Concur Technologies Announces Second Quarter Revenue Up 31% Year-Over-Year
biz.yahoo.com
Wednesday May 2, 4:31 pm ET
Subscription Revenue Increases 45% Year-Over-Year and Operating Margin Increases 110%
REDMOND, Wash., May 2 /PRNewswire-FirstCall/ -- Concur Technologies, Inc. (Nasdaq: CNQR), the world's leading provider of on-demand Employee Spend Management services today reported financial results for its second quarter ended March 31, 2007.
Concur reported total revenue for the second quarter of fiscal 2007 of $30.9 million, driven by subscription revenue which was up 45% from the year- ago quarter. Total revenue for the quarter was up 31% from the year-ago quarter and up 6% sequentially. Fiscal 2007 second quarter net income, which includes a provision for income taxes of $1.9 million, was $1.3 million, or $0.03 per share, and was above company expectations. This compares to net income of $0.9 million, or $0.02 per share, in the year-ago quarter, which did not require a full provision for income taxes.
"Our extraordinary fiscal 2007 second quarter results were driven by strong growth in new customers, enthusiastic client adoption of our end-to-end travel and expense management services and solid execution across the business," said Steve Singh, chairman and CEO of Concur Technologies. "Cash flows from operations are up over 300% compared to the year-ago quarter, even as we continue to invest in the business and launch innovative new services like Concur® Vendor Payment to address additional areas of Employee Spend Management."
Singh continued, "As a result of our continued strong performance and robust demand from our clients, we are raising our revenue, earnings and cash flow guidance for the year. In addition, we expect to accelerate investments across the business with a focus on increasing our distribution capacity, and delivering new services and innovations that leverage our market-leading on- demand Employee Spend Management platform."
Financial Highlights
* Total revenue was $30.9 million for the second quarter of fiscal 2007,
up 31% compared to the year-ago quarter and up 6% sequentially.
* Net income was $1.3 million, or $0.03 per share, for the second quarter
of fiscal 2007 and included a provision for income taxes of $1.9
million, compared to $0.9 million, or $0.02 per share, for the year-ago
quarter which did not require a full provision for income taxes. The
company released reserves against its deferred tax assets in the third
quarter of fiscal 2006 and began recording a provision for income taxes
in the fourth quarter of fiscal 2006.
* Non-GAAP pretax income was $5.1 million, or $0.12 per share, for the
second quarter of fiscal 2007, compared to $2.8 million, or $0.07 per
share, for the year-ago quarter. Please refer to "About Concur's Non-
GAAP Financial Measures" below.
* Non-GAAP operating margin was 17% for the second quarter of fiscal 2007,
up from 13% for the year-ago quarter and up from 16% sequentially.
* Cash flows from operations were $10.8 million for the second quarter of
fiscal 2007, up 303% from the year-ago quarter.
* Deferred revenue was $27.8 million for the second quarter of fiscal
2007, up 15% compared to the year-ago quarter and up 5% sequentially.
* Concur repurchased 114,347 shares of its outstanding common stock under
the share repurchase program authorized by Concur's Board of Directors
in the first quarter of 2007.
Recent Business Highlights
* Concur announced the availability of Concur Vendor Payment. Several
clients, including La Quinta, have adopted this on-demand service to
help them eliminate the time and cost associated with processing vendor
invoices and employee check requests. This new service -- which is
seamlessly interwoven into Concur's on-demand service platform -- was
specifically designed from the ground up to address a market opportunity
that's estimated to be comparable in size to the expense management
market.
* Concur signed contracts with new and existing customers, including
Fortent Ltd., IMPAC Medical Systems, Inc., Input/Output, Inc., La
Quinta, Land O'Lakes, MAG Capital, Maritz Travel Company, Novellus
Systems Inc., SirsiDynix, The University of Colorado and USA Hockey.
* Concur's Cliqbook® Travel was selected as the online booking tool by a
Fortune 20 company to help manage their travel program around the world.
* Concur launched Direct Reimbursement, to facilitate quick and efficient
payments to employees, suppliers and credit card companies through
Concur services.
* Concur continued to expand the industry's largest selection of supplier
content by announcing the only Direct Connect to Air Canada. This latest
addition to Concur's growing list of Direct Connect suppliers enables
corporate customers who use Cliqbook Travel to have full access to all
of Air Canada's faring, inventory and Flight Pass products.
* Concur entered into a partnership with Citigroup to offer all Citi
clients around the world access to Concur's industry-leading travel and
expense management solutions.
* Concur was named for the second straight year by the International
Association of Outsourcing Professionals (IAOP) as one of the World's
100 Best Outsourcing Service Providers, placing 46th on the IAOP's 2007
Leaders list.
Business Outlook
The following statements are based on our current expectations and we do not undertake any duty to update them. These statements are forward-looking and inherently uncertain. Actual results may differ materially as a result of the factors identified below, the factors identified in our public filings made with the Securities and Exchange Commission ("SEC"), or other factors. Please also refer to "About Concur's Non-GAAP Financial Measures" below for an explanation of our non-GAAP financial measures and a reconciliation of those measures to accounting principles generally accepted in the United States ("GAAP") equivalents.
* Concur expects total revenue to be $31.6 million for the third quarter
of fiscal 2007, and to be between $123 million and $125 million for
fiscal 2007.
* Concur expects earnings per share for the third quarter of fiscal 2007
to be $0.02 assuming an estimated effective tax rate of 60% and non-GAAP
pre-tax earnings per share to be $0.11.
* Concur expects earnings per share for fiscal 2007 to be $0.11 assuming
an estimated effective tax rate of 60% and non-GAAP pre-tax earnings per
share to be $0.48.
* Concur expects the fiscal 2007 non-GAAP operating margin to be 16% for
the year as a whole. |
