BEIJING, Aug. 9 /PRNewswire-Asia/ -- Kronos® Incorporated today announced financial results, company advancements, and customer successes for the third quarter of Fiscal 2010. Kronos revenues for the quarter increased 11 percent year over year to $185 million. Earnings before interest, tax, and amortization (EBITA) increased 24 percent year over year to $47.4 million.1
"We had an exciting and successful third quarter. We were especially pleased with our product revenue growth of 15 percent," said Aron Ain, Kronos chief executive officer. "We focused on two major themes during the quarter: verticalization and innovation. As a result of significantly deepening our expertise in key vertical markets, our pipeline has reached a record level and customers are more confident than ever in our ability to help them effectively manage their workforce. In terms of innovation, we are thrilled with the market's continued enthusiasm for our revolutionary new user interface. As a result of these initiatives – as well as our aggressive global expansion efforts – we are extremely well positioned heading into the final quarter of our fiscal year."
Third-Quarter News Facts
In the third quarter of Fiscal 2010, Kronos signed agreements with organizations around the world such as: Baltimore County Public Schools, the school district for all public schools in Baltimore County, Maryland; BJC HealthCare, one of the largest nonprofit healthcare organizations in the U.S., delivering services to the greater St. Louis, southern Illinois, and mid-Missouri regions; Cedars-Sinai Health Systems, the largest nonprofit hospital in the western U.S.; Central Parking System, a leader in professional parking management; Comerica, a financial services company headquartered in Dallas, Texas; Department of Behavioral Health and Developmental Disabilities (DBHDD) for the State of Georgia; MGM MIRAGE, one of the world's leading and most respected development companies with significant holdings in gaming, hospitality, and entertainment; Pall Corporation, a filtration, separation, and purification leader with more than 10,000 employees serving customers worldwide; Random House, the world's largest English language trade publisher; Reyes Holdings, a company that delivers food and beverage items to retailers around the world; Salt Lake City School District, among the oldest public school districts in Utah; Treehouse Foods, a food manufacturer servicing primarily the retail grocery and foodservice channels; Virginia State University, a land-grant university located in Petersburg, Virginia; and Winn Dixie, one of the nation’s largest food retailers.
Vertical focus – Kronos’ vertical go-to-market strategy allowed the company to continue to expand during the quarter, with new customer adoption up 32 percent over last year's third quarter. The public sector team performed exceptionally well, with a 52-percent increase in revenue, driven in large part by the sector’s critical need to control labor costs in the face of the budget crisis. The healthcare vertical remained very active as economic conditions continue to drive healthcare organizations to deliver high-quality care at a reasonable cost. In addition, Kronos’ manufacturing and services and distribution verticals continued to expand and grow.
Product innovation – Recognizing that today's top consumer-oriented technologies have forever changed the way people interact with technology, Kronos is fundamentally revolutionizing the way business application software is designed and used, defining an entirely new generation of workforce management products. Kronos announced availability of its next generation user interface on July 12. The user interface is one of several extraordinary new products slated for delivery in the coming months based on the idea that users should not have to choose between deep functionality and ease of use.
Global expansion – Kronos continued to execute its aggressive global growth strategy by entering deeper into the EMEA region with the formation of a distribution channel in Spain and Portugal, enhancing Kronos’ ability to support the global workforce management needs of multinational organizations, as well as provide local knowledge and support for new customer deployments. The UK and Australia had a strong quarter. The UK signed agreements with organizations such as 2 Sisters Food Group, a major European food company; DHL UK, one of the world's leading logistics companies; Thanet Earth, a large high-tech greenhouse complex; and Wincanton Logistics, a European leader in the design and delivery of advanced supply chain solutions. The China signed agreements with famous global organizations such as Schneider and Alstom.
Industry recognition – During the quarter, Kronos was recognized for its commitment to innovation and customer service by winning a Partner of the Year Award from Microsoft for delivering market-leading customer solutions built on Microsoft technology; a Product Innovation Award for its Workforce Mobile Scheduler application; and a NorthFace ScoreBoard Award from Omega Management Group for excellence in customer satisfaction.
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 http://www.kronos.com .
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.
© 2010 Kronos Incorporated. Kronos is a registered trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
