Kofax Plc posted a higher full-year profit even as revenue growth in the second half of the year slowed due to longer sales cycles and decision making, and the company said it expected these challenges to continue.
However, Kofax, which is working towards an initial public offering in the United States and an eventual dual listing, said it conservatively expects an 8-10 percent growth in total revenue for the current fiscal year.
We significantly overachieved in the first half of the year. However, late in the second half, the license growth was dampened by deteriorating market conditions which led to underperformance, Chief Financial Officer Jamie Arnold said in a statement.
License revenue at the company, which specialises in software used in scanning and for automating business operations such as processing invoices, fell to 48 percent of total revenue compared with 51 percent last year.
Total revenue was up 12 percent at $243.9 million.
For the fiscal year ended June 30, Kofax posted a pretax profit of $26 million, compared with $18.1 million a year ago.
Shares of the Irvine, California-based company closed at 331 pence on Friday on the London Stock Exchange.