Kofax makes a narrow loss as software sales continue to grow

KOFAX, the business software maker, yesterday reported an 8.8 per cent increase in revenue to $65.4m (£40.8m) during its first quarter.

The results also revealed an operating loss of $0.6m for the quarter ending 30 September, having broken even during the same period last year.

Chief executive Reynolds Bish said: “We were pleased with our performance during the first quarter, which was in line with our expectations.

“Although we remain aware of the prevailing unpredictable nature of global macroeconomic conditions, we are confident in our outlook and reaffirm our previous guidance for fiscal year 2014.”

Kofax noted a strong performance in software licensing, with revenue from this sector of the business increasing by 10.5 per cent.

August saw Kofax secure large contract wins including a software deal with a US government agency for $7.6m, boosting the group’s sales for the quarter.

“We continued to make progress in strengthening and growing our sales organization and improving our execution across all geographies and product lines,” said Bish.

Market response to the results was modest, with the firm’s share price up one per cent yesterday to close at 377p.