) reported second-quarter fiscal 2012 earnings per share from
continuing operations of 4 cents, below the Zacks Consensus
Estimate of 5 cents. The prior-year earnings from continuing
operations was 10 cents.
On a GAAP basis, the company incurred a loss per share of 9
cents compared with loss of 5 cents in the prior-year period. GAAP
loss per share increased by 80% year over year.
Total revenue was $108.4 million, an increase of 28.1% year over
year. Revenue in the quarter was driven by investments made by the
company in the last couple of years in its core business. The SMB
and unmanaged travel markets were strong contributors. The company
also performed well in India and Japan.
Income and Expenses
Non-GAAP operating margin was 18.5% in the reported quarter
compared with 17.9% in the prior-year quarter. Operating income was
$6.1 million compared with a loss of $2.3 million. Sales and
marketing expense was $41.9 million, up 10% compared with $38.1
million and general and administration expense was $16.6 million,
up 17.7% compared with $14.1 million in prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents were $217.4 million at the end of the
quarter with total equity of $708 million. Net cash from operating
activities was $25.1 million for the second quarter of fiscal
The company's total revenue is expected to increase by 25.5%
year over year in the third quarter of fiscal 2012. Non-GAAP
pre-tax income per share is expected to be 31 cents.
For fiscal 2012, total revenue growth is expected to be 26% year
over year compared to fiscal 2011, up from its prior growth
expectation of 25.5%. Non-GAAP operating margin for the year
is expected to be 18.5%, up from its prior expectation of 18%.
Concur expects non-GAAP pre-tax income per share to be $1.31 in
fiscal 2012. Cash flow from operations, excluding one-time
acquisition and other related cost, is expected to be in the range
of $84-$88 million in fiscal 2012, up from its prior expectation of
The company continues to invest in expanding its distribution
capacity to drive customer growth while boosting its business
performance. Concur's Triplt acquisition and newly launched
products support the company's future growth prospects.
However, Concur is dependent on the sales of a smaller number of
solutions. A decline in demand for any of those solutions could
substantially affect its results of operations. An important
component of its business success depends on its ability to
maintain and develop relationships with travel suppliers.
Adverse changes in the existing relationships, or an inability
to enter into new arrangements with these parties on favorable
terms, could reduce the amount, quality and breadth of
attractively-priced travel products and services. Further, though
the macroeconomic environment improved, the rate of improvement in
mature market was very nominal. However, developing economies
continued to slide.
Concur Technologies is a provider of business services that
automate the processes involved in the management of corporate
expense. Concur focuses on reducing costly and inefficient expense
processes in businesses of all sizes, by streamlining the
reimbursement processes, reducing operating costs, improving
internal controls while enabling customers to apply greater insight
into their spending patterns through analytics. Major competitors
of Concur are
We currently maintain our Neutral rating on Concur Technologies,
with a Zacks #3 Rank (Hold recommendation) over the next
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