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Concur Loss from Triplt Effect

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Concur Technologies released its fourth-quarter and fiscal 2011 earnings results, reporting fourth-quarter loss per share from continuing operations of 26 cents, below the Zacks Consensus Estimate of earnings per share of 16 cents.  Prior-year earnings from continuing operation were 6 cents. The decrease in earnings in the quarter was attributable to the accounting impacts of acquisition of TripIt in January 2011.

For fiscal 2011, net loss per share was 20 cents, below the Zacks Consensus Estimate of 43 cents and prior-year earnings per share of 38 cents.


Total revenue was $95.2 million in the fourth quarter, an increase of 23% year over year. The revenue growth in the quarter was above the expectations of the company. A substantial portion of revenue was generated by the company from new customers, driven by an improved demand.

Total revenue was $349.5 million for fiscal 2011, up 19% year over year. During the year, the company added substantial number of new customers based on good demand.

Income and Expenses

Non-GAAP operating margin was 24% in the reported quarter compared with 23% in the prior-year quarter. Operating income was $0.9 million compared with $9.2 million in the prior-year quarter. Sales and marketing expense was $38.9 million compared with $27.9 million and general and administration expense was $13.3 million compared with $10.6 million in prior-year quarter.

Balance Sheet and Cash Flow

Cash and cash equivalents were $370.2 million at the end of the year with total equity of $699.8 million. Cash flow from operations was $33.7 million for the fourth quarter of fiscal 2011.


The company expects total revenue to grow by 23% year over year in the fourth quarter of fiscal 2012. For fiscal 2012, total revenue growth is expected to be approximately 25% year over year from fiscal 2010. 

Concur expects non-GAAP pre-tax income per share to be 29 cents in the first quarter of fiscal 2012 and $1.25 in fiscal 2012.

The company continues to invest in expanding its distribution capacity to drive customer growth while boosting its business performance. Concur expects cash flows from operations in fiscal 2012 to be in the range of $80 million to $84 million, excluding acquisition and other related costs. Capital expenditure is expected to be between $38 million to $42 million.

Concur Technologies is a provider of business services that automate the processes involved in the management of corporate expense. Concur focuses on reducing costly and inefficient expense processes in businesses of all sizes, by streamlining the reimbursement processes, reducing operating costs, improving internal controls while enabling customers to apply greater insight into their spending patterns through analytics. Major competitors of Concur are Compuware Corporation , Oracle Corp. (ORCL - Free Report) and SAP AG (SAP - Free Report) .

We have a Zacks #3 Rank (Hold recommendation) on Concur Technologies over the next one-to-three months.

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