[April 28, 2015] |
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Robust Business Demand Drives Strong Financial Performance for Kronos in Second Quarter of Fiscal 2015; Kronos Surpasses 14,000 Customers in the Kronos Cloud
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the second quarter of Fiscal
2015. Kronos (News - Alert) recognized revenue for the quarter increased to $262.1
million. Earnings before interest, tax, depreciation, and amortization
(EBITDA) increased to $84.3 million1.
"Kronos had yet another strong quarter with high performance in the
small and midsize business and enterprise segments of the market, and
within all targeted vertical industry sectors," said Aron Ain, Kronos
chief executive officer. "One of the most gratifying achievements of our
second quarter is our outstanding employee engagement survey results and
external recognition of Kronos as an employer of choice. Our winning
Kronos Cloud strategy and adoption rate, delivery of innovative
products, and aggressive global expansion efforts would not be possible
without the collective, inspiring efforts of our employees."
Second-Quarter News Facts
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Kronos Cloud expansion - Kronos workforce management cloud
revenue increased 58 percent, as new customers deploy in the cloud and
existing customers move their on-premise instances to the cloud. In
continuation of a trend, the majority of new customer bookings in the
quarter were from an array of Kronos Cloud offerings. The pace of
existing customers converting from on-premise instances to a Kronos
Cloud offering is exceeding Kronos' expectations. More than 14,000
organizations now run in the Kronos Cloud.
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Employer of choice - Shortly after The Boston Globe
named Massachusetts-based Kronos
the most admired large employer in its annual Top Places to Work
ranking:
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Global successes - Kronos international product bookings
increased 21 percent year over year2.
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Kronos
is experiencing rapid growth in India - 50 percent
year-over-year - as more organizations turn to Kronos to better
manage their workforces, with particular strength in targeted
vertical markets such as retail, manufacturing, and services and
distribution. In addition to customer momentum, Kronos is also
expanding its partner network by establishing relationships with
organizations such as Bluetree and Tech Mahindra, adding to
existing relationships with other leading systems integrators in
India.
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Kronos
is seeing significant growth in China. In the last six months
alone, Kronos won significant customer contracts in the
manufacturing and retail sectors and expanded its partner network
to provide more complete distribution and implementation support
across Greater China. Kronos recently established relationships
with organizations such as Elitesland in the dining industry, as
well as SIE Consulting in the manufacturing sector.
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Kronos continues to invest in regions where it sees strong growth
potential. In its first quarter of Fiscal 2015, Kronos opened a
new Latin America headquarters in Mexico City. In March, Kronos
relocated its Delhi/Noida, India operation to a 93,000 square-foot
space to support its growing software development, Kronos Cloud,
professional services, finance, and information technology
funtions.
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Market adoption in small and midsize (SMB) sector - Momentum (News - Alert) in
the SMB sector was driven by sales of the Kronos Workforce Ready and
Kronos Workforce Central suites, and included sales to new customers
as well as the migration of existing Kronos customers to Workforce
Ready. Kronos also continues to experience significant traction in the
Kronos SaaS (News - Alert)hr partner channel.
-
Kronos launched its Workforce
Ready software suite in Australia, adding to a variety of
regions that offer the solution to SMBs. Workforce Ready helps
SMBs improve productivity and agility, providing benefits for both
employers and employees.
-
The Kronos Workforce Ready suite now integrates
with the SuccessFactors Employee Central solution, enabling
SMBs to effectively manage employees through integrated human
resources, payroll, time and attendance, and talent management
offerings in the cloud with a unified interface.
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Expansion in the enterprise and within targeted industry segments -
Kronos secured one of its largest-ever product transactions during the
quarter in a multi-million dollar contract for the Kronos TeleStaff
public safety scheduling solution from a long-standing U.S. federal
government agency customer. Additional enterprise transactions
included new and existing customers such as a 12,000-employee, highly
reputable healthcare organization operating four hospitals; a clothing
and accessories retailer with nearly 40,000 employees in approximately
1,000 locations; one of the world's largest nutrition, health, and
wellness companies; and a state in the southeast region of the U.S.
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Growth through innovation - Kronos product bookings increased
11 percent year over year1. Kronos delivered several new
products, the highlights of which include:
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The latest
release of the Kronos Workforce Ready suite delivers
enterprise-class workforce management solutions in the cloud to
SMBs, providing powerful functionality to recruit, manage, and
reward the workforce; leverage industry-leading time and
attendance to control labor costs and maximize productivity; and
adhere to ever-changing compliance requirements.
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Global big data solution to optimize store productivity -
Kronos
and Axsium Group jointly launched a retail store performance
plug-in to add ease and effectiveness to corporate, store, and
field manager work days through automated, guided decision-making.
Powered by the Kronos Workforce Analytics application, the new
plug-in uncovers gaps in important areas that impact customer and
employee satisfaction, helping create optimized schedules by
balancing working hours, employee availability, and consumer
demand.
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Expansion of leadership - Amit Singh, president of Google (News - Alert) for
Work, joined
the Kronos Board of Directors, adding a tremendous asset to Kronos
as the company executes on its winning growth strategy and brings even
more innovative solutions and value to its customers around the world.
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Customer success around the globe - In the second quarter of
Fiscal 2015, Kronos signed agreements with organizations around the
world including: Autometal, an automotive component
manufacturer and supplier in Mexico; Avis Australia, a leading
provider of vehicle rental services in Australia; City of Tucson,
a city in Arizona; Curae Health, a not-for-profit rural
healthcare company; Dallas Area Rapid Transit (DART), a transit
agency based in Dallas, Texas; Edenred, a global leader in
prepaid corporate services in Mexico; First Solar, a global
leader in solar energy solutions; Heritage Enterprises, owner
and operator of more than 40 eldercare facilities in Illinois; Houston
Methodist Hospital, a leading academic medical center in the Texas
Medical Center and six community hospitals serving the greater Houston
area; Japara Healthcare, one of Australia's largest enterprises
in the aged care and retirement industry; Mercy Hospital, an
acute care hospital and regional referral center in Iowa City, Iowa; Mondelez
Shanghai Food Corporate Management Company, a subsidiary factory
of a leading food manufacturer; Reid Hospital, a not-for-profit
217-bed regional referral medical center serving east central Indiana
and west central Ohio; Shanghai SAIFEI Aviation EWIS Manufacturing
Co., Ltd., a designer and manufacturer of aircraft in
Shanghai; Shore Medical Center, a full-service acute care
community hospital in New Jersey; The Pep Boys: Manny, Moe & Jack,
a full-service and tire automotive aftermarket chain; and Tradelink,
a leading provider of plumbing supplies in Australia.
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™.
© 2015 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, 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 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 and compensation expenses
related to ordinary dividends; (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 and
other financing-related expenses that are excluded from the definition
of EBITDA under the terms of the company's Credit Agreement. Footnote
2: Constant currency.
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