Interactive Intelligence Inc. (ININ) announced third quarter results after the closing bell on Monday. The company stated that GAAP net income came in at $2.8 million, compared to a GAAP net income of $924,000 in the year-ago period. Excluding certain extraordinary items, adjusted earnings came in at 26 cents per share, missing the Zacks Consensus Estimate by a penny.
 
Interactive Intelligence is a provider of software application suites for voice over Internet protocol (VoIP) business communications to enterprises. The company offers a pre-integrated all-software Internet Protocol Private Branch Exchange (IP PBX) phone and communications solution for enterprises. It also offers software products and services for multi-channel contact management, business communications, messaging using the session initiation protocol (SIP) global communications standard that supports VoIP.
 
The Indianapolis-based company recorded a 10.4% growth in revenues to $33.2 million from $30.1 million in the year-ago quarter as services revenues expanded 14.6% to $17.6 million, while product revenue grew 5.9% to $15.6 million. During the quarter, the company received license orders from 64 new customers, which included 2 orders of more than $1 million each coupled with 8 additional orders worth more than $250,000 each.
 
Operating income surged to $4.3 million, from $1.6 million in the year-ago period, while operating margin expanded 770 basis points (bps) year over year to 12.9%. The robust growth was driven by a 380 bps year-over-year decrease in cost of revenues, as a percentage of total revenues, to 28.6%. Moreover, the growth was further boosted by a 380 bps reduction in operating expenses, as a percentage of total revenues, to 58.5%. Both reductions were mainly the result of management’s continued cost control initiatives, including that on travel and staff related expenses.
 
Interactive Intelligence ended the quarter with cash and cash equivalents of $50.6 million, compared to $34.5 million in the year-ago quarter. During the first 9 months of the year, the company utilized $11.6 million for purchasing marketable securities, $1.3 million towards capital expenditure and $2.25 million towards the acquisition of AcroSoft Corp., a provider of insurance content management solutions.
 
Looking ahead, Interactive Intelligence expects full-year revenues to range between $128 million and $130 million. The company sees full-year adjusted earnings between 87 cents and 90 cents per share. The guidance is well above the Zacks Consensus Estimate of 64 cents per share, which jumped 7 cents over the past month. The most accurate estimate is much closer to the guidance at 79 cents per share.
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