Progress Software Reports Second Quarter Results.Business/Technology Editors BEDFORD, Mass.--(BUSINESS WIRE)--June 19, 2001 Progress Software Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PRGS PRGS Phosphoribosylglycinamide Synthetase ), a leading supplier of technology for building e-business solutions, today announced results for its second quarter ended May 31, 2001. Revenue for the quarter decreased 2 percent to $65.7 million, down from $67.4 million in the same quarter last year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $7.2 million and represented a decrease of 35 percent over the same quarter last year. Net income was $5.7 million, down 41 percent from $9.6 million in the same quarter last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 15 cents represented a decrease of 38 percent over the 24 cents achieved in the second quarter of 2000. The company's revenue and earnings were adversely affected by the strength of the U.S. dollar compared with the prior year. On a constant currency basis, revenue in the second quarter increased by 2 percent as compared to the second quarter of 2000. During the second quarter, the company purchased approximately 530,000 shares of its stock at a cost of $7.2 million. Since beginning its share buy-back program in the first quarter of 1996, the company has purchased approximately 13.3 million shares of its common stock at a cost of $118 million. The company has approximately 9 million shares available to purchase under its current board authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. repurchase program. "We achieved sequential growth from Q1 to Q2, and we expect this growth to continue in the second half of this fiscal year," said Joseph Alsop Joseph Wright Alsop V (October 11, 1910 – August 28, 1989) was an American journalist and syndicated newspaper columnist from the 1930s through the 1970s. Alsop was born into a socially prominent family in Avon, Connecticut; the son of Joseph Wright Alsop IV , chief executive officer of Progress Software. "Considering the current global economic climate, we regard this quarter's performance as encouraging, and we are enthusiastic that our new operating company operating company A business that engages in transactions with outsiders. , Sonic Software, is showing robust growth." Recent Highlights Sonic Software Corporation announced two significant customer wins during the second quarter. The Greenery International, The Netherlands largest produce cooperative, with annual sales for 2000 of $1.8 billion, and New Pig Corporation, a leader in the industrial maintenance industry, whose products are used in more than 180,000 workplaces, in 40 countries, ranging from auto service centers to Fortune 500 companies, both chose SonicMQ(TM) as their E-Business Messaging Server. SonicMQ provides highly scalable, standards-based Internet middleware that enables the guaranteed and secure delivery of business data between applications across the distributed enterprise or between companies for B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business exchange. Sonic Software Corporation announced the release of its SonicMQ Bridges Version 3.0 product, which provides enterprises with improved compatibility and integration capabilities for today's complex computing environments. By extending the connectivity of SonicMQ, developers can transparently route messages to other Java(TM) Message Service (JMS (Java Messaging Service) A programming interface (API) from Sun for connecting Java programs to messaging middleware such as IBM's MQSeries and TIBCO's Rendezvous. JMS is part of Sun's J2EE platform. See J2EE. JMS - Java Message Service ) and legacy messaging systems, such as IBM's MQSeries(R), as well as other e-business services and Internet protocols Refers to all the standards that keep the Internet running. The foundation protocol is TCP/IP, which provides the basic communications mechanism as well as ways to copy files (FTP) and send e-mail (SMTP). . The Progress Company announced that the December 2000 update of an Aberdeen Group Aberdeen Group is a provider of business-related research services. It has its headquarters in Boston, Massachusetts and belongs to the Harte-Hanks group. Founded in 1988, Aberdeen's research is used by over 2. study found that Progress database products continue to have a lower visible cost-of-ownership (VCO (1) (Voltage Controlled Oscillator) An oscillator that can be tuned over a wide range of frequencies by applying a voltage (tuning voltage) to it. Used in many applications such as radio tuners, VCOs are less costly than crystal oscillators, but not as stable. ). A key reason for Progress' cost-of-ownership advantage is its lower administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. , which Aberdeen finds are a major and increasing proportion of overall costs in these situations. Announced last quarter, the Progress Open Source Software Exchange (POSSE) benefited this quarter from the successful launch of the complementary Internet Component Framework (ICF (Internet Connection Firewall) The built-in firewall in Windows XP. It provides a stateful inspection of packets which accepts only responses to requests originated by the user. ) initiative with the selection of an established Progress ISV's framework as the foundation for building e-business applications. The ICF source code has been made available on the POSSE development site (www.possenet.org), giving more than 25,000 Progress developers worldwide a significant competitive edge in delivering their e-business solutions. WebClient, the Progress-based alternative to GUI (Graphical User Interface) A graphics-based user interface that incorporates movable windows, icons and a mouse. The ability to resize application windows and change style and size of fonts are the significant advantages of a GUI vs. a character-based interface. emulation products such as Citrix and Tarantella tarantella (târ`əntĕl`ə), Neapolitan folk dance that first appeared in Taranto, Italy, in the 17th cent. It had rapid 6–8 meter with an increasing tempo and was thought to cure the bite of the tarantula, which supposedly , has been well received by Progress ISVs and end users. It is regarded, along with WebSpeed(R), as a tremendous asset to the rapid Web-enablement of Progress-based applications. The ASPen(sm) Program (ASPen-ablement) continued to gain momentum, showing an industry-record number of more than 70,000 end users. In a sample survey of its Independent Software Vendors (ISVs) conducted this quarter, the Progress Company announced that, on average, the new Application Service Provider (ASP) channel has increased revenue by 20 percent for the ISVs polled. The Progress Software ASP Survey queried ISVs about several aspects of their ASP business including: financial impact, specific technology required to ASP their application, criteria for choosing a hosting company, and business benefits and challenges they face. The initial response to the recently announced acquisition of Allegrix, a full-service ASP infrastructure provider, has been extremely positive. ASPen program member successes announced during the quarter include Skyward sky·ward adv. & adj. At or toward the sky. sky  wards adv. Inc. and Advent Business Systems' PipelineForFuel
application.
PSC's conference call to discuss the second quarter results will be webcast live on June 19, 2001 at 9 a.m. Eastern via CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network on the company's Web site, located at www.progress.com. The call will also be webcast live via Yahoo (www.yahoo.com), Motley Fool (www.fool.com), Streetevents (www.streetevents.com), TD Waterhouse TD Waterhouse is the brand used for both British and Canadian brokerages within the TD Bank Financial Group. The brand originated as a United States brand for discount brokerage when TD purchased Waterhouse Securities. (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 Founded in 1981, Progress Software Corporation, or PSC (Public Service Commission) Same as PUC. (NASDAQ: PRGS) is the parent organization for PSC's operating companies, the Progress Company, Sonic Software, and NuSphere Corporation. PSC provides industry-leading technologies for all aspects of e-business development, deployment, integration and management. Progress Software Corporation (NASDAQ: PRGS), is headquartered in Bedford, MA., and can be reached at 1-781-280-4000 or on the Web at www.progress.com. Progress, WebSpeed, and ASPen are trademarks or registered trademarks of Progress Software Corporation in the U.S. and other countries. SonicMQ 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. 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 Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . 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 Software Corporation
Condensed Consolidated Statements of Income
Three Months Ended Six Months Ended
(In thousands May May May May
except per 31, 31, Percent 31, 31, Percent
share data) 2001 2000 Change 2001 2000 Change
Revenue:
Software
licenses $ 24,266 $ 26,135 (7)% $ 46,100 $ 59,372 (22)%
Maintenance
and services 41,462 41,265 0 % 79,867 80,159 0 %
Total
revenue 65,728 67,400 (2)% 125,967 139,531 (10)%
Costs and
expenses:
Cost of
software
licenses 2,760 2,279 5,147 5,040
Cost of
maintenance
and
services 13,494 13,659 26,395 27,650
Sales and
marketing 24,864 23,880 50,696 49,918
Product
development 10,393 9,446 20,716 19,805
General and
administrative 7,062 7,079 14,401 14,415
Total costs
and
expenses 58,573 56,343 4 % 117,355 116,828 0 %
Income from
operations 7,155 11,057 (35)% 8,612 22,703 (62)%
Other income,
net 1,056 3,047 2,473 4,736
Income before
provision for
income taxes 8,211 14,104 (42)% 11,085 27,439 (60)%
Provision for
income taxes 2,545 4,513 3,436 8,780
Net income $ 5,666 $ 9,591 (41)% $ 7,649 $ 18,659 (59)%
Basic earnings
per share $ 0.16 $ 0.27 (41)% $ 0.22 $ 0.52 (58)%
Weighted
average shares
outstanding
(basic) 35,347 35,736 (1)% 35,406 35,703 (1)%
Diluted earnings
per share $ 0.15 $ 0.24 (38)% $ 0.20 $ 0.46 (57)%
Weighted
average shares
outstanding
(diluted) 38,144 40,039 (5)% 38,268 40,353 (5)%
Condensed Consolidated Balance Sheets
May 31, November 30,
(In thousands) 2001 2000
Assets
Cash and short-term investments $ 166,748 $ 158,106
Accounts receivable, net 46,070 49,429
Other current assets 21,654 22,137
Total current assets 234,472 229,672
Property and equipment, net 36,670 37,427
Other assets 10,341 11,706
Total $ 281,483 $ 278,805
Liabilities and shareholders' equity
Accounts payable and other current
liabilities $ 40,693 $ 50,926
Deferred revenue 68,681 61,066
Total current liabilities 109,374 111,992
Shareholders' equity:
Common stock and additional
paid-in capital 38,753 38,082
Retained earnings 136,305 131,896
Accumulated other comprehensive
loss (2,949) (3,165)
Total shareholders' equity 172,109 166,813
Total $ 281,483 $ 278,805
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion