Kenexa Posts Quarterly Profit; Sees Improvement Ahead

Kenexa logo newTalent management vendor Kenexa eked out a small profit in the fourth quarter of last year, but still ended the year with a loss of $31.1 million.

It was an improvement over the $104.7 million loss the company posted for 2008. However, that loss included a $167 million downward adjustment for goodwill. The 2009 report includes a further $33.3 million goodwill reduction.

Without the goodwill hit and some additional minor and one-time charges, Kenexa earned $15.9 million last year on revenue of $157.7 million. That’s down from 2008 when the company earned $36.6 million on revenue of $203.7 million.

Kenexa’s numbers, released this afternoon, mirror the HR technology sector’s as a whole. Although most companies in the sector are privately held, the public ones have generally reported quarterly earnings in 2009 below those in the previous year. Most companies have also reduced the value of their goodwill.

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In releasing the quarterly and annual numbers, Kenexa CEO Rudy Karsan said, “As we enter 2010, we continue to believe that Kenexa’s financial performance will remain consistent with recent quarters as the unemployment rate approaches stability, which is currently expected to occur around the middle of the year. As this occurs, we believe that Kenexa is well positioned to begin scaling its quarterly revenue run rate.”

The company said it expects revenue in the current quarter to be in the $38 million to $40 million range, resulting in net income between $2.2 million and $2.6 million. For the year, the company expects revenue to be in the $160 million to $168 million range and income between $14.5 million to $18.5 million.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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