inContact Reports First Quarter 2012 Financial Results
May 07, 2012
Revenue Software segment revenue totaled $12.3 million for the first quarter, an increase of 32 percent from Q1 2011 and an increase of 12 percent from $11 million in Q4 2011. Telecom segment revenue for Q1 2012 was $13.4 million for the quarter, an increase of $1.4 million or 11 percent from $12.0 million in Q1 2011.
"Our Software segment revenues were a record $12.3 million, up 32 percent over the same period a year ago and represent the sixth consecutive quarter of software and consolidated revenue growth, a trend we expect to continue. Additionally, we closed 57 contracts, of which 34 were new contracts and 23 were up-sells in existing accounts," said Paul Jarman, inContact CEO, in a statement. "We continue to see a change in the size and type of contact centers selecting inContact as we move upmarket and the cloud is more widely recognized as a proven technology delivery method."
The Q1 Software segment gross margin was 59 percent versus 62 percent in Q1 2011, and excluding non-cash charges, non-GAAP Software segment gross margin was 71 percent for the quarter, versus 73 percent in Q1 2011. The decrease in gross margin is attributable to investments inContact made in its international facilities and reseller programs, as well as higher non-cash depreciation and amortization. First quarter 2012 Telecom segment gross margin was 31 percent versus 26 percent in Q1 2011.
Earnings before interest, taxes, depreciation and amortization and stock-based compensation (EBITDAS) for the first quarter were $935,000 versus $989,000 during the same period in 2011. inContact’s decrease in EBITDAS is due to the investments impacting gross profit mentioned above, and investments in sales and marketing of approximately $1.8 million.
“Our strong Q1 performance continues to solidify our leadership position in the accelerating cloud contact center market. We are making significant strides forward to increase our market position by investing in our platform, expanding our inCloud ecosystem, and leveraging our reseller partners,” Jarman concluded.
Edited by Carrie Schmelkin
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