BEDFORD, Mass. — December 18, 2001 — Progress Software Corporation (NASDAQ: PRGS), a leading supplier of
technology for building e-business solutions, today announced results for its fourth quarter and full fiscal
year ended November 30, 2001. Revenue for the quarter increased 4 percent to $69.3 million, up from $66.4
million in the same quarter last year. Operating income was $6.6 million and represented a decrease of 26
percent over the same quarter last year. Net income was $5.1 million, down 37 percent from $8.1 million in the
same quarter last year. Diluted earnings per share of 13 cents represented a decrease of 38 percent over the
21 cents achieved in the fourth quarter of 2000.
For the 12 months ended November 30, 2001, revenue decreased 3 percent to $262 million from $271 million in
2000. Operating income decreased 45 percent to $21.3 million from $38.7 million in 2000. Net income decreased
48 percent to $17.6 million from $33.7 million in 2000 and diluted earnings per share decreased 46 percent to
46 cents from 85 cents in 2000.
The company's revenue and earnings were adversely affected by the strengthening of the US dollar during fiscal
2001 as compared to fiscal 2000. On a constant currency basis, revenue for the full fiscal year of 2001 would
have been approximately the same as in fiscal 2000. In the fourth quarter of fiscal 2001, the impact of
changes in exchange rates on revenue was not significant.
During the fourth quarter, the company purchased approximately 196,000 shares of its stock at a cost of $2.7
million. Since beginning its share buy-back programme in the first quarter of 1996, the company has purchased
approximately 13.5 million shares of its common stock at a cost of $121 million. The company has 9.9 million
shares available to purchase under its current board authorised stock repurchase programme. The company's cash
and short-term investments at the end of the year totaled $175 million.
“We are pleased with our continued revenue growth over the past two quarters, at a challenging time for other
software companies,” said Joseph Alsop, chief executive officer of Progress Software Corporation.
“Additionally, we have achieved annual revenue equal to the prior year when adjusted for currency
fluctuations. The Sonic product line more than tripled revenue this past year. We look to the Progress Company
to grow in FY 2002, and for revenue from the Sonic product line to more than double next year.”
Highlights include recent adoption of PSC technology, and solutions based on PSC technology, by new accounts
including: Airforce Research Lab, Allegro Microsystems, Asset Research and Retention, LLC, BAE System
Controls, Bakery Chef, BCT Automatisering BV, Borland, Broadcasting Data Services, Caterpillar, Children's
Hospital, CitiBank, Datek, Dietrich Industries, Electronic Arts, Earthlink, Energy Market Authority,
First4Farming Ltd, Inovant, Intertrade, Kinetech Services Europe Ltd, Kaiser Permanente, KeySpan, MCI
WorldCom, McKee Foods Corporation, Menuiseries Lapeyre, Naval Surface Warfare, Octasoft, Pfizer, Pro
Productive Oy, Selesta Spa, Senoko Power Ltd, Siemens AG, Solvepoint, Southern Company Service, Strategic
Information Technology, Suncoast Solutions, TRW, Telekurs Finanz AG, Unisys Italia SPA, University of
Arkansas, Vereniging de Zonnebloem, Voice Log, Vodafone, Waterfield Mortgage, Wapice Oy, and ZixIT
PSC acquired certain assets of PeerDirect Inc, developers of a distinctive heterogeneous database replication
system for high-speed and reliable distribution of business information.
To view press release:
In addition to the September announcement with the Borland AppServer, Sonic Software announced integration
relationships with two major application servers, BEA® WebLogic® and Oracle Application Server. To view these
press releases: http://www.sonicsoftware.com/releases/2001/091801.htm,
Sonic Software expanded its product set, adding SonicXQ™, a reliable platform for Web services, and released
version 4.0 of its SonicMQ® E-Business Messaging Server.
The Progress Company announced the release of Progress® Fathom™ for Management, which further improves
Progress' already impressive low total cost of ownership. http://www.progress.com/releases/2001/110501.htm
A study conducted by IDC corroborates Progress Software's position as the leader in the embedded database
market. The IDC report echoes Progress' leadership position in this market cited in a Gartner/Dataquest report
published in June. http://www.progress.com/releases/2001/100201a.htm
Another IDC study reiterated the significant return on investment experienced by Progress ASPenSM customers.
In the study, ASP customers, including members of the Progress ASPen Managed Services Program and their
end-users, cited valuable benefits of working with an ASP, such as peace of mind, faster implementation times,
the ability to focus more on their core business, and access to advanced technologies.
Holiday Autos, the world’s largest leisure car rental broker, recently replaced Oracle with the Progress
OpenEdge™ e-business platform for its call center reservation system. The resulting application won multiple
awards at Computer Weekly Magazine’s “E-Business Excellence Awards 2001,” held in London on November 27.
PSC's conference call to discuss the fourth quarter results will be Webcast live on December 18 2001, at 9 am
Eastern via CCBN on the company's Web site, located at www.progress.com. The call will also be Webcast live
via Yahoo (http://www.yahoo.com), Motley Fool (http://www.fool.com), Streetevents (http://www.streetevents.com), TD Waterhouse
(http://www.tdwaterhouse.com) and Fidelity.com (http://www.fidelity.com). An archived version of the conference call will be
available for replay.
About Progress Software Corporation
Founded in 1981, Progress Software Corporation, or PSC (NASDAQ: PRGS) is the parent organisation for the
Progress Company operating unit, Sonic Software Corporation, and NuSphere Corporation. PSC provides
industry-leading technologies for all aspects of e-business development, deployment, integration and
management. Progress Software Corporation is headquartered in Bedford, MA, and can be reached at
+1-781-280-4000 or on the Web at http://www.progress.com .
Press enquiries to:
Salli Roskilly, Saffron Communications.
T: 44 (0)1763 208708 F: 44 (0)1763 208813 E: firstname.lastname@example.org
Progress, Fathom, ASPen, and OpenEdge are trademarks, service marks, or registered trademarks of Progress
Software Corporation in the US and other countries. SonicMQ and SonicXQ are trademarks or registered
trademarks of Sonic Software Corporation in the US and other countries. Any other trademarks or service marks
contained herein are the property of their respective owners.
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, market acceptance of the
application service provider distribution model, 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.
Tel: +44 (0)1763 208708
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