Kenexa Announces Financial Results for First Quarter 2011…from Kenexa

May 4, 2011

 

HRchitect featured Kenexa in our 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. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the first quarter, ended March 31, 2011. 

For the first quarter of 2011, Kenexa reported total GAAP revenue of $60.0 million, with non-GAAP revenue of $63.0 million after eliminating the $3.0 million GAAP adjustment to deferred revenue resulting from the October 2010 acquisition of Salary.com, Inc.  Non-GAAP revenue increased 59% compared to $39.7 million for the first quarter of 2010. Within total non-GAAP revenue, subscription revenue was $49.2 million for the first quarter of 2011, an increase of 48% compared with $33.3 million in the first quarter of 2010.  Professional services and other revenue was $13.8 million for the first quarter of 2011, an increase of 116% compared to $6.4 million for the first quarter of 2010. 

“The first quarter was a strong start to 2011, with all major areas of our business performing at or above our expectations,” said Rudy Karsan, Chief Executive Officer of Kenexa.  “With the economy improving and hiring beginning to increase, we are seeing a growing number of organizations looking for a strategic HR solutions provider that can help them transform their recruiting and overall talent management business processes.  Our unique combination of software, proprietary content and services is a key driver to Kenexa’s growing market share and success with global organizations.”

Karsan added, “For the second quarter in a row, we are materially increasing our FY11 revenue guidance reflecting what we see as Kenexa’s growing momentum.  In addition, we are increasingly optimistic about Kenexa’s long-term market position and believe the company is at the early stages of realizing the benefits from our increased investments in sales and marketing as well as R&D.”

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, fees related to our acquisitions and the purchase accounting impact to Salary.com’s deferred revenue, was $5.0 million for the three months ended March 31, 2011.  This was above the Company’s guidance of $4.4 million to $4.8 million and represented an increase of 119% compared to non-GAAP income from operations of $2.3 million for the three months ended March 31, 2010. 

Non-GAAP net income available to common shareholders, which excludes the items listed above, was $3.7 million for the three months ended March 31, 2011, compared to $2.2 million for the three months ended March 31, 2010.  Non-GAAP net income available to common shareholders was $0.15 per diluted share for the quarter ended March 31, 2011, above the Company’s guidance of $0.13 to $0.14 and up 50% compared to $0.10 per diluted share in the first quarter of 2010.  

Kenexa’s loss from operations for the three months ended March 31, 2011, determined in accordance with GAAP, was $2.8 million, compared to income from operations of $62,000 for the same period of 2010. GAAP net loss available to common shareholders was approximately $3.2 million, or a loss of $0.14 per basic share for the three months ended March 31, 2011, compared to a net loss of $18,000, or $0.00 per diluted share, in the same period of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash and cash equivalents of $19.7 million at March 31, 2011, compared to $52.5 million at the end of the prior quarter.  During the quarter, the company used approximately $23 million in cash to reduce its long-term debt and approximately $10 million as consideration for two small acquisitions made during the quarter.  Deferred revenue was $82.2 million at March 31, 2011, an increase of 51% from March 31, 2010 and up from $76.1 million at the end of the fourth quarter of 2010. 

Other First Quarter and Recent Highlights

  • More than 50 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually), an increase from the over 30 preferred partner customer additions in the year ago period.
  • The average annualized revenue from the Company’s top 80 customers, or P-cubed metric, was greater than $1.4 million, an increase from the over $1.0 million level in the first quarter of 2010.

Business Outlook

Based on information as of today, May 3, 2011, the Company is issuing financial guidance as follows: 

Second Quarter 2011*: The Company expects GAAP revenue to be $64.0 million to $66.0 million.  Excluding the GAAP adjustment to deferred revenue, resulting from the Salary.com acquisition, the Company expects non-GAAP revenue to be $66.0 million to $68.0 million, and non-GAAP operating income to be $5.4 million to $5.8 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24.4 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.16 to $0.17. 

Full Year 2011*: The Company expects GAAP revenue to be $259 million to $265 million.  Excluding the GAAP adjustment to deferred revenue, the Company expects non-GAAP revenue to be $267 million to $273 million, and non-GAAP operating income to be $24.0 million to $27.0 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24.4 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.70 to $0.82.

* Kenexa’s non-GAAP results  excludes stock based compensation expense, amortization of intangibles associated with acquisitions, fees related to closing acquisitions and the purchase accounting reduction to Salary.com’s revenue

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

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Kenexa Introduces New Recruitment Process Outsourcing Solution: ZOOMRecruit…from Kenexa

March 23, 2011

 

Global RPO Leader Gives Companies Innovative Option for Rapid Recruiting of High-Quality Candidates

HRchitect featured Kenexa in our 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. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced the release of ZOOMRecruit, a new rapid recruitment process outsourcing (RPO) option for companies that need to hire top talent quickly–often in less than a year.

Developed in response to the accelerated hiring blitz that many companies are undergoing thanks to a recovering U.S. economy, ZOOMRecruit makes it easier for companies to source candidates quickly, efficiently and cost-effectively. The solution provides two levels of RPO support – project-based RPO and sourcing. The project-based RPO solution delivers all of the components of Kenexa’s complete RPO solution, including sourcing and recruiting, employment branding and employee assessments, for a short, defined period. With the sourcing only solution, Kenexa sources and recruits top candidates and then submits them to the requesting company for next actions.

“As our economy begins to heat up, many companies need to hire talent quickly to backfill positions that had been reduced. Companies need these hires yesterday to keep up with growing demand. Kenexa has developed an innovative RPO solution that is in keeping with our promise to provide flexible, customized solutions for our clients,” stated Phil Stewart, president, Recruitment Process Outsourcing, Kenexa. “ZOOMRecruit allows for a company to benefit from a full-blown RPO solution in a relatively short period of time – a year or less – and often targeted to a very specific staffing need. Ramping up a company’s workforce has never been easier.”

Powered by Kenexa 2x BrassRing®, the new product combines Kenexa’s global RPO solution, which is renowned for delivering a higher quality of candidate, with BrassRing’s world-class recruiting technology. ZOOMRecruit also has the flexibility to integrate with a company’s existing applicant tracking system (ATS).

Stewart continued, “As one of the most respected RPO providers around the world, we have a long history of creating groundbreaking solutions that evolve to meet market demand. ZOOMRecruit will deliver the same cost reductions and high-quality candidates that our existing RPO solution provides.”

ZOOMRecruit is available immediately for new and existing Kenexa customers.

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

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Kenexa Announces Financial Results for Fourth Quarter and Full Year 2010…from Kenexa

February 9, 2011

 

HRchitect featured Kenexa in our 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. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the fourth quarter and full year, ended December 31, 2010. 

For the fourth quarter of 2010, Kenexa reported total GAAP revenue of $61.0 million, with non-GAAP revenue of $64.1 million after eliminating the $3.1 million GAAP adjustment to Salary.com’s deferred revenue. Non-GAAP revenue increased 64% compared to $39.1 million for the fourth quarter of 2009. In 2009, all revenues are reported using GAAP. Within total non-GAAP revenue, subscription revenue was $48.6 million for the fourth quarter of 2010, an increase of 46% compared with $33.3 million in the fourth quarter of 2009. Professional services and other revenue was $15.5 million for the fourth quarter of 2010, an increase of 170% compared to $5.7 million for the fourth quarter of 2009. 

“We are pleased with the Company’s performance in the fourth quarter, which was highlighted by revenue and profitability that were better than our expectations,” said Rudy Karsan, Chief Executive Officer of Kenexa. “The fourth quarter represented a strong close to a successful year for Kenexa. In the face of a challenging economic environment, we returned the Company’s total revenue to solid organic growth, expanded our market opportunity and value proposition with the acquisition of Salary.com, and increased investments in sales, marketing and R&D to position Kenexa for continued market share gains as the economic environment improves.“

Karsan added, “We are still early in the new year, but we are more optimistic about the economic environment and jobs market for 2011 as compared to our view in recent quarters. We believe Kenexa is well positioned to benefit from the increased level of investment in our business, and our optimism is reflected by the solid increase in our revenue growth outlook for 2011.” 

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, fees related to our acquisitions and the purchase accounting adjustment to Salary.com’s deferred revenue, was $7.4 million for the three months ended December 31, 2010. This was above the Company’s guidance of $6.0 million to $6.9 million and represented an increase of 123% compared to non-GAAP income from operations of $3.3 million for the three months ended December 31, 2009. 

Non-GAAP net income available to common shareholders, which excludes the items listed above as well as the accretion of the noncontrolling interest in our variable interest entity, was $5.4 million for the three months ended December 31, 2010, compared to $2.9 million for the three months ended December 31, 2009. Non-GAAP net income available to common shareholders was $0.23 per diluted share for the quarter ended December 31, 2010, above the Company’s guidance of $0.19 to $0.22 and up 77% compared to $0.13 per diluted share in the fourth quarter of 2009.  

Kenexa’s loss from operations for the three months ended December 31, 2010, determined in accordance with GAAP, was $3.6 million, compared to income from operations of $0.8 million for the same period of 2009. GAAP net loss available to common shareholders was approximately $6.9 million, or loss of $0.30 per basic share for the three months ended December 31, 2010, compared to net income of $0.3 million, or $0.01 per diluted share, in the same period of 2009.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash and cash equivalents of $52.5 million at December 31, 2010, a decrease from $90.4 million at the end of the prior quarter due to payments associated with the Salary.com acquisition. The Company generated cash from operations of $3.3 million during the fourth quarter of 2010 and $11.5 million excluding non-recurring payments and fees associated with the Salary.com acquisition. Deferred revenue was $76.1 million at December 31, 2010, an increase of 52% from December 31, 2009. 

Other Fourth Quarter and Recent Highlights  

  • More than 50 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually).
  • The average annual revenue from the Company’s top 80 customers was greater than $1.2 million, an increase from the $1.0 million level in the fourth quarter of 2009.
  • Kenexa joined with General Information Services (GIS) and Sterling Infosystems, leading providers of background screening services, to provide full-service background screenings for Kenexa’s Integrated Talent Management solutions, including Kenexa 2x BrassRing™ and Kenexa 2x Recruit™.

 Full Year 2010 Financial Results

For the full year 2010, Kenexa reported total GAAP revenue of $196.3 million, with non-GAAP revenue of $199.4 million after eliminating the $3.1 million GAAP adjustment to Salary.com’s deferred revenue. Non-GAAP revenue increased 26% compared to $157.7 million for the full year 2009. Subscription revenue was $157.7 million and professional services revenue was $41.7 million for the full year 2010, compared to $133.9 million and $23.8 million, respectively, in the year ago period.  

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, expenses related to our acquisitions and the deferred revenue write-down related to the Salary.com acquisition, was $17.7 million for the year ended December 31, 2010, representing a 9% non-GAAP operating margin and compared to $15.9 million in the year ended December 31, 2009. Non-GAAP net income was $14.4 million, or $0.62 per diluted share, for the year ended December 31, 2010, compared to $0.62 in the year ago period. 

Kenexa’s loss from operations for the full year 2010, determined in accordance with GAAP, was $0.3 million compared with a loss from operations of $29.0 million for 2009. GAAP net loss was $5.8 million or loss of $0.25 per basic share for the full year 2010, compared to a net loss of $31.1 million or a loss of $1.38 per basic share for the full year 2009. GAAP loss from operations, net loss and loss per share included the impact of a non-cash goodwill impairment charge of $33.3 million for the full year 2009.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information as of today, February 8, 2011, the Company is issuing financial guidance as follows: 

First Quarter 2011*: The Company expects GAAP revenue to be $57.0 million to $59.0 million. Excluding the GAAP adjustment to Salary.com’s deferred revenue, the Company expects non-GAAP revenue to be $60.0 million to $62.0 million, and non-GAAP operating income to be $4.4 million to $4.8 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 23.5 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.13 to $0.14. 

Full Year 2011*: The Company expects GAAP revenue to be $240 million to $248 million. Excluding the GAAP adjustment to Salary.com’s deferred revenue, the Company expects non-GAAP revenue to be $248 million to $256 million, and non-GAAP operating income to be $21.0 million to $27.0 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.62 to $0.82.

* Kenexa’s non-GAAP results will exclude stock based compensation expense, amortization of intangibles associated with acquisitions, fees related to closing the Salary.com acquisition and the purchase accounting reduction to Salary.com’s revenue.

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

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Kenexa CEO Rudy Karsan Hits Best Seller Lists with “We”…from Kenexa

February 4, 2011

 

Employee Engagement Book in High Demand as Employers and Employees Seek Satisfaction

HRchitect featured Kenexa in our 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. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that its Chairman and CEO, Rudy Karsan’s book, “We: How to Increase Performance and Profits Through Full Engagement,” is on both The New York Times and USA Today bestseller lists. Released in January 2011, “We” has ranked number two on USA Today’s Money list and number seven on the New York Times’ Hardcover Advice, How-To and Miscellaneous list.   

Karsan teamed with Kevin Kruse, CEO of Kr? Research, on this workplace leadership and employee job satisfaction guide and Tony Hsieh, CEO of Zappos.com, wrote its foreword.    

We argues that while an employee can be successful despite dissatisfaction and happy without engagement, true success comes when the goals of the company and its employees are aligned. The book makes clear that employees must actively manage their careers and adapt successfully to change if they want to achieve security in today’s global economy. The authors also demonstrate that achieving full workplace engagement is the responsibility of both employer and employee.  

“During these challenging times, Karsan and Kruse remind us that successful businesses are built by dedicated workers,” remarked author of “Taking the Hill,” and Pennsylvania Congressman Patrick Murphy. “We: How to Increase Performance and Profits through Full Engagement should be read by everyone interested in building high-performing teams.” 

Karsan and Kruse identify three common factors that keep employees engaged and productive:  growth, recognition and trust. The human resources and business experts rely on research findings from over 10 million worker surveys and case studies that point to employee job satisfaction and emotional investment as major contributing factors to overall business profitability and, just as importantly, the quality of life experienced by the organization’s employees.   

“If you take just one message away from this book, make it this: the idea that work and life are separate entities is an illusion.  Everything is your life.  And you spend far too much time ‘at work’ for it not to be an enjoyable, fulfilling, and yes, an engaging experience,” noted Karsan and Kruse in the book’s first chapter. “But the We approach is one that says stop striving for a work-life balance, and begin to craft a work-life blend.”  

“We” is available in hardcover through Amazon.com, Barnes & Noble, Borders and Indie Bound. The list price is $24.95; ISBN: 978-0-47076743-6.  

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

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New Book Reveals Reasons Behind Record-Breaking Employee Dissatisfaction…from Kenexa

January 25, 2011

 

Data-Rich ‘We’ Calls for Deeper Engagement From Companies and Individuals

HRchitect featured Kenexa in our 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. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ: KNXA), a global provider of business solutions for human resources, today announced the publication of “We: How to Increase Performance and Profits Through Full Engagement.” Coauthored by Rudy Karsan, Cofounder, Chairman and CEO of Kenexa, and Kevin Kruse, CEO of Krū Research, the book was published in January 2011 by Wiley.

Karsan observed, “We live in a new era where work and life are blended as opposed to balanced, entitlements are a thing of the past, and job satisfaction is at a record low. This is a crisis for individuals because negative emotions at work spill over to our personal lives and cross over to those around us.”

For businesses, disengaged employees lead to lower levels of productivity and service and it’s been shown that companies with disengaged workers have five times lower shareholder returns than those companies with the most engaged workers. For individuals, research confirms that disengaged employees weigh five pounds more, have an elevated risk of heart attack, experience less marital intimacy and have children who are more likely to misbehave at school.

Based on vast global research and made accessible through anecdotes, interactive exercises, and online videos, Karsan and Kruse make their advice actionable for immediate personal and organizational growth. In “We: How to Increase Performance and Profits Through Full Engagement” Karsan and Kruse dig deep to reveal the nature of work in the modern organization and share secrets to achieving emotional buy-in and commitment at work. Based on findings from more than 10 million worker surveys annually and on their own experience as award-winning leaders of fast-growing companies, Karsan and Kruse highlight the three most common factors that drive engagement: 

  • Growth: We need to feel that we are advancing in our careers or are learning new things.
  • Recognition: We need to feel appreciated and believe that our ideas count.
  • Trust: We need to trust our senior leaders and feel confident about the future.

“Your kids, your spouse, your friends, your colleagues — all of us — we need you to find meaning and be engaged at work. If you’re a manager, we need you to be committed to the engagement and alignment of the workers on your team. We need each other to reach our shared goals. We need to harmonize our lives and our work,” said Karsan.

“If you think smoking kills, then you should know that having a bad job is just as lethal (literally) to both the employee and the company. What Rudy and Kevin understand is that both the employee and their leadership have dual roles in fixing this toxic situation — and they outline in detail the three drivers needed to create an engaged workplace, based on their experience and research from over 10 million people,” said Verne Harnish, CEO, Gazelles Inc. and author of “The Rockefeller Habits.”

“In my years as a business journalist I’ve interviewed, spent time with and learned from hundreds of executives. Rudy Karsan’s insights into career growth, employee engagement and leadership have stood out. This book is a must read,” stated Ali Velshi, CNN Anchor & Chief Business Correspondent.

The book is available in hardcover now through Amazon.com. The list price is $24.95; ISBN: 978-0-47076743-6.

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

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Kenexa Expands Leadership Team…from Kenexa

January 18, 2011

 

Key Promotions and New Hires Further Position Company for Continued Operational Strength and Market Growth

HRchitect featured Kenexa in our 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. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced executive promotions and new hires that will support the organization’s strategic direction and client delivery services. 

Eric Lochner has been named to the newly created position of president, Global Talent Management. Lochner joined Kenexa in 2006 and, most recently, served as the company’s Chief Marketing Officer. From 2007-2009, he was managing director of Kenexa’s European, Middle Eastern and African operations. Earlier in his career, he led marketing for CareerBuilder.com and held marketing positions at Headhunter.net, Kuczamarski & Associates and InterCall. He holds an MBA from Northwestern’s Kellogg Graduate School of Management and a B.A. degree from John Carroll  University.                                                                                        

Assuming the position of chief marketing officer is Tim Geisert. Throughout his career, he has specialized in helping organizations define their internal cultures, maximize recruitment efforts and create effective sourcing strategies. Earlier in his career at Kenexa, Geisert served in the critical role of vice president of Employment Branding and Recruitment Process Outsourcing (RPO) business development. Before joining Kenexa in 2007 he held executive positions at Bailey Lauerman and The Martin Agency, supporting a wide range of global Fortune 100 organizations. He holds a degree from the University of Nebraska-Lincoln, where he has taught communications research and strategy courses as an adjunct professor. 

New to Kenexa is Jon Zvolanek as head of operations for Kenexa’s Survey business. Prior to joining Kenexa, Zvolanek was the senior vice president of Operations at National Research Corporation (NRC). He started his career with that company as director of Operations in 2000 and as department head managed all data collection activities, including the printing and mailing of more than 12 million surveys. In addition to his experience in print and mail, he has an extensive background in phone and Web data collection methodologies. He received his B.A. in Business Administration from Doane College. 

Dr. Courtney McCashland has joined Kenexa as president of the Global Assessment Division. Previously, she was the founder and CEO of TalentMine®, LLC, a global, performance-based talent assessment and development company. Prior to founding TalentMine, she served as a senior executive for the Gallup Organization, where she led Gallup’s early research on employee engagement. McCashland has also worked with Marcus Buckingham to present the research findings that are contained in his management best seller, First Break All the Rules, to develop the Strengths Engagement Track (SET) featured in Go Put Your Strengths to Work  and to design the StandOut Strengths Assessment to publish in Buckingham’s new release in October of 2011. She holds a bachelor’s degree in Marketing and Journalism and a master’s degree in Qualitative and Quantitative Research from University of Nebraska-Lincoln. She graduated summa cum laude with a Doctorate in Organizational Leadership from the University of Southern California. 

Kenexa CEO, Rudy Karsan, commented, “The appointment of Eric and Tim into their new roles and the addition of Jon and Courtney to our survey and assessments teams further strengthens Kenexa by putting the right people in the right jobs. We’re looking forward to their contributions to our company’s continued growth, operational efficiencies and ability to generate higher levels of client satisfaction.” 

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

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Yum! China Selects Kenexa to Support Recruiting Initiatives…from Kenexa

January 16, 2011

 

Existing Client Expands Relationship Globally, Adding Recruiting Technology to Multi-Rater Survey Services

HRchitect featured Kenexa in our 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. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that Yum! Brands Inc., China Division, a subsidiary of the NYSE listed Yum! Brands Inc., the largest restaurant group in China, has selected Kenexa 2x BrassRing™ and Kenexa’s related consulting services. YUM! Brands, Inc. operates as the largest quick-serve restaurant group in terms of restaurant units worldwide with approximately 37,000 restaurants in 110 countries and territories. The company’s brands include KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W All-American Food Restaurants. Yum! is ranked #216 on the Fortune 500 List, with nearly $11 billion in revenue in 2009.

Based in Shanghai, Yum! China is particularly unique in its size and escalating importance. Mainland China is Yum! Brands’ number one market for new company restaurant development worldwide. In 2009, Yum! China opened a record of 509 new restaurants. As of the end of December 2010, Yum! China has opened over 3,000 KFC restaurants, 500 Pizza Huts, over 100 Pizza Hut Delivery stores and 20 East Dawnings in more than 650 cities and towns.

Christabel Lo, Chief People Officer of Yum! Brands Inc., China Division, said, “KFC continues to be the number one quick-service restaurant brand and the fastest growing restaurant chain in mainland China. Pizza Hut is also the number one casual dining brand in China. We believe in our people, trust in their positive intentions and encourage their ideas. Working with Kenexa gives us the opportunity to source the right candidates for our management trainee, crew and professional job openings using the latest technology and best practices.”

Rudy Karsan, Kenexa’s CEO, commented, “Yum! has built a culture that’s filled with energy, opportunity and fun. Their rapid expansion in China is an exciting testimonial to their global appeal and Kenexa is honored to be supporting their growth with our 2x BrassRing solution.”

Karsan continued, “Kenexa has a long-standing relationship with Yum! Brands as we’ve helped to implement a 360-feedback survey to better understand the strengths of its workforce and communicate back to individuals about specific career development opportunities. Yum! is an excellent example of a Kenexa client that is leveraging the breadth of our integrated solutions.”

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

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Kenexa Selects eQuest to Enhance Recruitment Software, Expand Domestic and International Job Board Reach…from Kenexa

November 19, 2010

 

Integrated Offering Also Features Award Winning Job Board Performance Analytics and Social Network Access

HRchitect featured Kenexa in our 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. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in September, 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced details of its new partnership with eQuest, the world’s leading job posting distributor, which will integrate eQuest’s impressive portfolio of job posting delivery services into Kenexa’s global recruitment technology software.

eQuest will provide Kenexa 2x BrassRing™ and Kenexa 2x Recruit™ customers with job posting distribution to any global job board. The premier provider of job posting and job board analytics, eQuest manages job posting transaction deliveries for more than 20,000 worldwide companies, reaching more than 180 countries and territories and delivers more than 250 million job requisitions annually. Kenexa customers now will be able to take advantage of eQuest’s vast network of domestic and international websites, all from within Kenexa’s recruitment software.

Rudy Karsan, Chief Executive Officer, Kenexa, commented, “We pride ourselves on providing comprehensive recruiting solutions that help companies achieve optimal recruiting and hiring results. With the integration of eQuest’s job posting capabilities, we are furthering our extreme service promise. We look forward to demonstrating how our recruitment technology HR software, which we continually enhance through offerings like eQuest’s, can improve key business outcomes and increase ROI.”

Sean Luitjens, eQuest’s Vice President of Business Development, said, “Kenexa’s current and prospective clients are investing more aggressively in their brands again, so it’s imperative that Kenexa have a well-respected industry leader with an intimate understanding of the job posting market in place. By leveraging eQuest’s extensive range of solutions, companies can now achieve a greater agility and responsiveness to their ever-changing hiring needs.”

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

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Kenexa Named to Software Magazine’s Prestigious Software 500 List for Fourth Consecutive Year…from Kenexa

November 11, 2010

 

Global Human Resources Solutions Leader Ranked No. 165 on 28th Annual List

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. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in September, 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 (NASDAQ:KNXA), a global provider of business solutions for human resources, recently announced its inclusion on the Software Magazine’s Software 500 ranking of the world’s largest software and service providers, now in its 28th year. Kenexa was ranked No. 165 based on its 2009 software revenue of $157.7 million.  

“We are gratified to again be included on the Software 500 list this year. Our year-over-year revenue growth is a testament to our ability to help companies multiply their business success by identifying top talent and promoting optimal work environments,” stated Rudy Karsan, Kenexa’s CEO. “We have been able to achieve our impressive growth because of our unfailing focus and dedication to fulfilling our mission to transform the global workforce.”

The Software 500 is a revenue-based ranking of the world’s largest software and services suppliers targeting medium to large enterprises, their IT professionals, software developers and business managers involved in software and services purchasing. Some 47 percent of the 2009 Software 500 companies are privately held.

John P. Desmond, editor of Software Magazine and Softwaremag.com, commented, “The 2010 Software 500 results show that revenue growth in the software and services industry was healthy, with total Software 500 revenue of $491.7B worldwide for 2009, representing virtually flat growth from the previous year.”

Desmond added, “The Software 500 helps CIOs, senior IT managers and IT staff research and create the short list of business partners. It is a quick reference of vendor viability. And the online version, to be posted soon at www.Softwaremag.com, is searchable by category, making it what we call the online catalog to enterprise software.”

The Software 500 ranking is based on total worldwide software and services revenue for 2009. This includes revenues from software licenses, maintenance and support, training and software-related services and consulting. Suppliers are not ranked on their total corporate revenue, since many have other lines of business, such as hardware. The financial information was gathered by a survey prepared by King Content Co. and posted at www.Softwaremag.com, as well as from public documents.

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

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Kenexa Ranked Number 27 Fastest Growing Company in the Greater Philadelphia Region on Deloitte’s 2010 Greater Philadelphia Fast 50…from Kenexa

November 5, 2010

 

Attributes Its 140 Percent Revenue Growth to Ability to Help Companies Multiply Business Success

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. HRchitect’s Matt Lafata attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in September, 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 (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that it ranked number 27 on the 2010 Greater Philadelphia Fast 50, Deloitte’s ranking of 50 of the fastest growing technology, life sciences and clean technology companies in the Greater Philadelphia region. Rankings are based on percentage of fiscal year revenue growth during the period from 2005–2009. Kenexa grew 140 percent during this period.

Kenexa’s chief executive officer, Rudy Karsan, credits much of the company’s 140% revenue growth to its ability to help clients multiply business success by identifying the best individual for each job. He said, “We are honored to be ranked once again among the Greater Philadelphia region’s fastest growing technology companies. It is our dedication to delivering extreme customer service and creating innovative Integrated Talent Management (ITM) solutions that enables us to receive these accolades. We look forward to continuing to deliver products that improve our clients’ productivity while increasing their cost savings.”

“Kenexa and the other 2010 Greater Philadelphia Fast 50 winners forged ahead in a challenging economic environment to realize exceptional growth,” said Tara L. Weiner, managing partner, Greater Philadelphia region, Deloitte. “Deloitte commends Kenexa for this impressive accomplishment.”

Overall, 2010 Greater Philadelphia Fast 50 award winners for 2010 had revenue growth ranging from 46 percent to 5,764 percent from 2005 to 2009, with an average growth of 302 percent.

For more information on Kenexa, please visit www.kenexa.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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Kenexa Announces Financial Results for Second Quarter 2010…from Kenexa

August 7, 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 (Nasdaq: KNXA), a global provider of business solutions for human resources, recently announced operating results for the second quarter ended June 30, 2010. 

For the second quarter of 2010, Kenexa reported total revenue of $44.9 million, an increase of 14% compared to $39.5 million for the second quarter of 2009. Within total revenue, subscription revenue was $36.1 million for the second quarter of 2010, an increase of 6% compared with $34.0 million in the second quarter of 2009. Professional services and other revenue was $8.8 million for the second quarter of 2010, an increase of 61% compared to $5.5 million for the second quarter of 2009.   

“We are pleased with the company’s performance in the second quarter, which was highlighted by accelerated revenue growth that exceeded our guidance, continued strong growth in deferred revenue and cash from operations that materially exceeded our reported profitability,” said Rudy Karsan, Chief Executive Officer of Kenexa.   

Karsan added, “The pace of economic recovery remains uncertain, however, our longer-term confidence continues to grow. Kenexa is competing for and winning opportunities with a growing number of the largest Global 5,000 organizations. In addition, we believe our competitive position is growing stronger as a result of our technology innovation and increased investments to raise awareness relative to Kenexa’s unique end-to-end, integrated HR value proposition. As a result, we are increasing the company’s full year revenue growth target to approach or exceed double digit levels in 2010, and we are continuing to invest in sales and R&D to position Kenexa for market share gains as the economy and IT spending environment improve.” 

Non-GAAP income from operations, which excludes share-based compensation expense and amortization of acquired intangibles was $3.8 million for the three months ended June 30, 2010, compared to $4.4 million for the three months ended June 30, 2009. Non-GAAP net income available to common shareholders which excludes the items listed above was $3.1 million for the three months ended June 30, 2010, compared to $4.1 million for the three months ended June 30, 2009, which also excludes one-time charges related to the retirement of a line of credit facility. Non-GAAP net income available to common shareholders was $0.13 per diluted share for the quarter ended June 30, 2010, compared to $0.18 per diluted share in the second quarter of 2009.  

Kenexa’s income from operations for the three months ended June 30, 2010, determined in accordance with GAAP, was $1.7 million, compared to $1.9 million for the same period of 2009. GAAP net income allocable to common shareholders was $1.0 million, or $0.04 per diluted share for the three months ended June 30, 2010, compared to net income of $1.3 million, or $0.06 per diluted share in the same period of 2009.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash, cash equivalents and investments of $65.5 million at June 30, 2010, an increase from $62.6 million at the end of the prior quarter.  The Company generated cash from operations of $7.2 million during the second quarter, which was partially offset by capital expenditures. Deferred revenue was $57.8 million at June 30, 2010, an increase of $3.3 million compared to the end of the first quarter 2010 and an increase of 37% from June 30, 2009. 

Other Second Quarter and Recent Highlights 

  • On July 26, 2010, Kenexa announced the acquisition of The Centre for High Performance Development (Holdings) Limited (CHPD). CHPD’s extensive research on leadership development and training will add to Kenexa’s existing research and content portfolio. 
  • More than 30 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually). 
  • The average annual revenue from the Company’s top 80 customers was greater than $1.1 million, an increase from the over $1.0 million level in recent quarters. 
  • John Nies was elected as the company’s lead independent director, reinforcing Kenexa’s commitment to best practices in the area of corporate governance. Mr. Nies has been a member of Kenexa’s board of directors since 2002 and is currently a Managing Director of JMH Capital, LLC, a private equity investment firm.

Business Outlook  

Based on information as of August 3, 2010, the Company is issuing guidance for the third quarter and full year 2010 as follows: 

Third Quarter 2010*: The Company expects 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. 

Full Year 2010*: The Company expects revenue to be $177.5 million to $181.5 million, and non-GAAP operating income to be $14.5 million to $16.5 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 $0.52 to $0.59. 

*includes the anticipated contribution from the acquisition of Centre for High Performance Development (CHPD). Management currently expects CHPD to contribute approximately $1.0 million and $2.5 million to Kenexa’s revenue for the third quarter and full year 2010, respectively. The acquisition is not expected to have a material impact on Kenexa’s non-GAAP operating income or non-GAAP net income per diluted share.

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

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New Kenexa 2x™ Platform Drives Business Transformation…from Kenexa

May 4, 2010

 

Cutting Edge SaaS Solution Features Unified Recruitment, Onboarding, Performance Management and Native Talent Management Applications for iPhone and BlackBerry

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 Rudy Karsan, CEO, will appear 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!

With more than 20 years of experience in developing and delivering HR software solutions, Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today shared details of its new technology platform, Kenexa 2x™. Kenexa 2x provides a Unified Talent Record across the employment lifecycle linking Recruitment, Onboarding, Performance Management and Mobility on one technology platform. Kenexa 2x enables customers to improve productivity, increase cost savings, ensure compliance with corporate and legal mandates, and raise employee engagement.

Available now on Kenexa 2x are Kenexa 2x BrassRing™, Kenexa 2x Recruit™, Kenexa 2x Onboard™ and Kenexa 2x Mobile™. In Q3 2010, Kenexa will add Kenexa 2x Perform™ to its current Performance Management solution. Kenexa 2x Perform will offer leading edge performance management and succession planning tools to drive organizational alignment and ensure top performers are motivated and engaged.

According to recent Gartner research, “In 2013, mobile phones will overtake PCs as the most common Web access devices worldwide”.  Kenexa 2x Mobile addresses this global trend by delivering the first talent management applications natively developed for iPhone® and BlackBerry® platforms. With Kenexa 2x Mobile, hiring managers and approvers can now leverage the full power of their smart phones to speed decision making and gain competitive advantage with zero training.

Research from the Kenexa Research Institute shows that organizations with formal onboarding processes can recognize increased revenue gains of up to 40%. Kenexa 2x Onboard offers an integrated solution to deliver on this promise. Kenexa 2x Onboard leverages cutting edge Web 2.0 technology to deliver a new hire portal and integrated workflow management that offers an improved employee experience while ensuring compliance with legal and corporate policies.

Kenexa 2x BrassRing and Kenexa 2x Recruit solutions feature highly interactive dashboards, integrated workflow management across recruitment, assessment and onboarding, and real-time reports that facilitate robust analysis across critical business processes. Customers, who implement Kenexa 2x BrassRing or Kenexa 2x Recruit increase the efficiency of their recruitment processes, lower cost-per-hire, enhance the job seeker’s experience and reduce operating costs.

Derek Bluestone, vice president of product marketing, Kenexa, commented, “Kenexa has a long-standing position as the human capital management’s industry leader.  It was a natural progression of our R&D efforts to develop a platform that delivers a unified talent record, bringing together all of the details about a candidate or employee, regardless of where they are in the employee lifecycle or recruiting workflow. Our customers have given us very positive feedback about the potential that Kenexa 2x brings to their organizations. As Kenexa moves to the next phase of its growth, Kenexa 2x will be an integral part of that flight.”

“Unifying key recruiting, onboarding and employee performance management functionality with a single employee record is a natural progression in what is a relatively siloed market. Integration will become more important as H.R looks to improve data quality and process consistency,” said Thomas Otter, Research Director, Gartner.  “Also expected to intensify is the need for mobile applications as HR professionals, employees, applicants and managers rely on mobile devices to conduct business.”

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

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Kenexa Announces Financial Results for Fourth Quarter and Full Year 2009…from Kenexa

February 2, 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. Kenexa participated in the Talent Management Systems panel and the Talent Acquisition Systems panel on June 10, 2009 as part of theHRshow event. Ron Hanscome, VP of Product Strategy with Kenexa appeared on the HRchitect WebMingle on June 26, 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.

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the fourth quarter ended December 31, 2009. 

For the fourth quarter of 2009, Kenexa reported total revenue of $39.1 million, compared to $45.1 million for the fourth quarter of 2008. Within total revenue, subscription revenue was $33.3 million for the fourth quarter of 2009, a slight sequential increase compared to the third quarter of 2009 and compared to $37.6 million for the fourth quarter of 2008. Professional services and other revenue was $5.7 million for the fourth quarter of 2009, compared to $7.1 million in the third quarter of 2009 and $7.5 million for the fourth quarter of 2008.   

“Our fourth quarter financial results were consistent with our expectations, and were highlighted by 29% year-over-year growth in deferred revenue and cash flows from operations that were again strong at approximately $13 million,” said Rudy Karsan, Chief Executive Officer of Kenexa. “As we enter 2010, we continue to believe that Kenexa’s financial performance will remain consistent with recent quarters as the unemployment rate approaches stability, which is currently expected to occur around the middle of the year. As this occurs, we believe that Kenexa is well positioned to begin scaling its quarterly revenue run rate.”

Karsan added, “With the combination of an expected improvement in the business environment and more favorable comparisons, we expect Kenexa to return to year-over-year growth during 2010. Moreover, we are confident in Kenexa’s long-term competitive position and believe our unique end-to-end value proposition mirrors the sweet spot of customer demand among the Global 5,000. As such, we plan on further increasing our investments in sales and marketing during 2010 in order to position Kenexa for market share gains.”

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of intangibles associated with previous acquisitions, and non-controlling interests, was $3.3 million for the three months ended December 31, 2009. For the three months ended December 31, 2008, non-GAAP income from operations, which excludes share-based compensation expense, amortization of intangibles associated with previous acquisitions, restructuring charges, legal fees related to restructuring charges and a non-cash goodwill impairment charge, was $6.3 million. Non-GAAP net income available to common shareholders was $2.9 million for the three months ended December 31, 2009. Non-GAAP net income available to common shareholders was $0.13 per diluted share for the quarter ended December 31, 2009, which was consistent with the company’s guidance and compared to $0.27 per diluted share in the fourth quarter of 2008.  

Kenexa’s income from operations for the three months ended December 31, 2009, determined in accordance with GAAP, was $0.8 million, compared with loss from operations of $166.1 million for the same period of 2008. GAAP net income available to common shareholders was $0.3 million, or $0.01 per diluted share for the three months ended December 31, 2009, compared to a net loss of $120.9 million and a loss of $5.36 per diluted share in the same period of 2008. GAAP loss from operations, net loss and net loss per share in the fourth quarter of 2008 included the impact of a $167.0 million goodwill impairment charge.

Kenexa had cash, cash equivalents and investments of $58.8 million at December 31, 2009, an increase from $50.2 million at the end of the prior quarter.  The Company generated cash from operations of $13.0 million during the fourth quarter, which was partially offset by capital expenditures. Deferred revenue was $50.0 million at December 31, 2009, an increase of approximately $5.8 million compared to the end of the third quarter 2009 and an increase of 29% from the end of the year ago period. 

Other Fourth Quarter Highlights

  • More than “30” “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually).
  • The average annual revenue from the Company’s top 80 customers was greater than $1.0 million, consistent with the end of the prior quarter.
  • Continued global expansion with the opening of an office in Buenos Aires, Argentina, which includes an RPO Center of Excellence and support for Latin American and major multinational organizations.

Full Year 2009 Financial Results

For the full year 2009, Kenexa reported total revenue of $157.7 million, compared to $203.7 million for the full year 2008. Subscription revenue was $133.9 million and professional services revenue was $23.8 million for the full year 2009, compared to $163.4 million and $40.3 million, respectively, in the year ago period.  

Kenexa’s loss from operations for the full year 2009, determined in accordance with GAAP, was $29.0 million compared with loss from operations of $144.2 million for 2008. GAAP net loss was $31.1 million or $1.38 per share for the full year 2009, compared to net loss of $104.7 million or a loss of $4.60 per diluted share for the full year 2008. GAAP loss from operations, net loss and loss per share included the impact of a non-cash goodwill impairment charge of $33.3 million for the full year 2009, while the year ago period included a similar charge for $167.0 million.

Business Outlook

Based on information as of today, February 2, 2010, the Company is issuing guidance for the first quarter and full year 2010 as follows:  

First Quarter 2010: The Company expects revenue to be $38 million to $40 million, and non-GAAP operating income to be $2.2 million to $2.6 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 23.0 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.08 to $0.09. 

Full Year 2010: The Company expects revenue to be $160 million to $168 million, and non-GAAP operating income to be $14.5 million to $18.5 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 23.0 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.52 to $0.66. 

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

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Kenexa Names Kevin Horigan as President of Global HR Technology…from Kenexa

January 29, 2010

 

Horigan Brings More than 20 Years’ Experience in Leading Enterprise Software and High Technology Organizations

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. Kenexa participated in the Talent Management Systems panel and the Talent Acquisition Systems panel on June 10, 2009 as part of theHRshow event. Ron Hanscome, VP of Product Strategy with Kenexa appeared on the HRchitect WebMingle on June 26, 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.

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that Kevin Horigan has joined the company as the president of its Global HR Technology division.  In this role, Horigan will be responsible for the division’s overall strategy and operational execution.

Possessing significant operational experience in sales, marketing, finance, professional services, and software development, Horigan has spearheaded growth in various organizations in both the North American and International markets. Prior to joining Kenexa, Horigan served as a senior vice president at SAP. He has also held executive leadership positions at PeopleSoft, Inc, OutlookSoft, Sand Technology Systems and Oracle Corporation.

Rudy Karsan, chief executive officer, Kenexa, said, “Kevin brings a wealth of experience and a track record of success that will reinforce Kenexa’s commitment to the HR technology space. As we continue our growth in this category, his leadership will benefit our customers, our employees and our organization.”

Commenting on his appointment, Horigan said, “Kenexa is not only one of the world’s leading providers of human resources technology, it’s also a trusted advisor to HR and business leaders around the world, with its comprehensive suite of products and services. I’m looking forward to leveraging my expertise in enterprise software to support our ongoing growth and commitment to extreme service.”

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

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