Exhibit 99.1
Intervoice, Inc. | ||
Corbin Baumel | ||
+ 1 (972) 454-8737 | ||
56-04 |
Intervoice Announces Results for the Third Quarter of Fiscal 2005
Sales of $48.4 Million and Net Income of $0.18 Per Diluted Share
DALLAS — December 21, 2004 —Intervoice, Inc. (NASDAQ: INTV) today reported revenues of $48.4 million for its third fiscal quarter ended November 30, 2004, a 16 percent increase from $41.8 million posted in the same quarter last year. Net income for the third quarter of fiscal 2005 was $7.0 million, or $0.18 per diluted share. These results reflect significant improvement from net income of $3.6 million, or $0.10 per diluted share, posted in the third quarter of last year. Net income for the third quarter of fiscal 2005 includes the positive effects of a tax settlement with a foreign government totaling $0.9 million, or $0.02 per diluted share, and several domestic tax adjustments totaling $0.9 million, or $0.02 per diluted share, resulting from the completion of federal and state tax returns for fiscal 2004. Net income for the quarter was also affected by $1.5 million, or $0.04 per diluted share, in costs incurred in connection with the previously disclosed Audit Committee investigation.
Cash balances increased by $1.6 million to $50.6 million during the third quarter of fiscal 2005, and the Company reduced its total debt balance to $10.4 million through repayments totaling $1.1 million. Working capital increased from $29.7 million at August 31, 2004 to $40.6 million at November 30, 2004.
“I am very pleased with the significant growth we achieved in our solutions revenues,” said Craig Holmes, the Company’s Executive Vice President and Chief Financial Officer. “I am also encouraged by the improved bottom line results and continued strengthening of our balance sheet. Overall, we had outstanding financial results, which clearly exceeded our expectations.”
The Company’s solutions backlog of $35.2 million at November 30, 2004, is up slightly from $34.0 million at November 30, 2003 and down from $40.2 million at the end of last quarter. The Company’s November 30, 2004 backlog excludes two solutions orders totaling $3.8 million related to contracts signed by customers prior to quarter end but not received by the Company until after quarter end.
“Our third quarter results were based on excellent sales and operations execution across all geographic areas plus the continued success of our channel partners,” said Bob Ritchey, the Company’s President and CEO. “I am also encouraged that our solutions and overall book-to-bill ratios remain positive on a year-to-date basis. We believe the Company’s outlook continues to be favorable, and I currently believe revenues for the fourth quarter of fiscal 2005 will be in the $45 million to $49 million range. I look forward to discussing details of our third fiscal quarter and outlook for the future in tomorrow’s conference call with investors.”
As disclosed in a prior press release and a Current Report on Form 8-K, filed December 17, 2004, the Audit Committee has completed its independent investigation related to several transactions during fiscal years 2000 through 2002.
The Company has scheduled a conference call for 9:00 a.m. central time on Wednesday, December 22, 2004, to discuss its third fiscal quarter results and its outlook for the future. To participate in the call, dial (719) 457-2727. The conference call confirmation code is 663518. A webcast and replay of the call will be available at the Company’s Web site: www.intervoice.com.
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, Inc. (NASDAQ: INTV) provides leading enterprises, network operators and developers with the platform, software, applications and services necessary to optimize the customer experience through voice automation solutions. Omvia®, the open, standards-based Intervoice product suite, offers flexibility for advanced multi-media messaging, portal, IVR and payment applications. The Company focuses on the enterprise and network markets, providing solutions
that improve operational efficiencies, drive revenue and increase customer satisfaction and loyalty. Building on more than 20 years of systems integration and service delivery experience, the Professional Services Agility Suite from Intervoice is designed to provide proven best practices toward design, implementation, and optimization of voice applications. Intervoice systems are proven in more than 23,000 implementations worldwide across all industries including implementations at: Ameritrade, Amtrak, Atmos Energy, Citibank, CSX Transportation, MasterCard, O2, Rogers Wireless, SBC, Travelocity, Verizon and Vodafone. A Microsoft Certified Partner and Certified Partner for Learning Solutions, Intervoice is headquartered in Dallas with offices in Europe, the Middle East, South America, Africa and Asia-Pacific. For more information, visitwww.intervoice.com.
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INTERVOICE, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data) | ||||||||
ASSETS | November 30, 2004 | February 29, 2004 | ||||||
(Unaudited) | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 50,595 | $ | 40,859 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $1,146 in fiscal 2005 and $947 in fiscal 2004 | 33,357 | 23,719 | ||||||
Inventory | 8,233 | 8,415 | ||||||
Prepaid expenses and other current assets | 5,083 | 5,087 | ||||||
97,268 | 78,080 | |||||||
Property and Equipment | ||||||||
Land and buildings | 16,930 | 16,857 | ||||||
Computer equipment and software | 44,155 | 39,073 | ||||||
Furniture, fixtures and other | 3,329 | 3,190 | ||||||
Service equipment | 9,114 | 9,421 | ||||||
73,528 | 68,541 | |||||||
Less allowance for depreciation | 53,038 | 48,325 | ||||||
20,490 | 20,216 | |||||||
Other Assets | ||||||||
Intangible assets, net of accumulated amortization of $15,544 in fiscal 2005 and $34,443 in fiscal 2004 | 5,003 | 6,363 | ||||||
Goodwill | 3,401 | 3,401 | ||||||
Other assets | 168 | 3,491 | ||||||
$ | 126,330 | $ | 111,551 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 13,994 | $ | 10,746 | ||||
Accrued expenses | 12,986 | 11,919 | ||||||
Customer deposits | 4,409 | 6,625 | ||||||
Deferred income | 21,623 | 22,257 | ||||||
Current portion of long-term borrowings | 400 | — | ||||||
Income taxes payable | 3,302 | 7,379 | ||||||
56,714 | 58,926 | |||||||
Long-Term Borrowings | 10,035 | 13,101 | ||||||
Other Long-Term Liabilities | — | 271 | ||||||
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: 36,167,542 issued and outstanding in fiscal 2005 and 35,691,389 issued and outstanding in fiscal 2004 | 18 | 18 | ||||||
Additional capital | 79,856 | 75,276 | ||||||
Accumulated deficit | (20,149 | ) | (35,441 | ) | ||||
Accumulated other comprehensive loss | (144 | ) | (600 | ) | ||||
Stockholders’ equity | 59,581 | 39,253 | ||||||
$ | 126,330 | $ | 111,551 | |||||
INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | November 30, | November 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Sales | ||||||||||||||||
Solutions | $ | 27,638 | $ | 22,034 | $ | 74,027 | $ | 60,689 | ||||||||
Recurring services | 20,723 | 19,726 | 60,510 | 61,079 | ||||||||||||
48,361 | 41,760 | 134,537 | 121,768 | |||||||||||||
Cost of goods sold | ||||||||||||||||
Solutions | 13,741 | 12,606 | 38,997 | 35,090 | ||||||||||||
Recurring services | 6,997 | 6,359 | 20,973 | 20,561 | ||||||||||||
20,738 | 18,965 | 59,970 | 55,651 | |||||||||||||
Gross margin | ||||||||||||||||
Solutions | 13,897 | 9,428 | 35,030 | 25,599 | ||||||||||||
Recurring services | 13,726 | 13,367 | 39,537 | 40,518 | ||||||||||||
27,623 | 22,795 | 74,567 | 66,117 | |||||||||||||
Research and development expenses | 4,119 | 3,677 | 11,282 | 11,251 | ||||||||||||
Selling, general and administrative expenses | 16,380 | 13,555 | 44,469 | 40,117 | ||||||||||||
Amortization of acquisition related intangible assets | 252 | 705 | 1,209 | 2,115 | ||||||||||||
Income from operations | 6,872 | 4,858 | 17,607 | 12,634 | ||||||||||||
Other income (expense) | 186 | (352 | ) | 651 | (400 | ) | ||||||||||
Interest expense | (129 | ) | (507 | ) | (513 | ) | (1,587 | ) | ||||||||
Income before taxes | 6,929 | 3,999 | 17,745 | 10,647 | ||||||||||||
Income taxes (benefit) | (104 | ) | 411 | 2,453 | 2,527 | |||||||||||
Net income | $ | 7,033 | $ | 3,588 | $ | 15,292 | $ | 8,120 | ||||||||
Net income per share — basic | $ | 0.20 | $ | 0.10 | $ | 0.43 | $ | 0.24 | ||||||||
Shares used in basic per share computation | 36,060 | 34,364 | 35,965 | 34,223 | ||||||||||||
Net income per share — diluted | $ | 0.18 | $ | 0.10 | $ | 0.40 | $ | 0.23 | ||||||||
Shares used in diluted per share computation | 38,295 | 36,881 | 38,260 | 35,514 | ||||||||||||
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INTERVOICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | November 30, | November 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Operating activities | ||||||||||||||||
Net income | $ | 7,033 | $ | 3,588 | $ | 15,292 | $ | 8,120 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 1,980 | 2,368 | 6,047 | 7,168 | ||||||||||||
Other changes in operating activities | (6,621 | ) | (4,299 | ) | (10,276 | ) | 1,723 | |||||||||
Net cash provided by operating activities | 2,392 | 1,657 | 11,063 | 17,011 | ||||||||||||
Investing activities | ||||||||||||||||
Purchases of property and equipment | (1,371 | ) | (1,062 | ) | (4,835 | ) | (3,536 | ) | ||||||||
Proceeds from sale of assets | — | 7 | — | 22 | ||||||||||||
Net cash used in investing activities | (1,371 | ) | (1,055 | ) | (4,835 | ) | (3,514 | ) | ||||||||
Financing activities | ||||||||||||||||
Paydown of debt | (1,100 | ) | (1,833 | ) | (10,666 | ) | (4,500 | ) | ||||||||
Borrowings | — | — | 8,000 | — | ||||||||||||
Premium on early extinguishment of debt | — | — | (5 | ) | — | |||||||||||
Release of restricted cash | — | — | 2,750 | — | ||||||||||||
Exercise of stock options | 915 | 1,453 | 2,618 | 2,360 | ||||||||||||
Net cash provided by (used in) financing activities | (185 | ) | (380 | ) | 2,697 | (2,140 | ) | |||||||||
Effect of exchange rates on cash | 804 | 1,384 | 811 | 1,052 | ||||||||||||
Increase in cash and cash equivalents | 1,640 | 1,606 | 9,736 | 12,409 | ||||||||||||
Cash and cash equivalents, beginning of period | 48,955 | 37,014 | 40,859 | 26,211 | ||||||||||||
Cash and cash equivalents, end of period | $ | 50,595 | $ | 38,620 | $ | 50,595 | $ | 38,620 | ||||||||
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INTERVOICE, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
(In Thousands, Except Share Data)
Common Stock | Accumulated Other | |||||||||||||||||||||||
Additional | Accumulated | Comprehensive | ||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Total | |||||||||||||||||||
Balance at February 29, 2004 | 35,691,389 | $ | 18 | $ | 75,276 | $ | (35,441 | ) | $ | (600 | ) | $ | 39,253 | |||||||||||
Net income | — | — | — | 15,292 | — | 15,292 | ||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 456 | 456 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Comprehensive income | 15,748 | |||||||||||||||||||||||
Tax benefit from exercise of stock options | — | — | 1,962 | — | — | 1,962 | ||||||||||||||||||
Exercise of stock options | 476,153 | — | 2,618 | — | 2,618 | |||||||||||||||||||
Balance at November 30, 2004 | 36,167,542 | $ | 18 | $ | 79,856 | $ | (20,149 | ) | $ | (144 | ) | $ | 59,581 | |||||||||||
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Intervoice, Inc.
Revenues by Product and Geography
For the Quarter Ended November 30, 2004
Unaudited
(In thousands)
North | Rest of | |||||||||||||||||||||||
America | World | Total | ||||||||||||||||||||||
Solutions | $ | 13,765 | 49.8 | % | $ | 13,873 | 50.2 | % | $ | 27,638 | 100.0 | % | ||||||||||||
Customer and Software Support | 10,910 | 71.3 | % | 4,388 | 28.7 | % | 15,298 | 100.0 | % | |||||||||||||||
Managed Services | 2,396 | 44.2 | % | 3,029 | 55.8 | % | 5,425 | 100.0 | % | |||||||||||||||
Total Sales | $ | 27,071 | 56.0 | % | $ | 21,290 | 44.0 | % | $ | 48,361 | 100.0 | % | ||||||||||||
IVR/Portal | $ | 17,396 | 36.0 | % | ||||||||||||||||||||
Messaging | 2,321 | 4.8 | % | |||||||||||||||||||||
Payment | 7,921 | 16.4 | % | |||||||||||||||||||||
Total Solutions | 27,638 | 57.2 | % | |||||||||||||||||||||
Customer and Software Support | 15,298 | 31.6 | % | |||||||||||||||||||||
Managed Services | 5,425 | 11.2 | % | |||||||||||||||||||||
Total Recurring Services | 20,723 | 42.8 | % | |||||||||||||||||||||
Total Sales | $ | 48,361 | 100.0 | % | ||||||||||||||||||||
Intervoice, Inc.
Revenues by Product and Geography
For the Nine Months Ended November 30, 2004
Unaudited
(In thousands)
North | Rest of | |||||||||||||||||||||||
America | World | Total | ||||||||||||||||||||||
Solutions | $ | 41,723 | 56.4 | % | $ | 32,304 | 43.6 | % | $ | 74,027 | 100.0 | % | ||||||||||||
Customer and Software Support | 31,588 | 71.3 | % | 12,705 | 28.7 | % | 44,293 | 100.0 | % | |||||||||||||||
Managed Services | 7,130 | 44.0 | % | 9,087 | 56.0 | % | 16,217 | 100.0 | % | |||||||||||||||
Total Sales | $ | 80,441 | 59.8 | % | $ | 54,096 | 40.2 | % | $ | 134,537 | 100.0 | % | ||||||||||||
IVR/Portal | $ | 53,432 | 39.7 | % | ||||||||||||||||||||
Messaging | 6,951 | 5.2 | % | |||||||||||||||||||||
Payment | 13,644 | 10.1 | % | |||||||||||||||||||||
Total Solutions | 74,027 | 55.0 | % | |||||||||||||||||||||
Customer and Software Support | 44,293 | 32.9 | % | |||||||||||||||||||||
Managed Services | 16,217 | 12.1 | % | |||||||||||||||||||||
Total Recurring Services | 60,510 | 45.0 | % | |||||||||||||||||||||
Total Sales | $ | 134,537 | 100.0 | % | ||||||||||||||||||||
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