Kofax 2014 Profit Rises, Acquires Softpro; CFO To Step Down

(RTTNews) - Kofax Limited (KFX, KFX.L), a provider of process automation software, on Tuesday reported a 14 percent increase in profit for fiscal 2014, reflecting higher revenues and lower tax expenses.

Separately, Kofax said that on September 1, 2014 it acquired Germany-based Softpro GmbH, a provider of signature verification, fraud prevention and electronic signature software and services, for $34.7 million in cash.

The company also said that Jamie Arnold, Kofax's Chief Financial Officer and an Executive Director, has given notice of his intention to resign for personal reasons from those positions and as an employee by September 30, 2015 - over one year from today. The company will initiate a search for his replacement.

Further, the company said it plans to seek shareholder approval to delist from the London Stock Exchange on or before March 31, 2015. The company noted that more than 78 percent of Kofax's shares of common stock were held by U.S. shareholders.

Kofax plans to hold an extraordinary general meeting on February 9, 2015 in order for shareholders to vote on the proposal.

The company's board currently intends to maintain its policy of not paying dividends in order to invest in better growing its business. As a result, no dividends were declared or paid during fiscal year 2014.

Kofax's net income for fiscal 2014 increased to $11.38 million or $0.12 per share, from $10.01 million or $0.11 per share in the year-ago period. Adjusted earnings per share for the year were $0.26, compared to $0.32 in the prior year.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.25 per share for the year.

Total revenues for the year grew 9 percent to $289.71 million from $266.32 million in the prior-year quarter. On a non-IFRS basis, revenue increased 12 percent to $297.4 million. Analysts had a consensus revenue estimate of $293.66 million for the year.

IFRS software license revenue grew 5 percent to $117.79 million, while maintenance services revenue increased 9 percent to $133.19 million and professional services revenue rose 20 percent to $38.28 million.

Income tax expense for the year declined 34 percent from last year to $5.40 million.

Separately, Kofax said that on September 1, 2014 it acquired Germany-based Softpro GmbH, a provider of signature verification, fraud prevention and electronic signature software and services, for $34.7 million in cash.

Kofax acquired all of privately-held Softpro's common stock for $34.7 million in cash. Of this, the company paid $31.2 million as part of the closing of the transaction on September 1, 2014.

Kofax will pay an additional $1.1 million 90 days after closing, while $1.2 million would be paid one year from closing and $1.2 million would be paid two years from closing. The company noted that it may complete the integration of Softpro by the end of calendar year 2014.

Looking ahead to fiscal 2015, Kofax forecasts revenues in a range of $339.0 million to $347.0 million, and adjusted revenues of $343.0 million to $351.0 million. Street expects the company to report revenue of $316.24 million for the year.

Kofax reiterated its long-term financial model, which is based on organic software license revenue growth in the mid teens, total revenue growth of 10 percent to 12 percent, and adjusted EBITDA margin of 20 percent or greater in fiscal year 2017.

KFX closed Friday's trading at $7.93. In Tuesday's pre-market, the stock is up $0.09 or 1.13 percent to $8.02.