(Source: Business Wire)
Kofax plc (LSE:KFX), the leading provider of document driven business
process automation solutions, releases an Interim Management Statement
for the first quarter of its 2010 financial year, which includes the
period from 1 July to 30 September 2009 and the results of operations of
170 Systems, Inc. since Kofax's acquisition of that company in early
September 2009.
Kofax's 2010 financial year started positively with total revenues in
line with and adjusted operating profit ahead of our expectations.
Software business revenues were higher than expected due to strong
service revenues and offset lower than expected product distribution
revenues in the hardware business. Sales execution and achievement
levels across all segments of the company's software business were
generally as expected and the Company continued to make good progress in
executing its strategic initiatives.
Other than the decrease in cash resulting from Kofax's acquisition of
170 Systems, there have been no significant changes in the Company's
financial position since 30 June 2009 and its balance sheet remains
strong.
Reynolds C. Bish, Chief Executive Officer, commented: "I'm pleased to
report that we made good progress and performed better than expected in
our software business this past quarter. Market conditions have
stabilized and show early signs of improving to a limited extent but
continue to be challenging and difficult to predict. As a result and
excluding the effect of the 170 Systems acquisition, which should
contribute approximately $22m of revenues after acquisition accounting,
we continue to expect low to mid single digit organic revenue growth in
our software business this financial year."
Finally, on 8 September 2009 the Company announced its intention to
report Kofax's future financial results in US dollars. To assist readers
in the transition from Pounds Sterling to US dollar reporting, the
Company has attached and is today posting US dollar based financial
statements for the years ended 30 June 2009 and 2008 on the Investor
relations page of its website at www.kofax.com/ir.
About Kofax
Kofax plc (LSE: KFX) is the leading provider of document driven business
process automation solutions. For more than 20 years, Kofax has provided
award winning solutions that streamline the flow of information
throughout an organization by managing the capture, transformation and
exchange of business critical information arising in paper, fax and
electronic formats in a more accurate, timely and cost effective manner.
Kofax solutions provide a rapid return on investment to thousands of
customers in financial services, government, business process
outsourcing, healthcare, supply chain and other markets. Kofax delivers
these solutions through its own worldwide sales and service
organizations, and a global network of more than 1,000 authorized
partners in more than 60 countries throughout the Americas, EMEA and
Asia Pacific.
"Kofax" is a registered trademark in the US, the EU and other countries.
All other trademarks and registered trademarks belong to their
respective owners.
Consolidated Income Statement
FY2009 H1 FY09 H2 FY09 FY2008 FY2007
USD USD USD USD USD
Revenue 298,195 154,474 143,721 340,691 309,702
Software 169,391 86,693 82,698 192,209 169,333
Hardware 128,804 67,781 61,023 148,482 140,369
Cost of sales 142,105 74,425 67,679 147,353 135,044
Software 39,068 21,670 17,398 30,987 22,856
Hardware 103,037 52,755 50,281 116,367 112,187
Gross profit 156,090 80,049 76,042 193,337 174,658
Software 130,323 65,022 65,302 161,222 146,477
Hardware 25,767 15,027 10,740 32,115 28,181
Operating expenses 133,514 68,722 64,792 174,491 157,617
Adjusted operating profit before 22,576 11,327 11,250 33,687 30,040
Amortisation of acquired intangible assets 4,408 2,083 2,325 4,629 4,463
Reduction in goodwill arising on the utilisation of previously unrecognised tax losses 0 0 0 0 201
Restructuring costs 5,455 0 5,455 9,639 6,185
Share-based payment expense 1,318 1,110 208 573 2,151
Operating profit 11,396 8,134 3,262 18,846 17,041
Share of result of associated undertakings 173 115 58 174 110
Finance income 1,432 1,306 126 2,265 2,630
Finance expense (1,008 ) (441 ) (567 ) (5,988 ) (228 )
Profit before tax 11,993 9,115 2,879 15,298 19,553
Tax expense 3,748 2,362 1,386 8,490 4,055
Profit after tax 8,245 6,752 1,492 6,808 16,076
Earnings per ordinary share
- Basic 10.0c 8.1c 1.9c 8.0c 17.6c
- Diluted 10.0c 8.1c 1.9c 7.8c 17.0c
- Adjusted basic 19.4c 9.1c 10.3c 28.9c 26.7c
- Adjusted diluted 19.4c 9.0c 10.4c 28.5c 25.9c
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Consolidated Income Statement - Segmental Disclosure
FY09 H1 FY09 H2 FY09
USD USD USD
Software Revenue 169,391 86,693 82,698
Application Software Licenses 71,413 36,905 34,508
Application Software Services 76,115 37,738 38,377
OEM/POS 21,863 12,050 9,813
Hardware Revenue 128,804 67,781 61,023
Hardware Distribution 92,613 48,954 43,660
Hardware Services 36,191 18,827 17,363
Total Revenue 298,195 154,474 143,721
Cost of sales 142,105 74,425 67,679
Gross profit 156,090 80,049 76,042
Software 130,323 65,022 65,302
Hardware 25,767 15,027 10,740
Operating Expenses 133,514 68,722 64,792
Sales 56,568 28,144 28,425
Marketing 9,787 5,102 4,685
R + D 29,125 15,098 14,027
G + A 38,034 20,378 17,655
Adjusted operating profit before 22,576 11,327 11,250
Amortisation of acquired intangible assets 4,408 2,083 2,325
Restructuring costs 5,455 0 5,455
Share-based payment expense 1,318 1,110 208
Operating profit 11,396 8,134 3,262
Share of result of associated undertakings 173 115 58
Finance income 1,432 1,306 126
Finance expense (1,008 ) (441 ) (567 )
Profit before tax 11,993 9,115 2,879
Tax expense 3,748 2,362 1,386
Profit after tax 8,245 6,752 1,492
EBITA split
EBITA 22,576 11,327 11,250
Software 13,783 5,619 8,164
Hardware 8,793 5,708 3,086
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Consolidated Balance Sheet
30.06.2009 31.12.2008 30.06.2008 30.06.2007
USD USD USD USD
Non-current assets
Intangible assets 137,500 115,734 140,074 136,399
Property, plant and equipment 9,809 10,065 9,341 7,321
Deferred tax assts 8,440 4,537 6,854 6,816
Investments 2,252 2,203 2,365 1,884
158,001 132,539 158,634 152,420
Current assets
Inventories 15,902 13,963 18,276 14,690
Trade and other receivables 95,623 77,144 80,324 73,855
Investments - current 348 596 453 357
Current tax assets 2,173 1,898 3,368 0
Cash and cash-equivalent 49,294 47,541 72,619 78,600
163,340 141,142 175,040 167,502
Total assets 321,341 273,681 333,674 319,922
Current liabilities
Trade and other payables 62,281 52,303 63,245 47,715
Deferred income - current 47,049 27,731 40,833 38,087
Other financial liabilities 2,531 2,203 3,073 2,161
Current tax liabilities 2,156 0 0 5,605
Provisions - current 5,531 2,780 5,413 5,513
119,548 85,017 112,564 99,081
Non-current liabilities
Other payables 3,051 2,888 3,936 5,597
Deferred income - non current 10,127 15,384 13,440 11,015
Deferred tax liabilities 10,274 8,552 9,543 5,078
Provisions - non current 717 0 0 0
24,169 26,824 26,919 21,690
Total liabilities 143,717 111,841 139,483 120,771
Net assets 177,624 161,840 194,191 199,151
Capital and reserves
Called up share capital 4,064 3,264 4,477 4,456
Share premium account 3,874 2,797 2,732 118,201
CTA / retained earnings 197,286 176,746 206,664 73,791
Merger reserve 2,835 2,483 3,424 3,442
ESOP shares (14,455 ) (11,239 ) (14,993 ) (1,052 )
Treasury shares (15,980 ) (12,211 ) (8,113 ) 0
Minority interests - equity 0 0 0 313
Shareholders' equity 177,624 161,840 194,191 199,151
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Consolidated Cash Flow Statement
FY 09 H1 FY09 H2 FY09 FY08 FY07
USD USD USD USD USD
Cash flows from operating activities
Profit before tax 11,993 9,115 2,879 15,298 19,553
Share results of associated undertakings (173 ) (115 ) (58 ) (174 ) (110 )
Finance income (1,432 ) (1,306 ) (126 ) (2,265 ) (2,630 )
Finance expense 1,008 441 567 5,988 228
Depreciation and amortisation 8,702 4,111 4,591 9,560 9,155
Share-based payment expense 889 1,110 (220 ) 573 2,151
Reduction in goodwill arising on the utilisation ofpreviously unrecognised tax losses 0 0 201
Movement in provisions 5,211 1,139 4,072 2,686 4,271
Gain/(loss) on disposal of property, plant andequipment 43 3 40 (124 ) (110 )
Movement in working capital (11,436 ) (11,091 ) (345 ) 9,101 (1,455 )
Cash generated from operations before restructuring 14,805 3,407 11,400 40,643 31,254
Payments under restructuring (5,214 ) (2,676 ) (2,538 ) (8,265 )
Cash generated from for operations 9,591 731 8,862 32,378 31,254
Income tax paid (1,926 ) (1,830 ) (97 ) (14,358 ) (6,297 )
Net cash inflow/(outflow) from operating activities 7,665 (1,099 ) 8,765 18,020 24,957
Cash flows from investing activities
Purchase of property, plant and equipment,licences and similar rights (12,508 ) (6,497 ) (6,011 ) (7,375 ) (3,705 )
Disposal of property, plant and equipment,licences and similar rights 153 14 139 397 298
Acquisition of a subsidiary, net of cash acquired (2,681 ) (2,945 ) 264 (1,445 ) (2,085 )
Acquisition of subsidiaries, net of cash disposed 0 0 0 (1,251 ) (3,253 )
Disposal of subsidiaries 0 0 (36 ) (2,829 )
Sale of non-current investment 0 0 0 0 172
Movement in long term loans to non-current investments 0 0 0 0 23
Interest received 944 2,498 (1,554 ) 1,494 2,362
Net cash (outflow)/inflow from investing activities (14,092 ) (6,930 ) (7,162 ) (8,216 ) (9,017 )
Cash flows from financing activities
Issue of share capital 1,247 1,253 (5 ) 3,169 4,888
Increase/(decrease) in short term borrowings 859 (474 ) 1,333 (355 ) (282 )
Share buy back (7,023 ) (7,538 ) 515 (22,493 ) 0
Dividends paid to shareholders (2,004 ) (2,378 ) 185 (3,789 ) (3,309 )
Dividends paid to minorities interest 0 0 0 (158 ) 0
Capital element on finance lease payments 0 (5 ) 5 0 0
Currency swap 1,621 0 1,621 (3,961 ) (12 )
Interest paid (305 ) (117 ) (188 ) (283 ) (201 )
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Net cash outflow from financing activities (5,605 ) (9,259 ) 3,466 (27,870 ) 1,084
Net (decrease)/increase in cash and cash-equivalents in the period (12,032 ) (17,289 ) 5,067 (18,066 ) 17,023
Cash and cash-equivalents at start of the period 70,034 70,034 45,353 76,943 57,150
Exchange rate effects (9,935 ) (7,392 ) (2,353 ) 11,156 3,136
Cash and cash-equivalents at the end of the period 48,067 45,353 48,067 70,033 77,309
Cash and cash-equivalents consists of:
Cash and cash-equivalents 49,294 47,541 49,294 72,618 78,600
Overdrafts (1,227 ) (2,188 ) (1,227 ) (2,585 ) (1,291 )
48,067 45,353 48,067 70,033 77,309
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Foreign Exchange Rates
FY09 H1 FY09 FY08 FY07
Average rate Closing rate Average rate Closing rate Average rate Closing rate Average rate Closing rate
USD/GBP 0.62 0.61 0.58 0.69 0.50 0.50 0.50 0.50
USD/EURO 0.73 0.71 0.71 0.71 0.68 0.63 0.68 0.63
USD/CHF 1.12 1.08 1.12 1.06 1.11 1.02 1.11 1.02
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