Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Daniel Ives with Friedman, Billings, and Ramsey.
Daniel Ives - Friedman, Billings, Ramsey & Co.
Thanks. Good quarter, guys. First more of like a macro question, not even just Intervoice specific, but when you guys are out in the field and you go into the pipeline, has there been any change in customer behavior quarter to quarter, month to month? Can you talk about what you guys are seeing in terms of customers and is it taking longer to get deals done versus signing more competitive discounts? Can you speak to that as more of like from a high level?
Jim Milton
Sure Daniel, it’s Jim here. Let me take a crack at that. So in terms of material changes in customer behavior, I would say no, not recently, and I think as both Bob and I mentioned, we haven’t seen much of an impact at all from the financial accounts that we do business with other than a little bit more interest in our hosted solution business, which I guess is not that surprising because that is an operating expense, it avoids them having to incur big capital expense so it helps them smooth out their spending over a period of time and allows them in some cases to get more efficient because we can take on the workload of what some of their people are doing, for example, in their IT departments. So a bit of a trend to the hosted model I would say is one we’ve been seeing for several quarters now and maybe accelerating a little bit. That would be more of an enterprise kind of comment.
We are also seeing and I think this is positioned as well, having now the IPCC product and I mentioned one transaction that we had with a credit card company. We’re seeing more and more opportunities where we can kind of cover from self service to live assistance within our accounts so that acquisition we did is turning out to be very strategically appropriate for us. I should have mentioned as well, one of the other reasons where we probably haven’t seen as much of an impact is maybe other companies in the IT sector is that our self service solutions in particular have an extraordinarily compelling ROI.
I quoted the Executive Vice President from the Bank of the West for example and if we can increase automation rates and deflect if you will the number of calls that are going to live agent, the cost of the self service call in many cases can be one-seventh to one-tenth the cost of a live agent call, so it’s a cost saving opportunity, even when those companies aren’t doing well, they’re seeking ways to reduce their expenses. A comment I’d like to make is on the network side. We are seeing very good growth as you know in our IP messaging business.
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