Concur Technologies Announces First Quarter Revenue Up 52% Year-Over-Year
biz.yahoo.com
Wednesday January 31, 4:30 pm ET
Subscription Revenue Increases 68% Year-Over-Year and Operating Margin Increases 74%
REDMOND, Wash., Jan. 31 /PRNewswire-FirstCall/ -- Concur Technologies, Inc. (Nasdaq: CNQR), the world's leading provider of on-demand Corporate Expense Management services today reported financial results for its first quarter ended December 31, 2006.
Concur reported total revenue for the first quarter of fiscal 2007 of $29.2 million, driven by subscription revenue which was up 68% from the year- ago quarter. Total revenue for the quarter was up 52% from the year-ago quarter and up 6% sequentially. Fiscal 2007 first quarter net income, which includes a provision for income taxes of $1.4 million, was $1.0 million, or $0.02 per share, and was above company expectations. This compares to net income of $0.6 million, or $0.02 per share, in the year-ago quarter, which did not require a full provision for income taxes.
"We started fiscal 2007 with an exceptional quarter, as we exceeded our revenue, gross margin, operating margin and earnings targets. Even as we invested across the business to drive better than 50% top line growth, we were able to grow operating margin by 74%," said Steve Singh, chairman and CEO of Concur Technologies. "New customer growth continued to be strong across the breadth of our services and we are pleased with the demand environment. In particular, customers continue to embrace the value proposition and end user benefits of our end-to-end travel and expense service."
Singh continued, "As we look ahead, we remain focused on aggressively growing top line revenue while maintaining our operating leverage. To support this objective, we will continue to invest in expanding our distribution and market reach while delivering new services and innovations that not only set the standard in the travel and expense market, but also raise our market- leading standard for high quality on-demand services."
Financial Highlights
-- Total revenue was $29.2 million for the first quarter of fiscal 2007,
up 52% compared to the year-ago quarter and up 6% sequentially.
-- Net income was $1.0 million, or $0.02 per share for the first quarter
of fiscal 2007 and included a provision for income taxes of $1.4
million, compared to $0.6 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.
-- Deferred revenue was $26.5 million for the first quarter of fiscal
2007, up 20% compared to the year-ago quarter and up 9% sequentially.
-- Cash flows from operations were $5.5 million for the first quarter of
fiscal 2007, up 276% from the year-ago quarter.
-- Non-GAAP operating margin was 16% for the first quarter of fiscal 2007,
up from 9% for the year-ago quarter and down 2% sequentially. Please
refer to "About Concur's Non-GAAP Financial Measures" below.
Recent Business Highlights
-- Concur signed contracts with new and existing customers, including
Atmel Corporation, Brown Brothers Harriman & Co., Cadence Design
Systems, Inc., Choice Hotels International, Dresdner Kleinwort,
HarbourVest Partners LLC, Highmark, Inc., IKON Office Solutions, Inc.,
NDS Ltd, Overland Solutions, Inc., Replidyne, Inc. and Virtual
Radiologic Corporation.
-- Concur successfully completed its largest on-demand service deployment,
with over 180,000 employees of a leading global financial institution
now generating over 1.5 million transactions per year.
-- Concur was once again recognized among the top 10 software on-demand
providers in terms of global revenue in 2005 by IDC, whose report,
Worldwide Software on Demand 2005 Vendor Analysis (IDC #204790,
December 2006), found that the top 10 companies listed represented "51%
of the on-demand landscape".
-- Concur was selected to the S&P Small Cap 600, an index consisting of
600 domestic stocks chosen for market size, liquidity, profitable
growth and industry group representation.
-- Concur executives Steve Singh and Thomas DePasquale were both named to
the 25 Most Influential Executives of 2006 list by the editors of
Business Travel News, who each year list the 25 decision makers they
perceived as having exerted the greatest influence over the business
travel industry in the previous year.
-- Concur's Board of Directors approved a new share repurchase program
authorizing the repurchase of up to two million shares of its currently
outstanding common stock over the next two years.
Business Outlook
-- Concur expects total revenue to be $29.5 million for the second quarter
of fiscal 2007, and to be between $121 million and $125 million for
fiscal 2007.
-- Concur expects earnings per share for the second 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 $0.10.
-- 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. |
