Business News
Kofax Releases Its Interim Management Statement for the First Quarter of Its Fiscal Year Ending June 30, 2011
Thursday 04. November 2010 - Results Continue to Meet or Exceed Expectations
Kofax plc (LSE: KFX), the leading provider of document driven business process automation solutions, releases its Interim Management Statement for the first quarter of its fiscal year ending June 30, 2011.
Kofaxs 2011 fiscal year has started positively with software business revenues in line with Board and management expectations on an organic, constant currency basis and ahead of those expectations on an “as reported” basis due to favorable exchange rate movements. Earnings before interest, taxes and amortization (EBITA) was greater than expected as a result of improving sales execution and productivity as well as lower than expected overhead expenses. Performance was generally as or better than expected across all segments of the business and the Company continued to make good progress in realizing benefits associated with the strategic initiatives started in February of 2008.
The Companys hardware business revenues declined in line with Board and management expectations due to the competitive nature of that market but its EBITA was slightly greater than expected due to improving sales execution and productivity as well as lower than expected overhead expenses.
There have been no significant changes in the Companys financial position since June 30, 2010, its cash flow has continued as expected and its balance sheet remains strong.
Reynolds C. Bish, Chief Executive Officer, commented: “Im pleased to report that we continue to make good progress and have performed as or better than expected in both our software and hardware businesses. We confidently believe we can build upon this positive momentum but continue to believe that the global economic environment is still fragile and the extent and sustainability and of any recovery is difficult to predict. As a result, the Board and management reiterate their expectation that during this current fiscal year software business revenues will grow by approximately 10% – with a higher growth rate in software license revenues – and hardware business revenues will experience a low single digit percent decline in U.S. dollars on an organic, constant currency basis.”