A summary of fourth quarter earnings and M&A announcements, aggregated by HRmarketer.com, are below - the full report can be accessed (for free) at HRmarketer.com's site in the HR Marketplace Earnings section:
- Adecco ( ADO): Reported that its third-quarter net income rose 38% to 164 million euros ($209.4 million). Sales rose 11% to 5.3 billion euros after professional services operations grew sales by 15% and office and industrial operations grew sales by 10%.
- Automatic Data Processing Inc. (ADP): For the quarter ended Sept. 30, the company reported net income of $257.5 million, or 46 cents per share, versus a prior-year profit of $220 million, or 38 cents per share. Excluding a gain on the sale of a dealer services investment, the company would have earned 43 cents per share in the latest period.
- Aon Corp. (AOC): Reported that its third-quarter profit fell 13 percent from last year on a substantial charge and rising expenses. Income for the quarter was $106 million, or 32 cents per share, down from $121 million, or 36 cents per share, in the year-ago period. Revenue for the quarter was $2.17 billion, up 7 percent from $2.02 billion last year.
- Administaff Inc. (ASF): Reported its third-quarter profit increased 69 percent to 43 cents per share, above the analyst consensus estimate of 39 cents per share, as measured by a Thomson Financial poll. Revenue rose 19 percent to $338.4 million from $285.2 million a year ago.
- Gevity HR Inc. (GVHR): Reported its third-quarter earnings fell 11 percent, but came in ahead of the Wall Street consensus estimate. Quarterly earnings slid to $9.6 million, 35 cents per share, from $10.7 million, or 37 cents per share during the same period last year.
- Hewitt Associates Inc. (HEW): Reported its fiscal fourth-quarter profit fell 43 percent, as higher performance-based compensation costs cut into segment income. Net income dropped to $23 million, or 21 cents per share, from $40.5 million, or 37 cents per share, last year.
- Kenexa (KNXA): For the third quarter of 2006, Kenexa reported total revenue of $28.0 million, representing an increase of 63% over the $17.2 million recorded for the third quarter of 2005. Subscription revenue was $23.2 million for the third quarter of 2006, an increase of 73% compared to the third quarter of 2005, while professional services and other revenue was $4.8 million for the third quarter of 2006, an increase of 25% over the same period of 2005.
- Kronos Incorporated (KRON): Reported that total revenue for the fourth quarter of Fiscal 2006 increased to $165.4 million from $149.8 million for the same period a year ago. GAAP net income was $15.0 million, or $0.47 per diluted share, compared to $19.4 million, or $0.60 per diluted share for the same period a year ago.
- TALX Corporation (TALX): Reported that fiscal second-quarter earnings from continuing operations increased 14 percent to $8.1 million, or $0.25 per diluted share, from the year-ago $7.2 million, or $0.21 per diluted share. The increased earnings primarily reflected the contribution from recent acquisitions, revenue gains in The Work Number services, and ongoing emphasis on cost controls.
- Taleo Corp. (TLEO): Reported it trimmed its third-quarter loss with more customers on its client list. The company reported a net loss of $757,000, or 4 cents per share, compared with a prior-year loss of $2.5 million, or $16.74 per share. Excluding restructuring costs, stock-based compensation and other special items, Taleo said it earned 4 cents per share in this year's quarter, up from a penny in similar comparisons to the year-ago period.
- Ultimate Software (ULTI): Announced financial results for its third quarter of 2006. For the quarter ended September 30, 2006, the Company reported $28.8 million in total revenues, a 30% increase compared with the third quarter of 2005. Recurring revenues increased 27% to $16.5 million. GAAP net income for the third quarter of 2006 was $1.3 million, or $0.05 per diluted share, versus GAAP net income of $0.7 million, or $0.03 per diluted share for the third quarter of 2005.
- Workbrain Corporation (WB): Reported Canadian GAAP financial results for the third quarter and nine months ended September 30, 2006. Workbrain reported third quarter revenue of $24.2 million compared with $21.9 million for the third quarter of 2005, an increase of 11.0%, and compared with $22.4 million for the second quarter of 2006, an increase of 8.1%.
- Workstream Inc. (WSTM): Announced its fiscal 2007 first quarter results for the period ended August 31, 2006. All figures are in U.S. dollars. Total revenue for the first quarter was $6,927,000 compared to $6,342,000 in the prior year's comparable period, an increase of $585,000 or 9%. EBITDA loss for the first quarter of fiscal 2007 was $(1,272,000), or $(.02) per share, compared to an EBITDA loss of $(1,974,000), or $(.04) per share, in the first quarter of fiscal 2006. The Company's net loss for the quarter ended August 31, 2006 was $(2,890,000), or $(0.06) per share, compared to a net loss of $(3,838,000), or $(0.08) per share, in last year's comparable quarter.
Previous Quarter’s M&A Activity:
- ADP® Employer Services (ES), a division of Automatic Data Processing, Inc. (NYSE:ADP - News), a leading provider of outsourced payroll, benefits and HR services, today completed the acquisition of VirtualEdge Corporation, an innovator in the field of recruiting and talent lifecycle management solutions for HR organizations. The acquisition of VirtualEdge significantly expands ADP's Pre-Employment Services suite by providing expert professional recruiting solutions for mid-market, large and global organizations.
- Capital H Group, a rapidly expanding consulting firm headquartered in Chicago, has acquired Lambert & Associates, Inc., a Chicago-based diversity and inclusion consulting firm founded in 1986. Capital H Group, established three years ago, recently closed another round of private equity funding and is building a national consulting firm through acquisitions and organic growth to help companies create more value—through their people—for better business results.
- Ceridian Corporation (NYSE:CEN) today announced that it has acquired Ann Arbor, Mich.-based Leade Health, a leading health coaching firm specializing in the areas of weight management, stress management, tobacco cessation, and cardiovascular health.
- Harcourt Assessment, Inc. , a leading test publisher, announced today that it has acquired Edformation, Inc., a privately held company offering its AIMSweb product to education customers. AIMSweb is a research-based screening and progress monitoring tool for use by special education teachers, curriculum specialists and school psychologists as part of a Response to Intervention (RtI) solution.
- Kenexa Corporation will buy BrassRing for approximately $155 million to expand its recruitment software and services offerings. Kenexa, formerly TalentPoint, reportedly has more than 2,000 customers. BrassRing's recruiting solutions are used by companies in the aerospace, financial services, health care, and medical technology industries. Associated Press, October 6, 2006.
- Mercer Human Resource Consulting has acquired HRPartnering Pty Ltd (HRP), a specialist talent management business in Australia. Based in Melbourne, HRP has 15 human resource and software professionals.
- Ultimate Software (ULTI), a leading provider of end-to-end strategic human resources, payroll, and talent management solutions, announced today its acquisition of R.T.I.X. Limited, a United Kingdom company, and its wholly owned subsidiary R.T.I.X. Americas, Inc. (RTIX) The acquisition of RTIX expands the performance management and competency-based talent management feature-sets that Ultimate Software can provide midsized and large businesses in the United States and globally.
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