Kofax® Limited (NASDAQ: KFX) (LSE: KFX), a leading provider of smart
process applications for the business critical First Mile™ of customer
interactions, today announced selected preliminary unaudited financial
results for its fiscal year ended June 30, 2014.
The Company expects to report unaudited IFRS software license revenue in
the range of $116.5 to $118.5 million, total revenues in the range of
$287.5 to $290.5 million and income from operations in the range of
$33.5 to $35.5 million, and unaudited Non-IFRS software license revenue
in the range of $122.5 to $124.5 million, total revenues in the range of
$295.0 to $298.0 million and adjusted earnings before interest, taxes,
depreciation and amortization (adjusted EBITDA) in the range of $41.0 to
$43.0 million. Fiscal year end cash is expected to be in the range of
$89.0 to $90.0 million.
Commenting on the preliminary unaudited Non-IFRS financial results,
Reynolds C. Bish, Chief Executive Officer, said: "We're disappointed
with these results, which reflect software license revenue, total
revenues and adjusted EBITDA levels below the guidance previously
provided to the financial community. These unexpected shortfalls are
primarily attributable to several seven figure software license revenue
transactions totaling approximately $6.0 million slipping into future
quarters during the last few days of our fourth quarter. We believe we
will close these transactions during the first and second quarters of
fiscal year 2015. We remain confident in our business strategy and
future, and will provide guidance for fiscal year 2015 on September 2,
2014 when we publish our audited financial results for fiscal year 2014.
However, at this time I can confirm that we do not anticipate any
changes to the long-term financial model we've previously provided,
which is based on software license revenue growth in the mid teens,
total revenue growth in the low double digits and an adjusted EBITDA
margin of 20% or greater."
Management will host a conference call and audio only webcast to discuss
these selected preliminary unaudited financial results at 5:00 p.m. U.S.
Eastern time / 10:00 p.m. U.K. time today. To participate in the call,
investors can use the live dial in information below, or access the call
via the investor relations section of the Company's website at: http://www.kofax.com/investors/presentations.php.
A replay via telephone and webcast will be available for 30 days.
The Company will publish its audited financial results for its fiscal
year ended June 30, 2014, provide guidance for its fiscal year ending
June 30, 2015 and host a conference call and audio only webcast to
discuss these subjects on September 2, 2014. The time and access details
for the conference call and webcast will be provided in advance of the
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-IFRS Financial Measures
Management uses financial measures, both IFRS and Non-IFRS, in analyzing
and assessing the overall performance of the business and making
operational decisions. We have historically provided and believe that
the Non-IFRS financial measures and supplemental reconciliations to IFRS
financial measures are useful to investors and other users of our
financial statements because the Non-IFRS financial measures may be used
as additional tools to compare our performance across peer companies,
periods and financial markets.
We define Non-IFRS software license revenue and total revenues as IFRS
software license revenue and total revenues plus software license
revenue and total revenues associated with past acquisitions excluded
from IFRS amounts due to acquisition purchase accounting. We define
Non-IFRS adjusted EBITDA as IFRS income from operations but excluding
the effect of acquisition fair value adjustments to revenues and certain
other non-routine expenses, acquisition related costs and non-cash
charges as discussed in more detail in our filings with the Securities
and Exchange Commission.
© 2014 Kofax Limited. Kofax is a registered trademark and First Mile
is a trademark of Kofax Limited.
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