Interactive Intelligence Inc. had good news today. Third-quarter results, reported today, showed total revenues of $15.2 million, an increase of 13 percent from total revenues of $13.4 million in the same period last year. Net income for the 2005 third quarter was $28,000, or $0.00 per share, compared to $102,000, or $0.01 per share in the third quarter of 2004. Product revenue increased 18 percent to $7.8 million in the 2005 third quarter and services revenues increased 9 percent to $7.4 million.

Orders in the quarter were up sharply from the same period last year, said Interactive Intelligence president and chief executive officer, Dr. Donald E. Brown. This activity drove an increase in new revenues that enabled us to record our seventh consecutive quarter of profitability. We have good momentum across all product lines, received positive outlooks from our major resellers at our recent partner conference, have some very innovative product releases nearing completion, and continue to see an increasing number of wins over our major competitors. Overall, we are pleased with results in the quarter and the progress we are making in both the contact center and enterprise IP telephony markets.

For the first nine months of 2005, total revenue was $45.4 million, an 11 percent increase from $40.8 million of total revenue in the same period of 2004. Net income for the first nine months of 2005 was $343,000, or $0.02 per share, compared to $526,000, or $0.03 per share in the first nine months of 2004. Product revenues increased 16 percent to $24.3 million in the 2005 nine month period and services revenues increased 7 percent to $21.1 million.

New customers signing contracts in the third quarter included American Health Network, Angies List, Bass Pro Shops, Case Western Reserve University, Dialogue Marketing, ITT Educational Services, OSI Software, Research In Motion, Robert Half International, and State of Tennessee.

For more information, visit www.inin.com.

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Tracey Schelmetic is editorial director for CUSTOMER INTER@CTION Solutions. For more articles by Tracey Schelmetic, please visit her columns page.