January 9, 2014Progress Software Reports 2013 Fiscal Fourth Quarter and Year End 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 fourth quarter and fiscal year ended November 30, 2013.
Revenue from continuing operations was $91.0 million compared to $86.6 million in the same quarter last year, a year over year increase of 5% on an actual and constant currency basis.
Additional financial highlights included:
On a GAAP basis in the fiscal fourth quarter of 2013:
Income from operations was $23.9 million compared to $18.7 million in the same quarter last year;
Income from continuing operations was $14.6 million compared to $12.5 million in the same quarter last year;
Net income was $15.0 million compared to $36.0 million in the same quarter last year; and
Diluted earnings per share from continuing operations was $0.28 compared to $0.20 in the same quarter last year.
On a non-GAAP basis in the fiscal fourth quarter of 2013:
Income from operations was $33.5 million compared to $24.2 million in the same quarter last year;
Operating margin was 37% compared to 28% in the same quarter last year;
Income from continuing operations was $22.5 million compared to $16.0 million in the same quarter last year; and
Diluted earnings per share from continuing operations was $0.43 compared to $0.25 in the same quarter last year.
Phil Pead, president and chief executive officer at Progress Software, said, 2013 was a year of significant accomplishments and exceeded expectations for Progress, both in terms of our commitments to improving the companys efficiency and building a foundation for future growth. We completed our divestitures ahead of schedule, reorganized our company, and successfully introduced innovative new technologies in our core businesses. As we enter 2014, Progress is well positioned to meet the needs of the on-premise market as well as to take advantage of the rapid growth of cloud application development with our Pacific platform.
Pead added, In addition, our introduction of a new brand identity in 2013 symbolizes the energy and excitement as Progress enters this new era. It reflects our vision to fuel the innovation and growth of customers and partners worldwide with technology that makes it easy to take the spark of an idea and turn it into business reality.
Other fiscal fourth quarter 2013 metrics and recent results included:
Completion in October 2013 of the previously announced and implemented 10b5-1 plan to repurchase $100.0 million of common stock by December 31, 2013;
Cash, cash equivalents and short-term investments were $231.4 million;
Cash inflows from operations were $17.9 million compared to cash inflows from operations of $28.4 million in the same quarter in fiscal year 2012; and
DSO from continuing operations was 66 days, compared to 62 days in the fiscal third quarter of 2013.
Business Outlook
Progress Software provides the following guidance for the fiscal year ending November 30, 2014:
On a constant currency basis, revenue is expected to be between $340 million and $350 million;
Non-GAAP earnings per share is expected to be between $1.40 and $1.50;
Non-GAAP operating margin is expected to be between 33% and 34%;
Free cash flow is expected to be between $80 million and $85 million; and
Non-GAAP effective tax rate is expected to be between 32% and 33%.
Progress Software provides the following guidance for the first fiscal quarter ending February 28, 2014:
On a constant currency basis, revenue is expected to be between $80 million and $82 million; and
Non-GAAP earnings per share is expected to be between $0.29 and $0.31.
Free cash flow is equal to cash flows from operating activities less purchases of property and equipment and capitalized software development costs.
Share Repurchase Program
Progress Software also announced today that its Board of Directors has authorized a new $100 million share repurchase program. The timing and amount of any shares repurchased will be determined by management based on its evaluation of market conditions and other factors, and the Board of Directors may choose to suspend, expand or discontinue the repurchase program at any time.
Conference Call
The Progress Software quarterly investor conference call to review its fiscal fourth quarter of 2013 will be broadcast live at 5:00 p.m. ET on Thursday, January 9, 2014 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 1-888-378-0320, pass code 9129796. 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. Additi
