Thursday, July 28, 2011

Kofax Stock Gets Slammed

Not exactly sure why this happened but Kofax's stock value dropped 17% today and closed at its lowest level in almost 6 months. I'm sure it was related to the release issued today by Kofax that stated, "The Company ended the fiscal year with record total software business revenues in the range of $244 to $246 million, which is in line with financial analysts’ consensus estimate but below Kofax’s 14 percent organic, constant currency revenue growth target. Noting that the Company’s revenue growth exceeded the capture market growth in 2011, Kofax attributes this shortfall to slower sales cycles caused by continuing uncertainty in the global macroeconomic environment."

Kofax's software business revenue for fiscal 2010 was $215.8 million, and my calculations show that to reflect pretty close to 14% growth for fiscal 2011 (ending June 30, 2011.) However, I guess a few months of 170 Systems revenue would not be reflected in the fiscal 2010 revenue (it was acquired in September 2009), so that's what I'm figuring accounts for the "organic" shortfall," but it stills seems as if there has been a bit of an overreaction. Looks like a couple blocks of 100,000 shares each were sold.

Kofax "will announce its preliminary unaudited results for the fiscal year ended June 30, 2011 on Monday, September 5, 2011 before the opening of the London Stock Exchange."

3 comments:

Anonymous said...

There is no overreaction, this is simply an exploding bubble. Share holder value as a strategy (and not as the result of a strategy, which is build on the shoulders of employees, customers and partners)tends to produce these bubbles, which, well you know what I mean ...
It will be very interesting to watch the results of the competition - and whether they also have to refer to the fierce "macroeconomic climate" - which, btw. is a joke.

DIReditor said...

Kofax certainly continues to get hammered on the market, dropping another 8% today.

Anonymous said...

Hammering continues today, down 14%. When will the board figure out the CEO is ineffective? Maybe time to replace the board too.