I thought I would drop this information into this thread.
Progress Software reports first quarter financial results
BEDFORD, Mass.--(BUSINESS WIRE)--March 21, 1997-- Progress Software Corp today
announced results for its first quarter ended Feb. 28, 1997. Revenue for the quarter decreased 6
percent to $45,344,000, down from $48,382,000 in the same quarter last year.
Operating income was $2,196,000 for the first quarter of 1997, down from $5,855,000 in the
comparable quarter last year. Net income was $1,978,000 down from $4,419,000 in the first
quarter of 1996. Earnings per share was $.15, down from $.32 in the first quarter of 1996.
During the first quarter, Progress Software purchased 351,000 shares of its stock at an average
price per share of $17.01. Although the stock buybacks consumed $5.97 million, the company's
cash and short term investments at the end of the first quarter totaled $101.4 million, up $4.1
million from year-end.
In his quarterly letter to shareholders, Progress Software President Joseph W. Alsop wrote,
"Although revenue and earnings are below our first quarter 1996 results, we achieved first quarter
revenue equal to that of fourth quarter 1996, continuing our sequential earnings improvement. We
are cautiously optimistic that business conditions will continue to improve and that we will achieve,
in the near future, growth in quarterly revenue and earnings over the comparable quarter of the
prior year."
In the quarter
In February, Progress Software announced two strategic partnerships with Open Software
Associates and Actuate Software Corp. that strengthen its product lines.
Progress Software's strategic partnership with Actuate delivers enhanced reporting capabilities
with WebSpeed, the first open development environment that enables organizations to quickly and
productively build transaction processing applications for the Internet and corporate intranets, and
the PROGRESS line of application development tools. Actuate Software, of San Mateo, Calif.,
supplies Actuate Reporting System, the market-leading enterprise reporting solution. Actuate
Reporting System is an enterprise reporting tool that allows developers and end users to create,
access and analyze reports. Recently, International Data Corp. chose Actuate Reporting System
as the product that establishes the benchmark for the emerging enterprise reporting market.
Actuate delivers an increased level of scalability over desktop reporting products, supporting
information access ranging from individual desktops to enterprises with thousands of users.
Progress Software will offer Acutate components with its WebSpeed and PROGRESS tools
products during the first half of 1997.
"The Internet's global reach gives companies an ideal medium to provide immediate access to
software updates and business-critical enterprise data," said Alsop. "Our agreements with Open
Software Associates and Actuate Software complement our current tools products with Internet
software distribution and superior reporting capabilities, ultimately easing the process of
application development and deployment."
Also in the quarter, Progress Software's WebSpeed gained greater market acceptance and
increased recognition. In March, an Internet application developed using WebSpeed was awarded
the best business-to-consumer electronic commerce application by Gartner Group at its Internet &
Electronic Commerce Conference & Exposition in New York City.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended Percent
Feb. 28, 1997 Feb. 29, 1996 Change
(unaudited) (unaudited)
Revenue:
Software licenses $24,641 $28,993 (15)%
Maintenance and support
services 20,703 19,389 7%
Total revenue 45,344 48,382 (6)%
Costs and expenses:
Costs of software licenses 2,349 2,350
Cost of maintenance and
support services 6,958 7,002
Sales and marketing 21,558 21,924
Product development 6,405 6,025
Purchase of in-process
software development -- --
General and administrative 5,878 5,226
Total costs and expenses 43,148 42,527 1%
Income from operations 2,196 5,855 (62)%
Other income, net 800 840
Income before provision for
income taxes 2,996 6,695 (55)%
Provision for income taxes 1,018 2,276
Net income $1,978 $4,419 (55)%
Income per common share $0.15 $0.32 (53)%
Weighted average number of common
and common equivalent shares
outstanding 12,890 13,768 (6)%
Year Ended Percent
Nov. 30, 1996 Nov. 30, 1995 Change
(note) (note)
Revenue:
Software licenses $93,178 $110,785 (16)%
Maintenance and support
services 83,512 69,350 20 %
Total revenue 176,690 180,135 (2)%
Costs and expenses:
Costs of software licenses 8,838 6,965
Cost of maintenance and
support services 29,701 24,931
Sales and marketing 87,830 79,546
Product development 23,951 24,175
Purchase of in-process
software development -- 2,373
General and administrative 21,909 18,813
Total costs and expenses 172,229 156,803 10 %
Income from operations 4,461 23,332 (a) (81)%
Other income, net 3,869 3,169
Income before provision for
income taxes 8,330 26,501 (a) (69)%
Provision for income taxes 2,833 9,817
Net income $5,497 $16,684 (a) (67)%
Income per common share $0.41 $1.22 (a) (66)%
Weighted average number of common
and common equivalent shares
outstanding 13,268 13,628 (3)%
(a)-Includes a non-recurring charge for purchase of in-process
software development of $2,373 or $0.18 per share
Condensed Consolidated Balance Sheets
(in thousands)
February 28, 1997 November 30, 1996
(unaudited) (note)
Assets
Cash and short-term
investments $101,440 $ 97,323
Accounts receivable, net 29,835 34,452
Other current assets 11,215 9,176
Total current assets 142,490 140,951
Property and equipment, net 24,195 24,230
Capitalized software costs, net 5,529 5,428
Other assets 2,294 2,579
Total $174,508 $173,188
Liabilities and Shareholders'
Equity
Current portion of long-term
debt $30 $37
Accounts payable and other
current liabilities 29,001 29,342
Deferred revenue 30,921 27,365
Total current liabilities 59,952 56,744
Deferred income taxes 2,382 2,345
Long-term debt 79 85
Minority interest in subsidiary 710 221
Shareholders' equity:
Common stock, $.01 par value 124 126
Additional paid-in capital 37,148 41,309
Retained earnings 74,258 72,280
Translation & unrealized
investment valuation (145) 78
Total shareholders' equity 111,385 113,793
Total $174,508 $173,188
Dave |
