Workforce Management Market Report - Australia and New Zealand
published 29-Sep-2011
A publishing company focusing on contact centre, face-to-face, online, correspondence and social media service channels
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Interactive Intelligence Reports Fourth-Quarter and Full Year 2011 Financial Results
02-Feb-2012 Interactive Intelligence Group Inc. (Nasdaq: ININ), a global provider of unified IP business communications solutions, has announced financial results for its fourth quarter and full year ended Dec. 31, 2011."Market demand was strong and we executed well during the fourth quarter, a combination that provided a strong finish to a year with record revenues," said Interactive Intelligence founder and CEO, Dr. Donald Brown. "In 2011, we firmly established Interactive Intelligence as a vendor-of-choice at the high end of the contact centre market. We continue to consistently grow faster than the overall market with our on-premise solutions and are emerging as a leader with our cloud-based offering."
"We show ever-increasing momentum among customer cloud deployments, which is the highest growth segment of our market. In 2012, we plan to capitalize on this momentum and step up investments to further enhance our brand recognition, extend our product capabilities and gain additional market share".
"Our order mix is expected to continue shifting toward the cloud, which combined with strategic investments in sales, marketing and development is expected to reduce our reported profitability from a near-term perspective. However, we're confident in the long-term viability of our business model, and our ability to generate shareholder value. We're addressing a multi-billion dollar market opportunity, and we're taking focused action to grow the business for long-term financial success driven by increasing recurring revenue," concluded Brown.
Fourth-Quarter 2011 Financial Highlights:
Orders: Total orders increased 17 percent year-over-year, with cloud-based orders up over 500 percent year-over-year. The company signed 101 new customers during the fourth quarter of 2011, up 29 percent from 78 new customers during the same period in 2010, including 12 new customers for its cloud-based offering during the fourth quarter of 2011, up from 8 during the same period in 2010.
Revenue: Total revenues were $57.7 million, with non-GAAP revenue of $58.0 million, an increase of 14 percent on a year-over-year basis. Recurring revenues, which include both maintenance contracts and cloud-based subscriptions, increased 23 percent to $24.4 million and accounted for 42 percent of total revenues. Cloud-based revenues increased 61 percent year-over-year to $3.8 million. Product revenues were $27.3 million and service revenues were $6.0 million, up 9 percent and 4 percent, respectively, compared to the fourth quarter of last year.
Operating Income: GAAP operating income for the fourth quarter was $6.5 million, with an operating margin of 11.3 percent, compared to $9.1 million and an operating margin of 18.0 percent for the fourth quarter 2010. Non-GAAP operating income was $8.7 million with an operating margin of 15.0 percent, compared to $10.5 million and an operating margin of 20.7 percent for the fourth quarter of 2010. The year-over-year decline in operating margin was primarily due to the shift toward cloud-based orders, which are recognised ratably over the life of the contract, and away from on-premise product orders, which are typically recognised as revenue on an upfront basis.
Net Income: GAAP net income for the fourth quarter was $4.6 million based on a 30.0 percent effective tax rate, and includes an adjustment of the full year effective tax rate down to 33.4 percent. This compares to GAAP net income of $7.1 million based on a 22.3 percent effective tax rate for the same period last year. GAAP diluted earnings per share (EPS) for the fourth quarter was $0.23 based on 19.9 million weighted average diluted shares outstanding, compared to $0.37 based on 19.3 million shares outstanding for the same period last year. Non-GAAP net income for the fourth quarter was $7.3 million based on a 16.6 percent effective tax rate, compared to $10.4 million based on a 0.5 percent effective tax rate for the same period last year. Non-GAAP EPS for the fourth quarter was $0.37, compared to $0.54 for the same period last year.
Full Year 2011 Financial Highlights:
Operating Income: GAAP operating income for the fourth quarter was $6.5 million, with an operating margin of 11.3 percent, compared to $9.1 million and an operating margin of 18.0 percent for the fourth quarter 2010. Non-GAAP operating income was $8.7 million with an operating margin of 15.0 percent, compared to $10.5 million and an operating margin of 20.7 percent for the fourth quarter of 2010. The year-over-year decline in operating margin was primarily due to the shift toward cloud-based orders, which are recognised ratably over the life of the contract, and away from on-premise product orders, which are typically recognised as revenue on an upfront basis.
Net Income: GAAP net income for the fourth quarter was $4.6 million based on a 30.0 percent effective tax rate, and includes an adjustment of the full year effective tax rate down to 33.4 percent. This compares to GAAP net income of $7.1 million based on a 22.3 percent effective tax rate for the same period last year. GAAP diluted earnings per share (EPS) for the fourth quarter was $0.23 based on 19.9 million weighted average diluted shares outstanding, compared to $0.37 based on 19.3 million shares outstanding for the same period last year. Non-GAAP net income for the fourth quarter was $7.3 million based on a 16.6 percent effective tax rate, compared to $10.4 million based on a 0.5 percent effective tax rate for the same period last year. Non-GAAP EPS for the fourth quarter was $0.37, compared to $0.54 for the same period last year.
Full Year 2011 Financial Highlights:
Orders: Total orders increased 28 percent compared to 2010, with product orders up 11 percent and cloud-based orders up 179 percent year-over-year. The company signed 301 new customers in 2011, up 16 percent from 259 new customers during 2010, including 42 new cloud customers during 2011, up 91 percent from 22 new customers during 2010. Cloud-based orders were 23 percent of total orders in 2011, up from 11 percent of total orders in 2010.
Revenue: Total revenues were $209.5 million, with non-GAAP revenue of $210.1 million, an increase of 26 percent on a year-over-year basis. Recurring revenues, which include both maintenance contracts and cloud-based subscriptions, increased 33 percent to $91.4 million and accounted for 44 percent of total revenues. Cloud-based revenues increased 96 percent year-over-year to $12.2 million. Product revenues were $94.7 million and service revenues were $23.4 million, up 19 percent and 32 percent, respectively, compared to 2010.
Operating Income: GAAP operating income was $21.6 million, with an operating margin of 10.3 percent, compared to $23.4 million and an operating margin of 14.1 percent for 2010. Non-GAAP operating income was $29.3 million, with an operating margin of 13.9 percent, compared to $27.8 million and an operating margin of 16.7 percent for 2010.
The year-over-year decline in operating margin was primarily due to the shift toward cloud-based orders, which are recognised ratably over the life of the contract, and away from on-premise product orders, which are typically recognised as revenue on an upfront basis.
Net Income: GAAP net income was $14.8 million based on a 33.4 percent effective tax rate, compared to $14.9 million based on a 34.0 percent effective tax rate for 2010. GAAP EPS was $0.74 based on 19.9 million weighted average diluted shares outstanding, compared to $0.79 based on 18.9 million shares outstanding for 2010. Non-GAAP net income was $24.9 million based on a 16.7 percent effective tax rate, compared to $26.5 million based on a 1.8 percent effective tax rate for 2010 and non-GAAP EPS was $1.25, compared to $1.40 for 2010.
Deferred Revenue: Total deferred revenue was $75.4 million as of Dec. 31, 2011, up 39 percent from $54.1 million at the end of 2010. Unrecognized future cloud contracts were $34.6 million as of Dec. 31, 2011, up 172 percent from $12.6 million at the end of 2010.
Cash and Cash Flow: As of Dec. 31, 2011, the company had cash and cash equivalents and investments of $92.5 million, an increase compared to $85.9 million at the end of 2010. During 2011, the company generated operating cash of $21.4 million and used $13.4 million for acquisitions and $13.3 million for purchase of property and equipment, including significant fourth-quarter purchases to support facilities expansions and cloud operations.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables. An explanation of these measures is also included below under the heading “Non-GAAP Measures.”
Additional Fourth Quarter and Full Year 2011 Highlights:
For the fourth quarter of 2011, the company had 6 orders over $1.0 million and 31 additional orders over $250,000, compared to 5 and 26, respectively, during the same period last year.
For the full year 2011, the company had 17 orders over $1.0 million and 96 additional orders over $250,000, compared to 19 and 71, respectively, for 2010.
The company launched Customer Interaction Center™ (CIC) version 4.0, a major new release of its flagship all-in-one IP communications software suite, which added real-time speech analytics, increased scalability, Web portal access, and a private cloud deployment model.
The company launched Quick Spin, a cloud-based communications-as-a-service trial program, providing a risk-free introduction to sophisticated applications with set-up time in minutes.
The company was named among the Top 500 Software and Service Providers by Software Magazine for the eleventh consecutive year.
The company was positioned in the Leaders Quadrant in Gartner’s Magic Quadrant for Contact Center Infrastructure, Worldwide report for the fourth consecutive year.
The company was honored by Frost & Sullivan with its Company of the Year, Contact Center Systems North America award for the second consecutive year.
The company was ranked by Forbes Magazine among America’s Best Small Companies for the second consecutive year.
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24-Apr-2012
The Australian arm of electronics company Acer has chosen a Drishti Ameyo solution to upgrade its inbound customer service.
cer Australia said it required a solution to handle all interactions from customers and its wide-spread channel partner network by providing the right information to its agents in a unified screen for fast query resolution. "We were looking for a solution that could integrate with our backend system to provide appropriate information to agents, thus maximising their productivity, something which our previous solution was not forthcoming with," said Acer's Dan Balachandra.
Acer says the new solution provides the company with enhanced agent productivity, real-time monitoring of performance levels and allows management to make changes when required. "Providing our customers and channel partners fast and quality support can be a daunting task if our agents have to access disparate applications at the same time," Balachandra said. "Dristhi provided us with a comprehensive technology that integrated seamlessly with the ticketing system of the back-end CRM, and displaying a unified interface to our agents."
26-Apr-2012
Garuda Indonesia will introduce the Amadeus Altea Customer Management Solution to upgrade its airline passenger service processes.
The solution will manage Garuda Indonesia's domestic and international reservations, inventory and departure control processes. "Upgrading to Amadeus' cutting-edge technology will enable us to further enhance our existing customer service offering, introduce more automation and flexibility for our customers and help us refine our customer-facing business processes," said Garuda Indonesia's M. Arif Wibowo.
"Today, technology is a critical component of an airline's infrastructure, and the Amadeus Altea system will ensure we remain competitive with world-class airlines in the region," he said. The technology upgrade is part of the Garuda Indonesia Quantum Leap program, which has seen the airline modernise and expand its fleet with new A330 and Boeing 737-800 aircraft, relaunch services to Europe and also announce its intention to join the SkyTeam global alliance.
19-Mar-2012
Fifth Quadrant has researched and published Australia and New Zealand's first comprehensive market report on Customer Self-Service.
This unique report profiles the current and future use of self-service channels by consumers and explores how consumers engage with self-service channels compared to traditional voice channels. The report covers online, social media, mobile apps, IVR and speech recognition channels amongst others. The report also features case examples of leading organisations and their deployment of self-service channels as well as commentary from industry suppliers.
The contents of the report include:
- Self-service Strategic Plans
- Consumer Usage of Self-service
- Customer Engagement with Self-service
- Future Self-service Channel Usage and Implementation
- Vendor commentary on trends in Self-service technologies
Report price: $195 + GST
Contact Fifth Quadrant on 02 9927 3347 or email mkelly@fifthquadrant.com.au for more information or download order form here.
01-May-2012
Aegis have long been keen to break the perception that they are solely an outsource provider. Chris Kirby Head of Analyst Services spoke to Chris Luxford President, Aegis Services Australia and New Zealand to understand Aegis’s Go-To-Market value proposition.
Q: How does Aegis currently position itself as an organisation?
CL: Long-term market game changing differentiation will only come from a radical transformation of customer experience. That is the challenge that is facing all organisations and the only way that it is going to be addressed is through changing business models. Therefore Aegis is really focused on helping organisations to change their business models, to focus their business models around the customer and to rethink how organisations interact with customers. A lot of the work we are doing is to re-strategise the journey a customer takes with the organisation and Aegis is positioned to help organisations through the transformational journey they have to embark on to create new business models.
Q: What are the key challenges organisations face regarding customer service delivery?
CL: As organisations and Go-To-Market models become more complex, customer service can’t just be about the point transactions or moments of truth with the individual organisation. The key challenge is that many of these moments of truth sit outside the direct influence of the organisation. Organisations need to understand the entire customer experience journey and make sure that all of the organisations that play a part in their value constellation are appropriately focused, have the right culture and the right processes to deliver exceptional outcomes on every single moment of truth that takes place along the customer experience journey. Some of these moments of truth sit outside the control of the organisation, but never the less you still have to try and deliver exceptional customer experience. This is the biggest opportunity and challenge industry faces as service today is still seen as a necessary evil and high cost. It is not seen as a value add differentiator.
Q: What traction and response is Aegis receiving from the marketplace to these challenges and opportunities?
CL: Many organisations claim they have already started on this journey towards being customer-centric. But we would challenge that most organisations on that journey remain focused only on the pieces that sit within their control i.e. internal call centres, internal retail stores, social media and marketing. Also organisations tend to look at these internal operational centres in isolation. Very few organisations are genuinely looking at their business models from a customer perspective or looking at every moment of truth. We are talking about a mammoth business model change. Changing a business model is hard and that is what we have to help organisations achieve.
Q: What appetite is there for this transformational change at the Board level of organisations? Are Boards still focused on the traditional areas such as Finance, Technology, Human Resources and Sales & Marketing?
CL: We recognise that Boards are starting to change and start to focus more on customers. Everyone tends to logically understand this opportunity and the importance of the need to change business models to become more customer focused. However, they struggle with how to go about this transformational change. Like all business decisions there is significant risk, as considerable investment will be required to drive change and it is very hard to put a business case around this proposition. There are many examples where organisations have a vastly different business model and genuinely put the customer at the centre such as Zappos in the United States. Zappos don’t have an Average Handing Time target as they recognise the opportunity to increase revenues through upselling and cross selling. They have tipped customer service on its head and have become one of the fastest growing businesses in the US. Despite numerous examples, the problem is many organisations are still struck with fear about the level of change that is required.
Q: As organisations move along this journey, what do you see as the role of technology?
CL: Technology is in every conversation we have. Every business requires technology to run their business. We don’t see technology as a separate conversation. It is simply one of the enablers. Organisations already have great people. Therefore the key question is how do you improve processes and use technology to create this new business model? If you already have great people, then you have to change your business processes and you will undoubtedly need technology to assist in the changing of those business processes. You have to provide technology that facilitates people making better decisions to deliver better customer service outcomes. The major shift is using technology to allow the business to move from a reactive customer service model to more proactive one.
The most important element of any technology investment, and this is something that we drive home religiously, is not the technology itself but the need to change business processes. You can buy any technology from any vendor but it will make no difference if you don’t change your business processes. We have found that for every $1 spent on technology organisations need to invest $1.40 on process change. What we find though is that on average organisations are spending less than 30c so there is a massive gap in being able to bring the right outcomes through process change to the technology investments. Organisations invest heavily in technology but very rarely invest in the process changes that are required.
Written by: Chris Kirby, Head of Research and Analysts Services for Fifth Quadrant.
To contact Chris, email ckirby@fifthquadrant.com.au.
20-Dec-2011
Dr Catriona Wallace uses the Phone Channel to test customer service while also trying to buy a strapless dress.
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