PROGRESS SOFTWARE REPORTS Q2 03 RESULTS
- 18 June, 2003 14:00
<p>Revenue, Operating Income and EPS All Show Solid Increases</p>
<p>Bedford Mass., June 17, 2003 – Progress Software Corporation (Nasdaq: PRGS), a supplier of leading technology to develop, deploy, integrate and manage business applications, today announced results for its second quarter ended May 31, 2003.</p>
<p>Revenue for the quarter was US$77.6 million, up 15 percent (6 percent at constant currency) from US$67.6 million in the second quarter of 2002. Software license revenue was US$27.1 million, up 18 percent (10 percent at constant currency) from US$23.0 million in the same quarter last year. Operating income increased 9 percent to US$9.2 million, up from US$8.4 million in the same quarter last year. Net income was US$6.7 million, up 16 percent from US$5.8 million in the same quarter last year. Diluted earnings per share of 18 cents represented an increase of 20 percent over the 15 cents achieved in the second quarter of 2002.</p>
<p>Net income for the second quarter of 2002 included an after-tax noncash charge of US$0.7 million (or US$0.02 per share) related to the writedown of an investment.</p>
<p>During the second quarter, the company purchased approximately 81,000 shares of its stock at a cost of US$1.5 million. The company has 8.7 million shares available to purchase under its current board authorized stock repurchase program. The company's cash and short-term investments at the end of the quarter totaled approximately US$191 million.</p>
<p>“In today’s challenging business environment, we are pleased to see our sixth straight quarter of year-over-year net income growth and eighth straight quarter of year-over-year revenue growth," said Joseph W. Alsop, Co-Founder and CEO of Progress Software. "Sonic Software has continued to exhibit strong growth, being the first to market with an enterprise service bus, Sonic ESBä. Additionally, both Sonic and Progress have already begun to realize the benefits of new technology acquired in December of 2002.”</p>
Highlights include recent adoption of PSC technology, and solutions based on PSC technology, by more than 80 new customers and Application Partners.</p>
<p>Other highlights from the quarter:
Exchange2003 was held in Boston the week of April 13 and attracted 1,000 attendees to learn how technology from Progress, Sonic Software and PeerDirect can help in the development and deployment of next-generation, service-oriented applications.
<p>Sonic Software announced the Sonic Business Integration Suite ™, the only integration suite built on an enterprise service bus (ESB). With the Sonic Suite, customers and business partners can develop extremely cost-effective integration projects, whether departmental in nature or global in scope. The Sonic family of products shares a distributed management infrastructure, and a unified development environment within a service-oriented architecture.
<p>Sonic Software also announced version 5.0 of Sonic ESB, formerly SonicXQ™. Concurrently, Sonic announced incorporation of subsidiaries in France, Germany, Italy, the Netherlands and United Kingdom, the five largest European markets for enterprise integration.
<p>Sonic Software published results demonstrating massive scalability of an integrated, carrier-grade Operations Support Systems (OSS) environment built using J2EE™ (Java™ 2 Platform, Enterprise Edition) and XML technologies under real-world conditions for telecommunications.
<p>MFG/PRO, an ERP package from Progress partner QAD, built on the Progress® OpenEdge™ Platform, was deployed by Transitions Optical throughout its global operations. The world's leading supplier of plastic photochromic eyeglass lenses dramatically reduced inventory as well as lead-time by at least 50 percent and achieved a record year with retail sales in the billions. http://web.progress.com/company_info/news_views/pressrelease_110102/pritem.ssp</p>
<p>Twelve Progress customers were named Laureates by Computerworld Honors Program, which recognizes the world's most creative and innovative uses of information technology in society. http://web.progress.com/company_info/news_views/pressrelease_108879/pritem.ssp</p>
<p>Progress announced Fathom™ Replication and Fathom Clusters to extend the
Progress OpenEdge Platform, offering affordable disaster recovery tools and enterprise-class business continuity products for the mid-market. http://web.progress.com/company_info/news_views/pressrelease_108886/pritem.ssp</p>
<p>PeerDirect announced its “Retail Ramp-up Program” to help independent software vendors (ISVs) and IT staff realize substantial productivity improvements, operational savings and enhanced revenue. Retail stores are quick to benefit from distributed applications that allow branch locations to operate independently, with fully functional applications, without requiring constant connectivity to the home office.
<p>About Progress Software Corporation
Progress Software Corporation (PSC) (Nasdaq: PRGS) supplies industry-leading technologies for all aspects of the development, deployment, integration and
management of business applications. PSC, headquartered in Bedford, MA , operates through the Progress Company, Sonic Software Corporation, and PeerDirect
Corporation. PSC can be reached at www.progress.com.</p>
For further information please contact:
Chris Henderson Progress Software 02 9496 8439
Shuna Boyd BoydPR 02 9418 8100</p>