Progress Reports 2016 Fiscal Second Quarter Results

6/29/16

BEDFORD, Mass.--(BUSINESS WIRE)--Progress (NASDAQ: PRGS) today announced results for its fiscal second quarter ended May 31, 2016.

Revenue was $96.1 million during the quarter compared to $88.8 million in the same quarter last year, a year over year increase of 8% on an actual currency basis and 9% on a constant currency basis. On a non-GAAP basis, revenue was $96.7 million during the quarter compared to $100.9 million in the same quarter last year, a decrease of 4% on an actual currency basis and 3% on a constant currency basis.

Additional financial highlights included:

On a GAAP basis in the fiscal second quarter of 2016:

  • Revenue was $96.1 million compared to $88.8 million in the same quarter in fiscal year 2015;
  • Income from operations was $12.3 million compared to a loss from operations of $2.7 million in the same quarter last year;
  • Net income was $7.3 million compared to $5.8 million in the same quarter last year;
  • Diluted earnings per share was $0.14 compared to $0.11 in the same quarter last year; and
  • Cash from operations was $26.8 million compared to $20.8 million in the same quarter last year.

On a non-GAAP basis in the fiscal second quarter of 2016:

  • Revenue was $96.7 million compared to $100.9 million in the same quarter last year;
  • Income from operations was $27.0 million compared to $27.8 million in the same quarter last year;
  • Operating margin was 28% compared to 28% in the same quarter last year;
  • Net income was $16.4 million compared to $18.1 million in the same quarter last year;
  • Diluted earnings per share was $0.33 compared to $0.35 in the same quarter last year; and
  • Adjusted free cash flow was $26.4 million compared to $18.8 million in the same quarter last year.

Phil Pead, CEO at Progress, said, "We are pleased with our second quarter performance. We had another solid quarter from our OpenEdge partners, strong growth from our data products and increased momentum in our Telerik bookings. We also announced our Digital Factory solutions during the quarter, which will enable us to take advantage of the longer-term growth opportunities available in the digital transformation market."

Other fiscal second quarter 2016 metrics and recent results included:

  • Cash, cash equivalents and short-term investments were $229.1 million at the end of the quarter;
  • DSO was 45 days, compared to 50 days in the fiscal second quarter of 2015; and
  • Under the previously announced authorization by the Board of Directors to repurchase up to $200 million of shares of common stock, Progress repurchased 1.9 million shares for $48.3 million during the fiscal second quarter of 2016.

About Progress

Progress (NASDAQ: PRGS) is a global leader in application development, empowering the digital transformation organizations need to create and sustain engaging user experiences in today's evolving marketplace. With offerings spanning web, mobile and data for on-premise and cloud environments, Progress powers startups and industry titans worldwide, promoting success one customer at a time. Learn about Progress at www.progress.com or 1-781-280-4000.

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