Kinaxis took a dip in profits this past quarter as the Ottawa-based software giant ramps up its expansion efforts that include plans for a bigger home in Kanata West.
Kinaxis, which helps enterprise customers manage their supply chains, reported revenues of $42.4 million for the three months ended June 30, an increase of nine per cent from last year. (All figures USD.)
Driving the growth was the addition of new customers and expansion of existing deals in the company’s software-as-a-service vertical, which grew 18 per cent year-over-year. Large firms such as Yamaha and Johnson Electric were among the company’s marquee new customers in Q2.
While Kinaxis turned a profit of $4 million this past quarter, the earnings were short of last year’s second-quarter net income of $4.3 million. The company attributed the slight dip in net income to increased growth initiatives: the company is spending more on sales and marketing these days and has been expanding its headcount in this area.
Kinaxis’s expansion efforts are being felt close to home, as the company announced plans earlier this week to construct a new headquarters in Kanata West to accommodate a larger staff.
At 153,000 square feet, the new building next to the Tanger outlet mall will be more than double the size of Kinaxis’s current 64,000-square-foot head office on Silver Seven Road. In addition, the company has the option to add a second building of 100,000 square feet to provide space for long-term future growth.
Kinaxis currently employs some 400 people in Ottawa and 200 more around the world.
“We’re just getting started. There’s a tremendous amount of runway, and we believe we have the right talent. We’re building a Canadian giant,” Kinaxis CEO John Sicard told OBJ earlier this week.
– With files from David Sali