Progress Reports 2016 Fiscal Third Quarter Results

9/28/16

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

Revenue was $102.0 million during the quarter compared to $94.6 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 $102.4 million during the quarter compared to $100.7 million in the same quarter last year, an increase of 2% on an actual currency basis and 3% on a constant currency basis.

Additional financial highlights included:

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

  • Revenue was $102.0 million compared to $94.6 million in the same quarter in fiscal year 2015;
  • Income from operations was $13.6 million compared to $8.6 million in the same quarter last year;
  • Net income was $7.6 million compared to a net loss of $4.1 million in the same quarter last year;
  • Diluted earnings per share was $0.15 compared to a diluted loss per share of $0.08 in the same quarter last year; and
  • Cash from operations was $19.7 million compared to $19.3 million in the same quarter last year.

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

  • Revenue was $102.4 million compared to $100.7 million in the same quarter last year;
  • Income from operations was $32.0 million compared to $31.7 million in the same quarter last year;
  • Operating margin was 31%, unchanged from the same quarter last year;
  • Net income was $21.6 million compared to $20.0 million in the same quarter last year;
  • Diluted earnings per share was $0.44 compared to $0.39 in the same quarter last year; and
  • Adjusted free cash flow was $19.1 million compared to $18.8 million in the same quarter last year.


Phil Pead, CEO at Progress, said, "Our third quarter was highlighted by a strong performance from our Data Connectivity and Integration segment, along with healthy maintenance renewals for both OpenEdge and our Telerik solutions, and solid cash flows. We’re looking forward to a strong fourth quarter, and the upcoming release of our DigitalFactory solutions will provide us with additional growth opportunities for the future."

Other fiscal third quarter 2016 metrics and recent results included:

  • Cash, cash equivalents and short-term investments were $232.7 million at the end of the quarter;
  • DSO was 49 days, compared to 54 days in the fiscal third 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 0.4 million shares for $11.5 million during the fiscal third 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.