InContact Inc. Up Sharply On Q2 Beat, Upgrades From 2 Analysts

Incontact Inc.

shares opened sharply higher after the company beat second-quarter earnings expectations Thursday and two brokers upgraded the shares. The company, which provides customer call-center technology, swung to a net profit of $4.5 million, or $0.07 a share, from a year-earlier loss of $1.8 million or $0.03 cents a share. Revenue grew 32 percent to $41.1 million, from $31.1 million. Recent income included an acquisition-related tax adjustment gain of $10.2 million. Wall Street expected a loss of $0.09 cents a share on revenue of $43 million. Wall Street estimates typically exclude one-time items. Benchmark Co. upgraded InContact Thursday to Buy from Hold Thursday, while Oppenheimer upgraded the company to Outperform from Market Perform. InContact Chief Executive Paul Jarman said the estimated value of total contracts grew 32 percent in the second quarter, when the company closed 100 contracts, including 52 with new customers and 48 expansion deals. Total revenue included a 50 percent increase in software revenue to $24.2 million from $16.2 million, as well as a 37 percent gain in network connectivity revenue to $38.5 million, from $28.1 million a year ago. Second-quarter gross margin was flat at 49 percent compared with a year earlier, although adjusted gross margin rose to 58 percent from 56 percent last year, InContact traded recently up nearly 15 percent to $8.82 a share.