Kofax Announces Preliminary Results for its Financial Year Ended June 30, 2010

IRVINE, CA, SEPTEMBER 6, 2010 – Kofax plc (LSE: KFX), the leading provider of document driven business process automation solutions, today announced its preliminary unaudited results for its financial year ended June 30, 2010.

The Company’s results are consistent with the trading update issued on July 26, 2010. Kofax showed significant progress in its software business, with sales execution levels across all segments continuing to improve and again reflecting the early benefits of the strategic initiatives started in February of 2008. These more than offset disappointing results in its hardware business.

Financial Highlights:

• Software business revenues grew 27.4% to $215.8m (2009: $169.4m), driven by strong license and service sales
• Software business adjusted* earnings before interest, taxes and amortisation (EBITA) increased to $24.8m (2009: $13.8m) equating to an 11.5% margin (2009: 8.1%)
• Hardware business revenues declined by 1.7% to $126.6m (2009: $128.8m)
• Hardware business adjusted* EBITA decreased to $1.8m (2009: $8.8m) equating to a 1.4% margin (2009: 6.8%)
• Total revenues grew 14.8% to $342.4m (2009: $298.2m)
• Total adjusted* EBITA increased 17.7% to $26.6m (2009: $22.6m) equating to a 7.8% margin (2009: 7.6%)
• Adjusted** earnings per share (EPS) grew to $0.21 (2009: $0.20)
• Cash generated by operations increased to $33.9m (2009: $15.2m)
• Year end cash totalled $55.0m (2009: $48.1m)

Operating Highlights:

• 170 Systems, acquired during September of 2009, was successfully integrated ahead of schedule and its results were consistent with the Company’s expectations
• Harvey Spencer Associates, a leading analyst firm, reported that during 2009 Kofax increased its overall capture market share to 11% from 10% in 2008
• Over 1,900 new customers were added and the Company closed the two largest software business sales in its history
• Kofax received widespread recognition for its market position and software products
• Eight new software product releases were successfully launched
• The Company continued to transform its executive management team with the recent addition of new Chief Financial and Marketing Officers

Reynolds C. Bish, Chief Executive Officer, said:”Management and the Board are pleased with the progress in our software business, which is now responding well to the strategic initiatives started in February of 2008. We confidently believe we can build upon this positive momentum and strong foundation in our software business and improve results in our hardware business, and the current financial year has already started in a very positive manner. However, the global economic environment is fragile and the extent and continuation of any recovery is difficult to predict. As a result, during this current financial year management and the Board expect approximately 10% revenue growth in our overall software business – with a higher growth rate in software license revenues – and a low single digit percent decline in hardware business revenues in U.S. dollars on a constant currency basis.”

Webcast

There will be a webcast of Kofax’s analyst presentation available on the Company’s website (http://www.kofax.com) from 2:00 pm GMT today.

* For a definition of “adjusted” EBITA, please see the Chief Financial Officer’s Review attached.
** For a definition of “adjusted” EPS please see note 2.

For further information, please contact: