Progress Software Reports 2010 Fiscal Fourth Quarter, Full-Year Results and Announces Stock Split
BEDFORD, MA -- (MARKET WIRE) -- 12/21/10 --
On a GAAP basis in the fiscal fourth quarter of 2010:
- Operating income increased 27 percent to $32.8 million compared to $25.8 million in the same quarter last year;
- Net income increased 28 percent to $21.3 million compared to $16.7 million in the same quarter last year;
- Diluted earnings per share increased 18 percent to 47 cents compared to 40 cents in the same quarter a year ago.
On a non-GAAP basis in the fiscal fourth quarter of 2010:
- Operating income increased 29 percent to $48.3 million from $37.4 million in the same quarter last year;
- Non-GAAP net income increased 26 percent to $32.2 million from $25.6 million in the same quarter last year;
- Non-GAAP diluted earnings per share increased 16 percent to 71 cents compared to 61 cents in the same quarter last year.
For the twelve months ended November 30, 2010, GAAP revenue increased 7 percent to $529.1 million from $494.1 million in fiscal 2009. On a non-GAAP basis, revenue increased 7 percent to $530.3 million from $496.8 million in fiscal 2009.
On a GAAP basis in fiscal 2010:
- Operating income increased 32 percent to $67.7 million compared to $51.1 million in fiscal 2009;
- Net income increased 48 percent to $48.6 million compared to $32.8 million in fiscal 2009;
- Diluted earnings per share increased 38 percent to $1.10 compared to 80 cents in fiscal 2009.
On a non-GAAP basis in fiscal 2010:
- Operating income increased 43 percent to $156.6 million compared to $109.4 million in fiscal 2009;
- Non-GAAP net income increased 44 percent to $106.1 million compared to $73.9 million in fiscal 2009;
- Non-GAAP diluted earnings per share increased 33 percent to $2.40 compared to $1.80 in fiscal 2009.
The GAAP operating results for the fourth quarter of fiscal 2010 reflect a restructuring charge of $2.5 million. The GAAP operating results for the full fiscal year of 2010 reflect restructuring charges of $40.0 million. These charges were taken in connection with previously announced restructurings of
The non-GAAP amounts primarily exclude the amortization of acquired intangibles, stock-based compensation, restructuring and transition costs, acquisition-related costs and purchase accounting adjustments for deferred revenue.
The non-GAAP results noted above and the non-GAAP financial outlook for 2011 discussed below represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures for the three and twelve months ended November 30, 2010 and November 30, 2009, respectively, and the 2011 outlook, as well as further information regarding these measures, is included in the condensed financial information provided with this release.
Richard D. Reidy, president and chief executive officer of
Shareholders of record as of the close of business on January 12, 2011 will be issued one-half additional share for each share of common stock held on the record date. It is expected that these additional shares will be distributed on January 28, 2011. The stock split will increase the number of shares of common stock outstanding from approximately 44 million shares to approximately 66 million shares.
-- Investment Property Databank (IPD), a world leader in performance analysis of commercial real estate, is deploying the full Progress® Responsive Process Management™ (RPM) suite. The Progress RPM suite™ will enable IPD's analysts to customize and improve their customer service. It expects to achieve an increase in productivity of at least 20 percent using the Progress RPM suite, and a reduction in the time it takes to publish information to the market and their clients (http://bit.ly/bOO2A2).
-- InvestFlex, a leading trading systems software provider and systems integration consulting firm in the Brazilian financial services market, selected the Progress® Apama® platform as the execution platform for their cutting-edge FlexScan trading solution. This means InvestFlex customers can access the
-- Adversitement, a full-service e-marketing consultancy specializing in web analytics and eMarketing intelligence, has developed a new marketing platform called O2mc. O2mc selected the Progress® Apama® Complex Event Processing (CEP) and Progress Sonic® Enterprise Service Bus (ESB) platforms to automate the way marketers monitor, analyze and use real-time information (http://bit.ly/i7RBCI).
-- The company announced the availability of a comprehensive order processing solution, the Progress® Communications Order Management solution accelerator. This solution accelerator enables telecommunications service providers to bring new and existing bundled services to market faster across multiple, disparate B/OSS platforms (http://bit.ly/bMhboa).
-- The company announced the availability of the third major product release of the Apama Event Processing platform in two years -- Progress® Apama® 4.3 -- demonstrating the firm's commitment to research, innovation and development. This new version includes a next-generation Event Processing Language (EPL), in which events can be captured as a stream with common attributes, giving developers and business users greater scalability and more control over how they can sense and respond to events (http://bit.ly/d2iWTg).
-- Progress launched a new, wholly owned subsidiary named
-- During the fourth quarter, Charles "Charlie" F. Wagner was appointed executive vice president, Finance & Administration and chief financial officer (CFO), reporting to Richard D. Reidy, president and chief executive officer (http://bit.ly/ePFNQy).
Additional highlights can be found at: http://web.progress.com/inthenews/pressreleases.html.
- On a GAAP and non-GAAP basis, revenue is expected to be in the range of $132 million to $135 million.
- GAAP diluted earnings per share are expected to be in the range of 40 cents to 45 cents.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of 61 cents to 64 cents.
- On a GAAP and non-GAAP basis, revenue is expected to be in the range of $560 million to $570 million.
- GAAP diluted earnings per share are expected to be in the range of $1.84 to $1.98.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of $2.61 to $2.70.
The outlook for non-GAAP earnings excludes the amortization of acquired intangibles, stock-based compensation, restructuring and transition costs and related tax effects.
Legal Notice Regarding Non-GAAP Financial Information
Note to Editors
Note Regarding Forward-Looking Statements
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, which include statements regarding the Company's business outlook for its first fiscal quarter, 2011, and the full 2011 fiscal year and strategic plans, 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; variations in the demand for professional services and technical support; pricing pressures and the competitive environment in the software industry; continuing uncertainty in the U.S. and international economies, which could result in fewer sales of the Company's products and may otherwise harm the Company's business; the Company's ability to complete and integrate acquisitions; the Company's ability to realize the expected benefits and anticipated synergies from acquired businesses; the Company's ability to penetrate international markets and manage its international operations; changes in exchange rates; the Company's ability to realize the expected benefits from its previously-announced restructuring actions; and the potential disruption to the Company's business from those restructuring actions. 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
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