Kofax Limited Kofax Announces Selected Preliminary Unaudited Financial Results for the Quarter Ended September 30, 2014
09 October 2014 - 5:00PM
UK Regulatory
TIDMKFX
Kofax® Limited (NASDAQ and LSE: KFX), a leading provider of
smart process applications for the business critical First MileT of
customer interactions, today announced selected preliminary
unaudited financial results for the first quarter of its fiscal
year 2015, which ended September 30, 2014, as presented below:
Millions GAAP Non-GAAP
Software License Revenue $24.0 to $25.0 $24.5 to $25.5
Total Revenues $67.0 to $69.0 $68.0 to $70.0
Adjusted EBITDA $2.5 to $3.5 $3.5 to $4.5
Quarter end cash is expected to be in the range of $57.5 to
$58.5 million, after having paid $31.2 million for the Softpro GmbH
acquisition on September 1, 2014.
The Company also updated its guidance for fiscal year 2015 as
follows:
GAAP Non-GAAP Non-GAAPGrowth
Millions Rate orEBITDA
or Percentages Margin(using
mid point)
Software License $132.0 to $143.0 $133.0 to $144.0 11.7%
Revenue
Total Revenues $314.0 to $328.0 $317.0 to $331.0 8.8%
Adjusted EBITDA $38.0 to $45.0 $41.0 to $51.0 14.2%
Effective Tax Rate 41.0% to 43.0% 33.0% to 35.0%
Commenting on the selected preliminary unaudited Non-GAAP
financial results and updated guidance, Reynolds C. Bish, Chief
Executive Officer, said: "Mobile and new or acquired products
software license revenue grew by more than 80% year-over-year and
accounted for approximately 35% of total software license revenue
during the quarter ended September 30. However, our overall results
were lower than our expectations for the quarter due to six and
seven figure core capture software license revenue transactions
primarily in the "enterprise" or more direct segment of that market
slipping into future quarters. These opportunities were not lost to
competitors nor have the related projects been cancelled, and we
believe we will close these transactions during the remainder of
fiscal year 2015."
Bish continued: "However, this has now occurred in two
consecutive quarters, and we have to recognize that this segment of
core capture continues to be dependent upon such six and seven
figure transactions. Although we know these are difficult to
predict and impossible to control, they also now appear to be
subject to a higher level of scrutiny and extended purchasing
processes. We believe at least some of this is attributable to
increasing concerns about the current and future macroeconomic
environment, particularly in EMEA. We have therefore revised our
fiscal year 2015 guidance to reflect these factors and lower
revenue from this segment of core capture."
Bish concluded: "As a result of our continuing success with
mobile and new or acquired products, we're now accelerating the
reallocation of resources and expenditures into this fast growing
part of our business. We believe growth in these faster growing
areas of our business will pull through core capture revenue and
allow us to return to single digit growth in that part of our
business. This should allow us to continue targeting the long-term
financial model we've previously provided, which is based on
software license revenue growth in the mid teens, total revenue
growth of 10% to 12% and an adjusted EBITDA margin of 20% or
greater in fiscal year 2017."
Conference Call Info
Management will host a conference call and audio only webcast to
discuss these selected preliminary unaudited financial results at
2:00 pm U.S. Pacific time / 10:00 pm U.K. time today. To
participate in the call, investors can use the dial in information
below, or access the call via the investor relations section of the
Company's website at: http://investor.kofax.com/events.cfm. A
replay via telephone and webcast will be available for 30 days.
Live Replay Access Code
U.S. +1 (888) 471-3843 +1 (888) 203-1112 2265290
U.K. +44 (0) 800 404-7655 +44 (0) 808 101-1153 2265290
The Company will publish its final unaudited financial results
for the first quarter of its fiscal year 2015, which ended
September 30, 2014, and host a conference call and audio only
webcast on October 30, 2014. The time and access details for the
conference call and webcast will be provided in advance of this
date.
About Kofax
Kofax is a leading provider of smart process applications 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.
Safe Harbor Statement
This document contains forward looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements are subject to risks and uncertainties that could
cause actual results to vary materially from those projected in the
forward looking statements. The Company may experience significant
fluctuations in future operating results due to a number of
economic, competitive, and other factors, including, among other
things, our reliance on third-party manufacturers and suppliers,
government agency budgetary and political constraints, new or
increased competition, changes in market demand, our ability to
consummate and the timing of the consummation of software revenue
transactions and the performance or reliability of our products.
These factors and others could cause operating results to vary
significantly from those in prior periods, and those projected in
forward looking statements. Additional information with respect to
these and other factors, which could materially affect the Company
and its operations, are included in certain forms the Company has
filed with the Securities and Exchange Commission.
Non-GAAP Financial Measures
Management uses financial measures, both GAAP and Non-GAAP, in
analyzing and assessing the overall performance of the business and
making operational decisions. The Company has provided and believes
that the Non-GAAP financial measures and supplemental
reconciliations to GAAP financial measures are useful to investors
and other users of its financial statements because the Non-GAAP
financial measures may be used as additional tools to compare our
performance across peer companies, periods and financial markets.
Please refer to the forms the Company has filed with the Securities
and Exchange Commission for a discussion of the Non-GAAP financial
measures and supplemental reconciliations to GAAP financial
measures for more information regarding the Non-GAAP measures.
© 2014 Kofax Limited. Kofax is a registered trademark and First
Mile is a trademark of Kofax Limited.
Source: Kofax
Media Contact:Kofax LimitedColleen EdwardsVice President,
Corporate Communications+1 (949)
783-1582colleen.edwards@kofax.comorInvestor Contacts:MKR Group
Inc.Todd Kehrli+1 (323) 468-2300kfx@mkr-group.comorFTI
ConsultingChris Lane+44 (0) 20 7831 3113kofax@fticonsulting.com
This information is provided by Business Wire
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