Concur Conquers New Markets

Corporate expense software developer Concur Technologies (Nasdaq: CNQR  ) is growing at a rapid clip. Investors seemed a bit disappointed in its fiscal fourth-quarter report, sending the stock price down about 4.5% to $15.88. But over the long haul, it looks like Concur should continue to post solid results.

Quarterly revenues increased 40% to $27.5 million, but net income fell to $1 million, or $0.03 per share, down from $2.1 million, or $0.06 per share, in the year-ago quarter. The plunge stemmed from a $1.5 million provision for income taxes in the current quarter.

Concur develops software that helps companies automate the travel expense process. With the system, an employee can easily book a flight, rental car, and hotel, which is then integrated into expense reports. What's more, the process is customized according to a company's compliance policy requirements, resulting in lower costs and improved internal controls. Concur's major customers include Dell (Nasdaq: DELL  ) , J.C. Penney (NYSE: JCP  ) , and Texas Instruments (NYSE: TXN  ) .

Concur's business model is similar to that of ADP (NYSE: ADP  ) , which has built a franchise in the payroll market. Concur's customers outsource a routine process and pay a recurring subscription fee. Since most companies face ongoing travel expenses, a system to manage things more efficiently can be a tempting prospect, giving Concur a significant market opportunity.

Concur forecasts fiscal 2007 revenues of $120 million to $125 million. That said, the company has been aggressively adding to its sales force. With an eager market and a solid product, there's a good chance that Concur will continue its fast-growing ways -- and beat its current growth forecast.

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Fool contributor Tom Taulli does not own shares mentioned in this article.He is currently ranked 380 out of 14,555 in CAPS. The Fool's disclosure policy came, saw, and conquered.


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