Kronos Announces Record Second-Quarter Results
CHELMSFORD, Mass., May 4, 2011 — Kronos Incorporated today announced financial results, company advancements, and customer successes for its second quarter of Fiscal 2011. Kronos® revenues for the quarter were $197.4 million. Earnings before interest, tax, and amortization (EBITA) were $51.7 million.1
"We're very pleased with our solid second-quarter performance – our best second quarter ever in terms of total revenue, which was well balanced across all of our key verticals and global geographies," said Aron Ain, Kronos chief executive officer. “Our double-digit growth in product revenue is one of the most meaningful metrics for analyzing our underlying growth. As we enter the second half of our fiscal year, our momentum is accelerating as organizations around the world increasingly seek ways to control labor costs, minimize compliance risk, and improve workforce productivity."
Second-Quarter News Facts
- Customer acquisition and transactions – In the second quarter of Fiscal 2011, Kronos signed agreements with organizations around the world such as: Ace Parking Management, one of North America’s largest privately owned parking management companies; American Water, the largest investor-owned U.S.
water and wastewater utility company; Auburn University, one of the largest universities in the South; BI-LO, a grocery store chain with 207 locations serving Georgia, North Carolina, South Carolina, and Tennessee; Damstra Mining Services, offering site contractor safety and time
management services to mining companies in Australia; J and J Industries, manufacturer of commercial carpet; Johnson Controls, a global diversified technology and industrial leader; Joy Mining Machinery, a global leader in underground mining equipment; Lamar Consolidated Independent School District, a public school district in Texas; NYU Hospitals Center, a world-class patient-centered integrated academic medical center; Pep Boys, a full-service and tire automotive aftermarket chain; Res-Care, Inc., provider of quality human services and support to people across a broad
range of ages, acuities, and behaviors; and Securitas Security Services USA, a knowledge leader in security.
- Rock-solid increase in product revenue – Kronos saw a significant increase in software revenue during the quarter, with particularly strong sales of its absence management solution as organizations increasingly seek to minimize compliance risk associated with FMLA and other federal, state, and local leave laws. Demand continues to rise for Kronos’ next generation of workforce management solutions. Kronos has shipped the next generation user interface software to be used by more than three million employees. This sweeping success is taking place in all vertical markets. During the quarter, Kronos announced availability of its workforce mobile applications.
- Massive opportunity for managed services offering – In a year-over-year comparison, Kronos more than doubled the number of customer contracts and revenue derived from sales of its managed services offering, which includes application management and hosting services. Organizations that choose managed services cite significant cost savings, improved management of the application, and faster time to value. Existing and new customers that signed managed services agreements during the quarter include: First Advantage Corporation, provider of a comprehensive selection of services to
help employers hire and retain healthy, productive workers; Senior Lifestyle Management, one of the nation’s leading senior living specialists; Town of Breckenridge, a Home Rule Municipality that is the county seat of Summit County, Colorado; and Whistler Blackcomb, North America's premier four-season mountain resort.
- Expansion of international distribution channel – In a strategic move to capitalize on tremendous growth potential in various emerging international markets, Kronos has expanded its reach by forming reseller agreements with companies such as GroupSeidor in Spain and Portugal; Hyperlink in the Middle East; and Valueteam in Brazil. Formation of these channels enhances Kronos' ability to support the global workforce management needs of multinational organizations, as well as provide local knowledge and support for new customer deployments. In Greater China, Kronos continued its remarkable growth, where it has sold more than 250,000 employee licenses to more than 65 organizations. In addition, Kronos began to actively expand operations in Brazil by hiring it first local staff and securing orders from several large local employers.
About Kronos Incorporated
Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
© 2011 Kronos Incorporated.All rights reserved. Kronos is a registered trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisitions since June 2007. EBITA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring, unusual charges.