Interactive Intelligence Shares Got Destroyed: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Interactive Intelligence Group (NAS: ININ) are losing their connection today, down by as much as a whopping 28%, after the company reported disappointing third-quarter earnings last night.

So what: The Voice over Internet Protocol, or VoIP, software maker rang up revenue of $52.1 million, with earnings per share of $0.29. Both of these figures were short of analysts' consensus estimates, which called for sales of $53.5 million and profit of $0.31 per share, despite the fact that revenue jumped by 25%.

Now what: Following the results, the stock also saw a downgrade from Dougherty & Co., who cut the stock from "buy" to "neutral," while trimming its price target from $45 to $35. The Dougherty analyst cited two risks that contributed to the decision: orders shifting to Communication-as-a-Service, or CaaS, which adds uncertainty, as well as an extension of the sales cycle from macroeconomic conditions. I happen to like Acme Packet (NAS: APKT) as a better pick with exposure to the migration toward VoIP, although that stock has had its fair share of ups and downs.

Interested in more info on Interactive Intelligence? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Interactive Intelligence Group and Acme Packet. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners