Susquehanna says they have recently learned that a large Midwestern insurance vendor may have signed a seven-figure deal with Interactive Intelligence (NASDAQ:ININ). This is significant news as the company had only 4 seven-figure deals last year, none of them in the first quarter; and only two in 2005, with neither of them in the first quarter. Firm spoke with a large, publicly traded insurance company that purchased Interactive Response in Q4, and may have followed with Interactive Distributor in Q1. At $40+/seat, the solution for 3,000+ seats represents a seven-figure deal. They are maintaining their estimates for Q1 and for the year, but believe that the above mentioned deal could be incremental.
Based on firm's proprietary analysis of capex for the customer care industry, spending continues to grow at a healthy rate in 2007, albeit at a lower than in 2006; 7% versus 12%. While this may be a cautionary note for market leaders in the space, firm believes that the opportunity for ININ remains robust due to small (<10%) market share and differentiated offerings (lower TCO, and IP-PBX).
Notablecalls: Nice find by Susquehanna! Expect to see some buying interest in the stock today.