Kronos Reports Another Quarter of Double-Digit Product Revenue Growth
CHELMSFORD, Mass., Aug. 3, 2011 — Kronos Incorporated today announced financial results, company advancements, and customer successes for its third quarter of Fiscal 2011. Kronos® revenues for the quarter were $210.8 million. Earnings before interest, tax, and amortization (EBITA) were $60.5 million.1
"Our strong financial performance demonstrates that our commitment to innovation is paying off. We are innovating faster than ever before. Our next generation workforce management solutions are rapidly gaining traction, and we had another very strong quarter of software growth," said Aron Ain, Kronos chief executive officer. "We are solidly executing across all major markets and regions and poised to exceed our internal financial expectations for Fiscal 2011."
Third-Quarter News Facts
- Customer wins and transactions – In the third quarter of Fiscal 2011, Kronos signed agreements with organizations around the world such as: Bradken, large Australia multinational that will use Kronos in China; Brookdale Senior Living, healthcare organization offering senior living options such as assisted living, home health, and rehabilitation; Butte County in California; Cavender's Boot City, the popular brand of western apparel; Chesapeake Energy Corporation, the second-largest producer of natural gas and most active driller of new wells in the U.S.; Coach, luxury retailer that will use Kronos in China, Hong Kong, Macau, and Singapore; Connextions, Inc., pre-eminent technology and business services partner to the healthcare industry; Crisa Libey, a Mexico-based manufacturer of glass and glassware; Deer Park Independent School District, 15 schools with more than 12,300 students near Houston, Texas; Dollarama, Canada's largest dollar store chain with 667 stores across Canada; Evergreen Packaging, manufacturer of specialty paperboard packaging and other paper products; Indiana University Health, Indiana's most comprehensive healthcare system in partnership with Indiana University School of Medicine, one of the nation's leading medical schools; JBS, the world's leading animal protein processor; Keystone Foods, global supplier of protein products and customized food service distributor serving the quick service restaurant industry and other markets; Koch Foods, among the nation's top integrated poultry processors; Medcenter One Health Systems, a Bismarck, North Dakota-based not-for-profit, multi-specialty medical center that integrates clinic and hospital care; Mission Foods, a large tortilla manufacturer with operations in China; Nacional Monte de Piedad, a Mexico-based provider of secured loans; Omni Hotels & Resorts, operators of 50 distinctive luxury hotels and resorts in leading business gateways and leisure destinations across North America; Radiation Therapy Services, Inc., leading provider of advanced radiation therapy services to cancer patients; SUPERVALU Inc., one of the largest companies in the U.S. grocery channel; The Times Group, the largest media conglomerate in India; Town Fair Tire, the Northeast's largest tire and wheel retailer; Unimarc, a Chile-based grocery retailer; The University of Dayton, a top-tier national, doctoral-level university in Ohio, The University of New Mexico, the state’s flagship research institution serving 30,000 graduate and undergraduate students; and Yazaky North America, the world's largest supplier of automotive electrical distribution systems.
- Next generation of workforce management – 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 3.8 million employees across all vertical markets. Kronos workforce mobile applications are also achieving widespread adoption as organizations embrace the benefits of leveraging mobile technologies to better manage their workforce.
- Software growth and strategic product adoption –Kronos software revenue increased nearly 30 percent over the third quarter last year. As with the second quarter, sales of its absence management solution were particularly strong. Sales of Kronos scheduling and HR and payroll applications also grew significantly as organizations increasingly realize they can control labor costs, minimize compliance risk, and improve workforce productivity by not only automating time and attendance and absenteeism processes, but by also automating employee scheduling and HR and payroll processes.
- Expansion of international operations – Kronos continues to aggressively expand its international operations. Recent developments include establishment of a direct sales channel in Brazil, which complements Kronos' existing reseller agreement with regional IT consultant Valueteam. In addition, Kronos recently announced the opening of two more Greater China offices in Guangzhou and Hong Kong to further build its growing presence in the region. These developments – in addition to its recently formed reseller agreements in the Middle East and Spain and Portugal – underscore Kronos' commitment to supporting the global workforce management needs of multinational organizations, as well as provide local staff and support for new customer deployments.
- Tremendous cloud services momentum – In the third quarter, Kronos had its highest-ever number of customer contracts and revenue derived from sales of its cloud services offering which now manages more than 1.5 million employees daily. Notable developments include a new European data center. In the third quarter, customers signed and/or went live on cloud services in 13 countries outside of North America. Organizations that choose cloud services cite significant cost savings, improved management of the application, and faster time to value.
- Acquisition of public sector scheduling vendor – In the face of shrinking budgets, city and county governments are increasingly looking for workforce management vendors that can meet the needs of their entire workforce. To address this need, Kronos acquired Principal Decision Systems International (PDSI) and its TeleStaff automated public safety scheduling and notification solution.
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.