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Kronos Reports Exceptional First-Quarter Results; Workforce Management Cloud Revenue Increases 106%

Kronos Incorporated today announced financial results, company advancements, and customer successes for the first quarter of Fiscal 2013. Kronos revenue for the quarter increased 13 percent to $224.2 million. Earnings before interest, tax, depreciation and amortization (EBITDA) increased 18 percent to $66.7 million.1

“We delivered outstanding growth in our first quarter – including a 106-percent increase in workforce management cloud revenue,” said Aron Ain, Kronos chief executive officer. “Our award-winning products are ushering in a new era of innovation whereby organizations are empowered to manage in the moment. With our innovative product portfolio, fast-growing cloud business, deep vertical expertise, and unmatched global capabilities, Kronos is perfectly poised to continue to gain market share in 2013 and beyond.”

First-Quarter News Facts

  • Tremendous Kronos Cloud growth Kronos Cloud deployments represent the fastest-growing aspect of the company’s business. Kronos continues to experience a tremendous customer response to its new Workforce Ready suite in the Kronos Cloud for small and midsize businesses (SMBs), as well as its Workforce Central® suite in the Kronos Cloud for medium and large enterprise organizations. Deploying in the Kronos Cloud generates a fast return on investment and eliminates the need to invest in and manage IT infrastructure and staff. Today more than 7,000 organizations are running in the Kronos Cloud.
  • Strong contribution from international regions – International product bookings increased 53 percent year on year. The Asia-Pacific region delivered exceptional results, as continued investments in Australia, China, and India resulted in new local and multinational customer wins. Kronos further extended its reach into the Chinese market by forming a reseller agreement with Capgemini. The Latin America region, led by the Kronos operation in Mexico, continued its growth and expansion. Significant progress continued in South Africa where Kronos experienced significant new customer acquisition. Kronos solutions are used in more than 100 countries around the world.
  • Exceptional momentum in SMB sector – Small and midsize businesses are enthusiastically embracing the ease of use, affordability, and cloud capabilities of Kronos workforce management solutions as a way to stay competitive and do more with less. Kronos experienced an exceptional quarter in the SMB sector, driven in large part by an accelerated pace of adoption for its new Workforce Ready suite. Kronos is rapidly revolutionizing how SMBs manage their businesses and gain an even greater competitive advantage.
  • Delivery of innovative, next-generation products – During the quarter, Kronos delivered a series of innovative new products and enhancements which are transforming the way organizations manage their workforces:
    • Workforce Tablet– A sleek, easy-to-use tablet application that delivers real-time, location-specific workforce information to frontline managers so they can more effectively manage in the moment, Workforce Tablet is a native-built tablet solution developed specifically for the Apple iPad, providing an anytime, anyplace, instant connection to the Kronos Workforce Central suite.
    • Workforce Task ManagementWorkforce Task Management simplifies store execution by providing end-users with a streamlined approach to create, approve, execute, and verify tasks. This drives productivity by streamlining communication between corporate and stores as well as increases sales and customer satisfaction by ensuring tasks are completed on time and consistently across locations.
    • Workforce Analytics – The latest version of Kronos’ Workforce Analytics solution enables organizations to easily access and leverage their workforce data to identify, predict, and manage opportunities for cost savings and productivity gains.
    • Workforce Ready – Kronos delivered significant enhancements to its SMB cloud suite, Workforce Ready. Enhancements include compatibility with the Kronos InTouch time clock; introduction of a workforce-centric application marketplace; and additional language support.
    • TeleStaff – The latest version of the Kronos TeleStaff public safety scheduling and notification solution includes enhancements that allow deployment and support of additional technology platforms; enhanced shift-bidding statuses enabling employees to view and monitor the status of their bids for shifts; and advanced reporting features.
    • Kronos InTouch applications – Kronos partners, customers, and third-party developers can easily create and share workforce applications for the award-winning Kronos InTouch time clock. The latest applications include: developed by Axsium Group, Wayfinder helps employees easily find their way to their work location using floor plan maps; developed by The WFC Group, EnrollMe gives employees the ability to join their employer’s healthcare plan during open enrollment; and developed by Kronos, Employee Survey allows an employer to host a survey to solicit and capture employee feedback.
    • In the first quarter of Fiscal 2013, Kronos signed agreements with organizations around the world such as: Aaron’s, Inc., a national leader in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances, and accessories; ALDI Stores, A Limited Partnership, with more than 200 stores operating across New South Wales, ACT, Queensland, and Victoria, Australia; Carpenter Technology, produces and distributes specialty alloys, including stainless steels, titanium alloys and superalloys, and various engineered products; Hitachi Construction Machinery (Australia) Pty Ltd, a subsidiary of Hitachi Construction Machinery Co., Ltd (Japan), Australia’s home for sales and support of Hitachi, John Deere, and Bell construction, forestry, mining, quarry, and recycling machinery; Lafayette General Medical Center, a regional, non-profit, community-owned and -managed hospital located in Lafayette, Louisiana; North Shore-Long Island Jewish Health System, the nation’s third-largest, non-profit, secular healthcare system; Rockford Health System, includes Rockford Memorial Hospital, Rockford Health Physicians, Van Matre HealthSouth Rehabilitation Hospital, Visiting Nurses Association and the Rockford Memorial Development Foundation; Santa Clara County, a county located at the southern end of the San Francisco Bay Area in California; Sports Direct, the UK’s leading sports retailer by revenue and operating profit, and the owner of a significant number of world-famous sport, fashion, and lifestyle brands; Truman Medical Centers, a two-hospital, not-for-profit health system located in Kansas City, Mo.; Wakefern Food Corporation, the largest retailer-owned cooperative in the U.S.; and Weir SPM, a market leader in well service pumps and high pressure flow control equipment.

About Kronos Incorporated

Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organizations in more than 100 countries — including more than half of the Fortune 1000® — use Kronos to control labor costs, minimize compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications at www.kronos.com. Kronos: Workforce Innovation That Works.

© 2013 Kronos Incorporated. All rights reserved. Kronos and Workforce Central are registered trademarks and Workforce Ready, Workforce Tablet, Workforce Task Management, Workforce Analytics, TeleStaff, and InTouch are trademarks of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.

Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisitions since June 2007 and includes timing adjustments related to international product deliveries which management includes when evaluating operating results. EBITDA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring, unusual charges.

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