) reported first-quarter fiscal 2014 non-GAAP earnings (excluding
one-time items) of 21 cents per share compared with the Zacks
Consensus Estimate of net loss of 9 cents per share. However,
earnings declined 30% year over year.
On GAAP basis, the company's pre-tax income came in at $24.2
million or 43 cents per share, which was almost flat on a
Growth in the company's core business primarily drove the
non-GAAP earnings. Moreover, Concur signed more than 1,000 new
customers in the first quarter. The increase was primarily
attributable to the company's ongoing "Perfect Trip" innovation,
which led to expansion of several new services. This apart, the
company witnessed a strong momentum in its open platform
initiatives as customers, travelers, developers and partners
embraced TripLink™ and the Concur T&E Cloud.
Concur reported total revenue of $160.3 million, up 31% year
over year and 4% sequentially. Increase in revenues was driven by
strong performance of the company's travel business, in turn
attributable to the Perfect Trip Initiative. Revenues beat the
Zacks Consensus Estimate of $156 million by 2.8%.
Income and Expenses
Operating loss for the quarter was $19.1 million compared with
a loss of $8.3 million in the prior-year quarter. Consequently,
margins also fell to 9.6% from 15.4% in the prior-year quarter.
The increase in loss was primarily attributable to higher
Sales and marketing expenses were $73.1 million; up 33.2% year
over year from $54.9 million, while general and administration
expenses were $24.9 million versus $19.6 million in the
Balance Sheet and Cash Flow
Cash and cash equivalents were $406.2 million at quarter-end,
compared with $301.7 million at the end of Sep 30, 2013. The
company reported total equity of $826.6 million, compared with
$818.1 million at the end of prior-year quarter.
The cash flow from operating activities increased to $12.1
from $5.0 million in the prior-year quarter.
Along with the earnings release, management provided guidance
for the second-quarter and for entire fiscal 2014.
Concur expects non-GAAP revenue for the second quarter of
fiscal 2014 to grow about 30% year-over-year and expects non-GAAP
pre-tax income per share to be at 14 cents a share.
For fiscal 2014, non-GAAP revenue is expected to grow
approximately 26% year-over-year and non-GAAP pre-tax income per
share is projected to be at least 93 cents a share. For full-year
2014, the company expects non-GAAP operating margin to be in the
range of 10% to 14%. Cash flow from operations in fiscal 2014 is
predicted to be at least $72 million, while capital expenditures
are expected to be 8% to 9% of fiscal 2014 revenue.
Concur currently holds a Zacks Rank #2 (Buy). Some other
stocks worth considering in the computer and software sector
American Software, Inc.
Open Text Corp.
Check Point Software Technologies Ltd.
). While American Software and Open Text hold a Zacks Rank #1
(Strong Buy), Check Point Software carries a Zacks Rank #2.
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