KANA Software Fourth Quarter and 2006 Year-End Financial Results to Exceed Pre-announced Range
MENLO PARK, Calif. – February 20, 2007 – KANA Software, Inc. (OTC: KANA.OB), a world leader in multi-channel customer service, today announced that 2006 revenues will be $54.0 million. KANA also expects to report fourth quarter 2006 revenues of $14.9 million, well ahead of the previously announced range of $14.0 million to $14.2 million. The Company’s unrestricted cash balance rose to $5.7 million at December 31, 2006, an increase from $4.6 million at the end of the prior quarter.
The Company will report a GAAP net loss of $1.8 million, or $(0.05) per share, for the year ended December 31, 2006 as compared to $18.0 million, or $(0.58) per share, for the year ended December 31, 2005.
KANA’s non-GAAP net income for the year ended December 31, 2006 will be $3.6 million, or $0.10 per diluted share, as compared to a net loss of $11.5 million, or $(0.37) per share, for the year ended December 31, 2005. Non-GAAP adjustments to GAAP net loss for the years ended 2005 and 2006 are calculated by adding back certain accounting charges: impairment of internal-use software of $6.3 million and $0, respectively in 2005 and 2006; stock-based compensation expense of $38,000 in 2005 and stock-based compensation measured in accordance with SFAS 123R of $2.8 million in 2006; registration rights penalty paid in common stock of $0 and $1.2 million; warrant liability (benefit) expense of ($331,000) and $774,000; and restructuring expense of $468,000 and $703,000.
KANA requires additional time to review the allocation of certain quarterly expense items within 2006. Full year 2006 results as reported above are not expected to change. The review of these items could lead to improvements in previously reported quarterly GAAP net income (loss).
“We felt it best to re-schedule today’s conference call until the fourth quarter 2006 detailed financial results can be made available,” said Michael Fields, chief executive officer of KANA. “However, we are extremely pleased with 2006 year-end results, as they reflect KANA’s improving business fundamentals. We look forward to disclosing additional details regarding our progress next week.”
KANA’s management team will host a conference call on Thursday, March 1, 2007 at 4:30 PM EST (1:30 PM PST) where they will discuss the Company’s fourth quarter and fiscal 2006 year-end financial results and financial outlook. The live webcast can be accessed by visiting the investor relations section of KANA’s website at www.kana.com.
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