January 13, 2015Progress Software Reports 2014 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, 2014.
Revenue from continuing operations was $97.9 million in the fourth quarter compared to $91.0 million in the same quarter last year, a year over year increase of 8% on an actual currency basis and 10% on a constant currency basis.
Additional financial highlights included:
On a GAAP basis in the fiscal fourth quarter of 2014:
Income from operations was $27.0 million compared to $23.9 million in the same quarter last year;
Income from continuing operations was $14.5 million compared to $14.6 million in the same quarter last year;
Net income was $14.5 million compared to $15.0 million in the same quarter last year; and
Diluted earnings per share from continuing operations was $0.28, unchanged from the same quarter last year.
On a non-GAAP basis in the fiscal fourth quarter of 2014:
Income from operations was $38.0 million compared to $33.5 million in the same quarter last year;
Operating margin was 39% compared to 37% in the same quarter last year;
Income from continuing operations was $24.1 million compared to $22.5 million in the same quarter last year; and
Diluted earnings per share from continuing operations was $0.47 compared to $0.43 in the same quarter last year.
Our positive momentum continued in 2014, resulting in significant growth in operating income and cash flow over the previous year, said Phil Pead, President and CEO of Progress Software. Entering 2015, we are now able to offer application developers an unrivaled choice. With Progress, developers have seamless access to the broadest range of data sources, tools to create the most engaging user experiences and a leading platform to build mobile apps. They also benefit from the choice to build and deploy apps from scratch or take advantage of our productivity platform. Further, the recent addition of Telerik Sitefinity to our portfolio provides developers with an intuitive end-to-end web content management, digital marketing and customer analytics solution. These choices underscore our commitment to becoming the preferred destination for application developers.
Other fiscal fourth quarter 2014 metrics and recent results included:
Cash, cash equivalents and short-term investments were $283.3 million;
Cash from operations was $39.2 million compared to $17.9 million in the same quarter in fiscal year 2013; and
DSO from continuing operations was 63 days, compared to 66 days in the fiscal third quarter of 2014.
In addition, as previously announced, during the fourth quarter, Progress began operating as three distinct business units: OpenEdge, Application Development and Deployment, and Data Connectivity and Integration, each with dedicated sales, product management and product marketing functions. Progress adopted segment reporting for its three business units in the fourth quarter, and this press release includes quarterly results of operations by segment for fiscal 2013 and fiscal 2014.
Also during the fourth quarter of fiscal year 2014, Progress acquired 100% of the capital stock of BravePoint, Inc. (BravePoint) from Chesapeake Utilities Corporation in exchange for an aggregate sum of $12.0 million in cash. BravePoint is based in Norcross, Georgia and is a leading provider of consulting, training and application development services designed to increase customers profitability and competitiveness through the use of technology.
Furthermore, shortly after the fourth quarter ended, Progress completed the acquisition of privately held Telerik AD, a leading provider of application development tools, for $262.5 million. Telerik enables its 1.4 million strong developer community to create compelling user experiences across cloud, web, mobile and desktop applications. Through this acquisition, Progress now provides comprehensive cloud and on-premise platform offerings that enable developers to rapidly create beautiful applications, driven by data for any web, desktop or mobile platform. Progress funded the purchase price from a combination of existing cash resources and a $150 million term loan, which is part of a new $300 million term and revolving credit facility with JPMorgan Chase Bank, N.A. and a syndicate of other lenders. This new credit facility replaced Progress prior $150 million revolving credit facility.
Full Year Results
On a GAAP basis in the fiscal year 2014:
Revenue from continuing operations was $332.5 million compared to $334.0 million in fiscal year 2013;
Income from operations was $80.7 million compared to $63.7 million in the prior fiscal year;
Income from continuing operations was $49.5 million compared to $39.8 million in the prior fiscal year;
Net income was $49.5 million compared to $74.9 million in the prior fiscal year;
Diluted earnings per share from continuing operations was $0.96 compared to $0.72 in the prior fiscal year; and
Cash from operations was $107.7 million compared to $4.6 million in the prior fiscal year.
On a non-GAAP basis in the fiscal year 2014:
Income from operations was $117.4 million compared to $100.1 million in fiscal year 2013;
Operating margin was 35% compared to 30% in the prior fiscal year;
Income from continuing operations was $77.9 million compared to $66.0 million in the prior fiscal year; and
Diluted earnings per share from continuing operations was $1.51 compared to $1.19 in the prior fiscal year.
2015 Business Outlook
Progress Software provides the following guidance for the fiscal year ending November 30, 2015:
Non-GAAP reven
