Go BackKANA Software reports first quarter 2008 financial results
KANA Software Inc a world leader in multi-channel customer service announced financial results for the first quarter ended March 31, 2008.
First Quarter Financial Highlights:
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KANA's total revenues for the first quarter of 2008 were $18.3 million, an increase of 40% from the first quarter of 2007.
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License revenue for the first quarter of 2008 was $5.7 million, an increase of 58% from the first quarter of 2007.
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Service revenue for the first quarter of 2008 was $12.6 million, an increase of 33% from the first quarter of 2007.
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For the third consecutive quarter, KANA achieved non-GAAP operating profit.
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During the quarter, KANA generated over $2 million in cash from operating activities.
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The Company reported a net loss in accordance with accounting principles generally accepted in the United States (GAAP) of $79,000, or $(0.00) per share, for the quarter ended March 31, 2008 versus a GAAP net loss of $3.8 million, or $(0.10) per share, for the quarter ended March 31, 2007.
For the first quarter of 2008, KANA reported non-GAAP net income of $125,000, or $0.00 per share, as compared to a non-GAAP net loss of $2.9 million, or $0.08 per share, for the first quarter of 2007. KANA's quarterly non-GAAP net income was calculated by adding back accounting charges for stock-based compensation expense measured in accordance with SFAS 123R, amortization of acquired intangible assets, and restructuring expense to KANA's GAAP net loss.
"I'm pleased with our execution in the first quarter," stated Michael Fields, chief executive officer of KANA. "Our plan for 2008 is to strengthen our business execution and technology leadership within the customer service market."
First Quarter 2008 Company Highlights
KANA closed two 7-figure transactions, one with a Fortune 100 retailer and another with a Fortune 100 telecommunications provider.
Companies that purchased KANA solutions during the first quarter included Aetna, AT&T Mobility, Best Buy, Best Western International, General Motors, Hutchison 3G, Sprint Nextel, Verizon and Yahoo Japan.
The Company significantly expanded its Global Strategic Alliance agreement with IBM and will jointly market, sell and support Service Oriented Architecture (SOA)-based customer service solutions.
KANA appointed Mike Shannahan, existing KANA board member and chairman of KANA's audit committee, as Chief Financial Officer, replacing John Thompson, who retired.
Gartner analyst Esteban Kolsky joined KANA as Vice President and Practice Leader for KANA's management consulting and systems integration subsidiary, eVergance.
KANA launched new education and training programs that enhance traditional classroom education with the latest technology, community and value-added support services.
For the fourth consecutive year, KANA was named to KMWorld Magazine's list of "100 Companies That Matter in Knowledge Management."
Michael Fields, KANA CEO said, "We continue to gain traction across multiple vertical markets based on the strength of our people, partners and technology. In the first quarter, we reinforced that leadership - forging an agreement with IBM to jointly develop and market our next-generation customer service solution and adding world-class talent to our organization."
Investor Conference Call Information
KANA's management team will host a conference call today at 4:30PM EDT (1:30PM PDT) where they will discuss the Company's reported quarterly financial results and financial outlook. The live webcast can be accessed by visiting the investor relations section of KANA's website at www.kana.com. The call can be accessed via phone by dialing (617) 614-2710. The pass code 3180-5244 will be required. A replay of the conference call will be available after 6:30PM PDT on May 7, 2008 through May 14, 2008 by dialing (617) 801-6888 and entering pass code 3309-7680. The conference call and supplemental financial information will also be available on the investor relations portion of the KANA website.
About KANA
KANA is a world leader in multi-channel customer service. KANA's integrated solutions allow companies to deliver consistent, managed service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. KANA's clients report double-digit increases in customer satisfaction, while reducing call volumes by an average of 20 percent. KANA's award-winning solutions are proven in more than 600 companies worldwide, including approximately half of the world's largest 100 companies. For more information visit www.kana.com.
Non-GAAP Financial Measures
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the attached table, which exclude certain expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures.
Date - 08/05/2008
