The much-anticpated Kofax six-month results have been announced. As expected, they are impressive. Kofax reported 20% growth in its software business, up to $121.7 for the half-year period ending Dec. 31. Kofax also reported an adjusted EBITA of $23.5 million – up 192% from the previous year’s six-month period. Kofax now has $69 million in cash (and from what I gathered talking to him a couple weeks ago, CEO Reynolds Bish is itching to invest that money, plus the $20 million from the distribution business sale, in an acquisition.)
Bish said in a press release related to the results that he expects, “our software business revenues to grow by approximately 14% on an organic, constant currency basis during this current fiscal year….we have now raised our longer term, sustainable target closer to a 20% margin.”
CFO J.R. Arnold had this to say on Kofax’s renewed success through its channels, “We continue to realize benefits from our hybrid go-to-market model with revitalized performance in our indirect channel, which generated 56% of applications software license revenues….OEM/POS revenues increased 6% to $12.7 million from $12.0 million in the prior year, reflecting a continuing recovery in this area of our business.”
The hardware business, which was recently sold, continued to struggle. Said Arnold, “Revenue in the hardware business decreased 10% to $59.9 million in the first half of fiscal year 2011 from $66.8 million in the prior year, and its adjusted EBITA decreased to $0.2 million from $2.0 million.”
Bish had previewed some of this success a couple weeks ago, but apparently for investors, the proof is in the pudding. As of this post, the stock had jumped 18% today, from somewhere around 3.5 pounds per share to over 4.25. Good momentum at Kofax. Let’s hope it’s a sign of strength throughout the industry…although at the recent Transform event in San Diego, Bish did say his goal was to “crush the competition.”
