Progress Session at Cloud Expo

Progress Software Corporation on Tuesday announced results for its fourth quarter ending November 30, 2009.

On a generally accepted accounting principles (GAAP) basis, revenue for the quarter was $136.8 million, down 2 percent (5 percent at constant currency) from $139.4 million in the fourth quarter of fiscal 2008. On a non-GAAP basis, revenue totaled $136.9 million, representing a 4 percent decrease (7 percent at constant currency) over the year ago period. Software license revenue decreased 7 percent (10 percent at constant currency) to $52.0 million from $56.1 million in the same quarter last year.

On a GAAP basis, operating income increased 202 percent to $25.8 million from $8.5 million in the fourth quarter of fiscal 2008.

Net income increased 158 percent to $16.7 million from $6.5 million in the same quarter last year. Diluted earnings per share increased 150 percent to 40 cents from 16 cents in the fourth quarter of fiscal 2008.

On a non-GAAP basis, operating income increased 10 percent to $37.4 million from $34.0 million in the same quarter last year. Non-GAAP net income increased 7 percent to $25.6 million from $24.0 million in the same quarter last year and non-GAAP diluted earnings per share increased 5 percent to 61 cents per share from 58 cents in the fourth quarter of fiscal 2008.

For the twelve months ended November 30, 2009, GAAP revenue decreased 4 percent (up 1 percent at constant currency) to $494.1 million from $515.6 million in fiscal 2008. On a non-GAAP basis, revenue decreased 4 percent (up 1 percent at constant currency) to $496.8 million from $518.3 million in fiscal 2008.

On a GAAP basis, operating income decreased 21 percent to $51.1 million from $64.4 million in fiscal 2008. Net income decreased 29 percent to $32.8 million from $46.3 million in fiscal 2008 and diluted earnings per share decreased 26 percent to 80 cents from $1.08 in fiscal 2008.

On a non-GAAP basis, operating income decreased 6 percent to $109.4 million from $115.9 million last year. Non-GAAP net income decreased 10 percent to $73.8 million from $81.9 million last year and non-GAAP diluted earnings per share decreased 6 percent to $1.80 from $1.92 in fiscal 2008.

Non-GAAP amounts exclude the amortization of acquired intangibles, stock-based compensation, restructuring and acquisition-related costs, purchase accounting adjustments for deferred revenue and professional services fees associated with the investigation and shareholder derivative lawsuits related to the company's historical stock option grant practices.

The non-GAAP results noted above and the non-GAAP financial outlook for 2010 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, 2009 and 2008 and the 2010 outlook, as well as further information regarding these measures, is included in the condensed financial information provided with this release.

The company's cash and short-term investments at the end of the year totaled $224.1 million.

In September 2009, Progress Software’s Board of Directors extended the company’s stock repurchase program by authorizing Progress Software to repurchase an aggregate of 1 million shares during the period from October 1, 2009 until September 30, 2010. The company repurchased approximately 3,000 shares of its common stock at a cost of $0.1 million in the fourth quarter of fiscal 2009 under this new repurchase authorization.

Richard D. Reidy, president and chief executive officer, Progress Software, said: “We exceeded our guidance for both revenue and earnings in our fiscal fourth quarter as a result of excellent customer wins along with well-managed expense management, despite the difficult economic environment. The Progress Apama and Actional product lines achieved double- and triple-digit growth respectively in the fiscal fourth quarter. Furthermore, we expect our newer product lines to continue on their significant growth path in 2010 achieving a greater than 20 percent increase in revenue; we also anticipate strong earnings overall for the year.”