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Incorporated today announced financial results, company
advancements, and customer successes for the first quarter of Fiscal
2013. Kronos revenue for the quarter increased 13 percent to $224.2
million. Earnings before interest, tax, depreciation and amortization
(EBITDA) increased 18 percent to $66.7 million.1
“We delivered outstanding growth in our first quarter – including a
106-percent increase in workforce management cloud revenue,” said Aron
Ain, Kronos chief executive officer. “Our award-winning products are
ushering in a new era of innovation whereby organizations are empowered
to manage in the moment. With our innovative product portfolio,
fast-growing cloud business, deep vertical expertise, and unmatched
global capabilities, Kronos is perfectly poised to continue to gain
market share in 2013 and beyond.”
First-Quarter News Facts
Tremendous Kronos Cloud growth – Kronos
Cloud deployments represent the fastest-growing aspect of the
company’s business. Kronos continues to experience a tremendous
customer response to its new Workforce Ready™ suite in the
Kronos Cloud for small and midsize businesses (SMBs), as well as its
Workforce Central® suite in the Kronos Cloud for medium and
large enterprise organizations. Deploying in the Kronos Cloud
generates a fast return on investment and eliminates the need to
invest in and manage IT infrastructure and staff. Today more than
7,000 organizations are running in the Kronos Cloud.
Strong contribution from international regions – International
product bookings increased 53 percent year on year. The Asia-Pacific
region delivered exceptional results, as continued investments in
Australia, China, and India resulted in new local and multinational
customer wins. Kronos further extended its reach into the Chinese
market by forming a reseller
agreement with Capgemini. The Latin America region, led by the
Kronos operation in Mexico, continued its growth and expansion.
Significant progress continued in South Africa where Kronos
experienced significant new customer acquisition. Kronos solutions are
used in more than 100 countries around the world.
Exceptional momentum in SMB sector – Small and midsize
businesses are enthusiastically embracing the ease of use,
affordability, and cloud capabilities of Kronos workforce management
solutions as a way to stay competitive and do more with less. Kronos
experienced an exceptional quarter in the SMB sector, driven in large
part by an accelerated pace of adoption for its new Workforce Ready
suite. Kronos is rapidly revolutionizing how SMBs manage their
businesses and gain an even greater competitive advantage.
Delivery of innovative, next-generation products – During the
quarter, Kronos delivered a series of innovative new products and
enhancements which are transforming the way organizations manage their
Workforce Tablet™ – A sleek, easy-to-use
tablet application that delivers real-time, location-specific
workforce information to frontline managers so they can more
effectively manage in the moment, Workforce
Tablet is a native-built tablet solution developed
specifically for the Apple iPad, providing an anytime, anyplace,
instant connection to the Kronos Workforce Central suite.
Workforce Task Management™ – Workforce
Task Management simplifies store execution by providing
end-users with a streamlined approach to create, approve, execute,
and verify tasks. This drives productivity by streamlining
communication between corporate and stores as well as increases
sales and customer satisfaction by ensuring tasks are completed on
time and consistently across locations.
Workforce Analytics™ – The latest version
of Kronos’ Workforce
Analytics solution enables organizations to easily access and
leverage their workforce data to identify, predict, and manage
opportunities for cost savings and productivity gains.
Workforce Ready – Kronos delivered significant enhancements
to its SMB cloud suite, Workforce
Ready. Enhancements include compatibility with the Kronos
InTouch™ time clock; introduction of a
workforce-centric application marketplace; and additional language
TeleStaff™ – The latest version of the
public safety scheduling and notification solution includes
enhancements that allow deployment and support of additional
technology platforms; enhanced shift-bidding statuses enabling
employees to view and monitor the status of their bids for shifts;
and advanced reporting features.
Kronos InTouch™ applications –
Kronos partners, customers, and third-party developers can easily
create and share workforce applications for the award-winning
Kronos InTouch time clock. The latest
applications include: developed by Axsium Group, Wayfinder
helps employees easily find their way to their work location using
floor plan maps; developed by The WFC Group, EnrollMe gives
employees the ability to join their employer’s healthcare plan
during open enrollment; and developed by Kronos, Employee Survey
allows an employer to host a survey to solicit and capture
In the first quarter of Fiscal 2013, Kronos signed agreements with
organizations around the world such as: Aaron’s, Inc.,anational leader in the sales and lease ownership and specialty
retailing of residential and office furniture, consumer
electronics, home appliances, and accessories; ALDI Stores,A Limited Partnership,with more than 200 stores
operating across New South Wales, ACT, Queensland, and Victoria,
Australia; Carpenter Technology, produces and distributes
specialty alloys, including stainless steels, titanium alloys and
superalloys, and various engineered products; Hitachi
Construction Machinery (Australia) Pty Ltd, a subsidiary of
Hitachi Construction Machinery Co., Ltd (Japan), Australia’s home
for sales and support of Hitachi, John
Deere, and Bell construction, forestry, mining, quarry,
and recycling machinery; Lafayette General Medical Center,
a regional, non-profit, community-owned and -managed hospital
located in Lafayette, Louisiana; North Shore-Long Island Jewish
Health System, the nation’s third-largest, non-profit, secular
healthcare system; Rockford Health System, includes
Rockford Memorial Hospital, Rockford Health Physicians, Van Matre
HealthSouth Rehabilitation Hospital, Visiting Nurses Association
and the Rockford Memorial Development Foundation; Santa Clara
County,a county located at the southern end of the San
Francisco Bay Area in California; Sports Direct, the UK’s
leading sports retailer by revenue and operating profit, and the
owner of a significant number of world-famous sport, fashion, and
lifestyle brands; Truman Medical Centers, a
two-hospital, not-for-profit health system located in Kansas City,
Mo.; Wakefern Food Corporation, the largest retailer-owned
cooperative in the U.S.; and Weir SPM, a market leader in
well service pumps and high pressure flow control equipment.
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™.
Footnote 1: Revenue excludes purchase accounting adjustments related to
the company going private in June 2007 and its acquisitions since June
2007 and includes timing adjustments related to international product
deliveries which management includes when evaluating operating results.
EBITDA excludes purchase accounting adjustments, FAS 123R charges, and
non-recurring, unusual charges.
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