|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.
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Mar. 29, 2015 12:45 PM EDT Reads: 2,408
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Mar. 29, 2015 12:45 PM EDT Reads: 1,184
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Mar. 29, 2015 12:00 PM EDT Reads: 1,428
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
Mar. 29, 2015 11:15 AM EDT Reads: 1,573
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
Mar. 29, 2015 11:00 AM EDT Reads: 1,399
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Mar. 29, 2015 11:00 AM EDT Reads: 2,076
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
Mar. 29, 2015 11:00 AM EDT Reads: 975
Mar. 29, 2015 10:45 AM EDT Reads: 1,478
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Mar. 29, 2015 10:30 AM EDT Reads: 1,060
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Mar. 29, 2015 10:00 AM EDT Reads: 1,611
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
Mar. 29, 2015 09:00 AM EDT Reads: 1,385
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 29, 2015 09:00 AM EDT Reads: 1,552
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Mar. 29, 2015 09:00 AM EDT Reads: 1,247
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
Mar. 29, 2015 08:30 AM EDT Reads: 2,047
The webinar, hosted by XebiaLabs, will feature 4 experts including Special Host Gene Kim, author of The Phoenix Project, along with IT thought leaders Gary Gruver, Randy Shoup and XebiaLabs' Andrew Phillips. The panel brings more than 30 years of collective experience surrounding microservices transformations at major companies including Google, eBay and Tripwire. "The story around microservices and containers is pretty compelling and the attraction of more flexibility is obviously alluring,"...
Mar. 29, 2015 08:00 AM EDT Reads: 1,255