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Intervoice Announces Fourth Fiscal Quarter and Full Year 2007 ResultsDALLAS --(Business Wire)-- Intervoice, Inc. (Nasdaq:INTV) today reported revenues of $196.3 million for its full year ended February 28, 2007, an increase of 17 percent from $168.1 million in the prior year. Fourth fiscal quarter revenues were $47.4 million, also up 17 percent from $40.5 million posted in the same quarter of the prior year. The Company's solutions backlog of $54.1 million at February 28, 2007 was up 60 percent from $33.9 million at the end of the fourth quarter of the prior year, and up 17 percent from $46.3 million at the end of the third quarter of fiscal 2007. "Although we are disappointed with our fourth quarter revenues, we were able to return to annual top-line and backlog growth," said Craig Holmes, the Company's Executive Vice President and Chief Financial Officer. "During the year, we integrated two strategic acquisitions and made significant investments in our sales, marketing and software development programs. These actions strengthened our Company and drove top-line growth but negatively impacted our bottom line." On a GAAP basis, the Company's fiscal year 2007 net loss of $1.7 million, or $0.04 per share, is a decrease from $16.5 million GAAP net income, or $0.42 per share recorded in the prior year. On a non-GAAP basis, the Company reported non-GAAP net income of $6.6 million, or $0.17 per share for fiscal year 2007, down 30 percent from $9.4 million, or $0.24 per share of non-GAAP net income in the prior year. Non-GAAP net income excludes intangible amortization charges and restructuring expenses of $6.2 million, a charge of $0.9 million based on settlement discussions with the Securities and Exchange Commission (SEC) related to the previously disclosed Audit Committee investigation, non-cash stock compensation expenses of $4.8 million and effective tax adjustments of $3.6 million. Excluded charges and related income tax effects are detailed on the attached reconciliation of GAAP to non-GAAP financial measures. On a GAAP basis, the Company's fourth quarter net loss of $2.8 million, or $0.07 per share, is a decrease from $4.3 million GAAP net income or $0.11 per share in the same quarter of the prior fiscal year. Non-GAAP net income of $0.1 million, or $0.00 per share for the fourth fiscal quarter 2007 was up from a $0.2 million non-GAAP net loss, or $0.01 per share recorded in the same quarter of the prior year. Non-GAAP net income excludes acquisition intangible amortization charges and restructuring expenses of $1.5 million, a charge for the estimated SEC settlement of $0.9 million, non-cash stock compensation expenses of $1.1 million and effective tax adjustments of $0.7 million. Excluded charges and related income tax effects are detailed on the attached reconciliation of GAAP to non-GAAP financial measures. In addition, both GAAP and non-GAAP fourth fiscal quarter and full year results included a $1.9 million provision for a loss contract that negatively affected gross margins and operating results. "I am pleased we were able to announce two significant orders from mobile operators for our Media Exchange product at the end of the quarter which drove our backlog to record levels," said Bob Ritchey, the Company's President & CEO. "Based on our strong solutions bookings, I believe the Company's long-term outlook continues to be favorable. However, first fiscal quarter results will be impacted by longer backlog conversion cycles; therefore, I currently believe revenues for the first quarter of fiscal 2008 will be in the $45 million to $49 million range. I look forward to discussing details of our fourth fiscal quarter and outlook for the future in today's conference call with investors." The Company has scheduled a conference call for 4:00 p.m. Central Time on Thursday, April 26, 2007, to discuss its fourth fiscal quarter results and its outlook for the future. To participate in the call, dial (877) 743-6785 or (706) 679-4758 and reference the conference ID of 5931429. A replay of the call will be available at the Company's Web site: www.intervoice.com. Non-GAAP Financial Measures The Company's internal reporting and measurement programs include adjustments to exclude certain stock-based compensation charges, amortization of acquisition intangibles and restructuring expenses, and a charge for estimated settlement costs related to the Company's Audit Committee investigation from GAAP financial measures. In addition, for comparison purposes, the Company adjusts net income to reflect an accrual of pro-forma tax expense of 34 percent on pre-tax income including these adjustments. The Company believes these adjustments provide a non-GAAP measurement of results which is useful for period to period comparisons and which is also used as a component of internal incentive compensation programs. In the future, the Company anticipates incurring expenses similar to certain of the non-GAAP adjustments described in the non-GAAP financial measures, and exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that all of these costs are unusual, infrequent, or non-recurring. In addition, other companies, including those in the Company's industry, may calculate non-GAAP financial measures differently, potentially limiting non-GAAP measures for cross-company comparisons. Adjusted results are supplemental information and are not intended to be a substitute for GAAP results or considered in isolation, and should be read only in conjunction with consolidated financial statements prepared in accordance with GAAP. The adjustments and their impact on GAAP financial results are shown as an additional table at the end of this press release. Forward-Looking Statements 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 is a world leader in unified communications, providing scalable, switch-independent software and professional services that power standards-based voice portals, multi-channel IP contact centers, and next-generation mobile-enhanced services. Since 1983, Intervoice solutions have been used by many of the world's leading banks, communications companies, healthcare institutions, utilities and government entities. With more than 5,000 customers in 75 countries, Intervoice helps enterprises and network operators stay competitive by offering their customers best-in-class services. Intervoice Voice Portal, IP contact center software, enhanced messaging products, Media Exchange(TM) platform and custom-built and packaged applications are available on-premise and, selectively, as managed or hosted services by Intervoice. For more information, visit www.intervoice.com.
INTERVOICE, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share
and Per Share Data)
February 28, February 28,
2007 2006
-------------- ---------------
(Unaudited)
ASSETS
--------------------------------------[FE
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
----------------------- -----------------------
February February February February
28, 2007 28, 2006 28, 2007 28, 2007
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
(In thousands, except per share data)
Sales
Solutions $21,589 $15,387 $92,455 $78,107
Recurring Services 25,839 25,152 103,890 89,996
----------- ----------- ----------- -----------
47,428 40,539 196,345 168,103
----------- ----------- ----------- -----------
Cost of goods sold
Solutions 14,957 10,679 59,151 48,007
Recurring Services 7,044 6,740 29,116 25,534
----------- ----------- ----------- -----------
22,001 17,419 88,267 73,541
----------- ----------- ----------- -----------
Gross margin
Solutions 6,632 4,708 33,304 30,100
Recurring Services 18,795 18,412 74,774 64,462
----------- ----------- ----------- -----------
25,427 23,120 108,078 94,562
----------- ----------- ----------- -----------
Research and
development expenses 6,351 5,613 23,630 17,918
Selling, general and
administrative
expenses 21,153 19,861 84,120 66,462
Settlement provision 943 --- 943 ---
Amortization of
acquisition related
intangible assets 682 472 2,518 1,228
----------- ----------- ----------- -----------
Income (loss) from
operations (3,702) (2,826) (3,133) 8,954
Interest income 289 464 1,526 2,245
Interest expense --- --- (17) (31)
Other income
(expense) (66) (323) (276) 56
----------- ----------- ----------- -----------
Income (loss) before
taxes (3,479) (2,685) (1,900) 11,224
Income taxes
(benefit) (679) (7,029) (203) (5,265)
----------- ----------- ----------- -----------
Net income (loss) $(2,800) $4,344 $(1,697) $16,489
=========== =========== =========== ===========
Net income (loss) per
share - basic $(0.07) $0.11 $(0.04) $0.43
=========== =========== =========== ===========
Shares used in basic
per share
computation 38,670 38,348 38,585 38,064
=========== =========== =========== ===========
Net income (loss) per
share - diluted $(0.07) $0.11 $(0.04) $0.42
=========== =========== =========== ===========
Shares used in
diluted per share
computation 38,670 39,081 38,585 39,044
=========== =========== =========== ===========
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Year Ended
------------------------- -------------------------
February 28, February 28, February 28, February 28,
2007 2006 2007 2006
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
(In Thousands)
Operating
activities
Net income (loss) $(2,800) $4,344 $(1,697) $16,489
Adjustments to
reconcile net
income to net
cash provided
by operating
activities:
Depreciation
and
amortization 3,158 2,686 11,433 8,602
Other changes
in operating
activities 10,776 933 (9,500) 1,631
------------ ------------ ------------ ------------
Net cash provided
by operating
activities 11,134 7,963 236 26,722
------------ ------------ ------------ ------------
Investing
activities
Purchases of
property and
equipment (2,848) (3,085) (13,571) (13,182)
Purchase of
Edify
Corporation,
net of cash
acquired --- (34,341) (926) (34,341)
Purchase of
Nuasis assets,
net of cash
acquired --- --- (2,439) ---
Other changes
in investing
activities --- --- --- (300)
------------ ------------ ------------ ------------
Net cash used in
investing
activities (2,848) (37,426) (16,936) (47,823)
------------ ------------ ------------ ------------
Financing
activities
Paydown of debt --- --- --- (1,733)
Exercise of
stock options 339 760 715 3,152
Exercise of
warrants --- --- --- 2,500
Tax benefit for
exercise of
stock options 1,669 --- 1,669 ---
------------ ------------ ------------ ------------
Net cash provided
by financing
activities 2,008 760 2,384 3,919
Effect of
exchange rates
on cash (3) 521 455 (984)
------------ ------------ ------------ ------------
Increase
(decrease) in
cash and cash
equivalents 10,291 (28,182) (13,861) (18,166)
Cash and cash
equivalents,
beginning of
period 17,924 70,258 42,076 60,242
------------ ------------ ------------ ------------
Cash and cash
equivalents, end
of period $28,215 $42,076 $28,215 $42,076
============ ============ ============ ============
INTERVOICE, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(In Thousands, Except Share Data)
Accumu-
lated
Other
Compre-
Common Stock Additional Retained hensive
------------------
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
(loss) --- --- --- (1,697) --- (1,697)
Foreign
currency
translation
adj |
