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Hosted Call Center Provider inContact Announces Fourth Quarter and Year End Financial Results

By Susan J. Campbell, TMCnet Contributing Editor

inContact Inc., a provider of hosted call center software platforms, has reported its financial results for fourth quarter and year ended December 31, 2009. The company is hosting a conference call to discuss fourth quarter and year end 2009 financial results today, March 23, at 4:30 p.m. Eastern time (1:30 p.m. Pacific). (Call information provided below.)

The company is likely in high spirits as revenue reports showed an increase of 31 percent as the software segment totaled $7.9 million in the quarter end, up from $6.0 million in the same period in 2008. For the year end, revenue was reported at $29.1 million, an increase of 46 percent from $20.0 million in 2008.

'I am very pleased to report a strong finish to a great year for inContact both operationally and in terms of our financial performance,' said Paul Jarman, inContact CEO, in a statement.

'We grew software segment revenue 46 percent versus 2008 during a period when many other software companies struggled to achieve even single digit performance. We delivered four consecutive quarters of EBITDAS growth, culminating with our first quarter of positive net income since we shifted our focus to software, and signed 152 new contracts, 31 percent more than in the prior year.”

Gross profits were also on the rise for inContact, showing an increase of $2.0 million in the fourth quarter when compared with the same quarter of 2008. The software segment gross profit increased $1.7 million in the quarter, compared to the same period in 2008. The same segment demonstrated an 8 percent improvement in gross margin percentage.

'During 2009 we gained a strong foothold in several new industries, such as direct response marketing, outsourcers, healthcare and retail, where we won key accounts that we can build on in 2010,” added Jarman. “We continued to add significant new partners to our leveraged sales model while leveraging and maturing existing relationships.”

Net income also returned a strong performance over 2008. The quarter end showed net income was $332,000, or $0.01 per share, compared to a net loss of $2.4 million or ($0.08) per share for the same period in 2008. For the full year ended December 31, 2009, the company reported a net loss of $2.9 million versus a net loss of $10.3 million for 2008.

Jarman continued: 'In summary, as we enter 2010, we feel that we are at a point with our reference customers, partners, next-generation platform and favorable market trends to grow our awareness and take advantage of this window of opportunity. We will continue to leverage our industry-leading products and people, and are confident that we will see the cumulative benefits of the momentum we have demonstrated across our entire organization continue throughout 2010 and beyond.'

inContact enjoyed an exciting 2009, which included the signing of one of the largest hotel groups in the world. This company decided to abandon its legacy, on-premises call center system in favor of inContact’s hosted platform because of its intelligent call routing and out-of-the-box integration with Salesforce CRM.

The company also reportedly signed-on three new customers during the month of December – a strong way for the company to wrap up 2009 and hopefully a foreshadowing of an economic turnaround in 2010. The customers include a telecommunications service provider and 211 services provider, as well as a Fortune 500 company.