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Concur Technologies Inc. Reports Operating Results (10-Q)

May 08, 2012 | About:
10qk

10qk

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Concur Technologies Inc. (CNQR) filed Quarterly Report for the period ended 2012-03-31.

Concur Tech Inc has a market cap of $3.09 billion; its shares were traded at around $61.95 with a P/E ratio of 111.1 and P/S ratio of 8.8. Concur Tech Inc had an annual average earning growth of 14% over the past 5 years.

Highlight of Business Operations:

International Revenues. Revenues from customers outside the United States represented 16% of total revenues for the three and six months ended March 31, 2012, compared to 14% and 13% for the same periods in the prior year. We expect our

Sales and marketing expenses as a percentage of total revenues decreased to 38.6% for the three months ended March 31, 2012, compared to 45.0% for the same period in the prior year. Sales and marketing expenses increased by 10.0%, or $3.8 million, for the three months ended March 31, 2012, compared to the same period in the prior year. The growth in absolute dollars was primarily due to an increase in personnel costs and related expenses of $2.7 million, offset by a decrease of $1.8 million in contingent consideration associated with the TripIt Acquisition that is subject to service requirements (see Note 12 to the consolidated financial statements). Additionally, customer acquisition costs and amortization of those costs increased by $1.9 million and advertising costs increased by $0.7 million. Overall increases were primarily due to a headcount increase of approximately 30% to add new customers and increase penetration within our existing customer base.

General and administrative expenses as a percentage of total revenues decreased to 15.3% for the three months ended March 31, 2012, compared to 16.7% for the same period in the prior year. General and administrative expenses increased by 17.2%, or $2.4 million, for the three months ended March 31, 2012, compared to the same period in the prior year. The growth in absolute dollars was primarily due to an increase of $3.2 million in personnel costs and related expenses and an increase in allocated overhead and infrastructure costs of $0.9 million, offset by a decrease of $2.2 million in professional fees mainly attributable to the timing of acquisitions, litigation and other related costs. The increases in personnel related expenses were primarily the result of a headcount increase of approximately 20% to support our growth and other general and administrative costs.

Systems development and programming costs as a percentage of total revenues decreased to 9.5% for the six months ended March 31, 2012, compared to 10.5% for the same period in the prior year. Systems development and programming costs increased by 14.6%, or $2.5 million, for the six months ended March 31, 2012, compared to the same period in the prior year. The growth in absolute dollars was primarily due to an increase in personnel costs and related expenses of $0.8 million and an increase of $1.7 million in allocated overhead and infrastructure costs. These increases were primarily due to an increase in depreciation costs as we upgrade and extend our service offerings and develop new technologies.

Our operating cash inflows consist of payments received from our customers related to our subscription and other product offerings. Our operating cash outflows consist of payments of compensation to employees, payments to vendors directly related to our services, related sales and marketing and administrative costs, costs of operations and systems development and programming costs. The changes in operating cash flows are also impacted by the non-cash expense items such as depreciation, amortization and expense associated with stock-based compensation awards and revaluation of contingent considerations. Net cash provided by operating activities was $25.1 million for the three months ended March 31, 2012, compared to $16.0 million for the same period in the prior year. Net cash provided by operating activities for the six months ended March 31, 2012 was $31.5 million compared to $26.9 million for the same period in 2011.

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