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[July 11, 2014]
Kofax Results To Miss Expectations On Software Licence Revenue Delay
(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Kofax Ltd Friday said it remains confident in its business strategy and future, even as it said it expects to report results below its previous guidance for the year ended June 30, due to delays in software license revenues.
The software company expects to post income from operations between USD33.5 million to USD35.5 million, on total revenues between USD287.5 million and USD290.5 million. In the previous year it posted income from operations of USD25.1 million, on total revenues of USD266.3 million.
Software licence revenues are expected to be around USD116.5 million to USD118.5 million, compared to USD112. 2million in the previous year.
Kofax had expected software licence revenue growth in the low double digits, and total revenue growth in the mid-to-high single digits.
The company said that it is disappointed with the results, and attributed the shortfalls to revenues of around USD6.0 million being delayed into future quarters. It said it believes these transactions will closed in the first and second quarters of the financial year 2015.
Kofax will give profit guidance for financial 2015 when it publishes its full-year results. It said it does not expect any changes to its long-term financial model based on software license revenue growth in the mid-teens, total revenue growth in low double digits, and an adjusted EBITDA margin of 20% or greater.
Shares in Kofax were trading down 14% at 405.00 pence Friday morning, shortly after market open.
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