Document capture and process automation player Kofax now expects to meet its full year guidance, after delivering a strong fourth quarter, on the back of an improved performance in Q3 (see here),
For the year ended 30 June 2013, software license revenue is expected to be between $111.5m and $112.5m (although down c5% year on year), and total revenue, $265m to $267m (up 1% to 2% on last year). EBITDA profits meanwhile are expected to be in the range of $45m to $46m (vs. an adjusted EBITDA of $48.5m last time).
The problem for Kofax is lack of consistency. Q4 and Q3 may have been much better, but the previous two quarters were very disappointing (see here). So while Kofax talks of growth in software licence and total revenues during the second half of the year, it is clear that this hasn’t been enough to see overall year on year growth in software licence revenue. It is the software licence figure which points in the direction of travel for Kofax.
Nonetheless, CE Reynolds Bish is confident that with two quarters of improved performance under its belt, Kofax has now reached a ‘significant and positive turning point in the company's performance’. The proof of this will be in more consistent performance across all four quarters.