Concur Technologies Announces Fiscal Year 2006 Fourth Quarter Revenue Up 40% Year-Over-Year
biz.yahoo.com
Monday December 4, 4:35 pm ET
Subscription Revenue Increases 65% Year-Over-Year; Company Sees Robust Client Demand for End-to-End Travel and Expense Service
REDMOND, Wash., Dec. 4 /PRNewswire-FirstCall/ -- Concur Technologies, Inc. (Nasdaq: CNQR), the world's leading provider of business services that automate Corporate Expense Management, today reported financial results for its fourth quarter and fiscal year ended September 30, 2006.
Concur reported total revenue for the fourth quarter of fiscal 2006 of $27.5 million, driven by subscription revenue which was up 65% from the year-ago quarter. Total revenue for the quarter was up 40% from the year-ago quarter and up 2% from the prior quarter. Fiscal 2006 fourth quarter net income, which includes a provision for income taxes of $1.5 million, was $1.0 million, or $0.03 per share, and was in line with company expectations. This compares to net income of $2.1 million, or $0.06 per share, in the year-ago quarter, which did not require a provision for income taxes.
"Revenue and pro forma earnings reached record levels and exceeded our expectations for the quarter and for the year," said Steve Singh, chairman and CEO of Concur Technologies. "As we enter fiscal 2007, new customer demand continues to be strong as our end-to-end travel and expense service improves the value proposition for our customers. Our solution provides them with an independent technology platform which seamlessly operates with any travel agency, supplier or credit card company. Today, educated buyers are actively seeking this independence."
Singh continued, "As we look ahead, we are focused on improving our sustainable top line growth rate while maintaining our operating leverage. To support this objective, we expect to continue to invest in expanding our distribution and market reach while delivering new services that not only raise the bar in the travel and expense market, but also extend our market- leading pace for high quality on-demand services."
Financial Highlights
-- Total revenue was $27.5 million for the fourth quarter of fiscal 2006, up 40% compared to the year-ago quarter and up 2% sequentially.
-- Total revenue was $97.1 million for fiscal 2006, up 35% compared to fiscal 2005.
-- Net income was $1.0 million, or $0.03 per share for the fourth quarter of fiscal 2006 and included a provision for income taxes of $1.5 million, compared to $2.1 million, or $0.06 per share for the year-ago quarter which did not require a 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.
-- Deferred revenue was $24.2 million for the fourth quarter of fiscal 2006, up 18% compared to the year-ago quarter and down 3% sequentially.
-- Cash flows from operations were $2.5 million for the fourth quarter of fiscal 2006, up 10% from the year-ago quarter.
-- Non-GAAP operating margin was 18% for the fourth quarter of fiscal 2006, up from 12% for the year-ago quarter and unchanged at 18% sequentially. Please refer to "About Concur's Non-GAAP Financial Measures" below.
Recent Business Highlights
-- Concur signed contracts with new and existing customers, including Archstone-Smith, Bayer Inc. (Canada), Hagemeyer North America, Klipsch Group, Inc., Lennox International, Inc., National Federation of Independent Business, Randstad UK, Steria Limited, Sterling Financial Corporation and the University of San Francisco.
-- Concur released its end-to-end travel and expense management service and already has several clients deployed. This service features "one-click" expense reporting which uses the business traveler's itinerary and corporate card data to automatically generate expense reports.
-- Concur introduced Concur Audit Service to validate and verify client expense receipts. This new service helps clients accurately report and properly classify expenses in accordance with corporate and regulatory policies.
-- Concur announced electronic receipt and direct connect relationships with leading global hotel and car rental partners. These capabilities will provide Concur clients with direct access to each partner's inventory of content while delivering electronic receipts directly into expense reports, enhancing the experience for travelers, improving the information available to corporations and eliminating paper.
-- Concur hosted the 2006 Concur Technologies International User Conference in Orlando, FL -- its largest client event ever -- with over 800 attendees on hand for the unveiling of the company's vision for the future of travel and expense.
-- Industry analyst firm Aberdeen Group released a new report highlighting the growing demand for end-to-end corporate travel and expense management solution.
-- For the sixth consecutive year, Concur was named to Deloitte & Touche's prestigious Technology Fast 50 Program for Washington State, a ranking of the 50 fastest growing technology companies in the area.
-- Concur repurchased 200,000 shares of Concur stock at an average price of $12.25 per share.
-- Concur successfully gained ISO 27001 certification, which replaces Concur's existing ISO 17799 certification and further enhances its market leading commitment to security, auditability and standards.
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, 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 GAAP equivalents.
-- Concur expects total revenue to be $27.5 million for the first quarter of fiscal 2007, and to be between $120 million and $125 million for fiscal 2007.
-- Concur expects earnings per share for the first quarter of fiscal 2007 to be $0.00 assuming an estimated effective tax rate of 60% and non-GAAP pre- tax earnings per share to be $0.08.
-- Concur expects earnings per share for fiscal 2007 to be $0.10 assuming an estimated effective tax rate of 60% and non-GAAP pre-tax earnings per share to be $0.46.
-- Concur expects the fiscal 2007 non-GAAP operating margin to be between 15% and 16% for the year as a whole. |
