Revenue Up 11%, EPS Up 100 % Year Over Year
BEDFORD, Mass., Mar 18, 2003 — Progress Software Corporation (Nasdaq: PRGS), a leading supplier of technology for building e-business solutions, today announced results for its first quarter ended February 28, 2003. Revenue for the quarter increased 11 percent to $71.8 million, up from $64.5 million in the same quarter last year. Operating income was $5.3 million (including a charge of $0.2 million for in- process research and development related to the acquisition of eXcelon) and represented an increase of 61 percent over the same quarter last year. Net income was $4.2 million, up 72 percent from $2.5 million in the same quarter last year. Diluted earnings per share of 12 cents represented an increase of 100 percent over the 6 cents achieved in the first quarter of 2002.
During the first quarter, the company purchased approximately 242,000 shares of its stock at a cost of $3.3 million. The company has 8.8 million shares available to purchase under its current board authorised stock repurchase program. The company’s cash and short-term investments at the end of the quarter totaled approximately $169 million.
“In a business environment that has severely impacted many software companies, we are pleased to see our fifth straight quarter of EPS growth and seventh straight quarter of year-over-year revenue growth,” said Joseph W. Alsop, Co-Founder and CEO of Progress Software. "We continue to invest in the exciting technologies offered by the Sonic product line and PeerDirect, which serve critical needs in high growth markets, and we look forward to continued growth in the Progress Company based on the strength of the Progress® OpenEdge™ platform and close, synergistic relationships with our Application Partners. This quarter has also demonstrated the continued high growth rate of Sonic Software, and we look forward to a substantial contribution from the exciting capabilities we added with our acquisition in December of eXcelon Corporation."
Highlights include recent adoption of PSC technology, and solutions based on PSC technology, by new customers including: American Federated Insurance Company, American Red Cross, Anteon, Coach USA, Concurrent Computer Corporation, Glasgow Housing Association, Turner Broadcasting System, The City of Shreveport, Louisiana, and American Bank of Texas.
Progress Software Corporation announced the completion of its acquisition of eXcelon Corporation.
Sonic Software announced the availability of SonicMQ® 5.0, the next generation of the industry’s most scalable enterprise message server. With this release, Sonic sets the standard for enterprise-class messaging, and extends its competitive advantage with new clustering, management and security features designed to meet the requirements of the most demanding global IT organisations.
Sonic Software announced the release of Stylus Studio™ 4.6, its award- winning XML development environment acquired through the acquisition of eXcelon Corp. last year. Version 4.6 integrates Stylus Studio’s hallmark XSLT debugger with the SonicXQ™ enterprise service bus (ESB), making it easier to develop transformations stored within the SonicXQ environment. This and additional new features in Stylus Studio 4.6 make it the most productive XML development environment available today. Integration of Stylus Studio with the SonicXQ ESB provides a very powerful combination for standards-based integration projects.
PeerDirect Corporation announced that its flagship product suite, PeerDirect™ Distributed Enterprise, now provides native support for Linux. As a result, companies can cost-effectively decentralise and distribute database-driven business applications to thousands of locations across the enterprise using Linux-based application servers and databases.
This month, Progress announced the release of ObjectStore® Version 6.1 as the first deliverable from the newly formed ObjectStore Division. The new release adds increased availability, clustering and replication support to the world’s leading object-oriented database.
PSC’s conference call to discuss its first quarter results will be Webcast live today at 9:00 a.m. Eastern via CCBN on the company’s Web site, located at http://www.progress.com/investors . 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
(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 PeerDirect 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
Progress, OpenEdge and ObjectStore are trademarks or registered trademarks of Progress Software Corporation in the United States and other countries. SonicMQ and SonicXQ are trademarks or registered trademarks of Sonic Software Corporation in the United States and other countries. PeerDirect is a trademark or registered trademark of PeerDirect Corporation's affiliate PeerDirect Company in the United States and Canada. 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 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.
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Revenue Up 11%, EPS Up 100 % Year Over Year