IRVINE, Calif.--(EON: Enhanced Online News)--Kofax® plc (LSE: KFX) (“Kofax” or the “Company”), a leading provider of smart process applications for the business critical First Mile™ of customer interactions, today reported its unaudited financial results for the first quarter of its fiscal year 2014, which ended September 30, 2013.
First Quarter IFRS Financial Highlights:
- Software license revenue increased 10.5% to $24.4 million (Prior Year: $22.1 million) or 10.5% in constant currency (CC)
- Total revenues increased 8.8% to $65.4 million (Prior Year: $60.1 million) or 8.6% in CC
- Loss from operations was $0.6 million (Prior Year: $0.0 million)
- Adjusted earnings before interest, taxes, depreciation and amortization1 (adjusted EBITDA) decreased 1.1% to $6.1 million (Prior Year: $6.2 million), or a 9.4% margin (Prior Year: 10.3%)
- Adjusted diluted EPS2 was $0.03 (Prior Year: $0.04)
- Adjusted cash generated from operations was $19.8 million (Prior Year: $11.3 million)
- Quarter end cash was $72.0 million (Prior Quarter End: $93.4 million) after paying $39.1 million in conjunction with the acquisition of Kapow Technologies, Inc. on July 31
First Quarter Non IFRS Pro Forma3 Financial Highlights:
- Software license revenue increased 17.2% to $25.9 million (Prior Year: $22.1 million) or 17.2% in constant currency (CC)
- Total revenues increased 12.3% to $67.5 million (Prior Year: $60.1 million) or 12.1% in CC
- Adjusted EBITDA increased 32.6% to $8.2 million (Prior Year: $6.2 million), or a 12.2% margin (Prior Year: 10.3%)
A summary of Kofax’s unaudited revenues and adjusted EBITDA for the first quarter compared to the prior year on both an IFRS and Non IFRS Pro Forma basis is as follows:
Adjusted EBITDA Margin
|Non IFRS Pro Forma|
Adjusted EBITDA Margin
First Quarter Operating Highlights:
- Announced the acquisition of Kapow, providing Kofax with a big data integration software platform, which is expected to allow the Company to speed its time to market with new solutions and customers’ realization of ROIs
- Executed an agreement enabling Oracle to market and sell licenses of Kapow’s software as the Oracle Endeca Information Discovery Web Data Acquisition Toolkit
- KMWorld Magazine recognized Kapow’s software platform as a Trend Setting Product of 2013
- Announced a $7.6 million sale to a U.S. government agency, that represents the single largest sale in the Company’s history
- Launched Kofax TotalAgility™ 7.0, which the Company believes is the first fully unified platform for the development and deployment of smart process applications (SPAs)
- Launched Kofax AP Automation, which can be used with any accounting or ERP system and offers “out-of-the-box” integration with Microsoft Dynamics AX, Kofax Mailroom Automation and Kofax Customer Onboarding solutions, all built on the Kofax TotalAgility 7.0 platform
- Mortgage banking executives selected Kofax Mobile Capture™ for Mortgage Banking Magazine’s 2013 “Harnessing Mobile Award”
- Grant Johnson joined the Company as its new Chief Marketing Officer
- Extended the term of the Company’s existing $40.0 million revolving line of credit facility with Bank of America Merrill Lynch to June 30, 2016
- Announced proposed corporate structure changes requiring shareholder approval to introduce a new parent company for Kofax, which would maintain a premium listing on the London Stock Exchange and also list its common (i.e., ordinary) shares on NASDAQ
Commenting on these results, Reynolds C. Bish, Chief Executive Officer, said: “We were pleased with our performance during the first quarter, which was in line with our expectations for that quarter as well as our guidance for fiscal year 2014 provided on September 4, 2013. We continued to make progress in strengthening and growing our sales organization and improving our execution across all geographies and product lines, including our legacy capture as well as acquired and new product offerings in the faster growing segments of our target markets. Although we remain aware of the prevailing unpredictable nature of global macroeconomic conditions, we are confident in our outlook and reaffirm our previous guidance for fiscal year 2014.”
THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
Statements in this announcement regarding the ability of a new Kofax parent company to list common shares on NASDAQ, future financial operating results, and future opportunities for Kofax as well as any other statements about the future expectations, beliefs, goals, plans or prospects of the management of Kofax constitute "forward-looking" statements. Any statements that are not statements of historical fact (including statements containing the words "believe", "plan", "anticipate", "expect", "estimate" and similar expressions) should also be considered to be forward-looking in nature. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including not obtaining the necessary approvals to complete or the inability to complete the U.S. offering on favorable terms, or at all, decreases in demand for Kofax’s products and other factors described in Kofax's Annual Report for the fiscal year ended June 30, 2013. Kofax disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this announcement. Kofax shareholders are cautioned not to place undue weight on these forward-looking statements. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realized.
Reynolds C. Bish and Chief Financial Officer Jamie Arnold will review the results and conduct a question and answer session via teleconference on November 5 at 8:00 am U.K. time / 3:00 am Eastern Time in the U.S. A telephonic replay of the teleconference will be available by 4:00 pm U.K. time on November 5. These can be accessed as follows:
|Live Call||Replay||Access Code|
|U.K.||+44 (0) 1452 562815||+44 (0) 1452 550000||77531344 #|
|U.S.||+1 866 389 9778||+1 866 247 4222||77531344 #|
A transcript and MP3 recording of the call will be available in the investor relations section of the Company website after 4:00 pm U.K. time on November 5. These can be accessed at http://www.kofax.com/investors/presentations.php.
Kofax plc. (LSE: KFX) is a leading provider of innovative smart capture and process automation software and solutions for the business critical First Mile™ of customer interactions. These begin with an organization’s systems of engagement, which generate real time, information intensive communications from customers, and provide an essential connection to their systems of record, which are typically large scale, rigid enterprise applications and repositories not easily adapted to more contemporary technology. Success in the First Mile™ can dramatically improve an organization’s customer experience and greatly reduce operating costs, thus driving increased competitiveness, growth and profitability. Kofax software and solutions provide a rapid return on investment to more than 20,000 customers in financial services, insurance, government, healthcare, business process outsourcing and other markets. Kofax delivers these through its own sales and service organization, and a global network of more than 800 authorized partners in more than 75 countries throughout the Americas, EMEA and Asia Pacific. For more information, visit kofax.com.
1. Adjusted EBITDA is IFRS based income from operations excluding the effects of share-based payment expense, depreciation expense, amortization of acquired intangible assets, acquisition related costs, restructuring costs and other operating expense, net.
2. Adjusted diluted EPS is calculated using Adjusted EBITDA reduced by depreciation and income taxes and the fully diluted shares outstanding.
3. Kofax’s unaudited revenues and adjusted EBITDA on a Non IFRS Pro Forma basis does not reflect the write off of substantially all of Kapow’s deferred revenues as of the acquisition date as a result of IFRS purchase accounting guidelines. The Company believes that disclosing Non IFRS Pro Forma results and guidance provides useful supplemental data that allows for greater transparency in the review of our financial and operational performance.
© 2013 Kofax plc. “Kofax” is a registered trademark and “First Mile”, “Kofax Mobile Capture”, and “TotalAgility” are trademarks of Kofax plc. All other trademarks are the property of their respective owners.