InContact (SAAS) soared today after news from the company that sales are growing at a fast pace. The company even reported a net profit, perhaps a first for a major cloud contact center software provider, but, without a on a one-time tax adjustment, the company continues to show red ink.
The company CEO said: “I’m pleased to announce that Q2 was a strong growth quarter for inContact, with both record bookings and software segment revenues. We closed 100 total contracts, 52 with new customers and 48 expansion deals, which represents 32% year-over-year increase in estimated annual contract value. We are attracting new customers of all sizes at a healthy pace across many industries from healthcare to finance to retail and e-commerce.”
The company is on track to have $160M in revenues for the year and today is valued at more than three times that amount at over $500M. They have about $40M in cash and very little debt.
Why is this relevant to NOVC? I mean, we've seen analogies made with other former NOVC subs to competitors in their space that were doing well. Where are those subsidiaries now? We know NOVC has hired a lot of people but who are their customers? Other companies alert shareholders when they secure contracts for new business, including the dollar amounts involved. We know they are doing some business with SalesForce but so what? A million other companies work with them as well. Does that automatically make them successful? In other words, WHERE'S THE BEEF?
Very good question. Lance Anderson CEO wants no attention so as to milk NOVC. His integrity at this stage is a very big question mark and he has clearly corrupted Gregory Barmore and the two paper doll board members Edward Mehrer and Art Burtscher who should have followed Donald Berman lead and resigned from NOVC board mid-2011. I get it takes time to bake a cake and everyone gets messy in the kitchen but after this Q Lance Anderson should have the back bone to step up with Investor Call and say look we've changed direction and it take a bit longer but until management achieves granular operating goals, we/I will align management with shareholder interests starting with an adjustment to base salaries that have not changed since NOVC paid 22/share dividend. Say we will commit to relationship with investment community. We know profitability is not a requisite. He stated this in April 30th investor call. If CorvisaCloud is signing new significant customers that is material news at this stage, If they hire a big shot executive like x SAAS James Noah now Executive Vice President of Sales at CorvisaCloud this is a material event and requires 8k. Lance Anderson has no accountability to the board and for that the NOVC Board has breached their fiduciary duty to shareholders and should be ashamed. Burtscher and Mehrer should immediately resign and NOVC should bring true independence, objectivity & skills akin to CorvisaCloud market ASAP. Sarbanes Oxley requires this. Igdaloff and Amster are the only two board members with material cash at risk. Let Barmore, Lead Director know he is accountable to shareholders not just to his attached to the hip CEO cell (207) 208-6648