Interactive Intelligence Warns for Q2 On Payment Delays

Interactive Intelligence ININ shares fell 3 percent in midday trading after the telecom software company warned of a second-quarter revenue shortfall due to deferred customer payments. The company now expects revenue in the range of $54 – $55 million, down from a previous range of $58 – $61 million, and as much as $5 million short of analyst expectations of $59 million. More than all the revenue miss is a result of $7 million in product orders that the company plans to recognize as revenue in future quarters. Interactive Intelligence partly blamed extended payment terms on a multi-million-dollar order that is part of a major customer deployment. As a result, earnings will now be in a range of breakeven to 5 cents a share; analysts had been expecting EPS of 16 cents a share, on average. Operating margin is expected to be about 1 percent of revenue for Q2, short of the company's previous guidance of 6 to 7 percent, largely due to product orders not being recognized in the period. The company is still holding to its annual growth rate target of 20 percent for 2012.