
           
Shares used in basic per share computation
    37,530       35,847  
 
           
Net income per share — diluted
  $ 0.10     $ 0.08  
 
           
Shares used in diluted per share computation
    39,103       38,484  
 
           

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(INTERVOICE LOGO)

INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

                 
    (In Thousands)  
    Three Months Ended  
    May 31, 2005     May 31, 2004  
Operating activities
               
Net income
  $ 3,919     $ 3,177  
Adjustments to reconcile net income to net cash
               
provided by operating activities:
               
Depreciation and amortization
    1,722       2,284  
Other changes in operating activities
    (2,669 )     (836 )
 
           
Net cash provided by operating activities
    2,972       4,625  
 
           
Investing activities
               
Purchases of property and equipment
    (3,132 )     (933 )
Other
    (300 )      
 
           
Net cash used in investing activities
    (3,432 )     (933 )
 
           
Financing activities
               
Paydown of debt
    (1,733 )     (500 )
Premium on early extinguishment of debt
          (5 )
Exercise of stock options
    1,493       1,583  
Exercise of warrants
    2,500        
 
           
Net cash provided by financing activities
    2,260       1,078  
 
           
Effect of exchange rates on cash
    (626 )     (141 )
 
           
Increase in cash and cash equivalents
    1,174       4,629  
Cash and cash equivalents, beginning of period
    60,242       40,859  
 
           
Cash and cash equivalents, end of period
  $ 61,416     $ 45,488  
 
           

5


 

(INTERVOICE LOGO)

INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)

(In Thousands, Except Share Data)

                                                 
                                    Accumulated Other        
    Common Stock     Additional     Accumulated     Comprehensive        
    Shares     Amount     Capital     Deficit     Loss     Total  
Balance at February 28, 2005
    37,196,216     $ 19     $ 85,421     $ (12,931 )   $ (61 )   $ 72,448  
Net income
                      3,919             3,919  
Foreign currency translation Adjustment
                            (1,125 )     (1,125 )
 
                                             
Comprehensive income
                                            2,794  
 
                                             
Exercise of stock options
    258,891             1,493                   1,493  
Exercise of warrants
    621,304             2,500                   2,500  
 
                                   
Balance at May 31, 2005
    38,076,411     $ 19     $ 89,414     $ (9,012 )   $ (1,186 )   $ 79,235  
 
                                   

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(INTERVOICE LOGO)

INTERVOICE, INC.
REVENUES BY PRODUCT AND GEOGRAPHY
FOR THE QUARTER ENDED MAY 31, 2005
(Unaudited)
(In thousands)

                                                 
    North     Rest of        
    America     World     Total  
Solutions
  $ 9,527       44.6 %   $ 11,843       55.4 %   $ 21,370       100.0 %
Customer and Software Support
    10,945       70.9 %     4,490       29.1 %     15,435       100.0 %
Managed Services
    2,608       40.4 %     3,850       59.6 %     6,458       100.0 %
 
                                   
Total Sales
  $ 23,080       53.3 %   $ 20,183       46.7 %   $ 43,263       100.0 %
 
                                   
                                                 
                                                 
Voice Automation/IVR
                                  $ 10,708       24.8 %
Network Portal
                                    3,484       8.0 %
Messaging
                                    4,848       11.2 %
Payment
                                    2,330       5.4 %
 
                                           
Total Solutions
                                    21,370       49.4 %
 
                                           
Customer and
                                               
Software Support
                                    15,435       35.7 %
Managed Services
                                    6,458       14.9 %
 
                                           
Total Recurring Services
                                    21,893       50.6 %
 
                                           
Total Sales
                                  $ 43,263       100.0 %
 
                                           

7