Progress Software Reports Third Quarter Results
Revenue up 11%; Net Income and EPS Show Strong Increases
BEDFORD, Mass., Sept. 20, 2005 - Progress Software Corporation (Nasdaq: PRGS), a global supplier of application infrastructure software used to develop, deploy, integrate and manage business applications, today announced results for its third quarter ended August 31, 2005. Revenue for the quarter was $99.5 million, up 11 percent (11 percent at constant currency) from $89.3 million in the third quarter of 2004. Software license revenue increased 16 percent (15 percent at constant currency) to $38.0 million from $32.9 million in the same quarter last year.
On a generally accepted accounting principles (GAAP) basis, operating income increased one percent to $12.9 million from $12.7 million in the third quarter of fiscal 2004. Net income increased 57 percent to $13.4 million from $8.5 million in the same quarter last year. Diluted earnings per share increased 41 percent to 31 cents per share from 22 cents per share in the third quarter of 2004.
On a pro forma basis, operating income increased 38 percent to $20.0 million from $14.5 million in the same quarter last year. Pro forma net income increased 48 percent to $14.4 million from $9.7 million in the same quarter last year and pro forma diluted earnings per share increased 36 percent to 34 cents per share from 25 cents in the third quarter of fiscal 2004.
The pro forma results in the third quarter of fiscal 2005 exclude after-tax charges for amortization of acquired intangibles of $1.7 million, certain other acquisition-related expenses for retention bonuses for key employees of acquired companies of $1.2 million and stock-based compensation associated with the repurchase of stock in a subsidiary of $1.9 million and a tax benefit of $3.8 million. The pro forma results in the third quarter of fiscal 2004 exclude an after-tax charge for amortization of acquired intangibles of $1.2 million.
The company's cash and short-term investments at the end of the quarter totaled $253 million. During the third quarter, the company purchased approximately 105,000 shares of its stock at a cost of $3.2 million. On September 15, 2005, the board of directors of Progress Software Corporation (PSC) authorized the repurchase of up to 10 million shares of the company's outstanding common stock, at such times when the company deems such purchases to be an effective use of cash, starting October 1, 2005. The company's existing repurchase authorization, under which 9.6 million shares remain available for repurchase, expires on September 30, 2005.
"During the third quarter of 2005 we continued to see the benefits of our growth initiatives and significant increases in profitability. All PSC operating units: the Progress OpenEdge Division, Sonic Software, Progress Real Time Division and DataDirect Technologies delivered excellent revenue growth with substantial operating improvements," stated Joseph Alsop, co-founder and chief executive officer of PSC. "Our newer companies now account for over 35 percent of our software license revenue while revenue from OpenEdge continues to grow. PSC today is well positioned to deliver solid results as we approach 2006."
Executives from three operating divisions of Progress Software Corporation (PSC) were named winners of the Innovator 2005 awards by InfoWorld Media Group. Bill Cullen of Sonic Software, Mark Palmer of the Progress Real Time Division and Jonathan Robie of DataDirect have been recognized for their vision and expertise. All three executives will be added to InfoWorld Media Group's Innovators Hall of Fame. http://www.progress.com/innovator_2005_awards
Sonic Software announced that Sonic ESB(R) and the Sonic SOA Suite(TM) have been named "the most powerful, flexible, and scalable ESB" in a comprehensive ESB product round-up by InfoWorld magazine. http://www.progress.com/esbroundup
The Progress Real Time Division announced the Progress ESP(TM) Platform. As the industry's first fully integrated, general purpose Event Stream Processing (ESP) platform, Progress ESP delivers tools that allow business users to create applications that can monitor real-time event streams, detect and analyze event patterns, and take action in milliseconds. http://www.progress.com/esp_platform
Stylus Studio announced the release of Stylus Studio(R) 6 XML Enterprise Edition, the newest edition of the award winning Stylus Studio XML IDE. Packed with powerful new tools for Java(TM) code generation, EDI/EDIFACT document conversion, and XQuery application development among others, Stylus Studio 6 XML Enterprise Edition is one of the world's most comprehensive tools for advanced XML data integration projects. http://www.stylusstudio.com/press/2005_06_07_stylus_enterprise.html
PSC announced its membership in the Eclipse Foundation, an open source community committed to the implementation of a universal platform for the creation, integration and utilization of software tools. PSC also announced the inclusion of Eclipse-based visual development tools in Progress(R) OpenEdge(R) 10.1 (now in beta) and current availability in the Progress Real Time Division product set. http://www.progress.com/eclipse
Significant New Customer and Partner Wins, New Technology Adoptions and Major Deployments
Significant new partners and customers adopting technology from PSC operating companies, or deploying solutions using PSC technology, include: Albany International, Alliance Pharmacy, ATC Tunderman Combinatie, Cecinas San Jorge, City of Edmonton, Comperex, Banco Davivienda, Duomo Corporation, Dynamic Leisure Group, Gesiuris, Globus Travel Technology, Haynes International, Heat Trace Products, Italtel Spa, Lombard Odier Darier Hentsch Group, Maag Technic, MobileAria, Nexus HealthLink Medical Center, Nitar Tech Corporation, Norco Co-operative Limited, Pacific Blue Cross, Technology Marketing Group, TVAzteca and Virtic.
Significant existing partners and customers adopting technology from PSC operating companies, or making substantial additional deployments of PSC technology, include: The American National Red Cross, City of Portland, Configure One, Credit Suisse First Boston, CRS Retail Systems, DataFlux, Deutsche Bank UK, DynamicSoft, EarthLink, Expeditors International of Washington, GFI Group, IBM, Informatica, InfoVista, International Fund Services, Kaufland Beta Mobilien, Lincoln Financial Group, Lucent Technologies, Orlando Wyndham, Pfizer Global Pharmaceuticals, Raytheon, Sallie Mae Servicing Corporation, Sapient, Sonus Networks, Tarrant County Texas, Telstra Corporation Limited, Trillys Systems, Trizetto Group, TRX, QVC and Wells Fargo Internet Services.
The company is providing the following guidance for the fourth fiscal quarter ending November 30, 2005:
-- Revenue is expected to be in the range of $104 million to $106 Million. GAAP operating income is expected to be in the range of $19 million to $20 million, including amortization of acquired intangibles and certain other acquisition-related expenses of approximately $3 million.
-- GAAP diluted earnings per share are expected to be in the range of 31 cents to 32 cents.
-- On a pro forma basis, operating income is expected to be in the range of $22 million to $23 million, excluding amortization of acquired intangibles and certain other acquisition-related expenses of approximately $3 million.
-- On a pro forma basis, diluted earnings per share are expected to be in the range of 36 cents to 37 cents, excluding approximately 5 cents per share for amortization of acquired intangibles and certain other acquisition-related expenses.
The company is providing the following guidance for the fiscal year ending November 30, 2005:
-- Revenue is expected to be in the range of $401 million to $403 million. GAAP operating income is expected to be in the range of $64 million to $65 million, including amortization of acquired intangibles, certain other acquisition-related expenses and stock-based compensation of approximately $16 million.
-- GAAP diluted earnings per share are expected to be in the range of $1.16 to $1.17.
-- On a pro forma basis, operating income is expected to be in the range of $80 million to $81 million, excluding amortization of acquired intangibles, certain other acquisition-related expenses and stock-based compensation of approximately $16 million.
-- On a pro forma basis, diluted earnings per share are expected to be in the range of $1.32 to $1.33, excluding approximately 16 cents per share for amortization of acquired intangibles, certain other acquisition-related expenses, stock-based compensation and a tax benefit.
Legal Notice Regarding Pro Forma Financial Information
The company provides pro forma operating income, net income and earnings per share as additional information for investors. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). Such measures are intended to supplement GAAP and may be different from pro forma measures used by other companies. The company believes that the pro forma results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results. Management of the company uses these pro forma results to compare the company's performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of pro forma adjustments to the company's GAAP financial results is included in the tables below.
PSC's conference call to discuss its third quarter results will be Webcast live today at 9:00 a.m. Eastern via CCBN on the company's Web site, located at www.progress.com/investors. The call will also be Webcast live via Yahoo (www.yahoo.com), Motley Fool (www.fool.com), StreetEvents (www.streetevents.com), TD Waterhouse (www.tdwaterhouse.com) and Fidelity.com (www.fidelity.com). An archived version of the conference call will be available for replay.
About Progress Software Corporation
Progress Software Corporation (Nasdaq: PRGS) is a global industry leader providing application infrastructure software for all aspects of the development, deployment, integration and management of business applications through its operating units: Progress OpenEdge Division, Sonic Software, DataDirect Technologies, and Progress Real Time Division. Headquartered in Bedford, Mass., Progress can be reached at www.progress.com or +1-781-280-4000.
Safe Harbor Statement
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including but not limited to the following: the receipt and shipment of new orders, the timely release of enhancements to the company's products, the growth rates of certain market segments, the positioning of the company's products in those market segments, variations in the demand for customer service and technical support, pricing pressures and the competitive environment in the software industry, business and consumer use of the Internet, and the company's ability to penetrate international markets and manage its international operations. The company undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with the company's business, please refer to the company's filings with the Securities and Exchange Commission.
Progress, OpenEdge, Progress ESP, Progress OpenEdge, and Stylus Studio are trademarks or registered trademarks of Progress Software Corporation in the U.S. and other countries. Sonic ESB and Sonic SOA Suite are trademarks or registered trademarks of Sonic Software Corporation in the U.S. and other countries. Java and all Java-based marks are trademarks or registered trademarks of Sun Microsystems, Inc. in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.
Progress Software ist ein weltweiter Anbieter von Softwaretechnologie und Services für die Entwicklung, die Integration und das Management von Geschäftsanwendungen. Die mehr als 2.000 Applikationspartner und ASPs von Progress Software implementieren pro Jahr auf Progress-Technologie basierende Applikationen und Dienstleistungen im Wert von über 5 Milliarden US-Dollar. Mehr als 60.000 Unternehmen in über 120 Ländern, davon 70% der Fortune 100-Unternehmen, setzen auf Progress-basierende Anwendungen. Progress Software ist neben Sonic Software Corporation, DataDirect Technologies und der Progress Real Time Division (vormals ObjectStore) ein Unternehmen der Progress Software Corporation (NASDAQ: PRGS) mit Hauptsitz in Bedford, Massachusetts, USA.
Progress Software GmbH
Tel. (+49) (221) 93579-0
Fax: (+49) (221) 93579-78
Tel.(+49) (89) 59997-701
Fax (+49) (89) 59997-999
Für den Inhalt der Pressemitteilung ist der Einsteller, Ulrike Glogger, verantwortlich.
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