Marketing iStock_000009165208SmallHarte Hanks (NYSE: HHS) second quarter 2014 revenues were $140.3 million compared to $140.1 million in the same quarter last year, a 0.1% increase.  This is the second consecutive quarterly revenue increase reported by the company, marking further progress toward our 2014 goal of returning the company to sustained revenue growth.

Customer Interaction revenues increased 0.3% to $127.3 million, primarily due to a significant increase, over the prior year quarter, in our Select vertical from a new client win and expansion of relationships with existing clients.

Automotive and Consumer Brands vertical increased due to expansion of contact center services from an existing client and we also experienced revenue growth in our Technology vertical.

These gains were partially offset by declines in our Healthcare Insurance and Pharmaceutical, Financial and Retail verticals principally due to reductions in mail volumes and lighter weight packages as well as the full year effect of 2013 client losses.

Trillium Software revenues increased 4.3% for the first half of 2014 principally driven by increased software license revenues. Revenues increased 10.1% in the first quarter and declined 1.2% in the second quarter, primarily resulting from the timing of software license sales. Consistent with the growth in licensing sales, maintenance and professional service second quarter revenues increased compared to the second quarter last year.

Operating income for the quarter was $11.0 million compared to $12.4 million for the same quarter last year. Excluding $1.8 million of initiatives comprised of strategic investment and cost elimination efforts leading to for example severance and lease surrender costs, operating income improved $0.4 million for the quarter.