[January 21, 2015] |
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Kronos Workforce Management Cloud Revenue Increases 60 Percent as Shift to Kronos Cloud Continues; Kronos Announces First-Quarter Fiscal 2015 Financial Performance
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the first quarter of Fiscal
2015. Kronos recognized revenue for the quarter increased to $257.8
million. Earnings before interest, tax, depreciation, and amortization
(EBITDA) increased to $82.3 million.1
"Kronos launched into Fiscal 2015 with solid execution of our winning
growth strategy," said Aron Ain, Kronos chief executive officer. "With
our well-established Kronos Cloud - the fastest-growing aspect of our
business - as well as our global scale, industry expertise, and
innovative offerings, we are helping organizations achieve their
workforce goals faster and delivering unprecedented value. All of this
is made possible with the support of our incredibly talented workforce
of more than 4,000 employees worldwide. Kronos is poised to have another
exciting year."
First-Quarter News Facts
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Kronos Cloud expansion - Kronos workforce management cloud
revenue increased 60 percent, as new customers deploy in the cloud and
existing customers move their on-premise instances to the cloud. In
continuation of a trend, the majority of new customer bookings in the
quarter were from an array of Kronos Cloud offerings.
-
Growth through innovation - Kronos product bookings continued
to increase, with particular strength in the Americas with software
bookings up 15 percent. Kronos delivered several new products and
enhancements while delivering industry expertise with:
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New gamification
functionality brings the concept of game design and game
thinking into workforce management, with leaderboards designed to
reward, recognize, and engage employees, managers, and teams for
positive job performance and adhering to an organization's time
and attendance policies and procedures.
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The latest
release of the Kronos Workforce Ready suite delivers
enterprise-class workforce management solutions in the cloud to
small and midsize businesses (SMBs), providing expanded human
resources capabilities including enterprise-class recruitment,
automated onboarding, compensation management, and employee
self-service options for benefits management; extended global
capabilities including multi-lingual support, biometric
identification, and global labor management features; enhancements
to minimize compliance risk; and a series of ease-of-use
enhancements.
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New grant
and project tracking solution for the public sector
provides project and grant managers, project sponsors, and
principal investigators with a solution to optimize how labor and
non-labor hours and associated costs are tracked to grants and
projects.
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New professional
project tracking for services industries provides greater
visibility into allocated and actual hours for deeper insight into
labor costs, enabling resources to be optimized for improved
client service among field and contract services employees as well
as professional exempt employees across services industries such
as banking, insurance, IT, consulting, and legal.
-
Enhanced production
labor tracking solution for manufacturers to better
understand how operations are performing against productivity
goals and extend existing Kronos capabilities beyond the plant
floor, allowing manufacturers to track projects performed by
salaried employees in addition to hourly employees.
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Various enhancements
specifically designed forhuman resources streamline
tedious processes, improve productivity, help maintain compliance,
and improve employee engagement with features including a new user
interface, advanced search and query functionality, and mobile
access for talent acquisition.
-
Formation (News - Alert) of the Kronos
Big Data for Workforce Management practice group delivers
a dedicated approach to simplifying complex workforce data for
customers and partners while providing insight into costly
workforce issues, synthesizing volumes of overtime, absence,
scheduling, productivity data, and time clock entries against key
performance indicators (KPIs).
-
Expansion in the enterprise and within targeted industry segments -
The three largest transactions for the quarter were in the public
sector, including departments in states spanning the east, west, and
central regions of the U.S. These organizations purchased a range of
Kronos solutions, some of which selected Kronos TeleStaff for public
safety scheduling. The fourth-largest transaction in the quarter was
with one of the largest children's hospitals in the U.S. Other
enterprise transactions included new and existing customers from
around the world, such as a leading food retailer; a leading lifestyle
specialty retail company; one of the world's largest express
transportation companies; one of the world's largest international oil
and gas companies; and a global supplier of office products and
services. Some organizations expanded their use of Kronos to
accommodate growth or add additional applications, some chose Kronos
to replace other workforce management applications, and others
automated manual processes for the first time or replaced legacy
homegrown applications.
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Market adoption in SMB sector - Momentum (News - Alert) in the SMB sector was
driven by sales of the Kronos Workforce Ready and Kronos Workforce
Central suites, and included sales to new customers as well as the
migration of existing Kronos customers to Workforce Ready. Kronos also
continues to experience significant traction in the Kronos SaaS (News - Alert)hr
partner channel.
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Multinational and international momentum - In response to an
increase in demand for centrally managed multinational deployments,
Kronos bolstered
its global delivery capabilities with the formation of global
delivery and program management teams to provide rapid and
standardized deployments. Kronos offers individual, country-specific
blueprints for meeting cultural, legislative, union, and many other
requirements.
-
Employer of choice - The
Boston Globe named Kronos the top place to work in the Largest
company category in its annual Top Places to Work ranking of the most
admired workplaces in Massachusetts, where Kronos is headquartered.
The survey measured employee responses regarding company direction,
execution, employee connection, workload and responsibility,
management, and pay and benefits. Kronos, with more than 4,000
employees worldwide, is actively hiring and currently has more than
200 job openings.
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Record number of attendees at KronosWorks - The world's largest
vendor-led workforce management gathering took place in November. With
more than 2,500 attendees from around the world and hundreds of
industry- and product-specific sessions, KronosWorks
2014 offered deep-dive product demonstrations, customer success
sessions, and a forum for customers to network with peers and Kronos
experts.
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Customer success around the globe - In the first quarter of
Fiscal 2015, Kronos signed agreements with organizations around the
world including: Alden Management Services Inc., provider
of short-term rehabilitation, post-acute programs, and senior living
care with more than 40 locations in Illinois and Wisconsin; Blount
County, a county in Tennessee; CNOOC and Shell
Petrochemicals, operator of a petrochemical complex in southern
China; Diamond Power Machine, global provider of innovative
technologies for power generation, industrial boiler cleaning, and ash
handling in China; Harsco Metals & Minerals, global
provider of logistics and resource recovery services for the steel
industry; Kirkland's, a leading specialty retailer in the U.S.
with more than 320 stores in 35 states; Mount Nittany Medical Center,
a 260-bed acute care facility offering medical, surgical, diagnostic,
and community services in Pennsylvania; Navajo Nation Gaming
Enterprise, a Tribal Nation Organization operating casinos in New
Mexico and Arizona; Provider Management and Development Corporation,
long-term care provider with skilled nursing and assisted living
facilities in Kentucky; Rockford Public School District, one of
the largest school districts in Illinois educating more than 28,000
students; Shenzhen O-film Tech, manufacturer of information
input and output modules in the mobile internet industry in China; Sukarne,
a Mexican multi-national food manufacturer; TBC Corporation,
one of North America's largest marketers of automotive replacement
tires through a multi-channel strategy; Time Warner (News - Alert) Cable, one
of the largest providers of video, high speed data, and voice services
in the U.S.; Trendy International, a fast- growing fashion
apparel, sales, and distribution company with more than 700 stores in
China; and White Oak Management, Inc., provider of
long-term care, short-term rehabilitation, assisted living, senior
living, and wellness centers with 15 locations in North and South
Carolina.
Supporting Resources
About Kronos Incorporated
Kronos is the global leader in delivering workforce management solutions
in the cloud. Tens of thousands of organizations in more than 100
countries - including more than half of the Fortune 1000® -
use Kronos to control labor costs, minimize compliance risk, and improve
workforce productivity. Learn more about Kronos industry-specific time
and attendance, scheduling, absence management, HR and payroll, hiring,
and labor analytics applications at www.kronos.com.
Kronos: Workforce Innovation That Works™.
© 2015 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, are property of their
respective owners.
Footnote 1: All financial information within this press release is
presented using non-GAAP financial measures. Kronos believes that
non-GAAP measures of financial results provide useful information
regarding certain financial and business trends relating to Kronos'
results of operations. Non-GAAP revenue consists of GAAP revenue
excluding the effect of the write-down of deferred revenue associated
with purchase accounting for certain acquisitions and includes timing
adjustments related to international product deliveries which management
includes when evaluating operating results. Product bookings represent
gross product value of product orders and the product equivalent value
of SaaS orders. EBITDA consists of GAAP income from operations
excluding: (1) share-based compensation expense for stock options and
stock awards in accordance with ASC (News - Alert) 718 and compensation expenses
related to ordinary dividends; (2) amortization of capitalized software
development costs; (3) depreciation of property, plant, and equipment;
(4) amortization of acquired intangible assets; (5) acquisition-related
expenses including advisory, legal, accounting, acquired
employee-related costs, and integration costs; and (6) consulting and
other financing-related expenses that are excluded from the definition
of EBITDA under the terms of the company's Credit Agreement.
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