KANA Software Announces Preliminary Fourth Quarter 2006 Financial Results
Conference call to discuss results
MENLO PARK, Calif.– 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.
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