[February 05, 2014] |
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Kronos Announces Tremendous First-Quarter Fiscal 2014 Financial Performance; Fast Approaching $1 Billion in Annual Revenue
CHELMSFORD, Mass. --(Business Wire)--
Kronos
Incorporated today announced financial results1, company
advancements, and customer successes for the first quarter of Fiscal
2014. Kronos (News - Alert) revenue for the quarter increased 9 percent to $243.4
million. Earnings before interest, tax, depreciation, and amortization
(EBITDA) increased 18 percent to $78.7 million.
"Kronos experienced a tremendous start to Fiscal 2014, with superior
execution across our global operation," said Aron Ain, Kronos chief
executive officer. "The significant investments we have been making in
key strategic areas - such as bringing unprecedented innovation and ease
of use to workforce management applications; extending our Kronos Cloud
solutions; continuing to expand our deep vertical market expertise;
expanding our SMB offerings; and further bolstering our global product
capabilities - are clearly making a difference for our customers every
day. Kronos will soon celebrate crossing the exclusive $1 billion
revenue mark as we continue our journey of strong growth as the
undisputed leader and pace-setter in the global workforce management
market."
First-Quarter News Facts
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Explosive growth of the Kronos Cloud - Kronos workforce
management cloud revenue increased 137 percent as new customers
continued to choose the Kronos
Cloud and existing customers accelerated the move of their
on-premise instances to the Kronos Cloud. As the fastest-growing
aspect of the company's business, the Kronos Cloud is experiencing
significant expansion across all targeted vertical markets in both the
enterprise as well as small and midsize business (SMB) segments.
Kronos continues to aggressively invest in its cloud infrastructure in
anticipation of even more rapid growth as organizations continue to
embrace cloud computing. Today nearly 10,000 distinct organizations
leverage the Kronos Cloud.
-
Speed of adoption continues to accelerate in SMB sector -
Kronos is further expanding its leadership in workforce management
through increasing adoption in the SMB sector. Driven by a significant
investment in product development and a relentless focus across its
engineering, services, and sales organizations, Kronos product
bookings in the SMB sector increased a remarkable 46 percent.
-
Well established in the U.S. with rapidly accelerating adoption
among new and existing customers across all business segments, the
Kronos Workforce Ready® cloud suite is expanding into
other countries around the world. The latest
version of Workforce Ready includes expanded global
capabilities for controlling absenteeism and managing overtime and
employee leave; new applications to help SMBs minimize risk
associated with labor law compliance such as Affordable Care Act
(ACA) and the Family Medical Leave Act (FMLA); and a range of
ease-of-use enhancements.
-
Innovation strategy drives product bookings - Recent
innovations in Kronos workforce management solutions drove a strong
13-percent increase in product bookings during the quarter, with
notable strength in areas such as workforce analytics, scheduling, and
absence management. During the quarter, Kronos delivered a series of
innovative new products and enhancements which transform the way
organizations manage their workforces:
-
Uniting enterprise social networking and workforce management -
By integrating popular enterprise social networking and
collaboration capabilities with its unparalleled workforce
management offering, the Kronos Workforce
Central® suite now provides yet another innovative
option to impact business performance.
-
Transforming big data workforce analytics with self-service
visualization and exploration - By leveraging data
visualization and exploration tools, the Kronos Workforce
Analytics™ application now delivers on the promise
of big data for workforce management by dramatically advancing the
ability to quickly explore, understand, and act on critical
workforce data to improve financial results. Workforce Analytics
delivers: enhanced visibility including heat map visualization; an
intuitive cause and effect analysis; and self-service analytics
with guided discovery so managers can easily interpret data and
react to improve cost savings and productivity.
-
Mobile workforce management any time, any place -
Significant enhancements to Kronos award-winning smartphone and
tablet applications - Workforce
Mobile™ and Workforce Tablet™ - give
managers and employees the peace of mind that comes from knowing
their workforce management solution is available wherever and
whenever they need it. The latest Kronos mobile applications
include geo-fencing capabilities so organizations can leverage GPS
coordinates to define locations where employees can clock in and
out.
-
Bringing innovation in consumer and biometric technology to the
time clock - The updated Kronos
InTouch® time clock, which is built for the cloud,
incorporates new biometric technology for enhanced processing
speed; support for more employee records; a new optical sensor for
unrivaled accuracy of authentication of employees; and
communicates information through WiFi (News - Alert) when an Ethernet connection
is not available or desired.
-
Undisputed global market leader - Kronos remains the world's
leading supplier of workforce management solutions, according
to a new report by IHS. IHS (News - Alert) data shows that Kronos has 37 percent
of the Americas market share and 25 percent of worldwide market share.
The report also highlights that Kronos is growing twice as fast as the
worldwide workforce management market. Organizations in more than 100
countries use Kronos workforce management solutions every day.
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Employer of choice - Based on leading edge workplace practices
including leadership, employee appreciation, workplace flexibility,
benefits, and compensation, Kronos has again been recognized as a Top
Place to Work. Kronos ranked the fourth-best place to work among
top large employers in Massachusetts, where the company is
headquartered, and has achieved a similar distinction in other regions
in North America and Asia. Kronos hired more than 620 employees around
the world in the past 12 months, and currently has more than 150 job
openings worldwide, as its employee population approaches 4,000.
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Customer successes around the globe - In the first quarter of
Fiscal 2014, Kronos signed agreements with organizations around the
world such as: America National Insurance Company, a major
American insurance corporation headquartered in Texas; City of
Tallahassee, the capital of Florida; Famous Dave's of America,
developer, owner, and operator of franchise barbeque restaurants; Hercules
Offshore, a leading global provider of offshore contract drilling
and liftboat services; HUGO Boss AG (UK), a market leader in
the premium and luxury segment of the apparel market; Mater Health
Services (AUS), a leading not-for-profit provider of health
services in Queensland; Midwest Health, manager of some of the
Midwest's premier senior healthcare communities, including
independent, and assisted living facilities and health centers; Nassau
University Medical Center, a Level I Trauma Center and teaching
hospital in Long Island, New York; Nova Southeastern University,
a private university serving more than 28,000 undergraduate and
graduate students in the U.S. state of Florida; Regal Entertainment
Group, operator of the largest theatre circuit in the U.S.; University
of Virginia Medical Center, an academic health system that
includes a 604-bed hospital, the UVA School of Medicine, UVA School of
Nursing, a Level I trauma center, nationally recognized cancer, and
heart centers and primary and specialty clinics throughout Virginia; Walter
Energy, a leading metallurgical coal producer for the global steel
industry; Wayne State University Physician Group, one of the
largest non-profit multispecialty physician groups in southeast
Michigan; and YMCA of Greater Houston, one of Houston's leading
non-profits.
Supporting Resources
About Kronos Incorporated
Kronos is the global leader in delivering workforce management solutions
in the cloud. Tens of thousands of organizations in more than 100
countries - including more than half of the Fortune 1000® -
use Kronos to control labor costs, minimize compliance risk, and improve
workforce productivity. Learn more about Kronos industry-specific time
and attendance, scheduling, absence management, HR and payroll, hiring,
and labor analytics applications at www.kronos.com.
Kronos: Workforce Innovation That Works™.
© 2014 Kronos Incorporated. Kronos, the Kronos logo, Workforce
Central, and InTouch are registered trademarks and Workforce Ready,
Workforce Analytics, Workforce Mobile, Workforce Tablet, and Workforce
Innovation That Works are trademarks of Kronos Incorporated or a related
company. All other trademarks are property of their respective owners.
Footnote 1: All financial information within this press
release is presented using non-GAAP financial measures. Kronos believes
that non-GAAP measures of financial results provide useful information
regarding certain financial and business trends relating to Kronos'
results of operations. Non-GAAP revenue consists of GAAP revenue
excluding the effect of the write-down of deferred revenue associated
with purchase accounting for certain acquisitions and includes timing
adjustments related to international product deliveries which management
includes when evaluating operating results. Product bookings represent
gross product value of product orders and the product equivalent value
of SaaS (News - Alert) orders. EBITDA consists of GAAP income from operations
excluding: (1) share-based compensation expense for stock options and
stock awards in accordance with ASC (News - Alert) 718; (2) amortization of capitalized
software development costs; (3) depreciation of property, plant and
equipment; (4) amortization of acquired intangible assets; (5)
acquisition-related expenses including advisory, legal, accounting,
acquired employee-related costs, and integration costs; and (6)
consulting expenses that are excluded from the definition of EBITDA
under the terms of the Company's Credit Agreement.
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