TIDMKFX
RNS Number : 1801S
Kofax PLC
05 November 2013
For Immediate Release
Media Contact: Investor Contacts:
Colleen Edwards MKR Group Inc.
Vice President, Corporate Communications Todd Kehrli
+1 (949) 783-1582 +1 (323) 468-2300
colleen.edwards@kofax.com kfx@mkr-group.com
FTI Consulting
Sophie McMillan
+44 (0) 20 7831 3113
kofax@fticonsulting.com
Kofax reports Financial Results for the
FIRST quarter Ended SEPTEMBER 30, 2013
Irvine, CA, November 5, 2013 - Kofax(R) plc (LSE: KFX, "Kofax"
or the "Company"), a leading provider of smart process applications
for the business critical First Mile(TM) 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
amortization(1) (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 EPS(2) 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 Forma(3) 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:
IFRS
--------------------------------
Unaudited Y/Y In
$M Change CC
--------------- ------- ------
Software Licenses 24.4 10.5% 10.5%
Maintenance Services 32.1 7.4% 6.9%
Professional Services 8.9 9.1% 10.1%
--------------- ------- ------
Total Revenues 65.4 8.8% 8.6%
Adjusted EBITDA 6.1 -1.1%
Adjusted EBITDA Margin 9.4% -9.1%
---------------------------------- --------------- ------- ------
Non IFRS Pro Forma
---------------------------------
Unaudited Y/Y In
$M Change CC
---------------- ------- ------
Software Licenses 25.9 17.2% 17.2%
Maintenance Services 32.4 8.4% 7.9%
Professional Services 9.2 13.0% 14.0%
---------------- ------- ------
Total Revenues 67.5 12.3% 12.1%
Adjusted EBITDA 8.2 32.6%
Adjusted EBITDA Margin 12.2% 18.1%
---------------------------------- ---------------- ------- ------
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
Subsequent Highlights:
-- Launched Kofax TotalAgility(TM) 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(TM)
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.
Conference Call
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 UK 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.
About Kofax
Kofax plc. (LSE: KFX) is a leading provider of innovative smart
capture and process automation software and solutions for the
business critical First Mile(TM) 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(TM) 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.
(c) 2013 Kofax plc. "Kofax" is a registered trademark and "First
Mile", "Kofax Mobile Capture",and "TotalAgility" and are trademarks
of Kofax plc. All other trademarks are the property of their
respective owners.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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