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Kenexa’s Profit In Line With Expectations

Aug 4, 2010
This article is part of a series called Financial.

Kenexa’s second quarter financial report yesterday was a mixed bag. The HR technology vendor reported that it grew revenue by 14 percent over the same quarter last year, but it cut its full-year earnings per share projection by 7 cents at the top end.

The company reported revenue of $44.9 million for the quarter ending June 30, versus $39.5 million in 2009. Profit was $1.7 million, slightly less than last year’s $1.9 million. After adjusting for such expenses as the cost of shares it gave as compensation, Kenexa earned $3.8 million, or 13 cents per share. Last year, on the same basis, it earned $4.4 million or 17 cents a share.

Per share earnings for the quarter were in line with analysts’ estimates, while revenue was better than expected.

“We are pleased with the company’s performance in the second quarter, which was highlighted by accelerated revenue growth that exceeded our guidance, continued strong growth in deferred revenue and cash from operations that materially exceeded our reported profitability,” said CEO Rudy Karsan.

The company predicted that it would earn 12 to 13 cents a share on revenue of $45 million to $47 million for the current quarter. For the year, Kenexa says it will earn between 52 and 59 cents a share on total revenue of $177.5 million to $181.5 million.

Yahoo says analysts are expecting 17 cents a share for the current quarter and 60 cents per share earnings for the year.

Kenexa’s shares opened higher this morning and were trading at $13.25 when this was posted. That’s a 7.4 percent increase on the day. The Dow itself was up .3 percent, while the NASDAQ, where Kenexa trades, was up .5 percent.

This article is part of a series called Financial.
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