Kronos® Incorporated today announced financial results, company advancements, and customer successes for Fiscal 2009. Kronos revenue for Fiscal 2009 was $672 million. Earnings before interest, tax, and amortization (EBITA) were $143 million.1
CHELMSFORD, Mass., (November 09, 2009) –
Kronos® Incorporated today announced financial results, company advancements, and customer successes for Fiscal 2009. Kronos revenue for Fiscal 2009 was $672 million. Earnings before interest, tax, and amortization (EBITA) were $143 million.1
“We are very pleased with our Fiscal 2009 financial performance. Against the backdrop of a difficult global economy, we were successful in exceeding our expectations for both revenue and earnings,” said Aron Ain, Kronos chief executive officer. “We experienced what appears to be the beginning of a shift in the economy during our fourth quarter, with hundreds of orders and 24 customers spending more than $500,000 for Kronos workforce management solutions. This is a testament that our value proposition is very strong in good times and bad. It is critical for organizations to control labor costs, minimize compliance risk, and improve workforce productivity. As the global leader in workforce management, Kronos is poised for continued success.”
Fourth Quarter News Facts
* In the last quarter of Fiscal 2009, Kronos signed agreements with organizations around the world such as: Caritas Christi Healthcare,the second-largest healthcare system in New England; Carphone Warehouse,Europe’s leading independent retailer of mobile phones; Chesapeake Public Schools in Chesapeake, Virginia; Children’s Medical Center of Dallas,one of the largest pediatric healthcare providers in the nation; County of Clark, the nation’s 15th-largest county; The Co-Operative Group,a United Kingdomconsumers’ co-operative; Covenant Dove,a long-term care organization based in Tennessee; Dallas/Fort Worth International Airport,the world’s third- busiest airport; Esprit, a clothing retailer with 1,000 stores across China; Federal Bureau of Investigation,a federal agency dedicated to protecting the American people;Garmin International, the global leader in satellite navigation;India-based Global Health Private Limited (GHPL), promoted by Dr. Naresh Trehan, provider of high-end healthcare services for integrated medical sciences and holistic therapies; Hanesbrands Inc.,a leading marketer of innerwear, outerwear, and hosiery apparel; Jiondoor Retail China, a grocery retailer with 13 stores in China; Linfox Logistics, provider of supply chain solutions to leading companies in Australia; Midcoast Aviation,a one-stop business jet maintenance, modification, and repair resource; Mississippi State Hospital, a Mississippi Department of Mental Health facility; NestléEgypt, the world’s leading nutrition, health and wellness company; North Shore-Long Island Jewish Health System, the nation’s third-largest, non-profit, secular healthcare system; Savasenior Care Administrative Services,one of the largest providers of short- and long-term healthcare services in the U.S.; Securitas Security Services USA, a knowledge leader in security; Smart&Final LLC, operator of almost 300 stores under the banners of Smart & Final, Smart & Final Extra, Cash & Carry, and Henry’s/Sun Harvest; Smith & Nephew China, developer of advanced medical devices; South Central Ambulance Services NHS Trust, provider of accident and emergency services to residents in Southern England; Stream Global Services, a premium business process outsource (BPO) provider; Tractor Supply,the largest retail farm and ranch store chain in the U.S.; Tufts Health Plan,ranked number two in the country among commercial healthcare plans; Unimarc, a Chilean retailer with 250 stores and 20,000 employees; and University of Texas Medical Branch,an academic teaching hospital with more than 2,500 students and 1,000 faculty.
Fiscal 2009 News Facts
* Product innovation – Kronos continued to invest in research and development during the fiscal year in preparation for its January 2010 launch of the next generation of workforce management designed around three breakthrough capabilities: Instant Engagement, Guided Decisions, and Complete Control. During the year, Kronos also delivered advancements in:
o Workforce Central® – Kronos shipped the latest version of its Workforce Central suite in February. The solution is experiencing high demand for its ease-of-use enhancements and deep functionality. Major advancements in the latest version included enhanced ERP integration; lower total cost of ownership; complete control of various workforce management business processes; and additional global capabilities. As of Nov. 1, more than 220 organizations are live on the latest version of Workforce Central.
o Workforce Acquisition(TM) – The latest versions of the Kronos selection and hiring solution – shipped in March and September – include advanced selection science, functionality to support hiring in the UK, advancements in salaried recruiting, and enhanced on-boarding. During the year, Kronos rolled out its hiring solution to more than 14,500 new locations and processed more than 28 million job applications.
* Large enterprise deployments – Marking the largest and most complex enterprise-wide rollout of a workforce management solution in a retail environment, Kronos completed an implementation of its Workforce Central suite to one of the world’s top 20 retailers. More than 300,000 employees across more than 2,000 stores are now live on the Kronos solution. In addition, during the fourth quarter, another retailer completed the first phase of its rollout to 300,000 employees, and a third retailer completed scalability testing and is now commencing its rollout to 300,000 employees. In both fourth quarter deals, Kronos is replacing competitive systems that were unable to meet the customers’ requirements.
* Global momentum – In spite of the challenging global economy, Kronos international product revenue increased modestly year over year. Kronos gained significant traction in its newest regions – China and India. Kronos has sold nearly 140,000 licenses to 60 local businesses and multinational organizations in these two countries since launching the operations two years ago. The Kronos UK operation achieved record financial performance with several large customer wins in the retail market. Kronos Mexico experienced a record-breaking year, driven by numerous large transactions with global manufacturers and local retailers. Kronos Australia maintained its market-leading position and had a particularly strong fourth quarter. Canada demonstrated noteworthy momentum across targeted verticals, with particular success in the healthcare and retail markets.
* Expansion beyond time and attendance – Kronos’ time and attendance product is widely used by organizations to reduce payroll errors, eliminate payroll rework, and minimize compliance risk. Organizations across a broad range of vertical markets are increasingly extending the use of Kronos solutions to embrace benefits that can be reaped by using absence management, scheduling, human resources, payroll, hiring, and labor analytics applications. Kronos is experiencing increased demand for these strategic applications.
* Unprecedented flexibility – As a result of a series of advancements made during the fiscal year, Kronos now gives customers complete control over how they acquire, deploy, and manage their workforce management applications.
o Customers choose how to pay for the software: a perpetual license; rent on a monthly basis; or rent for a period of time and then move to a perpetual license.
o Customers choose where to deploy the software: in their data center, with a third-party service provider, or with Kronos.
o Customers decide who manages the software: use their IT staff or rely on Kronos’ experienced team.
o Kronos is experiencing momentum across all of these options as organizations select various combinations that meet the needs of their HR, IT, Operations, and Finance departments.
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® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
© 2009 Kronos Incorporated. Kronos and Workforce Central are registered trademarks and Workforce Acquisition is a trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisition of Unicru and Captor businesses in 2006 and 2007. EBITA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring one-time charges.
Source: Kronos
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