|By PR Newswire||
|August 7, 2014 05:00 PM EDT||
- Reports Subscription Revenue Growth of 28% -
OTTAWA, Aug. 7, 2014 /CNW/ - Kinaxis® TSX:KXS, provider of RapidResponse®, delivering cloud-based SCM and S&OP applications, reported results for its fiscal second quarter ended June 30, 2014. All figures are in U.S. dollars and prepared in accordance with International Financial Reporting Standards (IFRS).
Second Quarter 2014 Highlights
(Comparisons made between fiscal Q2 2014 and fiscal Q2 2013 results, unless otherwise noted)
- Subscription revenue was $12.6 million, up 28%
- Total Revenue was $17.9 million, up 14%
- Gross profit was $12.3 million (69% of total revenue), up 10%
- Adjusted EBITDA totaled $3.3 million
- Adjusted Profit totaled $1.9 million or $0.09 per diluted share
- Completed initial public offering, issuing 5,000,000 common shares and an aggregate of 3,900,672 common shares were also sold by certain shareholders at a price of Cdn$13.00 per share. The offerings resulted in aggregate gross proceeds of Cdn$65.0 million to Kinaxis and Cdn$50.7million to the selling shareholders, for total aggregate gross proceeds of Cdn$115.7 million.
"The success of our initial public offering underscores the market's positive view of our unique SaaS offering and the growth potential it represents," said Doug Colbeth, President and CEO of Kinaxis. "The complexity and importance of supply chain management in today's global economy provides us with a large addressable market. Our focus is growing subscription revenues through new customers, verticals and applications to drive cash flow."
Fiscal Q2 2014 Financial Results
Total revenue for the three months ended June 30, 2014 (Q2 2014) was $17.9 million, an increase of 14% compared to the same period in 2013. For the six month period ended June 30, 2014 (H1 2014), revenue was $33.6 million, an increase of 16% compared to $29.0 million in the same year ago period.
Subscription revenue was $12.6 million in Q2 2014, an increase of 28% from $9.9 million for the same period in 2013. For H1 2014, subscription revenue was $24.0 million versus $19.0 million in 2013. The increase was due to additional revenue from contracts secured with new customers during fiscal 2013 and in the first quarter of 2014 and expansion of existing customer subscriptions.
Professional services revenue was $5.0 million in Q2 2014, compared to $5.4 million for the same period in 2013. For H1 2014, professional services revenue was $9.0 million as compared to $9.2 million in the same year ago period. The change was due to a significant engagement with an existing customer that ended in December of 2013 largely offset by services provided for deployment of new customers acquired second half of 2013 and first quarter of 2014.
Gross profit was $12.3 million in Q2 2014, compared to $11.2 million for the same period in 2013. For H1 2014, gross profit was $23.1 million as compared to $20.2 million in the same year ago period. As a percentage of revenue, gross profit was 69% in the second quarter and H1 2014 compared to 71% in the second quarter of 2013 and 70% in H1 2013. This change is due to the investment in additional Professional Services headcount and data centre capacity undertaken in the second quarter to support growth.
Adjusted EBITDA was $3.3 million in Q2 2014, compared to adjusted EBITDA of $3.8 million in the same period last year. The change is primarily attributable to certain non-capitalized costs incurred to support the initial public offering and higher operating expenses, specifically, professional services and research and development resources. H1 2014 Adjusted EBITDA was $7.2 million compared to $5.8 million in H1 2013. The increase in Adjusted EBITDA over the prior period was primarily due to increase in revenue and gross profit. A reconciliation of net loss to Adjusted EBITDA is provided below.
Net loss was $5.3 million or $0.34 per basic and diluted share in Q2 2014 compared to a net loss of $3.5 million or $0.21 per basic and diluted share for the same period in 2013. The increase in loss was primarily driven by a higher fair value, non-cash adjustment on the redeemable preferred share liability. Net loss in H1 2014 was $3.3 million compared to $6.1M in the same year ago period due to a lower fair value, non-cash adjustment on the redeemable preferred share liability. The redeemable preferred shares were converted into common shares in connection with the initial public offering and will no longer affect our operating results.
Adjusted profit, which excludes the fair value adjustment on the redeemable preferred share liability and non-cash share-based compensation, was $1.9 million in Q2 2014, compared to $2.7 million in the same year ago period. The change was the result of higher expenses due to investment in professional services and research and development resources and costs incurred to support the initial public offering. For H1 2014, Adjusted profit was $4.5 million compared to $3.9 million in the same period last year. The increase in Adjusted profit during the first half of 2014 was the result of an increase in revenue and gross profit compared to the first half of 2013 . A reconciliation of net loss to Adjusted profit is provided below.
Cash generated by operating activities was $7.3 million for H1 2014 as compared to $6.4 million in H1 2014. The increase was the result of higher deferred revenues received as cash in the period which resulted from the timing of subscription billings as well as a contract amendment with an existing customer.
Cash and cash equivalents were $50.5 million as at June 30, 2014 as compared to $13.8 million as at December 31, 2013. The increase is primarily due to the proceeds from our initial public offering net of repayment of the term loan, as well as cash from operations for the first six months of 2014.
Please refer to the section regarding forward-looking statements which forms an integral part of this release. These results, along with the unaudited condensed consolidated interim financial statements and the company's unaudited MD&A, are available on the company's website at www.kinaxis.com and on SEDAR at www.sedar.com.
The company will host a conference call tomorrow (Friday, August 8, 2014) to discuss these results. Doug Colbeth, President & CEO and Richard Monkman, CFO will host the call starting at 8:30 a.m. Eastern time. A question and answer session will follow management's presentation.
Date: Friday, August 8, 2014
Time: 8:30 a.m. Eastern time
Dial-In Number: 1 (888) 231-8191
International: 1 (647) 427-7450
Conference ID#: 63138727
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
A replay of the call will be available after 11:30 a.m. Eastern time on the same day through August 14, 2014.
Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 63138727
About Kinaxis Inc.
Kinaxis is a leading provider of cloud-based subscription software that enables our customers to improve and accelerate analysis and decision-making across their supply chain operations. The supply chain planning and analytics capabilities of our product, RapidResponse, create the foundation for managing multiple, interconnected supply chain management processes. By using the single RapidResponse product instead of combining individual disparate software solutions, our customers gain visibility across their supply chains, can respond quickly to changing conditions, and ultimately realize significant operating efficiencies.
This news release contains non-IFRS measures, specifically, Adjusted profit, Adjusted diluted earnings per share, and Adjusted EBITDA. We use Adjusted profited and Adjusted diluted earnings per share, which remove the impact of our redeemable preferred shares and stock option plans, to measure our performance as these measurements better align the reporting of our results and improve comparability against our peers. We use Adjusted EBITDA to provide investors with a supplemental measure of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Adjusted profit, Adjusted diluted earnings per share and Adjusted EBITDA are not recognized, defined or standardized measures under IFRS. Our definition of Adjusted profit, Adjusted EBITDA and Adjusted diluted earnings per share will likely differ from that used by other companies (including our peers) and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.
We have reconciled Adjusted profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:
|Three months ended March 31||Six months ended June 30|
|(In thousands of U.S. dollars)|
|Loss due to change in fair value of redeemable preferred shares||6,581||5,972||6,760||9,536|
|Income tax expense||889||964||1,692||1,562|
|Net finance (income) expense||253||(15)||510||(28)|
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and markets and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
SOURCE Kinaxis Inc.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jul. 29, 2016 10:15 PM EDT Reads: 2,058
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Jul. 29, 2016 10:00 PM EDT Reads: 1,273
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 29, 2016 09:45 PM EDT Reads: 1,484
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 29, 2016 08:00 PM EDT Reads: 2,744
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 29, 2016 07:45 PM EDT Reads: 1,172
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Jul. 29, 2016 06:15 PM EDT Reads: 952
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 29, 2016 06:00 PM EDT Reads: 923
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 29, 2016 05:15 PM EDT Reads: 984
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 29, 2016 05:15 PM EDT Reads: 386
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 29, 2016 04:45 PM EDT Reads: 1,247
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Jul. 29, 2016 04:15 PM EDT Reads: 447
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Jul. 29, 2016 04:15 PM EDT Reads: 406
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 29, 2016 04:15 PM EDT Reads: 1,082
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 29, 2016 03:15 PM EDT Reads: 668
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Jul. 29, 2016 03:00 PM EDT Reads: 470