EX-99.1 2 d39761exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
 
(INTERVOICE LOGO)   PRESS RELEASE
     
37-06
  MEDIA CONTACTS
 
  Corbin Baumel
 
  Intervoice, Inc.
 
  972-454-8737
 
  Corbin.baumel@intervoice.com
FOR IMMEDIATE RELEASE
Intervoice Announces Results for the Second Quarter of Fiscal 2007
Revenue of $51.1 Million and Net Income of $0.05 Per Diluted Share
DALLAS — September 20, 2006 — Intervoice, Inc. (NASDAQ: INTV) today reported revenues of $51.1 million for its second fiscal quarter ended August 31, 2006, up 18 percent from $43.3 million recorded in the same quarter of the prior year, and up 12 percent from $45.7 million of revenues posted in the prior quarter. Current quarter net income of $2.0 million, or $0.05 per diluted share, decreased from $4.6 million, or $0.12 per share in the same quarter of the prior year, and increased from a net loss of $0.4 million, or $0.01 per share from the prior quarter.
The Company’s solutions backlog of $41.0 million at August 31, 2006 was up from $30.3 million, or 36 percent from the same quarter of the prior year, and about flat compared to $41.2 million at the end of the first quarter of fiscal 2007.
On September 1, 2006 the Company completed the purchase of the assets and certain liabilities of Nuasis Corporation, a leading provider of Internet-enabled, customer contact software. The Nuasis product suite allows Intervoice to bring new IP-based contact center applications to the agent desktop, including web-chat and email response applications, along with its market leading speech-enabled IVR and voice portal solutions.
“We are expecting the acquisition of Nuasis technology to be very positive for our customers, partners, employees and shareholders,” said Bob Ritchey, the Company’s President & CEO, “I continue to believe the Company’s long-term outlook is favorable, and I currently believe revenues for the third quarter of fiscal 2007 will be in the $48 million to $53 million range. I look forward to discussing details of our second fiscal quarter and outlook for the future in today’s conference call with investors.”
“I am very pleased with the results we have posted for this quarter,” said Craig Holmes, the Company’s Executive Vice President and Chief Financial Officer. “Our investments in new customers, software, services and markets drove significant top-line growth during the first half of our fiscal 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 second 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 tax effect of these adjustments would be $0.4 million at the effective rate of 32.4 percent.
(INTERVOICE LOGO)

 

 

In addition, the Company had approximately $1.0 million of expenses in the second fiscal quarter relating to acquisition intangible amortization charges, severance and restructuring expenses. Of this amount, $0.3 million is recorded in costs of goods sold, $0.1 million is reflected in selling, general and administrative expenses and $0.6 million is reflected as amortization of acquisition related intangible assets. The tax effect of these adjustments would be $0.3 million at the effective rate of 32.4 percent
The Company has scheduled a conference call for 4:00 p.m. central time on Wednesday September 20, 2006, to discuss its second fiscal quarter results and its outlook for the future. To participate in the call, dial (719) 457-2630. The conference call confirmation code is 7427708. 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. Intervoice Media Exchange, the open, standards-based Intervoice product suite, offers unparalleled flexibility for advanced multi-media messaging, portal, IVR and payment applications. 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. With the acquisition of Nuasis, Intervoice can now bring new IP-based contact center applications to the agent desktop, including web-chat and email response applications, along with its market leading speech-enabled IVR and voice portal self-service solutions. In addition to traditional premise-based deployments, the Nuasis offering supports remote based agents and hosted 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.
###

 

 

INTERVOICE, INC.
CONSOLIDATED BALANCE SHEETS
                 
    (In Thousands, Except Share and Per Share Data)  
ASSETS   August 31, 2006     February 28, 2006  
 
   (Unaudited)        
Current Assets
     $31,963       $42,076  
Cash and cash equivalents
                
Trade accounts receivable, net of allowance for doubtful accounts of $1,882 in fiscal 2007 and $1,701 in fiscal 2006
     32,509       25,745  
Inventory
     12,105       9,439  
Prepaid expenses and other current assets
     6,383       4,406  
Deferred income taxes
     3,182       3,047  
 
            
 
     86,142       84,713  
 
            
 
                
Property and Equipment, net of accumulated depreciation of $63,343 in fiscal 2007 and $59,002 in fiscal 2006
     33,636       28,893  
 
                
Other Assets
                
Intangible assets, net of accumulated amortization of $18,589 in fiscal 2007 and $17,343 in fiscal 2006
     9,038       10,284  
Goodwill
     32,461       32,461  
Long term deferred income taxes
     2,108       1,330  
Other assets
     496       454  
 
            
 
   $ 163,881     $ 158,135  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
 
                
Current Liabilities
                
Accounts payable
   $ 14,244     $ 10,154  
Accrued expenses
     12,198       15,176  
Customer deposits
     5,449       6,157  
Deferred income
     31,133       32,172  
Income taxes payable
     1,400       484  
Deferred income taxes
     —       270  
 
            
 
     64,424       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: 38,578,339 issued and outstanding in fiscal 2007 and 38,470,087 issued and outstanding in fiscal 2006
     19       19  
Additional capital
     95,057       92,050  
Retained earnings
     5,168       3,558  
Accumulated other comprehensive loss
     (787 )     (1,905 )
 
            
Stockholders’ equity
     99,457       93,722  
 
            
 
   $ 163,881     $ 158,135  
 
            

 

 

INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                 
    (In Thousands, Except Per Share Data)  
    Three Months Ended     Six Months Ended  
    August 31,     August 31,     August 31,     August 31,  
    2006     2005     2006     2005  
Sales
                                
Solutions
   $ 24,865     $ 22,022     $ 44,334     $ 43,392  
Recurring services
     26,235       21,268       52,434       43,161  
 
                        
 
     51,100       43,290       96,768       86,553  
 
                        
Cost of goods sold
                                
Solutions
     15,205       13,050       27,509       25,854  
Recurring services
     7,192       6,273       14,666       12,385  
 
                        
 
     22,397       19,323       42,175       38,239  
 
                        
Gross margin
                                
Solutions
     9,660       8,972       16,825       17,538  
Recurring services
     19,043       14,995       37,768       30,776  
 
                        
 
     28,703       23,967       54,593       48,314  
 
                                
Research and development expenses
     5,239       3,884       11,021       8,079  
Selling, general and administrative expenses
     20,225       15,367       41,025       30,800  
Amortization of acquisition related intangible assets
     582       252       1,163       504  
 
                        
 
                                
Income from operations
     2,657       4,464       1,384       8,931  
 
                                
Interest income
     448       599       947       1,096  
Interest expense
     —       —       —       (25 )
Other income (expense)
     (125 )     36       82       162  
 
                        
Income before taxes
     2,980       5,099       2,413       10,164  
Income taxes
     965       498       803       1,644  
 
                        
 
                                
Net income
   $ 2,015     $ 4,601     $ 1,610     $ 8,520  
 
                        
 
                                
Net income per share — basic
   $ 0.05     $ 0.12     $ 0.04     $ 0.23  
 
                        
 
                                
Shares used in basic per share computation
     38,552       38,130       38,528       37,831  
 
                        
 
                                
Net income per share — diluted
   $ 0.05     $ 0.12     $ 0.04     $ 0.22  
 
                        
 
                                
Shares used in diluted per share computation
     39,114       38,997       39,143       39,043  
 
                        

 

 

INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                 
    (In Thousands)  
    Three Months Ended     Six Months Ended  
    August 31,     August 31,     August 31,     August 31,  
    2006     2005     2006     2005  
Operating activities
                                
Net income
   $ 2,015     $ 4,601     $ 1,610     $ 8,520  
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Depreciation and amortization
     2,573       1,870       5,251       3,592  
Non-cash compensation expense
     1,368       —       2,749       —  
Change in accounts receivable
     (6,682 )     3,942       (6,623 )     4,930  
Other changes in operating activities
     (4,555 )     1,045       (4,241 )     (2,612 )
 
                        
Net cash provided by (used in) operating activities
     (5,281 )     11,458       (1,254 )     14,430  
 
                        
 
                                
Investing activities
                                
Purchases of property and equipment
     (4,207 )     (3,912 )     (8,614 )     (7,044 )
Purchase of Edify Corporation
     (90 )     —       (926 )     —  
Other
     —       —       —       (300 )
 
                        
Net cash used in investing activities
     (4,297 )     (3,912 )     (9,540 )     (7,344 )
 
                        
 
                                
Financing activities
                                
Paydown of debt
     —       —       —       (1,733 )
Exercise of stock options
     109       585       258       2,078  
Exercise of warrants
     —       —       —       2,500  
 
                        
 
                                
Net cash provided by financing activities
     109       585       258       2,845  
 
                        
Effect of exchange rates on cash
     (30 )     (155 )     423       (781 )
 
                        
 
                                
Increase (decrease) in cash and cash equivalents
     (9,499 )     7,976       (10,113 )     9,150  
Cash and cash equivalents, beginning of period
     41,462       61,416       42,076       60,242  
 
                        
 
                                
Cash and cash equivalents, end of period
   $ 31,963     $ 69,392     $ 31,963     $ 69,392  
 
                        

 

 

INTERVOICE, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
(In Thousands, Except Share Data)
                                                 
                                    Accumulated Other    
    Common Stock   Additional   Retained   Comprehensive    
    Shares   Amount   Capital   Earnings   Loss   Total
     
Balance at February 28, 2006
     38,470,087     $ 19     $ 92,050     $ 3,558     $ (1,905 )   $ 93,722  
 
                                                
Net income
     —       —       —       1,610       —       1,610  
 
                                                
Foreign currency translation adjustment
     —       —       —       —       1,118       1,118  
 
                                                
 
                                                
Comprehensive income
                                             2,728  
 
                                                
 
                                                
Exercise of stock options
     108,252       —       258       —       —       258  
 
                                                
Non-cash compensation
     —       —       2,749       —       —       2,749  
 
                                                
     
Balance at August 31, 2006
     38,578,339     $ 19     $ 95,057     $ 5,168     $ (787 )   $ 99,457  
     

 

 

Intervoice, Inc.
Revenues by Market and Geography
For the Quarter Ended August 31, 2006
Unaudited
(In thousands)
                                                 
    North     Rest of        
    America     World     Total  
 
                                                
Solutions
   $ 12,879       51.8 %   $ 11,986       48.2 %   $ 24,865       100.0 %
Customer and Software Support
     16,203       78.4 %     4,463       21.6 %     20,666       100.0 %
Hosted Solutions
     3,744       67.2 %     1,825       32.8 %     5,569       100.0 %
 
                                    
Total Sales
   $ 32,826       64.2 %   $ 18,274       35.8 %   $ 51,100       100.0 %
 
                                    
 
                                                
Voice Automation/IVR
                                   $ 19,874       38.9 %
Messaging
                                     3,569       7.0 %
Payment
                                     1,422       2.8 %
 
                                            
Total Solutions
                                     24,865       48.7 %
 
                                            
Customer and Software Support
                                     20,666       40.4 %
Hosted Solutions
                                     5,569       10.9 %
 
                                            
Total Recurring Services
                                     26,235       51.3 %
 
                                            
Total Sales
                                   $ 51,100       100.0 %
 
                                            
Intervoice, Inc.
Revenues by Market and Geography
For the Six Months Ended August 31, 2006
Unaudited
(In thousands)
                                                 
    North     Rest of        
    America     World     Total  
 
                                                
Solutions
   $ 21,101       47.6 %   $ 23,233       52.4 %   $ 44,334       100.0 %
Customer and Software Support
     31,613       77.4 %     9,238       22.6 %     40,851       100.0 %
Hosted Solutions
     7,153       61.8 %     4,430       38.2 %     11,583       100.0 %
 
                                    
Total Sales
   $ 59,867       61.9 %   $ 36,901       38.1 %   $ 96,768       100.0 %
 
                                    
 
                                                
Voice Automation/IVR
                                   $ 33,618       34.7 %
Messaging
                                     7,287       7.5 %
Payment
                                     3,429       3.6 %
 
                                            
Total Solutions
                                     44,334       45.8 %
 
                                            
Customer and Software Support
                                     40,851       42.2 %
Hosted Solutions
                                     11,583       12.0 %
 
                                            
Total Recurring Services
                                     52,434       54.2 %
 
                                            
Total Sales
                                   $ 96,768       100.0 %