inContact Inc. (SAAS, Financial) filed Quarterly Report for the period ended 2008-09-30.
inContact Inc. operates as a hosted software as a service company offering a range of hosted contact handling and performance management software services in addition to a variety of connectivity options for carrying an inbound call into its inContact suite of services.The Company sells telecom services unbundled from its inContact service offering including dedicated switched toll free and data lines.The company also operates as a reseller of domestic and international long distance and other services provided by national and regional wholesale providers.It was formerly known as UCN Inc. and is based in Midvale Utah..
Consolidated revenues decreased $453,000 or 1% to $59.0 million during the nine months ended September 30, 2008 from $59.4 million during the same period in 2007. This decrease is due to decreased revenue in our Telecom segment, which was down $4.9 million or 10% from the same period in 2007. The decrease in our Telecom segment is due to expected attrition as we have focused our sales and marketing efforts on increasing customers in our SaaS segment. The decrease is offset by significant increases in SaaS segment revenue which increased $4.5 million or 47% from the same period in 2007. The BenchmarkPortal acquisition in first quarter 2007 allowed us to provide customers a hosted process for measuring the effectiveness of agent interactions with clients. The ScheduleQ acquisition allowed us to provide our customers a hosted solution for automating the scheduling, forecasting and alert notification functions common to most contact center/customer service type operations. These additions augmented our all-in-one hosted inContact solution and accounted for $420,000 of the $4.5 million increase in SaaS segment revenue.
General and administrative expenses increased $2.9 million or 24% to $15.4 million during the nine months ended September 30, 2008 from $12.4 million during the same period in 2007. Since 2007, we have continued to increase the number of user support and new user implementation personnel, which has caused an overall increase in salaries, benefits, recruiting and training costs. Our general and administrative staff also grew substantially through the addition of employees related to the BenchmarkPortal and ScheduleQ acquisitions that were completed during the middle of the first quarter of 2007. The increase in general and administrative expenses is due to $1.4 million in additional compensation expenses related to the implementation and support of inContact customers, 700,000 in additional rent and maintenance costs resulting from moving our corporate offices in the fourth quarter of 2007, and $600,000 in accounting and legal costs associated with the internal investigation, restatement of previously filed financial statements and increased costs related to our internal control material weaknesses remediation.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $377,000 or 16% to $2.7 million during the three months ended September 30, 2008 from $2.4 million during the same period in 2007. General and administrative expenses remained relatively flat at $1.7 million during the three months ended September 30, 2008 compared to the same period in 2007. We also continue to develop the services provided in the segment by investing in research and development. During the three months ended September 30, 2008, we spent $1.0 million in research and development costs as compared to $674,000 during the same period in 2007 and have capitalized an additional $325,000 of costs incurred during the three months ended September 30, 2008 related to our internally developed software.
The SaaS segment revenue increased by $4.5 million or 47% to $13.9 million during the nine months ended September 30, 2008 from $9.5 million during the same period in 2007. The increase is a result of the selling and promotional efforts we have undertaken to expand these services in the market. Revenue related to sales of services acquired in the BenchmarkPortal and Schedule Q acquisitions in February 2007 provided $3.2 million of revenue during the nine months ended September 30, 2008, an increase of $420,000 of revenue as compared to the same period in 2007.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $1.8 million or 28% to $8.5 million during the nine months ended September 30, 2008 from $6.7 million during the same period in 2007. General and administrative expenses increased $2.2 million or 59% to $5.8 million during the nine months ended September 30, 2008 from $3.7 million during the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the nine months ended September 30, 2008, we spent $3.1 million in research and development costs as compared to $1.6 million during the same period in 2007 and have capitalized an additional $1.1 million of costs incurred during the nine months ended September 30, 2008 related to our internally developed software.
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inContact Inc. operates as a hosted software as a service company offering a range of hosted contact handling and performance management software services in addition to a variety of connectivity options for carrying an inbound call into its inContact suite of services.The Company sells telecom services unbundled from its inContact service offering including dedicated switched toll free and data lines.The company also operates as a reseller of domestic and international long distance and other services provided by national and regional wholesale providers.It was formerly known as UCN Inc. and is based in Midvale Utah..
Highlight of Business Operations:
Consolidated revenue increased $175,000 or 1% to $19.8 million during the three months ended September 30, 2008 from $19.6 million during the same period in 2007. The increase is due to an increase of $1.2 million in SaaS segment revenue due to increased focus on our sales and marketing efforts on our all-in-one hosted inContact solution. This increase is offset by a decrease of $1.0 million in Telecom segment revenue due to expected attrition.Consolidated revenues decreased $453,000 or 1% to $59.0 million during the nine months ended September 30, 2008 from $59.4 million during the same period in 2007. This decrease is due to decreased revenue in our Telecom segment, which was down $4.9 million or 10% from the same period in 2007. The decrease in our Telecom segment is due to expected attrition as we have focused our sales and marketing efforts on increasing customers in our SaaS segment. The decrease is offset by significant increases in SaaS segment revenue which increased $4.5 million or 47% from the same period in 2007. The BenchmarkPortal acquisition in first quarter 2007 allowed us to provide customers a hosted process for measuring the effectiveness of agent interactions with clients. The ScheduleQ acquisition allowed us to provide our customers a hosted solution for automating the scheduling, forecasting and alert notification functions common to most contact center/customer service type operations. These additions augmented our all-in-one hosted inContact solution and accounted for $420,000 of the $4.5 million increase in SaaS segment revenue.
General and administrative expenses increased $2.9 million or 24% to $15.4 million during the nine months ended September 30, 2008 from $12.4 million during the same period in 2007. Since 2007, we have continued to increase the number of user support and new user implementation personnel, which has caused an overall increase in salaries, benefits, recruiting and training costs. Our general and administrative staff also grew substantially through the addition of employees related to the BenchmarkPortal and ScheduleQ acquisitions that were completed during the middle of the first quarter of 2007. The increase in general and administrative expenses is due to $1.4 million in additional compensation expenses related to the implementation and support of inContact customers, 700,000 in additional rent and maintenance costs resulting from moving our corporate offices in the fourth quarter of 2007, and $600,000 in accounting and legal costs associated with the internal investigation, restatement of previously filed financial statements and increased costs related to our internal control material weaknesses remediation.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $377,000 or 16% to $2.7 million during the three months ended September 30, 2008 from $2.4 million during the same period in 2007. General and administrative expenses remained relatively flat at $1.7 million during the three months ended September 30, 2008 compared to the same period in 2007. We also continue to develop the services provided in the segment by investing in research and development. During the three months ended September 30, 2008, we spent $1.0 million in research and development costs as compared to $674,000 during the same period in 2007 and have capitalized an additional $325,000 of costs incurred during the three months ended September 30, 2008 related to our internally developed software.
The SaaS segment revenue increased by $4.5 million or 47% to $13.9 million during the nine months ended September 30, 2008 from $9.5 million during the same period in 2007. The increase is a result of the selling and promotional efforts we have undertaken to expand these services in the market. Revenue related to sales of services acquired in the BenchmarkPortal and Schedule Q acquisitions in February 2007 provided $3.2 million of revenue during the nine months ended September 30, 2008, an increase of $420,000 of revenue as compared to the same period in 2007.
We continue to focus a significant amount of our resources in expanding our inContact suite of services in the market. As a result, selling and promotion expenses in the SaaS segment increased $1.8 million or 28% to $8.5 million during the nine months ended September 30, 2008 from $6.7 million during the same period in 2007. General and administrative expenses increased $2.2 million or 59% to $5.8 million during the nine months ended September 30, 2008 from $3.7 million during the same period in 2007 due primarily to a significant increase in the number of user support and new user implementation personnel hired during 2007 to support our SaaS products. We also continue to develop the services provided in the segment by investing in research and development. During the nine months ended September 30, 2008, we spent $3.1 million in research and development costs as compared to $1.6 million during the same period in 2007 and have capitalized an additional $1.1 million of costs incurred during the nine months ended September 30, 2008 related to our internally developed software.
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