New Products and Global Expansion Fuel Kronos® Growth in Fiscal 2007
Vertical specialization contributes to successful year
CHELMSFORD, Mass., Nov. 5, 2007 — Adoption of new products and global expansion equated to significant Fiscal 2007 business momentum for Kronos® Incorporated. The company closed the year by reporting a 15 percent rise in revenue over its previous fiscal year to $662 million. Earnings before interest, tax, and amortization (EBITA) rose 20 percent over Fiscal 2006 to $111 million1.
"“We closed a strong fourth quarter — and a strong year as a whole — with solid revenue growth and healthy momentum across our targeted verticals," said Aron Ain, Kronos chief executive officer. "We're thrilled with how well customers are embracing our new products, and we’re seeing fantastic adoption of Kronos solutions across every geographic region in which we operate."
In the last quarter of Fiscal 2007, Kronos signed agreements with organization such as Bancroft NeuroHealth, a N.J.-based organization serving children and adults with developmental disabilities and neurological impairments; Berry Plastics, a leading manufacturer of plastic packaging products; Boral Limited, Australia’s largest building and construction materials supplier; Briggs & Stratton, the world’s largest producer of air cooled gasoline engines for outdoor power equipment; Children’s Hospital of Philadelphia, a leading pediatric hospital and research facility; The City of Denver, Colorado; Greektown Casino, a casino in Detroit, Mich.; Red Robin Gourmet Burgers, a casual dining restaurant chain with more than 375 locations; Smithfield Foods, an international food company; the U.S. Department of Agriculture (USDA); and Wynn Las Vegas, a luxury hotel and destination casino resort.
Fiscal 2007 highlights
"Fiscal 2007 was a pivotal year for Kronos," said Aron Ain, Kronos chief executive officer. "We made tremendous strides in executing against strategic objectives in the areas of global expansion, workforce management, and talent management. We were successful in sustaining our steadfast focus on long-term objectives during a year which marked the beginning of an exciting new chapter for Kronos as a privately held company."
Global expansion
Fiscal 2007 reflected the following global expansion achievements:
- Europe, Middle East, and Asia (EMEA) — Acquired Captor, a strategic move which extended Kronos’ market leadership deeper into Europe. As a result, Kronos is better able to meet growing demand from multinational organizations as well as better address the needs of existing local and multinational customers in the European workforce management market.
- Asia-Pacific (APAC) — Launched subsidiary in India, positioning Kronos to capitalize on growing demand for workforce management throughout the region. Formally launched Kronos in China and delivered a version of its Workforce Central® suite specifically tailored to the Chinese market.
- Latin America — Formed reseller agreement with Meta4, providing integration between Kronos’ Workforce Central suite and the Meta4 PeopleNet platform.
Workforce management leadership
Kronos continues to hold the leadership position in time and attendance, with tens of thousands of organizations using its solutions. Kronos' product revenue growth is being fueled by increasing adoption of additional workforce management applications in the areas of scheduling, absence management, human resources and payroll, analytics, and labor activities.
Fiscal 2007 reflected the following product advancements in the area of workforce management:
- Delivery of version 6 of its Workforce Central suite. With Workforce Central 6, organizations have the insight and information required to manage performance and effectively optimize a global workforce.
- Delivered a key performance indicator (KPI) that allows manufacturers to measure the effectiveness of their workforce. This new KPI, Overall Labor Effectiveness™ (OLE) measures the utilization, performance, and quality of the workforce and its impact on productive output.
- Delivered webTA™ Mobile, which makes it possible for federal government employees to remotely enter time, attendance, and leave using mobile devices.
- Completed development of a new Kronos 4500 badge terminal which supports the Chinese language.
Kronos understands the workforce and its unique vertical requirements. Kronos offers specialized bundles of applications and services to meet the needs of a range of vertical segments. In Fiscal 2007, Kronos customer contracts resulted from specialized, bundled offerings such as:
- Kronos for Gaming — Boyd Gaming, Grand Lisboa Macau, MGM Grand, and The Venetian
- Kronos for Healthcare — Central Maine Healthcare, Maimonides Medical Center, Sisters of Mercy, and the Victorian Department of Human Services
- Kronos for Manufacturing — American Woodmark, Benchmark Electronics, CDF (Coca Cola Bottling Company, Mexico), and Vitro America
- Kronos for Retail — bebe, Family Dollar, Polo Ralph Lauren, and Somerfield UK
Talent management achievements
During its first full fiscal year in the area of talent management, Kronos achieved the following:
- Launched a global corporate hiring solution, which marries the art of recruiting for salaried positions with the science of staffing high-volume hourly positions.
- Assessed 20.3 million job applications, bringing the total applications assessed to over 70 million
- Launched its Strategic Sourcing Service, a proprietary method for understanding local job applicant sourcing dynamics.
- Released multiple new assessment and interviewing products including: a second-generation casual dining front-of-house and heart-of-house assessment; a manager assessment; a Spanish version of its frontline healthcare assessment; and behavioral interview guides for hourly and site-level management positions.
Carrying its talent management momentum into Fiscal 2008, on Oct. 31, Kronos announced its acquisition of Deploy Solutions. This strategic acquisition solidifies Kronos’ leadership in field-based recruiting.
"Kronos was founded in 1977. In celebrating our company's 30th anniversary last week, we took time to reflect on our accomplishments," concluded Ain. "Looking ahead, we intend to remain focused on our three important objectives in the areas of global expansion, workforce management, and talent management. Our future looks very bright. We’re poised for another 30 years of empowering organizations to effectively manage their workforce."
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 60 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.
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