KANA News KANA Software Announces Preliminary Fourth Quarter 2006 Financial Results
MENLO PARK, Calif.--(BUSINESS WIRE)--KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel
customer service, today announced that the company expects total
revenues for the fourth quarter of 2006 will be between $14.0 million
and $14.2 million, an increase of approximately 23% year over year and
7% over the third quarter of 2006. Approximately $5.7 million is
expected to be recognized as fourth quarter license revenue, a gain of
120% over last year and 30% above the third quarter.
The Company has cash and short-term investments of approximately $5.7
million at December 31, 2006, compared to $4.6 million at September 30,
2006.
“Our business was affected by a few sizeable
license transactions that were not completed by quarter end,”
said Michael Fields, CEO of KANA. “Although we
are disappointed with not achieving our guidance, we did close a
significant million-dollar plus transaction in the fourth quarter. We
are also pleased to see sequential revenue improvement as well as
improved transaction flow with an increased number of license
transactions this quarter. It is clearly a challenge to manage the
timing of some of the larger transactions. In the future, we plan to
take a more conservative approach with respect to factoring in large
transactions.”
“Overall, we continue to believe that we are
well positioned given the strength of our products and partners, the
market opportunity and the confidence that customers have in the value
of KANA’s solutions. We are extremely pleased
with the progress we made during 2006, including re-building the sales
and sales management teams to capitalize on this opportunity in 2007,”
Fields concluded.
Conference Call
KANA will host a conference call today, Monday, January 8, 2007 at 4:30
p.m. Eastern Standard Time (EST). The conference call is available via
Web cast and can be accessed live, and after the call, at the Investor
Relations section of KANA Software's Web site at www.kana.com,
or 617-786-2960 Passcode: 9863-5322. A replay of the Webcast will
be available within 24 hours or by dialing 617-801-6888, Pin Number:
6092-1706.
KANA plans to release final results for the fourth quarter and year
ended December 31, 2006 in February, and will announce the specific date
and conference call information in the coming weeks.
All statements relating to the Company's fourth quarter financial
performance contained in this release are preliminary and may change
based on the Company's management and independent auditors completion of
customary quarterly closing and review procedures.
KANA is a world leader in multi-channel customer service. KANA's
integrated solutions allow companies to deliver consistent, managed
service across all channels, including email, chat, call centers and Web
self-service, so customers have the freedom to choose the service they
want, how and when they want it. KANA's clients report double-digit
increases in customer satisfaction, while reducing call volumes by an
average of 20%. KANA's award-winning solutions are proven in more than
600 companies worldwide, including approximately half of the world's
largest 100 companies. For more information visit www.kana.com.
Cautionary Note Regarding Forward-looking Statements Under the Private
Securities Litigation Reform Act of 1995:
Information in this release regarding KANA's forecasts, projections,
expectations, beliefs, and intentions are forward-looking statements
that involve risks and uncertainties. All forward-looking statements
included in this release are based upon information available to KANA as
of the date of this release, which may likely change, and we assume no
obligation to update any such forward-looking statement. These
statements include statements about demand for multi-channel customer
service solutions, and KANA's growth and success. These statements are
not guarantees of future performance and actual results could differ
materially from our current expectations. Factors that could cause or
contribute to such differences include, but are not limited to:
competition in our marketplace, including introductions of new products
or services, or reductions in prices, by competitors; risks associated
with lack of market acceptance of KANA's products or services; inability
to enhance and develop our products and services within budget and on
schedule; inability to attract and retain qualified employees, to manage
cash and expenditures or to expand sales; inability to manage our
business in light of recent personnel reductions; KANA's history of
losses; the effect of potential military action and terrorist
activities; and slow economic conditions, particularly as they affect
spending by our prospective customers on SRM and similar enterprise
software products. These and other factors are risks associated with our
business that may affect our operating results and are discussed in
KANA's filings with the Securities and Exchange Commission, including
our most recent annual report on Form 10-K and our quarterly reports on
Form 10-Q.
NOTE: KANA is a registered trademark of KANA Software, Inc. All other
company and product names may be trademarks of their respective owners.
