Kenexa and Taleo

Some notes from conference calls with Kenexa and Taleo:
 
Kenexa
Rudy Karsan, chairman and CEO: “In less than three months of having BrassRing integrated into Kenexa’s operations, we have closed three enterprise deals in which Kenexa was initially not considered in the bidding process because we did not have the required languages. In addition, there are two other deal opportunities of similar scale that come to mind. With the addition of our Kenexa Recruiter BrassRing solution has both gotten us back into the competitive valuation and the customer has given us verbal indication that they wish to move forward with Kenexa as their global vendor of choice.”
 
James Friedman, analyst: “It seems like one of your competitors, who will go nameless, may have violated some of your source code. Without naming them, I was just wondering if you could describe the company’s philosophy with regard to patent protection …”
 
Karsan: “It’s something that we have talked about internally. It is one of those things that we’re going to be looking at. It’s right now, we’re discussing it with counsel. It may take a few months and then we’ll make a decision. It’ll become — for us, Jim, it’ll become a math problem. What’s going to be the cost of prosecution? What’s going to be the affect on our sales? If it comes up positive, we’ll go; if it doesn’t, we won’t.”
 
Taleo
CEO Mike Gregoire: “During Q4 we entered into a partnership with IBM to provide global HRO services together and closed our first two joint customers, one of which is a Fortune 100 financial services company with more than 300,000 employees and over $35 billion in revenues.”
 
Gregoire, on acquisitions: “… The first thing we look at is the technology platform. We’ve got a great customer base and the reason why we have that great customer base is we’ve got a very strong technology platform. So if there was something out there that we thought we were missing, and it would fit into our technology platform, and we could do that at a price point that makes sense to us, we’d go ahead and do that transaction. But if we had to buy something and then retool it, we lose all the value of time to market, plus, it’s a pretty frothy market out there right now for buying things, that we’d have to really find a–it would be hard to find the right set of metrics to make that happen

I do think things are going to change in 2007. I think as some of the other players have been taken out, some of the smaller players are left. And we feel very, very competitive in the market. And as we continue to take market share, we reduce their opportunity for upside…” 

Thanks to Thomson Financial and Voxant for help with the transcript.
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