Kronos Provides Some Financials for Fiscal Q1
February 23, 2009 Timothy Prickett Morgan
As perhaps the key software vendor for workforce management products, privately held Kronos used to be a public company and is used to talking about how its business is doing. And so it has provided a few tidbits about how it did in the first quarter of fiscal 2009.
For that quarter, which presumably ended in December, Kronos posted sales of $159.8 million, and earnings before taxes, interest, and amortization came in at $24.6 million. Those numbers just hang out there in space, because the company did not provide any comparisons with the prior fiscal year’s first quarter; not did it actually talk about net income. But you can bet that private equity firm Hellman & Friedman Capital Partners (H&F), which shelled out $1.8 billion to take Kronos private two years ago, cares a great deal about such numbers, even if they don’t want to share them with the world. To give you some sort of baseline to compare, in the first quarter of 2007, when Kronos was still a public company, in the first quarter of fiscal 2007 ended in December 2006, the company had $148.7 million in sales, and earnings (not EBITDA but real net earnings) fell by 8.1 percent to $5.7 million.
“Despite what has become an extremely difficult selling environment, we secured agreements with hundreds of organizations during our first quarter,” says Aron Ain, chief executive officer at Kronos in a statement accompanying the rather skinny set of numbers (if you can call two figures with no increase or decrease percentages a set). “We help organizations of all sizes manage their greatest strategic asset and greatest expense: their workforce. Organizations continue to invest because we give them the tools and intelligence they need to control labor costs, minimize compliance risk, and improve workforce productivity–all of which are critically important in tough economic times.”
Kronos says that it will ship Workforce Central 6.1, its latest release, this quarter, and is working on getting its Workforce Acquisition 8.4 release out the door soon. The former manages employees while the latter manages the hiring process.