Kronos announces second-quarter Fiscal 2009 momentum
USA (May 11, 2009) –
Kronos® Incorporated today announced financial results, company advancements, and customer successes for the second quarter of Fiscal 2009. Kronos revenue for the quarter was $159.7 million. Earnings before interest, tax, and amortization (EBITA) were $31.8 million.1
“Demand for our workforce management solutions remains strong in spite of the bleak economy. The critical business issues that we address — control labor costs, minimize compliance risk, and improve workforce productivity — intensify during times like these,” said Aron Ain, Kronos chief executive officer. “Because we solve real problems and deliver real results, we’re poised for success during the current economic turbulence and will emerge stronger than ever when the economy turns around.”
News Facts
* Kronos delivered three major products during the quarter.
o The latest version of Workforce Central® is in high demand for its ease-of-use enhancements and deep functionality. Major advancements include enhanced ERP integration; lower total cost of ownership; complete automation of various workforce management business processes; and additional global capabilities.
o The Workforce Acquisition(TM) hiring solution now includes advanced selection science for long-term care organizations, as well as support for field/hourly hiring in the UK.
o Marking a major release of its time and attendance solution for small- and mid-sized businesses in Europe, Kronos delivered the latest version of Kronos Efficient(TM).
* Demand for high-quality information and complete automation of workforce management processes is driving interest in Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and analytics applications.
o County of Guilford, the third-largest county in North Carolina, chose to automate time and attendance, scheduling, and absence management for 2,700 employees in all departments. The automation of time and attendance functions will be integrated with the overall effort to implement a new payroll system for the county.
o Finning International Inc, the world’s largest Caterpillar equipment dealer, headquartered in Vancouver, British Columbia, Canada, selected Kronos for time and attendance as part of a global deployment of its new ERP solution.
o Mt. Rogers, a national recreation area with 800 employees, purchased HR and payroll applications in an effort to trim five percent of administrative costs.
o Wellstar Health System, a five-hospital system in Georgia, selected time and attendance, scheduling, absence management, and analytics for 11,000 employees.
o Yale University purchased a 16,000-employee license for time and attendance, absence management, and analytics for use across 150 departments.
* More organizations are choosing Kronos to extend the value of their existing ERP application.
o City of Denver, Colo., purchased time and attendance, scheduling, labor activities and absence management applications for use by 13,000 employees in 50 government agencies. The city selected Kronos to replace a previously purchased time and labor system from a leading ERP vendor, citing issues with time-to-value.
o New Mexico Department of Health Facilities Management chose to automate its time and attendance processes with Kronos to reduce payroll inflation and consistently enforce compliance requirements. The granular view of time and attendance data provided by the Kronos solution will help the Department of Health reduce compliance risk and minimize unnecessary overtime. The Kronos application will work in conjunction with the State of New Mexico investment in PeopleSoft.
o One of the largest non-profit public health systems in the U.S. chose to remove the time and labor application from PeopleSoft/Oracle in exchange for Kronos, citing a desire for more complete automation of the time and attendance function without costly customization.
* Global demand remains strong despite weak economy.
o The UK had a very strong quarter with a large number of new customer contracts. Customer wins included: Accor, a European hospitality company and Alstom, a global leader in the world of power generation.
o Customer wins in Australia included DFS, a leading luxury retailer catering to the travelling public; Linfox, a supply chain solutions provider; and Southern Health, a large metropolitan health service.
o Customer wins in China included automotive supplier ArvinMeritor, an existing Kronos customer across multiple regions. In addition, Kronos entered the China healthcare market by securing a contract with United Family Hospitals and Clinics (UFH), one of the top healthcare service providers in China.
o In India, business is increasingly coming from organizations that have realized deficiencies in how their ERP system handles local, country-specific workforce management business processes. Customer wins included GMR Group, India’s leading infrastructure developer; Firstsource, a global business process outsourcer; and Viraj Profiles Limited, one of the world’s largest producers of stainless steel products.
About Kronos Incorporated
Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
© 2009 Kronos Incorporated. Kronos and Workforce Central are registered trademarks and Workforce Acquisition and Kronos Efficient are trademarks of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisition of Unicru and Captor businesses in 2006 and 2007. EBITA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring one-time charges.
Source: Kronos