July 1, 2015Progress Software Reports 2015 Fiscal Second Quarter Results BEDFORD, Mass.--(BUSINESS WIRE)-- Progress Software Corporation (NASDAQ: PRGS), a global software company that simplifies and enables the development, deployment and management of business applications, today announced results for its fiscal second quarter ended May 31, 2015.
Revenue in the quarter was $88.8 million compared to $80.8 million in the same quarter last year, a year over year increase of 10% on an actual currency basis and 19% on a constant currency basis. On a non-GAAP basis, revenue was $100.9 million compared to $80.8 million in the same quarter last year.
Additional financial highlights included:
On a GAAP basis in the fiscal second quarter of 2015:
Revenue was $88.8 million compared to $80.8 million in the same quarter in fiscal year 2014;
Loss from operations was $2.7 million compared to income from operations of $20.3 million in the same quarter last year;
Net income was $5.8 million compared to $12.8 million in the same quarter last year; and
Diluted earnings per share was $0.11 compared to $0.25 in the same quarter last year.
On a non-GAAP basis in the fiscal second quarter of 2015:
Revenue was $100.9 million compared to $80.8 million in the same quarter last year;
Income from operations was $27.8 million compared to $28.4 million in the same quarter last year;
Operating margin was 28% compared to 35% in the same quarter last year;
Net income was $18.1 million compared to $19.2 million in the same quarter last year;
Diluted earnings per share was $0.35 compared to $0.37 in the same quarter last year; and
Free cash flow was $17.6 million compared to $15.6 million in the same quarter last year.
Our FY15 momentum continues with a strong performance in Q2 as we continue to execute on our strategy, said Phil Pead, President and CEO of Progress Software. All business units contributed solid results with some key technology releases during the quarter.
Other fiscal second quarter 2015 metrics and recent results included:
Cash, cash equivalents and short-term investments were $199.1 million;
Cash flows from operations were $20.8 million compared to $17.1 million in the same quarter in fiscal year 2014;
DSO was 50 days, compared to 56 days in the fiscal first quarter of 2015; and
Under the previously announced authorization by the Board of Directors to repurchase up to $100 million of shares of common stock, Progress repurchased 1.0 million shares for $25.0 million during the fiscal second quarter of 2015, with $14.5 million remaining under the current authorization.
Business Outlook
Progress Softwares fiscal 2015 financial guidance includes the impact of the significant strengthening of the US dollar that began in late 2014 and is based on current exchange rates. The negative currency translation impact on Progress Softwares 2015 business outlook compared to 2014 exchange rates is $25 - $26 million on non-GAAP revenue and $0.13 - $0.14 on non-GAAP earnings per share. To the extent that there are further changes in exchange rates versus the current environment, this may have an additional impact on Progress Softwares business outlook.
Progress Software provides the following revised guidance for the fiscal year ending November 30, 2015:
Non-GAAP revenue is expected to be between $415 million and $425 million (unchanged);
Non-GAAP earnings per share is expected to be between $1.45 and $1.52 (previously $1.35 and $1.45);
Non-GAAP operating margin is expected to be approximately 28% (previously approximately 27%);
Free cash flow is expected to be between $92 million and $95 million (previously $90 million and $93 million); and
Non-GAAP effective tax rate is expected to be approximately 33% (previously between 33% and 34%).
Progress Software provides the following guidance for the fiscal third quarter ending August 31, 2015:
Non-GAAP revenue is expected to be between $101 million and $104 million; and
Non-GAAP earnings per share is expected to be between $0.35 and $0.38.
Conference Call
The Progress Software quarterly investor conference call to review its fiscal second quarter of 2015 will be broadcast live at 5:00 p.m. ET on Wednesday, July 1, 2015 and can be accessed on the investor relations section of the companys website, located at www.progress.com. Additionally, you can listen to the call by telephone by dialing 1-888-427-9411, pass code 6889835. The conference call will include brief comments followed by questions and answers. An archived version of the conference call and supporting materials will be available on the Progress Software website within the investor relations section after the live conference call.
Legal Notice Regarding Non-GAAP Financial Information
Progress Software provides non-GAAP financial information as additional information for investors. These non-GAAP measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). Progress Software believes that the non-GAAP results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results. Management uses these non-GAAP results to compare the companys performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of non-GAAP adjustments to the companys GAAP financial results is included in the tables below. Additional information regarding the companys non-GAAP financial information is contained in the companys Current Report on Form 8-K furnished to the Securities and Exchange Commission in connection with this press release, which is available on the Progress website at www.progress.com within the investor relations section.
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