Kronos(R) Reports First Quarter Fiscal 2007 Results.Revenue and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Exceed Consensus; Workforce Management Workforce Management (WFM) encompasses all the responsibilities for maintaining a productive and happy workforce. Sometimes referred to as HRMS systems, or even the larger ERP systems (Oracle, PeopleSoft, SAP). There are many software vendors within this space. Profit Increases More Than 35% Year-Over-Year CHELMSFORD Chelmsford, city, England Chelmsford, city (1991 pop. 91,109), county seat of Essex, SE England. It is a market center (especially for cattle) for the surrounding agricultural district. , Mass. -- Kronos Kronos or Cronus (both: krō`nəs), in Greek religion and mythology, the youngest Titan, son of Uranus and Gaea. With the help of his mother, he led the Titans in the revolt against Uranus and ruled the world. ([R]) Incorporated (Nasdaq: KRON KRON Knowledge Representation Oriented Nets ) today reported the following results for the first quarter of Fiscal 2007: * Total revenue was $148.7 million, compared to $127.9 million for the same period a year ago, an increase of 16 percent. * GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $5.7 million, or $0.18 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $6.2 million, or $0.19 per diluted share for the same period a year ago. GAAP net income for the company's workforce management business increased to $0.26 per diluted share from $0.19 per diluted share for the same period a year ago, representing year-over-year growth of more than 35 percent. * Non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. --GAAP net income for the first quarter of Fiscal 2007 includes the following items:
-- A non-cash charge of $0.10 per diluted share for
stock-based compensation, compared to $0.08 per diluted
share in the first quarter of the prior year; and
-- A non-cash charge of $0.08 per diluted share for
amortization of acquired intangibles, compared to $0.04
per diluted share in the first quarter of the prior
year.
-- In total, these items reduced net income for the first
quarter of Fiscal 2007 by $0.18 per diluted share,
compared to $0.12 per diluted share for the first
quarter of Fiscal 2006.
"We started Fiscal 2007 on a strong note, delivering on our commitments for both top- top- pref. Variant of topo-. and bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance as customers across a broad spectrum of industries selected Kronos' solutions to increase workforce productivity. In Q1, we grew the earnings of our workforce management business by more than 35 percent while continuing to make strategic investments to fuel the company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth, a testament to Kronos' operational excellence," said Chief Executive Officer Aron Aron may refer to:
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the fast-growing human capital management market." Kronos' first quarter Fiscal 2007 results mark the company's 108th consecutive quarter of year-over-year revenue growth and 79th consecutive quarter of profitability, continuing one of the longest records of growth and profitability in the software industry ((Note 1)). Deferred maintenance, deferred professional service, and deferred product revenue on the balance sheet at the end of the first quarter of Fiscal 2007 totaled $153.3 million. In addition to this deferred revenue, Kronos has a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. engagements of approximately $64.0 million. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $30.2 million in the first quarter of Fiscal 2007, compared to $23.0 million for the comparable period last year. In the first quarter of Fiscal 2007, Kronos repurchased 283,017 shares of its common stock for $10.0 million. The company made payments on acquisitions of $7.9 million. Kronos exited the quarter with $95.4 million in cash and investments and a revolving loan balance of $54.7 million. First Quarter Highlights * Talent management momentum -- Kronos' Talent Management Division delivered excellent results in its first full quarter of operation, closing more deals than in any quarter in Unicru's history. The team continued to have major success in the enterprise retail segment, Unicru's traditional area of strength, and with the benefit of Kronos' strength and experience, also increased its penetration of new markets such as healthcare and the mid-market. * Retail industry leadership -- The company's retail market momentum continued to build as customers turned to Kronos for its innovative products, deep domain expertise, and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , its successful deployments in complex retail environments. Kronos for Retail, the only complete, end-to-end solution (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. for talent management and workforce management, is being used by retailers around the world to optimize optimize - optimisation workforce productivity and the quality of the in-store customer experience. It is important to note that the company's best-in-class solutions and customer successes are recognized by industry thought leaders as well. Most recently, Kronos was the only vendor to receive the highest possible rating of "Strong Positive", in the Gartner Marketscope for Retail Time and Labor Applications, published in December 2006. To leverage its growing opportunity in this key vertical, Kronos recently completed a three-fold expansion of its retail sales team. * Notable customer wins across diverse industries -- Notable wins during the quarter included:
-- Bebe Stores, a leading women's apparel retailer,
purchased Kronos' optimized scheduling, budgeting,
analytics, and talent management solutions to help
optimize the productivity of its workforce across
hundreds of locations. Bebe selected Kronos because of
its proven end-to-end retail solution and the ability
of Workforce Acquisition(TM) to increase the quality of
its hires and reduce the time it takes to bring new
employees into the organization. The deciding factors
in this competitive win were Kronos' retail industry
market leadership and track record of successful
customer deployments.
-- CDF (Coca Cola Bottling Company, Mexico) selected
Kronos' time and labor solution and biometric terminals
to manage the workforce in its corporate office as well
as in its network of plants and distribution centers in
Mexico. Kronos' market leadership, implementation
expertise, and the potential ROI of its solutions were
key factors in winning this deal.
-- U.S. Transportation Security Administration (TSA)
purchased Kronos' biometric terminals which it will
deploy to efficiently capture time and labor data for
approximately 55,000 employees in more than 450
airports. TSA's decision to extend its relationship
with Kronos was influenced by the significant benefits
it has already recognized from its existing Kronos
workforce management implementation. The purchase of
the Kronos 4500 Touch ID(TM) terminals was part of a
contract awarded to immixGroup, a Kronos partner in the
federal government marketplace.
-- Wild Oats Markets, a major nationwide chain of natural
and organic food markets and existing Kronos customer,
extended its strategic partnership with Kronos with the
purchase of Workforce Acquisition. Wild Oats will
utilize Kronos' on-demand talent management solution to
streamline its process for selecting and hiring the
highest quality employees, ultimately reducing
turnover, enhancing workforce productivity, and
maximizing customer satisfaction.
Outlook Second-Quarter Fiscal 2007: * Total revenue is expected to be in the range of $154-$159 million. * GAAP net income per diluted share is expected to be in the range of $0.23-$0.28. * Non-cash charges --GAAP net income for the second quarter of Fiscal 2007 is expected to include the following items:
-- A non-cash charge of $0.10 per diluted share for
stock-based compensation; and
-- A non-cash charge of $0.09 per diluted share for
amortization of acquired intangibles.
-- In total, these items are expected to reduce net income
for the second quarter of Fiscal 2007 by $0.19 per
diluted share.
Fiscal 2007: * Total revenue is expected to be in the range of $647-$660 million. * GAAP net income per diluted share is expected to be in the range of $1.15-$1.27. * Non-cash charges --GAAP net income for Fiscal 2007 is expected to include the following items:
-- A non-cash charge of approximately $0.40 per diluted
share for stock-based compensation; and
-- A non-cash charge of approximately $0.35 per diluted
share for amortization of acquired intangibles.
-- In total, these items are expected to reduce net income
for Fiscal 2007 by $0.75 per diluted share.
Conference Call Webcast Kronos senior management plans to review its first quarter results during a conference call today beginning at 4:30 p.m. Eastern. The conference call will be webcast live at http://www.kronos.com/invest and will be available for replay purposes. About Kronos Incorporated Kronos Incorporated empowers organizations around the world to effectively manage their workforce. At Kronos, we are experts who are solely focused on delivering software and services that enable organizations to reduce costs, increase productivity, improve employee satisfaction, and ultimately enhance the level of service they provide. Kronos serves customers in more than 50 countries through its network of offices, subsidiaries, and distributors. Widely recognized as a market and thought leader in managing the workforce, Kronos has unrivaled reach with more than 30 million people using a Kronos solution every day. Learn more about Kronos at www.kronos.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains statements about the business prospects and estimates of Kronos' financial results for future periods that are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties, including the performance estimates and statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc earnings and revenue growth and profitability, Kronos' ability to realize the anticipated benefits of the Unicru acquisition, the ability to close potential product sales transactions, the ability to realize revenues from the sales pipeline and backlog, market acceptance of our new products and enhancements, including those formerly offered by Unicru and AD OPT Technologies, our ability to monitor and manage discretionary costs, growth in the market for our products and within the economy generally, and potential acquisitions. These statements are based on management's expectations of future events as of the date of this press release, and Kronos assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Among the important factors that could cause actual operating results to differ materially from those indicated by such forward-looking statements are delays in product development, including enhancements to existing products, product performance issues, competitive pressures, general economic conditions, possible disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangement and the risk factors detailed in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC on December 13, 2006 and its quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the SEC on August 10, 2006. The timing of the release of new products or product enhancements will take place if and when available and at the sole discretion of Kronos. Note 1: Excluding a one-time special charge in the second quarter of Fiscal 2001. (c) 2007 Kronos Incorporated. Kronos and the Kronos logo are registered trademarks, and Kronos 4500 Touch ID and Workforce Acquisition are trademarks of Kronos Incorporated or a related company. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners. The MarketScope is copyrighted 12/07/06 by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse To sign a paper or document, thereby making it possible for the rights represented therein to pass to another individual. Also spelled indorse. endorse (indorse) v. any vendor, product or service depicted de·pict tr.v. de·pict·ed, de·pict·ing, de·picts 1. To represent in a picture or sculpture. 2. To represent in words; describe. See Synonyms at represent. in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability mer·chant·a·ble adj. Suitable for buying and selling; marketable. mer  chant·a·bil or fitness
for a particular purpose.
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