Saba Announces First Quarter Fiscal Year 2011 Results…from Saba

September 25, 2010

 

Subscription Revenue Increased 7% Year-Over-Year to $14.9 Million – First Quarter Total Revenues of $26.8 Million, Up 4% Year-Over-Year

HRchitect featured Saba in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. Saba participated in the Learning Management Systems panel on June 10, 2009 as part of theHRshow. A.G. Lambert, the VP of Marketing with Saba appeared on the HRchitect WebMingle on August 14, 2009.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Saba, the premier provider of people systems, today reported financial results for its first fiscal quarter ended August 31, 2010.

“The first quarter increase in total revenues reflects solid growth in our subscription and professional services revenues,” said Bobby Yazdani, Chairman and CEO of Saba. “Customers’ buying preferences in the quarter validated their enthusiasm for our advanced SaaS offerings and yielded an approximately three-fold increase in the annual contract value of new SaaS bookings over the same period last year.”

First Fiscal Quarter 2011 Results

Revenue. For the first quarter ended August 31, 2010, total revenues increased 3.9% to $26.8 million from $25.8 million in the same period of the prior year. Subscription revenue was $14.9 million, an increase of 6.6% on a year-over-year basis. License revenue was $4.5 million, a decline of 22.1% on a year-over-year basis. Professional services revenue was $7.5 million, an increase of 22.0% on a year-over-year basis.

Gross Margin. Gross margin was 63.1% in the first quarter compared to 64.7% in the same period of the prior year. The gross margin reflects higher levels of subscription revenue and professional service revenue relative to license revenue.

Earnings per Share. First quarter GAAP net loss per share of $0.06 compares to fully diluted earnings per share of $0.03 in the same period of the prior year. Non-GAAP diluted earnings in the first quarter of breakeven compares to $0.07 per share in the first quarter of the prior year.

Non-GAAP results are computed by adjusting GAAP results to exclude the impact of certain items including (i) non-cash amortization of intangibles, (ii) non-cash charges related to share-based compensation expenses, and (iii) restructuring costs. A reconciliation of GAAP to non-GAAP results is included in the financial statements accompanying this press release.

Cash. Cash generated from operations in the first quarter increased to $1.4 million from $0.7 million in the same period of the prior year. Total cash and cash equivalents at the end of the first quarter were $33.2 million, an increase of 53.8% from the end of the first quarter of the prior fiscal year.

Deferred Revenue. Deferred revenue at the end of the first fiscal quarter was $34.4 million, an increase of 11.6% from the end of the first quarter in the prior fiscal year.

Customers. Saba added 30 new customers during the first quarter of fiscal 2011.

Share Repurchase Program. In March 2010, Saba announced that its Board of Directors authorized the use of up to $5.0 million in the aggregate for the repurchase of shares of the company’s common stock. Under the share repurchase program, Saba repurchased 150,000 shares during the fiscal quarter ended August 31, 2010 and had $4.2 million available for future repurchases.

First Quarter Highlights

During the first quarter, Saba signed 30 new customers worldwide, including Cummins, Halliburton, France Telecome Espana Sa, Isuzu Australia, ITC Hotels, New Balance Athletic Shoe and Sony Pictures Entertainment. Saba also expanded existing relationships with a number of organizations worldwide, including: Baker Hughes, Bank of Tokyo, Hartford Financial Services, Mitsubishi Research Institute, Sydney Water, Six Continents Hotels, Saudi Aramco, and Solutia.

In addition, key announcements by Saba since the beginning of the first quarter include:

– Saba announced the general availability of Saba Live, its next-generation cloud-based enterprise business networking solution. Saba Live includes powerful Web 2.0 social tools integrated with Saba Centra Web Conferencing for real time collaboration. Saba Live provides users with rich personal profiles, competency-driven expertise, blended learning, secure groups and workplace analytics to deliver an unprecedented collaboration experience. Saba Live is another proof point that Saba is reinventing the collaborative Learning space.

– Saba announced its inclusion in Forbes Magazine’s ranking of “Most Trustworthy Companies” for 2010. Saba has been determined to exhibit transparent accounting and prudent management by Audit Integrity, an independent financial analytics company. The ranking is based upon more than 100 factors used to assess corporate accounting and management practices.

– Saba also announced People 2010 — Saba Global Summit. The annual meeting of Saba’s customers, partners and thought leaders will be held November 1st — 4th at the Westin Boston Waterfront. The event will feature seven conference tracks and over 70 interactive sessions, including 20 hands on workshops, and keynote speakers, including Gary Hamel, author of Leading the Revolution and Competing for the Future, professor at London Business School and “the world’s most influential business thinker” according to the Wall Street Journal. People 2010 — Saba Global Summit will be an opportunity for hundreds of participants to share best practices and coming developments in people systems.

Business Outlook

The following statements are based on current expectations as of the date of this release. These statements are forward-looking, and actual results may differ materially. Saba does not undertake to update these forward-looking statements in any way or for any reason.

For fiscal 2011, ending May 31, 2011, we confirm our prior guidance of total revenues between $121 million and $124 million, GAAP net earnings of $0.15 to $0.19 per share on a fully diluted basis and non-GAAP net earnings of $0.34 to $0.38 per share on a fully diluted basis. Due to customers’ seasonal spending patterns, Saba continues to expect that revenues, earnings and cash flows will be weighted more heavily towards the second half of the fiscal year.

The fiscal year 2011 non-GAAP outlook excludes non-cash amortization of intangibles and charges related to stock-based compensation expenses.

For more information on Saba, please visit www.saba.com
Matt Lafata, HRchitect

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BHI Curve Jumps Again with their Latest Offering BHI HR Intelligence…from Batrus Hollweg International

September 25, 2010

 

Announcing the launch of BHI’s new analytics package

If you are looking for a new Talent Acquisition System, Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Batrus Hollweg International (BHI), leader in talent management solutions, has ventured into a new realm of strategic HR by introducing BHI HR Intelligence.  HR Intelligence gives clients a deep dive into their HR metrics in order to align hiring practices with business objectives.  Clients gain insight into their hiring processes enabling them to make better hiring decisions in the immediate future and long term by analyzing trends.  HR Intelligence gives CEO’s and CFO’s the ability to make better business decisions using BHI’s interactive graphics to identify hiring trends that impact business goals (you get what you measure).

The HR Intelligence analytics package allows clients to see what sources their best talent is coming from, analyze trends, and identify target areas for improvement or successful areas to replicate. Savings can add up quickly when data is readily available showing the sources of your successful candidates, and those sources that are not working.  This information allows you to decide where to allocate resources.  HR Intelligence reduces legal burdens by helping to ensure your hiring practices are non-discriminatory and in accordance with EEOC guidelines.  The dashboard is easy to navigate with powerful charts and graphs that turn large amounts of data into compelling images. 

BHI has been providing talent solutions to businesses for over 40 years and has continued to stay on the leading edge, remaining a premiere partner through changing times.  Over the past decade BHI has heavily invested in technology in order to continue to provide a superior level of tactical business tools.  HR Intelligence allows clients to remain ahead of the competition by arming them with the information they need to execute great strategies.  As a module of BHI’s Click and Hire(TM)  applicant tracking system, HR Intelligence also allows clients to see how BHI’s assessments and other tools are working for them and make any necessary adjustments.  In previewing the analytics package, one HR executive pronounced it to be a “game changer” in the talent acquisition arena.

For more information on Batrus Hollweg, please visit www.batrushollweg.com
Matt Lafata, HRchitect

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SumTotal Systems Acquires Softscape…from SumTotal Systems

September 20, 2010

 

HR Technology Pioneers Join Forces to Become the Industry’s Most Innovative, Most Experienced, and Most Complete Talent Management Solution Provider

HRchitect featured SumTotal Systems in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. Kimberley Kasper, VP of Marketing, and Jon Ciampi, VP of Product Management with SumTotal Systems appeared on the HRchitect WebMingle on May 1, 2009. SumTotal Systems also competed in the HRchitect Beauty Pageant on Employee Performance Management Systems in February 2009, where they were crowned the winner. Dave Watkins, Softscape’s CEO and Co-Founder appeared on the HRchitect WebMingle on June 19, 2009.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

SumTotal® Systems, Inc., a global leader in complete talent management solutions, today announced that it has acquired Softscape. This brings together industry pioneers with a strong history of innovation and combines proven leadership to address the needs of global enterprises. SumTotal will provide the most comprehensive talent management solution available in the industry to its more than 1,800 customers and 25 million users worldwide, including 43% of the Fortune 500.

“With the acquisition of Softscape, SumTotal has created the absolute industry leader in complete talent management software,” said John Borgerding, President of SumTotal Systems. “Now our solution is years ahead of any other provider and we have the deepest domain expertise in the industry with the global infrastructure to deliver comprehensive solutions and services to our customers.”

Softscape was the first company to incorporate integrated talent management into its business strategy, and because of its vision and head start in the HR software industry, the company had developed many advanced features not found in other solutions. SumTotal will now deliver to the market a complete talent management solution that covers all strategic HR functions including learning, performance, compensation, succession, social collaboration, hiring, planning, analytics, and a core HR system of record.

“This acquisition creates a major new force in talent management software,” said Josh Bersin, CEO and President of Bersin & Associates. “Our research shows that 75% of all HR systems buyers now want an integrated talent management platform. The days of ‘standalone’ HR silos and fragmented solutions are slowly coming to an end, and as a result of this acquisition SumTotal is addressing customers’ demand for a single vendor that’s capable of delivering an end-to-end solution.”

“Both Softscape and SumTotal share a vision to help organizations improve operational efficiencies and workforce effectiveness. We are passionate, creative, and customer-centric with a focus on further expanding an end-to-end software platform for all aspects of HR,” said Richard Watkins, Chief Technology Officer at Softscape. “The synergies across our two organizations and technology leadership will allow us to support customers on a whole new level.” 

With both companies’ product platforms being built on a similar architecture, the synergies in technologies will allow for easier integration of products and faster deployment to customers who are looking for a complete HR solution from a single vendor. To support the company’s growing customer base, SumTotal will now have over 700 employees worldwide and offices in United States, Europe, India, Thailand, China, Japan, and Australia.

“We have been a customer of both SumTotal and Softscape for many years and we strongly believe the joining of these two companies will lead to a comprehensive talent management solution for Johnson Controls,” said Monte J. Nuckols, VP Global Applications at Johnson Controls (NYSE:JCI). “We have long thought that no best-of-breed solution could sustain for the long term. With this news, it is clear that SumTotal is thinking long term and that the extensive reach of their solution will deliver greater value at a reduced risk for the market. We look forward to continuing our relationship and leveraging their solutions to meet Johnson Controls’ needs.”

For additional details regarding the acquisition, please visit: www.sumtotalsystems.com/softscape.
Matt Lafata, HRchitect

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HR Technology Conference Announces Details of Popular “Awesome New Technologies” Session

September 8, 2010

 

Aquire, eThority, Jobvite, Rypple, SocializedHR & Versult Make the Cut for This Year’s Showcase

If you are looking for a new Talent Acquisition System, Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Conference organizers for the 13th Annual HR Technology® Conference & Exposition today announced details of the “Awesome New Technologies for HR” general session at this year’s event, which will be held at Chicago’s McCormick Place from September 29 – October 1, 2010.

Conference Co-Chair, Bill Kutik, commented, “In addition to the demos that I normally view during vendor briefings throughout the year, I requested 26 more demos online during August to scour the industry for the absolutely latest offerings. The result is a mix of innovation from long-established companies, vendors selling for one or two years, and companies without a product yet on the market.”

Recognized as one of the conference’s most popular breakout sessions when named “Cool Technologies,” this year’s session is open to all conference attendees and has been renamed “Awesome New Technologies for HR.” The selected participants are: 

  • Aquire: the new InSight product with workforce and talent management analytics and trends for line managers
  • eThority: Data Talent for HR, a new predictive analytics product, featuring Electric Graph, a new visualization paradigm
  • Jobvite: Jobvite Source, a new integration of up to 300 social networks to help recruiters find and evaluate candidates
  • Rypple: Version 2.0, a complete social network platform that helps managers get their real work done
  • SocializedHR: A new mobile application, ResuReader, allows instant capture, scanning and parsing of paper resumes
  • Versult: Versobile, a new mobile application designed to integrate with existing workforce management software

The conference’s early bird registration rate expires on September 10th; attendees registering prior to this date save $350. Prospective attendees are encouraged to visit www.hrtechnologyconference.com for details.
Matt Lafata, HRchitect

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Saba, Peopleclick Authoria, HRsmart and Technomedia to Contend in HR Technology Conference’s Annual Shootout

September 3, 2010

 

Signature Event Helps Attendees Evaluate Vendors, Get Answers to Their Toughest Questions

If you are looking for a new Talent Acquisition System, Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Conference organizers for the 13th Annual HR Technology Conference and Exposition today announced the four vendors that will vie for the top slot at the conference’s signature event: The Shootout. Designed to help attendees evaluate software by seeing custom demonstrations based on tough, scripted scenarios, this year’s roster consists of Saba, Peopleclick Authoria, HRsmart and Technomedia.

Produced by Human Resource Executive Conferences, the 13th Annual HR Technology Conference and Exposition will be held at McCormick Place in Chicago from September 29 – October 1, 2010.

This year’s Shootout consists of two breakout sessions in which the contestants have been paired based on their similar choices of three out of five Talent Management scenarios, written by industry expert Mark Albrecht and Conference Co-chair Bill Kutik.

Each vendor will conduct an uninterrupted 25-minute demonstration showing how their software can solve the specific problems in the script, and later answer questions from the audience. Voting will be based on four absolute criteria for software — such as usability and integration — rather than on presentation skills and less objective criteria.

Conference co-chair and Technology Columnist for Human Resource Executive magazine, Bill Kutik, emphasized, “Vendors in The Shootout are not permitted to demonstrate whatever they want — they must stick to our tough, scripted scenarios so attendees can evaluate them against the same criteria. And we never sell speaking or demonstration slots to vendors — participation is only earned by meeting our stringent requirements.”

Kutik will judge session one on Wednesday, September 29 at 11:00 a.m. with HRsmart and Peopleclick Authoria. Session two, featuring Saba and Technomedia, will be held the same day at 3:15 p.m. Rochester Institute of Technology instructor of HR technology, Steve Boese, will judge that session.

All four of these Talent Management vendors will also be featured in Bersin & Associates’ Customer Satisfaction survey, which is debuting at the HR Technology Conference.

The conference’s early bird registration rate expires on September 10th; attendees registering prior to this date save $350. Prospective attendees are encouraged to visit www.hrtechnologyconference.com for details.

About the HR Technology Conference Now in its 13th year, the HR Technology Conference & Exposition is acknowledged as the industry’s leading event. The complete agenda for this year’s conference can be found at www.HRTechnologyConference.com and discussions are available at the conference’s popular LinkedIn group. Follow the HR Technology Conference & Exposition on Twitter at @hrtechconf and search hashtag #hrtechconf for further updates.
Matt Lafata, HRchitect

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Taleo to Acquire Learn.com…from Taleo

September 1, 2010

 

Extends Talent Management Breadth; Powers Social and Formal Learning

HRchitect featured Taleo in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems vendors that businesses should consider. Kevin Marasco, VP Brand Marketing with Taleo appeared on the HRchitect WebMingle on November 6, 2009. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Taleo Corporation (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, today announced it has signed a definitive agreement to acquire strategic partner Learn.com, Inc. for approximately $125 million in cash.

With the acquisition, Taleo will extend its Talent Management suite, becoming the only public vendor to offer best-in-class solutions across the four critical components of a talent-optimized organization: recruiting management to source, assess and acquire talent; performance management to establish goals and create career and succession plans; compensation management to establish a true “pay-for-performance” process between corporate objectives and individuals’ contributions; and now learning management to support social and formal development.

Learn.com is a leading next generation provider of SaaS learning management solutions, a market estimated to be $1 billion in 2011 according to Bersin & Associates. Its software enables businesses to more seamlessly develop, deliver and manage education and training to help employees, customers and partners reach their full potential. Learn.com’s social learning and web conferencing features also enable companies to build collaborative learning and knowledge sharing solutions, which are among the fastest growing applications in employee development today.

Learn.com’s solutions are in use today with more than 500 global companies of all sizes, and support up to 200,000 users per customer, with about two million end users worldwide.

“The Learning Management Systems market is now entering a new growth phase — one supporting social, collaborative, and informal learning solutions,” said Josh Bersin, President and CEO of Bersin & Associates, a leading research and advisory services firm.

“Through its acquisition of Learn.com, Taleo now has the opportunity to take a strong position in this market and deliver an integrated end-to-end platform which integrates recruiting, performance management, compensation, and learning into a complete SaaS solution.”

Taleo and Learn.com have been strategic partners since September 2009, bringing to market a unique social and formal learning offering that helps companies to better leverage their internal social networks to share institutional expertise. More than 56 companies across a variety of industries have selected the Taleo and Learn.com solutions, including: Newell-Rubbermaid, Swift Transportation, and CPS Energy. Further, more than a third of Taleo’s suite sales opportunities include interest in a learning management solution.

“We’ve been impressed with the forward-thinking approach to learning from Taleo and Learn.com,” said Mike Perkins, Senior Manager of Learning Technologies at Newell-Rubbermaid. “With their help, we are powering robust, interactive and scalable social learning options for our teams that include video podcasts and development portals so that we can engage them in learning, where and when they need it. We look forward to partnering with the combined organization moving forward.”

“As businesses transform to ignite growth, they can’t afford to create a knowledge gap between the skills they have in their teams and the skills they need to drive business,” said Michael Gregoire, Chairman and CEO of Taleo. “Learn.com’s social learning and collaborative functionality makes it easier to close that gap. We are pleased to add best-in-class technology, staff and customers from Learn.com to enable enterprises with a total talent management solution to achieve greater performance.”

Under the terms of the agreement, Taleo will pay approximately $125 million in cash for all of the outstanding capital stock of Learn.com, subject to deductions of approximately $1.6 million for certain specified items and subject to further adjustment for third party expenses. In addition, Taleo will offer up to $2 million of interim financing in connection with the acquisition, and such amounts, if any, drawn down by Learn.com and outstanding as of the closing of the transaction will be deducted from the purchase price. The acquisition is subject to customary closing conditions, including regulatory approval, and is expected to be completed prior to the end of the fourth quarter of 2010.

For more information on Taleo, please visit www.taleo.com
Matt Lafata, HRchitect

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Kenexa Announces Agreement to Acquire Salary.com…from Kenexa

September 1, 2010

 

Reiterates financial guidance for the third quarter 2010

HRchitect featured Kenexa in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Ron Hanscome, VP of Product Strategy with Kenexa appeared on the HRchitect WebMingle on June 26, 2009 and Derek Bluestone, VP Product Marketing appeared on June 17, 2010. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!

Kenexa Corporation (Nasdaq: KNXA) and Salary.com, Inc. (Nasdaq: SLRY) today announced that they have entered into an agreement for Kenexa’s acquisition of Salary.com in an all cash tender offer and merger for $4.07 per share, or approximately $80 million.  Kenexa, a global provider of business solutions for human resources, expects to complete the cash tender offer and close the transaction during the fourth quarter of 2010.  The completion of the transaction is subject to a majority of the outstanding Salary.com shares being tendered, as well as satisfactory completion of other customary closing conditions, including certain regulatory approvals.

Kenexa expects to finance the deal through a combination of its cash balances and borrowings against its credit facility, which was recently put in place.  The agreement has been unanimously approved by the board of directors of both companies, and Salary.com’s board intends to recommend that the Salary.com stockholders tender their shares in the offer. 

Kenexa’s Chief Executive Officer, Rudy Karsan, stated, “We are very excited to announce the acquisition of Salary.com, which provides Kenexa with significant domain expertise and a strong leadership position in the area of on-demand compensation management solutions.  Salary.com’s value proposition spans both software and proprietary content, similar to Kenexa, and their compensation management solutions are highly synergistic with our broad suite of talent acquisition and retention solutions.  We believe Kenexa is increasingly being recognized in the market place as having the broadest and deepest suite of talent management solutions, and the addition of Salary.com’s solutions and customer base will further strengthen our competitive position.” 

Karsan added, “We believe there is a tremendous opportunity to take Salary.com’s best-in-class compensation management solutions to Kenexa’s customer base, which includes some of the largest corporations in the world.  In addition, Salary.com has several thousand customers that provide a fertile opportunity for Kenexa to deliver our suite of software, services and content.  We believe Salary.com’s acquisition by Kenexa is a major positive for both of our respective companies, employees, partners, customers and prospects.”     

Salary.com provides on-demand compensation software that helps businesses and individuals manage pay and performance.   The company is the industry leader in market pricing and compensation analysis software that helps customers benchmark, compensate and reward its employees.  Salary.com’s compensation solutions were designed by Certified Compensation Professionals (CCP®) and enable corporations to analyze pay competitiveness, simplify cumbersome survey participation and automate market pricing all in a single, web-based solution.  Salary.com also provides companies with access to a wealth of employer reported compensation data that spans thousands of jobs.

Kenexa believes the acquisition of Salary.com is compelling for a number of reasons, including the following: 

  • Compensation management is highly synergistic with Kenexa’s current suite of talent acquisition and retention solutions
  • Salary.com has established a market leadership position in the on-demand, compensation management market
  • Salary.com and Kenexa have complementary business models as both companies deliver a combination of software and proprietary content through a subscription-based, on-demand model
  • Kenexa believes there is a significant opportunity to expand Salary.com’s adoption in large organizations and on a global basis
  • Kenexa expects the transaction will have a positive impact on its non-GAAP operating results

Kenexa’s management will provide additional, updated financial guidance that includes the expected contribution from Salary.com on its third quarter 2010 financial results conference call, assuming the acquisition has closed in advance.   

Upon completion of the Salary.com acquisition, Kenexa’s non-GAAP results will exclude stock-based compensation expense and amortization of intangibles associated with acquisitions as they have in the past, in addition to non-recurring professional fees associated with completing the transaction and the purchase accounting reduction to Salary.com’s deferred revenue. 

Salary.com’s interim chief executive officer, Paul Daoust, said, “Over the last several quarters, Salary.com has executed an aggressive restructuring plan to enable the company to focus on our core businesses and areas of competitive advantage.  We believe Salary.com’s acquisition by Kenexa will enable us to capitalize on our market leading software and data in compensation, talent management and consumer offerings.  Salary.com will now have access to a much larger global sales and services organization, greater R&D resources and overall financial strength to provide our customers with confidence that we will be able to meet their needs from a long-term perspective.  We believe that the combination of Salary.com and Kenexa will provide a unique, end-to-end value proposition that positions our combined organization very well in front of an eventual improvement in the economy and hiring environment.”

Reiterates Financial Guidance for the Third Quarter 2010

On September 1, 2010, Kenexa’s management reiterated that the Company is on track to meet the financial guidance it previously issued on August 3, 2010.  The Company continues to expect revenue to be $45 million to $47 million, and non-GAAP operating income to be $3.4 million to $3.6 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 23.2 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.12 to $0.13.

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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