Thursday, March 04, 2010

Corrections to Kofax Financials Post

Just got off the phone with Kofax Chief Marketing Officer Andrew Pery who confirmed that I had credited 170 Systems with accounting for way too much software revenue in a previous post. As a result, it turns out that Kofax's software sales for the first six months of its fiscal 2010 (the final six months of calendar 2009), which does not, by the way include maintenance revenue, were more impressive than I gave them credit for, which is good news. Pery indicated that the bump in services revenue was also related to the increased number of large deals Kofax sold in the six-month period, which come with relatively large first-year maintenance agreements. Not to mention that it turns out that a much higher percentage of the 170 Systems' revenue than I originally thought is accounted for as services rather than software....Also, the reason I was talking to Pery was because of Kofax's recent announcement that it had signed on with a new investment bank as its broker. Pery explained that this was primarily a formality relating to the bankruptcy of its previous bank, which was based in Iceland - a country that is having some major bankruptcy issues. I'll have some more details in tomorrow's DIR, but here's a link to an Orange County Business Journal article that does a pretty good job explaining things.