Kofax Says Profit Jumps After It Wins New Customers

Kofax Plc, a U.K. image-scanning software maker, said first-half profit rose tenfold after it added customers such as UBS AG and Intesa Sanpaolo SpA.

The shares climbed 21 percent, the most since December 1999. Net income for the six months ended Dec. 31 increased to $10.6 million, or 12 cents a share, from $1.1 million, or 1 cent a share, a year ago, the Basingstoke, England-based company said in a statement today. Revenue rose 20 percent to $121.7 million.

Kofax which maintains a global network of more than 700 partners, said last month it will sell its hardware business for at least $20 million. Chief Executive Officer Reynolds Bish said he plans to expand the business by buying companies. Kofax has $69 million in cash and the company will have about $100 million in cash by June this year, Bish said by telephone today.

“Any chief executive with that amount of cash would have to be punished for letting the money sit and I have no intention of going to the woodshed,” Bish said, “We are looking to grow through acquisitions and could make an announcement this year.”

The company said it expects software business revenue to grow by about 14 percent on an organic, constant currency basis during the current fiscal year. Bish said he is “very confident” Kofax will meet market forecasts of $245 million in software business revenue this fiscal year.

The shares rose 77.5 pence to 440 pence at the 4:30 p.m. close in London trading, giving the company a market value of 384 million pounds ($620 million).

To contact the reporter on this story: Renee Lawrence in London at rlawrence7@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

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