Document Capture Analyst Confirms Kofax’s Increasing Global Market Share25 Aug, 2010
Document Capture Analyst Confirms Kofax’s Increasing Global Market Share
IRVINE, CA (August 24, 2010) - Kofax plc (LSE:KFX), the leading provider of document driven business process automation solutions, today announced that a new report issued by Harvey Spencer Associates, an independent analyst and research firm, confirms that the company increased its overall share of the capture software and services market to 11 percent during 2009, an increase from 10 percent in the previous year. The report, entitled “The 2010-11 Worldwide Market for Document Capture Software,” projects that this market will expand from $2 billion in 2009 to over $3 billion in 2013, a compound annual growth rate of almost 11 percent. The report also confirmed that Kofax maintained its dominant leadership position in the “Image Capture” segment and, for the first time, named the company as the leader in the “Transaction Capture” segment.
In the Image Capture segment, defined as scanning, indexing and then exporting document images and index data, the report cites Kofax as having a 25 percent market share, more than eight percentage points higher than its nearest competitor. In the Transaction Capture segment, defined as scanning, classifying, and extracting critical business data and then exporting document images and data to downstream business processes, the report names Kofax as the leader with almost a 13 percent market share. These two segments comprise the “enterprise” segments and account for more than 64 percent of the overall market.
“Kofax gained market share, which was impressive considering that the company now derives over 40 percent of its revenues from direct sales, which do not gross up as much as indirect sales in our model. The company turned around a difficult first half of the year and, helped by the 170 Systems acquisition, strongly increased its revenue in the second half,” said Harvey Spencer, Principal of Harvey Spencer Associates. “More significantly, Kofax has started to leverage its user base to successfully move into the higher value transaction capture segment and enterprise sales through augmenting its channel with a direct sales force and focusing more on solutions rather than technology.”
“Kofax’s continued dominance in Image Capture, our new leadership position in Transaction Capture, and our increasing overall market share serve to reinforce our enterprise capture strategy, and that the breadth and depth of our product portfolio is meeting the needs of the market,” said Martyn Christian, Kofax’s Chief Marketing Officer. “The proven capabilities and scalability of our solutions, the global reach of our sales and support operations, and our financial strength and stability have positioned Kofax for continued success now and in the future.”
Founded in 1989, Harvey Spencer Associates, Inc. is a New York-based analyst and consulting firm specializing in document scanning and capture software solutions. Mr. Spencer has extensive background in the information technology industry gained from over 40 years as an end user, VAR, manufacturer and consultant. More information is available at www.hsassocs.com/index.html
Kofax 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.