Document behemoth grinds out progress against tough economic backdrop, sticks to acquisition plans
By ECM Plus Staff
ECM Plus +++ Document bellwether Kofax plc has just released it latest financial results for the quarter and six months ended December 31, 2011.
According to the company, total revenues grew by 3.7% to US$70 million, up from US$67.5 million for the previous year and for the six months up 5.2% to US$128.5 million from US$122.2 million in the previous year period.
Profit for the quarter decreased by 31.2% to US$3.8 million down from US$5.5 million, and for the six months 40.6% to US$6.5 million, previously US$11.0 million.
Adjusted Earnings Before Interest Taxation and Amortization (EBITA) for the quarter increased 2.4% to US$14.8 million up from US$14.5 million in the previous year, a 21.2% margin, and for the six month period declined 18.4% to US$19.4 million down from $23.8 million in the previous period, a 15.1% margin.
Adjusted Diluted Earnings Per Share for the quarter increased 11.9% to US$0.11 and for the six months decreased 15.4% to US$0.15.
Cash generated from operations for the six months was $0.7 million. Quarter end cash was US$62.3 million.
For the quarter closed four sales above US$500,000, up from three in the prior year, and one more than US$1 million, up from none in the prior year, and for the six months closed nine sales over US$500,000, up from six in the prior year, and two aboe US$1 million, up from one in the prior year
The company said it had recently acquired Singularity, a business process management software company, “in line with Kofax’s stated acquisition strategy and significantly expanding the Company’s addressable market” it stated.
Commenting on these results, Reynolds C. Bish, Chief Executive Officer commented: “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.”
Added Bish: “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 â€“ including acquisitions to date and assuming current exchange rates â€“ and an Adjusted EBITA of at least the $40.2 million reported in fiscal year 2011.”