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Intervoice Announces Results for the First Quarter of Fiscal 2008DALLAS --(Business Wire)-- Intervoice, Inc. (Nasdaq:INTV) today reported revenues of $47.7 million for its first fiscal quarter ended May 31, 2007, up from revenues of $47.4 million posted in the prior quarter, and up 5 percent from $45.7 million recorded in the same quarter of the prior year. The Company's solutions backlog of $60.4 million at May 31, 2007 was up 12 percent from $54.1 million at the end of the fourth quarter of fiscal 2007, and up 47 percent from $41.2 million at the end of the same quarter of the prior year. "I am pleased with our top-line results and record level solutions backlog," said Craig Holmes, the Company's Executive Vice President and Chief Financial Officer. "Cost management initiatives combined with recent sales increases are anticipated to have a positive impact on financial results going forward." On a non-GAAP basis, the Company reported first fiscal quarter net income of $1.4 million, or $0.04 per share up from $0.1 million, or $0.00 per share in the prior quarter and up from $1.0 million, or $0.02 per share in the same quarter of the prior year. Also on a non-GAAP basis, operating income for the quarter was $1.7 million, up from a loss of $0.1 million in the prior quarter and up from $0.8 million non-GAAP operating income in the same quarter of the prior year. Non-GAAP operating expenses exclude $1.5 million of acquisition related restructuring charges, $0.7 million related to acquisition amortization expenses and $1.0 million related to non-cash stock compensation expenses. The Company further reported that cash flow from operations was $14.1 million for the first fiscal quarter, up from $11.1 million in the prior quarter and up from $4.0 million in the same quarter of the prior year. The Company's cash balance as of May 31, 2007 was $40.8 million, up from $28.2 million at the end of the prior quarter. "I am pleased at the continued strength in bookings we have seen over the past three quarters, including three significant orders at the end of the quarter," said Bob Ritchey, the Company's President and CEO. "Based on the high backlog we have achieved, I believe the Company's long-term outlook is favorable, and I currently believe revenues for the second quarter of fiscal 2008 will be in the $48 million to $52 million range. I look forward to discussing details of our first fiscal quarter and outlook for the future in today's conference call with investors." On a GAAP basis, the Company reported first fiscal quarter net loss of $0.9 million, or $0.02 per share, a decrease from $2.8 million net loss, or $0.07 per share in the prior quarter, and an increase from $0.4 million net loss, or $0.01 per share in the same quarter of the prior year. Also on a GAAP basis, first fiscal quarter operating loss of $1.4 million is a decrease from $3.7 million operating loss in the prior quarter, and an increase from $1.3 million operating loss in the same quarter of the prior year. GAAP results include acquisition intangible amortization charges, restructuring expenses and non-cash stock compensation expenses related to Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" (SFAS 123R) adopted by the Company on March 1, 2006. These charges are excluded to determine non-GAAP results for comparison purposes. These excluded charges and related income tax effect are detailed on the attached reconciliation of GAAP to non-GAAP financial measures, and are provided at the Company's website - www.intervoice.com. The Company has scheduled a conference call for 4:00 p.m. central time today, Wednesday, June 27, 2007, to discuss its first 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 4155354. A replay of the call will be available at the Company's website - 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 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)
ASSETS May 31, 2007 February 28,
2007
---------------------------------------- -------------- --------------
(Unaudited)
Current Assets
Cash and cash equivalents $ 40,754 $ 28,215
Trade accounts receivable, net of
allowance for doubtful accounts of
$1,345 in fiscal 2008 and $1,476 in
fiscal 2007 28,508 36,837
Inventory 16,892 13,751
Prepaid expenses and other current
assets 3,662 3,909
Income taxes receivable 624 1,098
Deferred income taxes 4,480 3,880
-------------- --------------
94,920 87,690
-------------- --------------
Property and Equipment, net of
accumulated depreciation of $64,753 in
fiscal 2008 and $62,419 in fiscal 2007 34,162 34,429
Other Assets
Intangible assets, net of accumulated
amortization of $20,789 in fiscal
2008 and $20,040 in fiscal 2007 8,924 9,505
Goodwill 32,193 32,193
Long term deferred income taxes 2,688 4,613
Other assets 142 135
-------------- --------------
$ 173,029 $ 168,565
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------
Current Liabilities
Accounts payable $ 15,762 $ 12,881
Accrued expenses 13,176 15,571
Customer deposits 4,306 4,365
Deferred income 37,951 32,368
Deferred income taxes 322 196
-------------- --------------
71,517 65,381
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: 38,866,893 issued and
outstanding in fiscal 2008 and
38,727,628 issued and outstanding in
fiscal 2007 19 19
Additional capital 103,217 101,608
Retained earnings (deficit) (1,559) 1,861
Accumulated other comprehensive loss (165) (304)
-------------- --------------
101,512 103,184
-------------- --------------
$ 173,029 $ 168,565
============== ==============
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per
Share Data)
Three Months Ended
-----------------------------
May 31, 2007 May 31, 2006
-------------- --------------
Sales
Solutions $ 21,702 $ 19,469
Recurring services 26,029 26,199
-------------- --------------
47,731 45,668
-------------- --------------
Cost of goods sold
Solutions 15,182 12,304
Recurring services 7,291 7,474
-------------- --------------
22,473 19,778
-------------- --------------
Gross margin
Solutions 6,520 7,165
Recurring services 18,738 18,725
-------------- --------------
25,258 25,890
-------------- --------------
Research and development expenses 5,317 5,782
Selling, general and administrative
expenses 20,693 20,800
Amortization of acquisition related
intangible assets 695 581
-------------- --------------
Income (loss) from operations (1,447) (1,273)
Interest income 590 499
Other income (expense) (144) 207
-------------- --------------
Income (loss) before taxes (1,001) (567)
Income taxes (benefit) (128) (162)
-------------- --------------
Net income (loss) $ (873) $ (405)
============== ==============
Net income (loss) per share - basic $ (0.02) $ (0.01)
============== ==============
Shares used in basic per share
computation 38,807 38,504
============== ==============
Net income (loss) per share - diluted $ (0.02) $ (0.01)
============== ==============
Shares used in diluted per share
computation 38,807 38,504
============== ==============
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
Three Months Ended
---------------------------
May 31, 2007 May 31, 2006
------------- -------------
Operating activities
Net income (loss) $ (873) $ (405)
Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
Depreciation and amortization 3,035 2,678
Non-cash compensation expense 1,008 1,381
Change in accounts receivable 8,337 59
Other changes in operating activities 2,573 314
------------- -------------
Net cash provided by operating activities 14,080 4,027
------------- -------------
Investing activities
Purchases of property and equipment (2,142) (4,407)
Purchase of Edify Corporation --- (836)
------------- -------------
Net cash used in investing activities (2,142) (5,243)
------------- -------------
Financing activities
Exercise of stock options 601 149
------------- -------------
Net cash provided by financing activities 601 149
------------- -------------
Effect of exchange rates on cash --- 453
------------- -------------
Increase (decrease) in cash and cash
equivalents 12,539 (614)
Cash and cash equivalents, beginning of
period 28,215 42,076
------------- -------------
Cash and cash equivalents, end of period $ 40,754 $ 41,462
============= =============
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(In Thousands, Except Share Data)
Accumu-
lated
Other
Addi- Compre-
Common Stock tional Retained hensive
------------------
Shares Amount Capital Earnings Loss Total
--------------------------------------------------------
Balance at
February 28,
2007 38,727,628 $ 19 $101,608 $ 1,861 $ (304) $103,184
Net income
(loss) --- --- --- (873) --- (873)
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currency
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