Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Kenexa
So what: Kenexa disclosed in a Securities and Exchange Commission filing that all outstanding litigation with Taleo will be dismissed with prejudice. The settlement agreement also includes cross-licenses of certain intellectual property.
Now what: The net cash effect of the settlement agreement was a $3.0 million payment to Kenexa from Taleo. According to Lazard Capital Markets, that will likely add to 2011 and 2012 earnings. The boost could be meaningful, as this company's EBIT over the last 12 months was a mere $1.5 million.
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