Tuesday, February 14, 2012

Kofax Reports Half-Year Revenue

In line with pre-set expectations, Kofax's revenue for the first six months of its fiscal 2012 (ended Dec. 31) was basically flat. The Irvine, CA-based document capture technology ISV reported second-quarter revenue of $70 million with half-year sales coming in at $128.5 million.

"This was very consistent with the expectations we set in November," said Kofax CEO Reynolds Bish during a conference call with investors. "We are generally pleased with our overall progress, especially in light of challenging year-over-year comparisons due to a strong six months in the previous year and in light of the overall economic weakness in Europe."

Indeed, Kofax's overall revenue in Europe was down 12% on an organic constant currency basis in Europe, with software licenses down almost 23%. Software licenses, in fact were down 9% overall compared to last year, but a 10% increase in Maintenance Services helped offset this, which we're not sure is that great of a sign.

Overall though, Kofax remains financially healthy, with $62 million in the bank, and in the last year has executed a pair of acquisitions, Atalasoft and Singularity, that Bish indicated are already producing better than expected returns.

London traders seem to take the report in stride. After a week of slight gains preceding the results, Kofax's stock value shot up slightly in early trading before leveling off and finishing yesterday at just under 310 pence per share, which was near where they started. Plans for a public offering on the Nasdaq continue to be in the works.


Anonymous said...

So readsoft has 13% growth in Europe, Kofax is flat and laying of lots of people in Europe and Bish Explains that away and the stock does not drop like a rock? Can I have some of that kool aid they are feeding the analysts. I think there is trouble in paradise. Just take a look at list price and sell price of recent deals. They should be required to post those.

DIReditor said...

I'll confirm that nobody else in the capture market seems to be having as much trouble in Europe as Kofax. I've heard theories that high turnover rates have damaged the relationships necessary to succeed in the European environment. CEO Reynolds Bish seems to think things are on the right track now. We shall see. As far as referring to Kofax as "paradise" - may be a bit of a stretch...


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