Kofax plc (LSE: KFX), a leading provider of capture enabled business process management (BPM) solutions, today announced its results for the quarter and six months ended December 31, 2011.
Financial Results:
Total revenues for the quarter grew 3.7% to $70.0 million (Prior Year: $67.5 million) or -0.3% in organic constant currency (OCC), and for the six months 5.2% to $128.5 million (Prior Year: $122.2 million) or 0.2% in OCC
Profit for the quarter decreased 31.2% to $3.8 million (Prior Year: $5.5 million), and for the six months 40.6% to $6.5 million (Prior Year: $11.0 million)
Adjusted EBITA for the quarter increased 2.4% to $14.8 million (Prior Year: $14.5 million) or a 21.2% margin (Prior Year: 21.5%), and for the six months declined 18.4% to $19.4 million (Prior Year: $23.8 million), or a 15.1% margin (Prior Year: 19.5%)
Adjusted Diluted EPS for the quarter increased 11.9% to $0.11 (Prior Year: $0.10), and for the six months decreased 15.4% to $0.15 (Prior Year: $0.18)
Cash generated from operations for the six months was $0.7 million (Prior Year: $17.2 million)
Quarter end cash was $62.3 million (Prior Year: $69.0 million)
Operating Highlights:
For the quarter closed four sales > $500,000, up from three in the prior year, and one > $1 million, up from none in the prior year, and for the six months closed nine sales > $500,000, up from six in the prior year, and two > $1 million, up from one in the prior year
Acquired Singularity, a leading provider of business process management (BPM) software and dynamic case management solutions, in line with Kofax's stated acquisition strategy and significantly expanding the Company's addressable market
Entered into an OEM agreement with and invested in Mobiflex, creating the basis for a long term strategic partnership and the recently announced Kofax Mobile Capture software product
Launched Kofax Solution for Mortgage Processing, a packaged application which streamlines business processes for mortgage lenders
Kofax Capture was named "Content Management Software Product of the Year" at the prestigious 2011 DM Awards
Subsequent to the end of the quarter the Company launched two new software products:
Kofax Mobile Capture, a patent pending solution that extends capture enabled BPM capabilities to smartphones and tablet computers
Kofax DotImage Enterprise Edition, which enables internet browser based, portal applications with document scanning, viewing, annotating and processing capabilities
A summary of Kofax's revenues and EBITA for the quarter and six months ended December 31, 2011 is as follows:
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Commenting on these results, Reynolds C. Bish, Chief Executive Officer, said: "Our results are consistent with the revised expectations communicated in our IMS dated November 3, 2011. In light of this and both the exceptional prior year results creating difficult comparisons and the challenges we're facing in much of Western Europe, we're generally pleased with our overall performance and strategic progress. Revenue growth in the Americas and Asia Pacific during the quarter and six months was solid but offset by poor performance in EMEA due to deteriorating economic conditions throughout much of that region. We were able to grow our Adjusted EBITA during the quarter as a result of tight expense controls and the previously announced restructuring of our EMEA sales and service organization. Atalasoft produced strong results during the quarter and six months as did Singularity during December, with both performing better than expected, and the integration of Singularity is proceeding as planned."
Bish continued: "While our pipeline of opportunities has continued to grow and management and the Board remain confident in our business, we do not expect economic conditions in EMEA to improve in the near future. As a result, for fiscal year 2012 we continue to expect low single digit total revenue growth in U.S. dollars on a constant currency basis, high single digit total revenue growth on an as reported basis – including acquisitions to date and assuming current exchange rates – and an Adjusted EBITA of at least the $40.2 million reported in fiscal year 2011."
