Kenexa Posts Quarterly Profit; Sees Improvement Ahead
It was an improvement over the $104.7 million loss the company posted for 2008. However, that loss included a $167 million downward adjustment for goodwill. The 2009 report includes a further $33.3 million goodwill reduction.
Without the goodwill hit and some additional minor and one-time charges, Kenexa earned $15.9 million last year on revenue of $157.7 million. That’s down from 2008 when the company earned $36.6 million on revenue of $203.7 million.
Kenexa’s numbers, released this afternoon, mirror the HR technology sector’s as a whole. Although most companies in the sector are privately held, the public ones have generally reported quarterly earnings in 2009 below those in the previous year. Most companies have also reduced the value of their goodwill.
In releasing the quarterly and annual numbers, Kenexa CEO Rudy Karsan said, “As we enter 2010, we continue to believe that Kenexa’s financial performance will remain consistent with recent quarters as the unemployment rate approaches stability, which is currently expected to occur around the middle of the year. As this occurs, we believe that Kenexa is well positioned to begin scaling its quarterly revenue run rate.”
The company said it expects revenue in the current quarter to be in the $38 million to $40 million range, resulting in net income between $2.2 million and $2.6 million. For the year, the company expects revenue to be in the $160 million to $168 million range and income between $14.5 million to $18.5 million.
The original post is created by: ERE Articles