) reported strong second quarter 2013 results with earnings per
share (non-GAAP pre-tax income) of 24 cents, well above the Zacks
Consensus Estimate of -3 cents a share. However, earnings were
down 27.3% year over year from 33 cents a share reported in the
Pro forma earnings during the quarter were primarily driven by
100% growth in new bookings. The bookings strength was primarily
attributable to better-than-expected momentum in the company's
federal government ETS2 contract and continued strength in the
On a GAAP basis, net loss was 14 cents per share compared with
the year-ago net loss of 9 cents per share.
Total revenue was $127.4 million, up 17.5% year over year,
driven by exceptionally strong performance from the SMB market
segment and investment made over the past few years.
Income and Expenses
Non-GAAP operating margin was 12.4% in the reported quarter
compared with 18.5% in the prior-year quarter. During the second
quarter of 2013, the company reported an operating loss of $2.6
million compared with an operating income of $6.1 million a year
ago. Sales and marketing expenses were $55.5 million, up 32.6%
year over year from $41.9 million, while general and
administration expense was $20.3 million compared with $16.6
million in the prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents were $224.4 million at the end of
the reported quarter compared with $302.2 million at the end of
Sep 30, 2012. The company reported total equity of $734.9 million
compared with $74101 million as of Sep 30, 2012. Net cash from
operating activities was $18.7 million in the second quarter of
fiscal 2013 versus $25.1 million in the comparable prior-year
quarter, due to higher working capital requirements.
Concurrent with the earnings release, management provided
guidance for the third quarter of fiscal 2013. Revenue for the
third quarter of fiscal 2013 is expected to grow approximately
23% year over year
For the third quarter, Concur expects non-GAAP pre-tax income
per share to be 37 cents, which excludes the effects of non-cash
related items such as stock-based compensation expenses,
amortization of intangible assets, and the accretion of the
discount on our senior convertible notes. It also excludes the
non-cash accounting implications and cash fees and expenses of
acquisitions and other related strategic activity.
Concur expects revenues for full fiscal 2013 to grow
approximately 23% year-over-year from fiscal 2012 compared to 25%
mentioned earlier. Full fiscal 2013 earnings is expected to
be $1.40 while operating margin for the same period is expected
to be in the range of 16% to 19%.
Cash flow from operations in fiscal 2013 is expected to be at
least $80 million, excluding the TripIt contingent consideration
settlement, excess tax benefits from share based compensation and
acquisition and other related costs.
Capital expenditures for the year are expected to be
marginally higher in the range of 6% to 8% of fiscal 2013
Concur currently has a Zacks Rank #3 (Hold). However, some
other companies that can be considered at the moment are
Progressive Software Corp
), which has a Zacks Rank #1 and
Adobe Systems Inc
); having Zacks Rank #2 (Buy).
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