BEIJING, April 2 /PRNewswire-Asia/ -- Kronos(R) Incorporated today announced financial results, company advancements, and customer successes for the first quarter of Fiscal 2010. Kronos revenues for the quarter were $172.3 million. Earnings before interest, tax, and amortization (EBITA) were $36.0 million.(1)
“We’re thrilled with our first-quarter performance. We experienced very healthy growth in many areas including new customer contracts, strong performance in our major vertical markets, and another quarter of growth in our services and support areas,” said Aron Ain, Kronos chief executive officer. “We’re optimistic about Fiscal 2010. We are committed to helping our customers accelerate the pace of economic recovery by providing the products and services they need to control labor costs, minimize compliance risk, and improve workforce productivity.”
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.
First Quarter News Facts
-- In the first quarter of Fiscal 2010, Kronos signed agreements with organizations around the world such as: AmeriPride Services, one of the largest uniform rental and linen supply companies in North America; Aviva Canada, one of the leading property and casualty insurance groups in Canada; Cedars-Sinai Health Systems, the largest nonprofit hospital in the western U.S.; Charlotte-Mecklenburg Schools (CMS), a K-12 school district located in the Charlotte, N.C. region with more than 133,600 students in kindergarten through 12th grade; Covenant Dove, a long-term care organization based in Tenn.; Department of Human Services for the state government of Victoria, Australia; El Paso County, the second-most populous of the 64 counties in Colorado; GENPACT India, a global leader in managing business processes, offering a broad portfolio of enterprise and industry-specific services; Hindustan Zinc Limited, the largest integrated zinc and lead producer in India; IKEA Australia, a privately held international retailer; Massachusetts Turnpike, the easternmost 138-mile stretch of Interstate 90;MD Robotics, the world’s leading space robotics company; Peoria Unified School District, the third-largest school district in Arizona, with 31 elementary schools (K-8) and seven high schools located in the cities of Glendale and Peoria; Republic Services, a leading provider of solid waste collection, transfer, recycling, and disposal services; Sheridan Healthcorp, a leader in providing hospitals and outpatient centers clinical solutions; Sims Metal Management, the world’s largest metals and electronics recycler; 2 Sisters Food Group, one of the largest poultry processors in the UK; Stop and Shop, a grocery chain with more than 375 stores throughout New England, N.Y., and N.J.; WesTrac, the Caterpillar Dealer for Western Australia, New South Wales, and New Zealand; and White Lodging Services Corporation, one of the fastest-growing, fully-integrated independent hotel ownership, development, and management companies in the U.S.
-- Product innovation - Excitement is building about the next generation of workforce management solutions from Kronos. Based on the idea that users should not have to choose between deep functionality and ease of use, Kronos’ next generation user interface guides users to the best resolution to workforce-related challenges. Kronos also has innovated with a mobile scheduling application allowing managers to leverage mobile technology to automatically fill open shifts.
-- Acquisition of Stromberg - In October, Kronos announced its acquisition of Stromberg, welcoming 1,400 organizations into its customer community, strengthening Kronos’ position in the mid-market, and complementing the company’s strengths in a broad range of vertical markets.
-- Expansion of vertical focus - Kronos completed a major restructuring of its workforce to more effectively address the business challenges of its current and future customers. As a result, Kronos customers now work with experts who are uniquely skilled in their industry. This vertical focus allows dedicated teams to focus on the healthcare, retail, hospitality, public sector, manufacturing, services, and distribution markets.
-- Managed services momentum - Revenue derived from Kronos’ managed services business exceeded expectations for the quarter as organizations increasingly choose to rely on Kronos’ expertise in remotely managing and hosting their workforce management applications.
-- Introduction of Rent-To-Own - Delivering on its belief that organizations want complete control over how they acquire, deploy, and manage their solutions, Kronos now offers a rent-to-own purchasing option which enables organizations to pay fixed monthly fees and then have the option to apply a portion of those fees toward an outright purchase in the future.
-- Hiring solution momentum - During the quarter, Kronos processed 7.7 million applications resulting in 239,000 new hires. Over the past year, Kronos rolled out its hiring solution to more than 14,500 new locations and processed more than 28 million job applications, equating to more than one application every second.
-- Global expansion - Kronos continues to execute its aggressive global growth strategy, and is experiencing tremendous momentum in India. Kronos India has expanded into new office space in Bangalore, and continues to build its sales, channel, and implementation services teams.
-- Industry recognition - Kronos continues to be recognized as the global leader in workforce management. Recent accolades include:
-- IDC ranked Kronos the number one vendor in workforce management and
the number two vendor in eRecruiting in its “Worldwide HCM
Applications 2008 Vendor Shares” report published by Albert Pang
in December.(2)
-- Kronos was recognized for its strengths in ROI, innovation, product
reliability, and quality of service in the annual Software
LeaderBoard published by Retail Info Systems News.
-- The China Software Industry Association recognized Kronos’
achievements in China, underscoring Kronos’ fast-growing market
presence and the deployment of a solution that is optimized for
local market needs. Kronos was recognized in several categories,
including as one of the “Top 10 HCM Software Solutions of the
Year” and as one of the “Top 100 Software Solutions in China”.
Kronos’ Workforce Central(R) suite was also recognized as the “New
Software Solution with the Highest Ability to Add Business Value”
for users.
Supporting Quotes
-- Albert Pang, research director of enterprise applications, IDC: “With its global coverage and the growing appeal of helping customers reduce personnel and administrative costs, Kronos appears to have fared well in the recession, and it appears to be making all the right moves to capitalize on the eventual recovery. Unlike other vendors that have seen a double-digit decline in their revenue because of the downturn, Kronos appears to be holding its ground.”(3)
Footnotes (2) and (3):As published in IDC’s “Worldwide HCM Applications
2008 Vendor Shares: Analysis of 25 Vendors in Core HR, eLearning,
eRecruiting, Intelligent Compensation, Performance Management, and Work
force Management,” IDC #221284, December 2009.
About Kronos Incorporated
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(R) - use Kronos time and attendance, scheduling, absence management 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 .
(C) 2010 Kronos Incorporated. Kronos and Workforce Central are registered trademarks of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
