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KFX Kofax

735.00
0.00 (0.00%)
19 Jul 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Kofax LSE:KFX London Ordinary Share BMG5307C1055 COM USD0.001 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 735.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Kofax Voluntarily Changes from IFRS to U.S. GAAP Financial Reporting as of July 1, 2014

21/08/2014 1:30pm

Business Wire


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Company Publishes Historical U.S. GAAP Financial Statements for Reference Purposes

Kofax Limited (NASDAQ: KFX)(LSE: KFX), a leading provider of smart process applications for the business critical First Mile™ of customer interactions, today announced that the Company has voluntarily changed the basis of preparation of the Company’s financial statements from International Financial Reporting Standards (“IFRS”) to United States Generally Accepted Accounting Principles (“GAAP”) effective as of July 1, 2014, the beginning of its fiscal year 2015.

Jamie Arnold, Chief Financial Officer, said: "The majority of our shares are now owned by U.S. investors and most of the trading volume in our shares is now on NASDAQ. As a result, the Company has chosen to change from IFRS to GAAP financial reporting as of July 1, 2014, and all of fiscal year 2015 and subsequent fiscal year financial statements published, filed or furnished to the SEC and UKLA will be prepared on a GAAP basis. We have attached unaudited quarterly financial statements prepared in accordance with GAAP for the seven quarter period from July 1, 2012 through March 31, 2014 for reference purposes.”

Arnold continued: “After converting the basis of preparation of the Company’s financial statements to GAAP, we have concluded and are able to report that the differences in reporting income statement financial measures on GAAP rather than IFRS and Non-GAAP rather than Non-IFRS are not material to the periods presented below. The differences in balance sheet financial measures are largely reclassifications and related to the amortization of goodwill arising from acquisitions made in prior periods. The tables below show the nominal and percentage difference between the IFRS and GAAP and Non-IFRS and Non-GAAP financial measures for Software License Revenue, Total Revenues and Adjusted EBITDA:”

                Non- IFRS vs. Non-GAAP For the Fiscal Year Ended June 30, 2013 For the Nine Months Ended March 31, 2014

 

Non-

   

Non-

   

$

   

%

Non-

   

Non-

    $   %

($ In millions, except for %)

IFRS

   

GAAP

   

Change

   

Change

IFRS

   

GAAP

    Change     Change Software License Revenue $ 112.4     $ 112.0     $ (0.4 )     (0.4 )% $ 88.1     $ 88.2     $ 0.1     0.1 % Total Revenues $ 266.7     $ 266.5     $ (0.2 )     (0.1 )% $ 216.8     $ 217.1     $ 0.3     0.1 % Adjusted EBITDA     $ 46.3     $ 46.6     $ 0.3       0.6 % $ 28.7     $ 28.9     $ 0.1     0.5 %    

IFRS vs. GAAP

For the Fiscal Year Ended June 30, 2013 For the Nine Months Ended March 31, 2014

 

$

%

$

%

($ In millions, except for %)

IFRS     GAAP    

Change

   

Change

        IFRS     GAAP     Change  

Change

Software License Revenue $ 112.2     $ 111.8     $ (0.4 )     (0.4 )%         $ 83.0     $ 83.1     $ 0.1     0.1 % Total Revenues $ 266.3     $ 266.1     $ (0.2 )     (0.1 )%         $ 210.2     $ 210.5     $ 0.3     0.1 % Income from Operations     $ 25.0     $ 25.1     $ 0.1       0.4 %         $ 4.1     $ 4.2     $ 0.1     2.5 %  

On September 2, 2014, when the Company publishes its last IFRS audited financial statements for the fiscal year ended June 30, 2014, it will also provide GAAP financial statements and Non-GAAP financial measures and supplemental reconciliations for the quarter ended June 30, 2014.

About Kofax

Kofax Limited is a leading provider of smart process applications for the business critical First Mile of customer interactions. These begin with an organization’s systems of engagement, which generate real time, information intensive communications from customers, and provide an essential connection to their systems of record, which are typically large scale, rigid enterprise applications and repositories not easily adapted to more contemporary technology. Success in the First Mile can dramatically improve an organization’s customer experience and greatly reduce operating costs, thus driving increased competitiveness, growth and profitability. Kofax software and solutions provide a rapid return on investment to more than 20,000 customers in financial services, insurance, government, healthcare, business process outsourcing and other markets. Kofax delivers these through its own sales and service organization, and a global network of more than 800 authorized partners in more than 75 countries throughout the Americas, EMEA and Asia Pacific. For more information, visit kofax.com.

Non-IFRS and Non-GAAP Financial Measures

Management uses financial measures, both IFRS and Non-IFRS and GAAP and Non-GAAP, in analyzing and assessing the overall performance of the business and making operational decisions. We have provided and believe that the Non-IFRS and Non-GAAP financial measures and supplemental reconciliation to IFRS and GAAP financial measures are useful to investors and other users of our financial statements because the Non-IFRS and Non-GAAP financial measures may be used as additional tools to compare our performance across peer companies, periods and financial markets. Please refer to the Discussion of Non-GAAP Measures in this press release for a discussion of the Non-GAAP financial measures and their reconciliation to GAAP financial measures for the seven quarter period from July 1, 2012 through March 31, 2014 and for more supplemental information regarding the non-IFRS measures.

© 2014 Kofax Limited. Kofax is a registered trademark and First Mile is a trademark of Kofax Limited. All other registered trademarks are the property of their respective owners

Source: RNSKofax

 

Kofax Limited

Unaudited Condensed Consolidated Balance Sheets ($ in thousands)       Q1-2013     Q2-2013     Q3-2013     Q4-2013     Q1-2014     Q2-2014     Q3-2014 Assets Current assets: Cash and cash equivalents 90,282 87,031 86,806 93,413 71,999 81,233 93,051 Accounts receivable, net 47,549 48,438 51,116 60,929 43,994 60,486 51,398 Other current assets 13,352 13,993 11,601 10,457 12,802 10,762 9,103 Income tax receivable 3,721 3,525 2,614 2,024 1,474 1,179 2,706 Deferred tax assets 1,313   1,238   1,442   3,670   4,425   6,650   5,955   Total current assets 156,217 154,225 153,579 170,493 134,694 160,310 162,213   Property and equipment, net 9,078 9,254 8,281 7,774 7,572 7,222 6,483 Goodwill 145,770 145,846 160,362 155,203 194,036 188,829 189,598 Acquired intangible assets, net 25,704 24,081 21,641 26,839 42,271 40,153 38,038 Deferred tax assets, net of current portion 667 629 733 1,607 3,088 2,413 1,872 Other non-current assets 5,227   4,821   3,998   3,672   3,511   3,469   4,287   Total Assets 342,663   338,856   348,594   365,588   385,172   402,396   402,491     Liabilities and shareholders’ equity Current liabilities: Accounts payable and accrued expenses 33,964 30,587 39,626 36,845 37,812 36,792 36,623 Deferred revenue 56,709 57,282 62,164 63,302 64,297 72,718 77,545 Income taxes payable 1,927 1,485 539 1,592 1,845 1,363 122 Deferred tax liabilities 168 162 124 261 1,675 1,797 1,463 Contingent consideration 5,594   6,283   7,275   6,334   9,552   7,977   4,680   Total current liabilities 98,362 95,799 109,728 108,334 115,181 120,647 120,433   Minimum pension liability 2,236 2,185 2,051 3,018 3,298 3,211 3,233 Deferred revenue, net of current portion 4,834 4,586 4,480 5,095 7,468 7,657 7,854 Deferred tax liabilities, net of current portion 5,131 4,940 3,794 7,993 7,848 6,938 6,258 Contingent consideration, net of current portion 5,423 2,997 2,676 2,334 7,090 6,101 4,184 Other non-current liabilities 9,984   9,158   8,010   8,622   9,353   9,796   9,857   Total liabilities 125,970   119,665   130,739   135,396   150,238   154,350   151,819     Shareholders’ equity: Common Stock 95 95 95 95 95 97 97 Additional paid in capital 42,974 44,105 44,177 42,045 42,840 56,744 58,376 Employee benefit shares (17,371 ) (18,340 ) (18,340 ) (15,295 ) (14,929 ) (15,713 ) (15,417 ) Treasury shares (15,980 ) (15,980 ) (15,980 ) (15,980 ) (15,980 ) (15,980 ) (15,980 ) Retained earnings 184,893 185,142 184,791 195,664 198,386 199,861 200,488 Accumulated other comprehensive income 22,082   24,169   23,112   23,663   24,522   23,037   23,108   Total shareholders’ equity 216,693   219,191   217,855   230,192   234,934   248,046   250,672     Total liabilities and shareholders’ equity 342,663   338,856   348,594   365,588   385,172   402,396   402,491       Kofax Limited Unaudited Condensed Consolidated Statements of Income ($ in thousands, except per share amounts)                             Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Revenue: Software license 22,132 25,017 26,254 38,411 24,560 30,385 28,137 Maintenance services 29,908 30,835 30,011 31,190 32,150 33,556 32,584 Professional services 8,127   7,883   7,933   8,396   8,871   10,173   10,052   Total revenue 60,167   63,735   64,198   77,997   65,581   74,114   70,773     Cost of Revenue: Cost of software licenses 2,431 2,295 2,576 3,386 2,656 3,029 1,955 Cost of maintenance services 4,226 4,537 4,753 4,678 4,807 5,079 5,218 Cost of professional services 6,925 7,205 7,182 7,031 7,629 8,218 8,129 Amortization of intangible assets 1,155   1,155   1,128   1,295   1,464   1,447   1,275   Total cost of revenue 14,737 15,192 15,639 16,390 16,556 17,773 16,577               Gross Profit 45,430 48,543 48,559 61,607 49,025 56,341 54,196   Operating Expenses:

Research and development

8,471 8,433 9,010 8,772 9,077 9,951 10,318 Sales and marketing 24,485 23,720 24,565 25,545 27,933 30,502 31,418 General and administrative 9,328 9,907 9,082 8,719 9,439 9,695 10,428 Amortization of intangible assets 452 464 459 600 760 893 889 Acquisition-related costs 1,438 1,505 1,600 139 2,104 (2,208 ) 504 Other operating expenses, net 1,179   678   417   121   311   2,923   404   Total operating expenses 45,353   44,707   45,133   43,896   49,624   51,756   53,961     Income/(loss) from operations 77 3,836 3,426 17,711 (599 ) 4,585 235   Interest (expense) income, net (102 ) (96 ) (99 ) (625 ) (110 ) (244 ) (153 ) Other (expense) income, net (42 ) (1,561 ) (2,718 ) (1,602 ) 4,161   (211 ) 1,495     Income/(loss), before tax (67 ) 2,179 609 15,484 3,452 4,130 1,577   Income tax expense 411   1,929   960   4,612   730   2,655   951     Net income/(loss) (478 ) 250   (351 ) 10,872   2,722   1,475   626     Net income/(loss) per share: Basic (0.01 ) 0.00   (0.00 ) 0.13   0.03   0.02   0.01   Diluted (0.01 ) 0.00   (0.00 ) 0.12   0.03   0.02   0.01       Kofax Limited Unaudited Condensed Consolidated Statements of Cash Flows ($ in thousands)       Q1-2013     Q2-2013     Q3-2013     Q4-2013     Q1-2014     Q2-2014     Q3-2014 Cash flows from operating activities: Net income/(loss) (478 ) 250   (351 ) 10,872   2,722   1,475   626     Adjustments to reconcile profit before tax to net cash flow from operating activities: Depreciation and amortization 3,233 3,126 3,127 3,386 3,635 3,652 3,530 Share-based compensation expense 362 829 (294 ) 496 749 1,117 1,387 Other (expense) income 42 1,561 2,718 1,602 (4,161 ) 211 (1,495 ) Restructuring payments (840 ) (27 ) 6 (2 ) (100 ) (488 ) − Changes in operating assets and

liabilities:

Accounts receivable, net 12,648 (1,098 ) (3,354 ) (9,577 ) 20,173 (16,666 ) 9,678 Other assets (976 ) (621 ) 3,191 (854 ) (1,184 ) 2,108 1,011 Accounts and other payables (1,934 ) (3,809 ) 8,746 (2,950 ) (8,101 ) 2,592 163 Deferred revenue (2,899 ) 83 4,942 1,880 1,345 8,456 4,647 Other liabilities 922 1,015 (3,506 ) (617 ) 1,263 (2,026 ) (961 ) Deferred income taxes (1,513 ) (13 ) (1,492 ) 1,235 326 (1,277 ) 222 Income taxes payable (382 ) (928 ) (189 ) 1,717   1,515   282   (2,710 ) Net cash inflow from operating activities 8,185   368   13,544   7,188   18,182   (564 ) 16,098     Cash flows from investing activities: Purchase of property and equipment (588 ) (645 ) (552 ) (1,265 ) (1,070 ) (1,107 ) (599 ) Acquisition of subsidiaries, net of cash acquired (1,402 ) (3,097 ) (12,105 ) (155 ) (40,141 ) (944 ) (4,302 ) Proceeds from sale of discontinued operations − 600 3 − − − − Interest received 46   61   23   1   29   40   8   Net cash outflow from investing activities (1,944 ) (3,081 ) (12,631 ) (1,419 ) (41,182 ) (2,011 ) (4,893 )   Cash flows from financing activities: Issue of common stock 1,542 242 195 (65 ) 94 231 196 Proceeds from US initial public offering − − − − − 12,366 − Excess tax benefits from share based compensation 327 59 219 35 88 120 − Purchases of and proceeds from EBT shares 16   (969 ) −   756   230   (711 ) 346   Net cash inflow from financing activities 1,885   (668 ) 414   726   412   12,006   542     Effect of exchange rate changes on cash and cash equivalents 1,034   130   (1,552 ) 112   1,174   (197 ) 71   Net increase/(decrease) in cash and cash equivalents 9,160 (3,251 ) (225 ) 6,607 (21,414 ) 9,234 11,818   Cash and cash equivalents at the beginning of the year 81,122   90,282   87,031   86,806   93,413   71,999   81,233   Cash and cash equivalents at the end of the year 90,282   87,031   86,806   93,413   71,999   81,233   93,051     Supplemental Disclosure: Cash paid for income taxes (1,851 ) (2,927 ) (2,385 ) (3,586 ) (1,302 ) (3,568 ) (3,577 ) Cash paid for interest (51 ) (170 ) (162 ) 38   (137 ) (138 ) (162 )  

Discussion of Non-GAAP Measures

Management uses financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business and for making operational decisions. We have provided and believe that the non-GAAP financial measures and supplemental reconciliation to GAAP financial measures are useful to investors and other users of our financial statements because the non-GAAP financial measures may be used as additional tools to compare business performance across peer companies, periods and financial markets.

While we use non-GAAP measures as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that these non-GAAP measures are a substitute for, or are superior to, the information provided by GAAP results. As such, the presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The primary limitations associated with the use of non-GAAP measures as compared to GAAP results are that non-GAAP measures may not be comparable to similarly titled measures used by other companies in our industry and that non-GAAP measures may exclude financial information that some investors may consider important in evaluating our performance. We compensate for these limitations by providing disclosure of the differences between non-GAAP measures and GAAP results, including providing a reconciliation of each non-GAAP measure to GAAP results, to enable investors to perform their own analysis of our operating results.

Adjusted Revenue - We defined adjusted revenue as revenue, as reported under GAAP, increased to include revenue that is associated with our historic acquisitions that has been excluded from reported results for a limited period due to the effects of purchase accounting. In accordance with GAAP purchase accounting, an acquired company’s deferred revenue at the date of acquisition is subject to a fair value adjustment which generally reduces the deferred amount and revenues recognized subsequent to an acquisition. We include non-GAAP revenue to allow for more complete comparisons to the financial results of our historical operations, forward-looking guidance and the financial results of peer companies. We believe these adjustments are useful to management and investors as a measure of the ongoing performance of the business. Additionally, although acquisition-related revenue adjustments are non-recurring, we may incur similar adjustments in connection with future acquisitions.

Adjusted Income from Operations - We define non-GAAP income from operations as income/(loss) from operations, as reported under GAAP, excluding the effect of Acquisition fair value adjustment to revenue, Share-based compensation expense, Depreciation expense, Amortization of acquired intangible assets, Acquisition-related costs, Other operating expense, net. Share-based compensation expense; depreciation expense and amortization of acquired intangible assets in our non-GAAP income from operations reconciliation represent non-cash charges which are not considered by management in evaluating our operating performance. Acquisition-related costs consist of: (i) costs directly attributable to our acquisition strategy and the evaluation, consummation and integration of our acquisitions (composed substantially of professional services fees including legal, accounting and other consultants and to a lesser degree to our personnel whose responsibilities are devoted to acquisition activities), and (ii) transition compensation costs (composed substantially of contingent payments for shares that are treated as compensation expense and retention payments that are anticipated to become payable to employees, as well as severance payments to employees whose positions were made redundant). These acquisition-related costs are not considered to be related to the continuing operations of the acquired businesses and are generally not relevant to assessing or estimating the long-term performance of the acquired assets. Other operating expense, net represents items that are not necessarily related to our recurring operations and which therefore are not, under GAAP, included in other expense lines. Accordingly, we exclude those amounts when assessing non-GAAP income from operations. At times when we are communicating with our shareholders, analysts and other parties we refer to non-GAAP income from operations as adjusted EBITDA.

We assess non-GAAP income from operations as a percentage of total non-GAAP revenue and by doing so; we are able to evaluate our relative performance of our revenue growth compared to the expense growth for those items included in non-GAAP income from operations. This measure allows management and our Board of Directors to compare our performance against that of other companies in our industry that may be of different sizes.

Adjusted Cash Flows from Operations - We define adjusted cash flows from operations as net cash inflows from operating activities, as reported under GAAP, adjusted for income taxes paid and payments under restructurings. Income tax payments paid is included in this reconciliation as the timing of cash payments and receipts can vary significantly from year-to-year based on a number of factors, including the influence of acquisitions on our consolidated tax attributes. Payments for restructurings relate to a specific activity that is not part of ongoing operations.

Adjusted diluted earnings per share - Adjusted diluted earnings per share is calculated using GAAP net income/(loss) excluding the effect of Acquisition fair value adjustment to revenue, Share-based compensation expense, Amortization of intangible assets, Acquisition-related costs, Net interest, Other income and expense, and the related tax effect, divided by fully diluted shares outstanding. Therefore, we include this non-GAAP measure in order to provide a more complete comparison of our earnings per share from one period to another.

 

Kofax Limited

Non-GAAP Measures ($ in thousands)   Acquisition Fair Value Adjustments to Revenue                             Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Adjusted software licenses: Software licenses 22,132 25,017 26,254 38,411 24,560 30,385 28,137 Acquisition fair value adjustment 43 42 39   32 1,515   2,187   1,400   Total adjusted software licenses 22,175 25,059 26,293   38,443 26,075   32,572   29,537     Adjusted maintenance services: Maintenance services 29,908 30,835 30,011 31,190 32,150 33,556 32,584 Acquisition fair value adjustment − 112 21   72 307   297   197   Total adjusted maintenance services 29,908 30,947 30,032   31,262 32,457   33,853   32,781     Adjusted professional services: Professional services 8,127 7,883 7,933 8,396 8,871 10,173 10,052 Acquisition fair value adjustment − − −   − 314   516   (136 ) Total adjusted professional services 8,127 7,883 7,933   8,396 9,185   10,689   9,916     Total adjusted revenue: Total revenue 60,167 63,735 64,198 77,997 65,581 74,114 70,773 Acquisition fair value adjustment 43 154 60   104 2,136   3,000   1,461   Total adjusted revenue 60,210 63,889 64,258   78,101 67,717   77,114   72,234       Adjusted Income from Operations   Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Income from operations 77 3,836 3,426 17,711 (599 ) 4,585 235 Acquisition fair value adjustment to revenue 43 154 60 104 2,136 3,000 1,461 Share-based compensation expense 362 829 (294 ) 496 749 1,117 1,387 Depreciation expense 1,583 1,465 1,501 1,460 1,383 1,288 1,349 Amortization of intangible assets 1,607 1,619 1,587 1,895 2,224 2,340 2,164 Acquisition-related costs 1,438 1,505 1,600 139 2,104 (2,208 ) 504 Other operating expenses, net 1,179 678 417   121 311   2,923   404   Adjusted income from operations 6,289 10,086 8,297   21,926 8,308   13,045   7,504      

Kofax Limited

Non-GAAP Measures ($ in thousands, except per share amounts)   Adjusted Diluted Earnings per Share                             Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Net income (loss) (478 ) 250 (351 ) 10,872 2,722 1,475 626 Acquisition fair value adjustment to revenue 43 154 60 104 2,136 3,000 1,461 Share-based compensation expense 362 829 (294 ) 496 749 1,117 1,387 Amortization of intangible assets 1,607 1,619 1,587 1,895 2,224 2,340 2,164 Acquisition-related costs 1,438 1,505 1,600 139 2,104 (2,208 ) 504 Net interest, other income and expense, net 1,323 2,335 3,234 2,348 (3,740 ) 3,378 (938 ) Tax effect of above adjustments (753 ) (1,126 ) (990 ) (1,431 ) (2,116 ) (1,721 ) (391 ) Adjusted net income 3,542   5,566   4,846   14,423   4,079   7,381   4,813   Adjusted diluted earnings per share 0.04   0.06   0.05   0.16   0.04   0.08   0.05      

Reconciliation of Adjusted Cash Flows from Operations

  Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Cash inflows/(outflows) from operations 8,185 368 13,544 7,188 18,182 (564 ) 16,098 Cash paid for income taxes, net 1,851 2,927 2,385 3,586 1,302 3,568 3,577 Payments under restructuring 840   27   (6 ) 2   100   488   −   Adjusted cash inflows/ (outflows) from operations 10,876   3,322   15,923   10,776   19,584   3,492   19,675      

Income Statements – Non-GAAP

  Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Adjusted revenue: Software licenses 22,175 25,059 26,293 38,443 26,075 32,572 29,537 Maintenance services 29,908 30,947 30,032 31,262 32,457 33,853 32,781 Professional services 8,127   7,883   7,933   8,396   9,185   10,689   9,916   Total revenue 60,210   63,889   64,258   78,101   67,717   77,114   72,234     Cost of software licenses* 2,413 2,279 2,560 3,371 2,642 3,021 1,950 Cost of maintenance services* 4,072 4,397 4,611 4,524 4,663 4,945 5,080 Cost of professional services* 6,631 6,945 6,928 6,763 7,384 8,009 7,920 Research and development* 7,976 7,902 8,487 8,371 8,527 9,342 9,617 Sales and marketing* 23,936 22,974 24,374 24,707 27,153 29,543 30,282 General and administrative* 8,893   9,306   9,001   8,439   9,040   9,209   9,881   Total operating expenses* 53,921   53,803   55,961   56,175   59,409   64,069   64,730     Adjusted income from operations 6,289   10,086   8,297   21,926   8,308   13,045   7,504     * Excludes depreciation, amortization, and share-based compensation expense   Kofax Limited Supplemental Schedules ($ in thousands)   Depreciation Expense       Q1-2013     Q2-2013     Q3-2013     Q4-2013     Q1-2014     Q2-2014     Q3-2014 Cost of software licenses 18 16 16 15 14 8 5 Cost of maintenance services 154 140 142 140 130 117 121 Cost of professional services 293 260 253 242 220 193 193 Research and development 419 402 425 430 410 399 423 Sales and marketing 462 423 440 420 410 392 425 General and administrative 237 224 225   213   199 179 182 Total depreciation expense 1,583 1,465 1,501   1,460   1,383 1,288 1,349   Share-Based Compensation Expense   Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Cost of software licenses − − − − − − − Cost of maintenance services − − − 14 14 17 17 Cost of professional services 1 − 1 26 25 16 16 Research and development 76 129 98 (29 ) 140 210 278 Sales and marketing 87 323 (249 ) 418 370 567 711 General and administrative 198 377 (144 ) 67   200 307 365 Total share-based compensation expense 362 829 (294 ) 496   749 1,117 1,387  

Media Contact:Kofax LimitedColleen EdwardsVice President, Corporate Communications+1-949-783-1582colleen.edwards@kofax.comorInvestor Contacts:MKR Group Inc.Todd Kehrli, +1-323-468-2300kfx@mkr-group.comorFTI ConsultingSophie McMillan, +44 (0) 20 7831 3113kofax@fticonsulting.com

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