Kronos Reports Strong Second-Quarter Results
June 11th, 2012 at 10:00 am
CHELMSFORD, Mass., May 9, 2012 – Kronos Incorporated today announced financial results, company advancements, and customer successes for the second quarter of Fiscal 2012. Kronos revenues for the quarter increased 6 percent to $208.3 million. Earnings before interest, tax, and amortization (EBITA) increased 13 percent to $54.5 million.1.
“It’s a great time to be at Kronos,” said Aron Ain, Kronos chief executive officer. “We are driving a fundamental shift in how organizations manage their workforce. This transformation is being fueled by a variety of factors such as: next generation workforce management solutions infused with consumer technology; the benefits of cloud computing; and solutions that address highly specific vertical market nuances. The investments that we’re making in these strategic areas – as well as our global and SMB initiatives – are propelling our company’s growth and enhancing our customers’ effectiveness. We have enormous opportunities ahead.”
Second-Quarter News Facts
- Double-digit growth in product bookings – Product bookings for the first half of Fiscal 2012 increased 19 percent, indicating that Kronos continues to gain market share. North American bookings increased 17 percent and international bookings increased a remarkable 43 percent. In addition to strong bookings of its Workforce Central® suite and other software offerings, Kronos is seeing tremendous momentum for its next generation data collection options. Kronos has booked 6,800 units of its new Kronos®InTouch™ time clock since releasing the product in November. The company’s award-winning new user interface, the Navigator, has been shipped to be used by 8.1 million employees. Kronos’ award-winning mobile applications have been licensed to more than 250,000 employees. And its newly released workforce analytics solution is receiving great reviews and generating user excitement. The pace of adoption of these next generation workforce management solutions is exceeding the company’s expectations.
- Continued cloud computing momentum – Adoption of the Kronos Workforce Central cloud offering resulted in a revenue increase of 55 percent year over year, continuing a trend in organizations embracing the company’s strategy to offer SaaS, application hosting, and system management and monitoring services. Kronos cloud offerings are being used successfully at hundreds of organizations around the world and increasing at a very rapid pace.
- Stellar international performance – Significant product wins occurred around the globe including noteworthy customer expansion in Northern and Southern Europe, Mexico, India, and the Middle East. Kronos extended its reach in the Middle East’s healthcare sector by forming a reseller agreement with Health Matrix Corporation. Today Kronos is the only workforce management provider with a true global solution that meets complex work rules as evidenced by successful customer implementations in more than 100 countries where Kronos products are installed.
- Greatly expanded presence in SMB market– Kronos acquired SaaShr, provider of a SaaS workforce management solution for small and midsize businesses (SMBs). As a result of the acquisition, Kronos significantly broadened its product portfolio and gained access to an extensive network of partners and resellers. Through its well-established network of payroll service bureaus, professional employer organizations, human resources outsourcers, and value-added resellers, SaaShr solutions are used in thousands of organizations across a wide variety of industries. Together the companies will revolutionize how SMBs manage their workforce.
- Excellent performance across vertical markets – All Kronos key vertical markets performed well during the quarter, with extraordinary performance in retail and the public sector. Kronos accelerated its healthcare market leadership with the acquisition of OptiLink, one of the leading acuity-based staffing solutions. As a result, Kronos now offers the most advanced, clinically focused workforce management suite designed to help healthcare organizations deliver high-quality patient care.
- Surge in million-dollar orders – In the first half of Fiscal 2012, Kronos closed more million-dollar product orders than it did in the full twelve months of Fiscal 2011. These large transactions included significant orders from new and existing customers including one of the top ten largest discount retailers, a global warehouse retailer, one of the world’s largest consumer products companies, and a nationwide sporting goods retailer with hundreds of locations.
- Hiring employees to support company growth – Kronos now employs more than 3,500 people around the world. The company hired nearly 600 new employees in the past year, currently has more than 200 job openings in a broad range of departments, and is offering employee referral bonuses up to $10,000 to ensure that it hires the most talented workforce possible. Approximately 25 percent of open positions are in Chelmsford, Mass., where Kronos is the largest private employer with more than 1,000 employees.