Kofax Announces a Trading Update for Its Financial Year Ended June 30, 2010

Software Business Continues to Exceed Expectations

Restructuring of Hardware Business Results in an Exceptional Charge

IRVINE, Calif.--(BUSINESS WIRE)--Kofax plc (LSE: KFX), the leading provider of document driven business process automation solutions, today announces an unaudited trading update for its financial year ended June 30, 2010.

The Company’s software business ended the year positively and ahead of expectations due to strong license and service revenues, resulting in total revenues for this business in the range of $213 to $215 million. Sales execution and achievement levels across all segments of the business continued to improve as or better than expected and the Company continued to make good progress with its strategic initiatives.

The Company’s hardware business revenues declined year over year as expected due to continuing competitive pressures and adverse market conditions, resulting in total revenues for this business in the range of $125 to $127 million.

Earnings in the hardware business declined more than expected as a result of deteriorating product margins but this decline was more than offset by the over performance in the software business. As a result, the Company’s total earnings for the year are anticipated to exceed expectations.

Due to these developments, the Company today announces an exceptional charge of up to $2.5 million to be recorded in the financial year ended June 30, 2010 to restructure the hardware business’ sales, service and administrative functions. These changes will lead to more than 20 redundancies in those areas but allow the Company to better manage and realize operational efficiencies in those functions. This should result in annual savings of $1.5 million and better position the business for both improved operating results and value.

There have been no adverse changes in the Company’s financial position since December 31, 2009, its cash generation has exceeded expectations and its balance sheet remains strong, with approximately $55 million of cash at June 30, 2010.

Commenting on today’s announcement, Reynolds C. Bish, Chief Executive Officer, said: “We’re pleased to see the strategic initiatives implemented in our software business now leading to strong operating results and a substantial cash position. However, we’re disappointed with the hardware business’ results and this has led us to take corrective action in order to attempt to improve its performance, particularly as the Board and management continue to assess its long term strategic value. We look forward to announcing our final, audited results and increasingly confident outlook for our software business on September 6, 2010.”

About Kofax

Kofax plc (LSE: KFX) is the leading provider of document driven business process automation solutions. For more than 20 years, Kofax has provided award winning solutions that streamline the flow of information throughout an organization by managing the capture, transformation and exchange of business critical information arising in paper, fax and electronic formats in a more accurate, timely and cost effective manner. These solutions provide a rapid return on investment to thousands of customers in financial services, government, business process outsourcing, healthcare, supply chain and other markets. Kofax delivers these solutions through its own sales and service organizations, and a global network of more than 700 authorized partners in more than 60 countries throughout the Americas, EMEA and Asia Pacific. For more information, visit www.kofax.com.

“Kofax” is a registered trademark in the US, the EU and other regions. All other trademarks and registered trademarks are the property of their respective owners.