Skip navigation
Skip navigation
You are using an outdated browser. Please upgrade your browser.

BEDFORD, Mass., Jun 18, 2002 — Progress Software Corporation (Nasdaq: PRGS), a leading supplier of technology for building e-business solutions, today announced results for its second quarter ended May 31, 2002. Revenue for the quarter increased 2 percent to $67.3 million, up from $65.7 million in the same quarter last year. Operating income increased by 18 percent to $8.4 million, up from $7.2 million in the same quarter last year. Including an after-tax, non-cash charge of $0.7 million or $0.02 per share related to the write-down of an investment, net income was $5.8 million, up 2 percent from $5.7 million in the same quarter last year, and diluted earnings per share of 15 cents were the same as the second quarter of 2001. Excluding the non-cash charge, diluted earnings per share were 17 cents in the second quarter of 2002.

The second quarter results included a $1.0 million pre-tax, non-cash charge resulting from the write-down of an investment in a privately-held company. As required by generally accepted accounting principles, the company regularly monitors and evaluates the realisable value of its investment, and if a decline in value of an investment is other than temporary, the company records a charge to other income.

The company’s revenue and earnings were adversely affected by year over year changes in exchange rates in the second quarter. On a constant currency basis, revenue in the second quarter increased by 3 percent as compared to the second quarter of 2001.

During the second quarter, the company purchased approximately 191,000 shares of its stock at a cost of $3.1 million. The company has 9.5 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 quarter totaled $191 million.

“Our commitment to providing robust, functional and cost effective technology, coupled with our strong
partnerships with a diverse portfolio of application partners, has helped PSC achieve year over year revenue growth for the fourth straight quarter at a challenging time for other software companies,” said Joseph Alsop, chief executive officer of Progress Software Corporation. “We are especially pleased to see the continued growth of the Sonic business, which grew 139 percent compared to Q2 last year.”

Commenting on performance in the UK, managing director Frank McIlroy said: “The UK continues to grow at a faster rate than the figures for Progress worldwide and we are pleased to see channel initiatives such as Sector Alliance being adopted by the rest of Europe and North America. It may seem that Progress has glided through the last two quarters in comparison to our peers, but we’ve fought tooth and nail. What we are seeing is the market’s response to our low cost of ownership, high return on investment, the right technology and alliances with partners spread across many vertical markets.”

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 in the UK on 01753 216300 or on the web at

OpenEdge and Progress Dynamics are trademarks of Progress Software Corporation in the U.S. and other countries. SonicXQ is a trademark of Sonic Software Corporation in the U.S. and other countries. Any other trademarks 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.


Press enquiries to: Salli Roskilly, Saffron Communications.

T: 44 (0)1763 208708 F: 44 (0)1763 208813 E:

Linda Trim

Saffron Communications

T: +44 (0)1763 208708

F: + (0)1763 208813


This press release was distributed by ResponseSource Press Release Wire on behalf of Saffron Communications (Hertfordshire) in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit