OTTAWA, ON – July 9, 2015 – Halogen Software Inc. ("Halogen" or the "Company") (TSX: HGN), a leading provider of cloud-based talent management solutions, today announced that Paul Loucks has resigned as President and Chief Executive Officer and a member of the Board, bringing to close a remarkable 15 year career of dedicated service to the Company and its shareholders. The Board of Directors has appointed Leslie Rechan, current Halogen board member and former General Manager, IBM Business Analytics and Chief Operating Officer of Cognos Inc., to serve as the Company's interim President and Chief Executive Officer. Mr. Loucks will assist in the transition of his responsibilities to Mr. Rechan over the course of the next two months. The Board of Directors will immediately begin the search for a permanent CEO with the assistance of a leading executive search firm.
Michael Slaunwhite, co-founder and Executive Chairman said, "On behalf of the entire Board, I want to thank Paul for his leadership and valuable contributions to Halogen's success over the past 15 years. He played an important role in establishing Halogen as a leader in the large and underpenetrated talent management software market. The Company is well positioned to continue growing and expanding its global presence, which we believe will drive increased shareholder value over time. We wish Paul the very best."
Mr. Slaunwhite further commented, "The Board has the utmost confidence in Les' ability to lead the Company during this transition period given his strong global leadership and operating experience, deep knowledge of the software industry, and his familiarity with Halogen as a Board member."
Paul Loucks commented, "After meaningful
reflection, I made the decision that I wanted to spend more time with my family and consider other interests over time. This was a very difficult decision considering how far Halogen has
come over the past 15 years and the strong future the Company has in front of it. I am grateful to have worked with the talented and dedicated people of Halogen throughout my time with the
Company, and confident Halogen will continue to perform at a high level as our management team and market position have never been stronger. I am committed to working with the Board and
management team over the next couple of months to ensure a seamless transition process."
Commenting on his appointment, Les Rechan said, "Halogen has become the leading provider of talent management solutions by providing unique, best-in-class solutions, and delivering an unmatched customer experience. I will work closely with the Board and members of Halogen's executive team to continue building on this position."
About Leslie (Les) Rechan
Les Rechan is the former General Manager of the IBM Business Analytics Division within IBM Software Group. He retired from IBM in 2014 after 30 years in the enterprise technology solutions industry. Previously, Mr. Rechan was the Chief Operating Officer of Cognos and held a variety of global executive roles with Oracle,Siebel Systems, Cadence Designs Systems, Onyx Software and IBM. Les also serves on the board of PROS Holdings Inc. (NYSE: PRO) as well as Cognitive Scale, the Cognitive Cloud Company. Mr. Rechan holds a Bachelor of Science in Electrical Engineering and a Bachelor of Arts in Organizational Behavior and Management from Brown University and a Masters in Management from Northwestern University's Kellogg Business School.
Halogen reiterates its financial guidance for the second quarter, which was originally provided in a press release dated May 7, 2015.
For the second quarter of 2015, the Company continues to expect the following:
- Recurring revenue in the range of $14.5 to $14.7 million
- Total revenue in the range of $16.0 to $16.2 million
The Company is also updating its full-year 2015 guidance as follows:
- Recurring revenue in the range of $59.3 to $59.9 million, compared to previous guidance of $60.0 to $60.8 million
- Total revenue in the range of $65.4 to $66.0 million, compared to previous guidance of $66.9 to $67.7 million
Pete Low, Halogen's Chief Financial Officer said, "We expect Halogen's financial performance in the second quarter to be consistent with our previously issued guidance. While we have a very strong and growing pipeline of opportunities, we experienced longer than expected sales cycles during the second quarter. After taking this into consideration, we believed it was prudent to make a modest adjustment to our growth expectations for the year. For the full year 2015, we still expect to generate solid organic year-over-year growth, and we believe the Company is well positioned to continue generating solid growth while making progress towards profitability as we look beyond this year."
Preliminary results are subject to change based on the completion of the company's quarterly review process along with its independent accounting firm. The Company will provide additional details on its second quarter performance and updated guidance when it reports final 2Q results on August 6, 2015. A separate press release will be issued in advance of this date with logistics related to the conference call.
Certain statements in this release, including those that express management's expectations or estimates of our future performance, are "forward-looking statements" which reflect the Company's current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. In some cases, these forward-looking statements can be identified by words or phrases such as "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "estimates", "predicts" or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements.
The Company has based these forward-looking statements on its current expectations and projections at the time the statements were originally made or at the time the information was originally provided, about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and it cannot assure that actual results will be consistent with these forward-looking statements. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including without limitation, those risks and uncertainties discussed in the Company's Prospectus and other filings on SEDAR.
If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those expressed or implied by the forward-looking statements contained herein. These factors should be considered carefully and prospective investors should not place undue reliance on these forward-looking statements. Although the forward-looking statements contained herein are based upon what the Company currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. The Company does not intend, and the Company does not assume, any obligation to update or revise these forward-looking statements to reflect new events or circumstances.
Halogen Software (TSX: HGN) offers an organically built cloud-based talent management suite that reinforces and drives higher employee performance across all talent programs — whether that is recruiting, performance management, learning and development, succession planning or compensation. With over 2,100 customers worldwide, Halogen Software has been recognized as a market leader by major business analysts and has garnered the highest customer satisfaction ratings in the industry. Halogen Software's powerful, yet simple-to-use solutions, which also include industry-vertical editions, are used by organizations that want to build a world-class workforce that is aligned, inspired and focused on delivering exceptional results.  ;For more information, visit: http://www.halogensoftware.com. Subscribe to Halogen Software's TalentSpace blog:http://www.halogensoftware.com/blog/ or follow Halogen Software on Twitter:http://twitter.com/HalogenSoftware.
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