20 janv., 2015

Progress présente ses résultats financiers du dernier trimestre 2014 et de l’année fiscale 2014


Puteaux, le 20 janvier 2015 - Progress Software (éditeur de logiciels simplifiant le développement, le déploiement et la gestion des applications d’entreprises – PaaS) annonce ses résultats financiers pour l’année fiscale 2014, qui a pris fin le 30 novembre.

Résultats financiers :

  • Le chiffre d’affaires généré par les activités poursuivies en 2014 est de 332,5 millions de dollars
  • L’activité a généré un bénéfice de 80,7 millions de dollars en 2014, contre 63,7 millions en 2013.
  • Le chiffre d’affaires généré par les activités poursuivies en Q4 2014 a augmenté de 8% pour atteindre 97,9 millions de dollars, contre 91 millions de dollars en Q4 2013 (GAAP)

Deux acquisitions en 2014

Courant 2014, Progress a également fait l’acquisition de BravePoint, filiale de Chesapeake Utilities Corporation, renforçant ainsi son offre de services pour accompagner ses clients et partenaires dans la modernisation et le développement de leurs applications ; ainsi que l’acquisition de Telerik, fournisseur d'outils de développement d'applications mobiles, permettant aux développeurs de créer des interfaces graphiques élégantes et personnalisées pour leur applications déployées sur le Cloud, sur des sites Web et sur site.

Le mot de Phil Pead, Président et CEO de Progress Software

« Progress est dans une dynamique ascendante qui s’est confirmée en 2014 et nous a permis d’augmenter de façon significative notre résultat brut d’exploitation ainsi que notre trésorerie, comparé à l’année précédente. Nous entamons l’année 2015 dans les meilleures conditions, d’autant que nous sommes maintenant en mesure de mettre à disposition des développeurs d’applications une offre inégalée. Avec Progress, les développeurs ont un accès continu à la gamme la plus riche de sources de données, d’outils d’optimisation de l’expérience utilisateur ainsi qu’une plate-forme hautes performances pour construire des applications mobiles. D’autre part, l’ajout récent de Telerik Sitefinity à notre portefeuille offre aux développeurs une solution de gestion de contenu web intuitive, de marketing digital marketing et d’analyse des données clients. Grâce à cette stratégie, nous souhaitons aujourd’hui être le premier partenaire des développeurs. »

Le communiqué de presse complet est disponible ici : http://investors.progress.com/releasedetail.cfm?releaseid=891156

N’hésitez pas à nous contacter pour en savoir plus.

A propos de Progress Software Corporation

Progress Software Corporation (NASDAQ : PRGS) simplifie le développement, le déploiement et la gestion des applications métiers sur site ou en environnement Cloud, sur tout type de plateforme et de périphérique, en minimisant la complexité et le TCO (coût total de possession). Pour contacter Progress, visitez le site www.progress.com ou composez le 1-781-280-4000.

Suivez Progress Software sur Twitter @ProgressSW_FR

Contacts presse

Hotwire pour Progress

Charlène Mougeot / Marion Delmas

01 43 12 55 64 / 62

ProgressFR@hotwirepr.com


Progress 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 revenue is expected to be between $425 million and $435 million;
  • Non-GAAP earnings per share is expected to be between $1.37 and $1.47;
  • Non-GAAP operating margin is expected to be approximately 27%;
  • Free cash flow is expected to be between $90 million and $93 million; and
  • Non-GAAP effective tax rate is expected to be between 33% and 34%.

Progress Software provides the following guidance for the first fiscal quarter ending February 28, 2015:

  • Non-GAAP revenue is expected to be between $93 million and $96 million; and
  • Non-GAAP earnings per share is expected to be between $0.22 and $0.24.

Our fiscal 2015 business outlook reflects the following:

  • Full year impact of the Modulus, BravePoint, and Telerik acquisitions and related financing; and
  • Our financial guidance includes the impact of the recent significant strengthening of the US dollar and is based on current exchange rates. With approximately 55% of our revenue stream outside of North America, this has a negative impact on our 2015 business outlook of $17-$18 million on non-GAAP revenue and $0.10-$0.11 cents on our non-GAAP earnings per share, when compared to 2014 actual exchange rates. To the extent that there are further changes in exchange rates versus the current environment, this may have an additional impact on our business outlook.

Free cash flow is equal to cash flows from operating activities less purchases of property and equipment and capitalized software development costs.

Conference Call

The Progress Software quarterly investor conference call to review its fiscal fourth quarter of 2014 will be broadcast live at 5:00 p.m. ET on Tuesday, January 13, 2015 and can be accessed on the investor relations section of the company's website, located at www.progress.com. Additionally, you can listen to the call by telephone by dialing 1-888-539-3612, pass code 7867622. 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 company's performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of non-GAAP adjustments to the company's GAAP financial results is included in the tables below. Additional information regarding the company's non-GAAP financial information is contained in the company's Current Report on Form 8-K furnished to the Securities and Exchange Commission in connection with this press release, which is available on the Progress website at www.progress.com within the investor relations section.

Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "should,""expect," "intend," "plan," "target," "anticipate" and "continue," the negative of these words, other terms of similar meaning or the use of future dates.

Forward-looking statements in this press release include, but are not limited to, statements regarding Progress's strategic plans; future revenue growth, operating margin and cost savings; product development, strategic partnering and marketing initiatives; the growth rates of certain markets; and other statements regarding the future operation, direction and success of Progress's business. There are a number of factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation:

(1) Market acceptance of Progress's strategy and product development initiatives; (2) pricing pressures and the competitive environment in the software industry and Platform-as-a-Service market; (3) Progress's ability to successfully manage transitions to new business models and markets, including an increased emphasis on a cloud and subscription strategy; (4) uncertainties relating to Progress' acquisition of Telerik, including whether Progress will be able to realize expected benefits and anticipated synergies of the acquisition and whether Telerik's business will be successfully integrated with Progress Software's business; (5) Progress's ability to make acquisitions and to realize the expected benefits and anticipated synergies from such acquisitions; (6) the continuing uncertainty in the U.S. and international economies, which could result in fewer sales of Progress's products and may otherwise harm Progress's business; (7) business and consumer use of the Internet and the continuing adoption of Cloud technologies; (8) the receipt and shipment of new orders; (9) Progress's ability to expand its relationships with channel partners and to manage the interaction of channel partners with its direct sales force; (10) the timely release of enhancements to Progress's products and customer acceptance of new products; (11) the positioning of Progress's products in its existing and new markets; (12) variations in the demand for professional services and technical support; (13) Progress's ability to penetrate international markets and manage its international operations; and (14) changes in exchange rates. For further information regarding risks and uncertainties associated with Progress's business, please refer to Progress's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2013 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended February 28, 2014, May 31, 2014 and August 31, 2014. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

Progress Software Corporation

Progress Software Corporation (NASDAQ: PRGS) is a global software company that simplifies the development, deployment and management of business applications on-premise or in the cloud, on any platform or device, to any data source, with enhanced performance, minimal IT complexity and low total cost of ownership. Progress Software can be reached at www.progress.com or 1-781-280-4000.


Progress is a trademark or registered trademarks of Progress Software Corporation or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Fiscal Year Ended

(In thousands, except per share data)

November
30, 2014

November
30, 2013

% Change

November
30, 2014

November
30, 2013

% Change

Revenue:

Software licenses

$

41,154

$

37,392

10

%

$

117,801

$

122,312

(4

)%

Maintenance and services

56,740

53,588

6

%

214,732

211,684

1

%

Total revenue

97,894

90,980

8

%

332,533

333,996

%

Costs of revenue:

Cost of software licenses

1,445

1,856

(22

)%

6,396

6,889

(7

)%

Cost of maintenance and services

8,574

5,710

50

%

24,864

26,753

(7

)%

Amortization of acquired intangibles

1,106

529

109

%

2,999

1,340

124

%

Total costs of revenue

11,125

8,095

37

%

34,259

34,982

(2

)%

Gross profit

86,769

82,885

5

%

298,274

299,014

%

Operating expenses:

Sales and marketing

30,085

26,911

12

%

101,496

105,997

(4

)%

Product development

13,397

14,428

(7

)%

58,965

57,336

3

%

General and administrative

13,056

13,604

(4

)%

48,292

55,994

(14

)%

Amortization of acquired intangibles

225

211

7

%

653

760

(14

)%

Restructuring expenses

265

2,856

(91

)%

2,266

11,983

(81

)%

Acquisition-related expenses

2,714

975

178

%

5,862

3,204

83

%

Total operating expenses

59,742

58,985

1

%

217,534

235,274

(8

)%

Income from operations

27,027

23,900

13

%

80,740

63,740

27

%

Other (expense) income, net

(357

)

(294

)

(21

)%

(2,936

)

(957

)

207

%

Income from continuing operations before income taxes

26,670

23,606

13

%

77,804

62,783

24

%

Provision for income taxes

12,207

8,988

36

%

28,346

23,006

23

%

Income from continuing operations

14,463

14,618

(1

)%

49,458

39,777

24

%

Income (loss) from discontinued operations, net

418

(100

)%

35,130

(100

)%

Net income

$

14,463

$

15,036

(4

)%

$

49,458

$

74,907

(34

)%

Earnings per share:

Basic:

Continuing operations

$

0.29

$

0.28

4

%

$

0.97

$

0.73

33

%

Discontinued operations

0.01

(100

)%

0.64

(100

)%

Net income per share

$

0.29

$

0.29

%

0.97

$

1.37

(29

)%

Diluted:

Continuing operations

$

0.28

$

0.28

%

$

0.96

$

0.72

33

%

Discontinued operations

0.01

(100

)%

0.63

(100

)%

Net income per share

$

0.28

$

0.29

(3

)%

$

0.96

$

1.35

(29

)%

Weighted average shares outstanding:

Basic

50,432

51,731

(3

)%

50,840

54,516

(7

)%

Diluted

51,121

52,655

(3

)%

51,466

55,379

(7

)%

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

November 30,
2014

November
30, 2013

Assets

Current assets:

Cash, cash equivalents and short-term investments

$

283,268

$

231,440

Accounts receivable, net

68,311

66,784

Other current assets

34,094

39,587

Total current assets

385,673

337,811

Property and equipment, net

59,351

57,030

Goodwill and intangible assets, net

253,414

234,236

Other assets

4,623

53,110

Total assets

$

703,061

$

682,187

Liabilities and shareholders' equity

Current liabilities:

Accounts payable and other current liabilities

$

60,746

$

68,186

Short-term deferred revenue

92,557

96,393

Total current liabilities

153,303

164,579

Long-term deferred revenue

3,683

1,144

Other long-term liabilities

2,830

2,810

Shareholders' equity:

Common stock and additional paid-in capital

209,778

205,307

Retained earnings

333,467

308,347

Total shareholders' equity

543,245

513,654

Total liabilities and shareholders' equity

$

703,061

$

682,187


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Fiscal Year Ended

(In thousands)

November 30,
2014

November 30,
2013

November 30,
2014

November 30,
2013

Cash flows from operating activities:

Net income

$

14,464

$

15,036

$

49,458

$

74,907

Depreciation and amortization

4,311

3,061

15,296

14,435

Stock-based compensation

6,679

5,039

24,873

21,399

Net gains on sales of dispositions

(610

)

(71,601

)

Other non-cash adjustments

15,545

8,985

17,777

9,432

Changes in operating assets and liabilities

(1,774

)

(13,652

)

290

(43,992

)

Net cash flows from operating activities

39,225

17,859

107,694

4,580

Capital expenditures

(1,610

)

(2,073

)

(11,801

)

(5,062

)

Redemptions and sales of auction-rate-securities

26,196

25

Issuances of common stock, net of repurchases

5,774

(30,032

)

(36,116

)

(222,107

)

Payments for acquisitions, net of cash acquired

(12,000

)

(24,493

)

(9,450

)

Proceeds from divestitures, net

3,300

111,120

Other

(9,413

)

3,704

(12,952

)

(2,883

)

Net change in cash, cash equivalents and short-term investments

21,976

(10,542

)

51,828

(123,777

)

Cash, cash equivalents and short-term investments, beginning of period

261,292

241,982

231,440

355,217

Cash, cash equivalents and short-term investments, end of period

$

283,268

$

231,440

$

283,268

$

231,440

RESULTS OF OPERATIONS BY SEGMENT

(In thousands)

Q1 2014

Q2 2014

Q3 2014

Q4 2014

FY 2014

Segment revenue:

OpenEdge

$

66,734

$

73,192

$

71,847

$

84,948

$

296,721

Data Connectivity and Integration

7,639

7,407

7,175

12,551

34,772

Application Development and Deployment

165

228

252

395

1,040

Total revenue

74,538

80,827

79,274

97,894

332,533

Segment costs of revenue and operating expenses:

OpenEdge

17,391

15,855

15,524

22,041

70,811

Data Connectivity and Integration

2,797

2,601

2,515

4,395

12,308

Application Development and Deployment

1,553

1,763

2,446

3,592

9,354

Total costs of revenue and operating expenses

21,741

20,219

20,485

30,028

92,473

Segment contribution margin:

OpenEdge

49,343

57,337

56,323

62,907

225,910

Data Connectivity and Integration

4,842

4,806

4,660

8,156

22,464

Application Development and Deployment

(1,388

)

(1,535

)

(2,194

)

(3,197

)

(8,314

)

Total contribution margin

52,797

60,608

58,789

67,866

240,060

Corporate expenses (1)

31,415

32,187

29,216

29,850

122,668

Non-GAAP operating income

21,382

28,421

29,573

38,016

117,392

GAAP adjustment (2)

7,380

8,141

10,142

10,989

36,652

GAAP operating income

14,002

20,280

19,431

27,027

80,740

(In thousands)

Q1 2013

Q2 2013

Q3 2013

Q4 2013

FY 2013

Segment revenue:

OpenEdge

$

74,368

$

70,929

$

69,406

$

78,805

$

293,508

Data Connectivity and Integration

9,365

10,772

7,955

11,997

40,089

Application Development and Deployment

4

217

178

399

Total revenue

83,733

81,705

77,578

90,980

333,996

Segment costs of revenue and operating expenses:

OpenEdge

24,579

20,063

18,988

20,045

83,675

Data Connectivity and Integration

2,582

3,132

3,090

3,593

12,397

Application Development and Deployment

589

1,023

1,612

Total costs of revenue and operating expenses

27,161

23,195

22,667

24,661

97,684

Segment contribution margin:

OpenEdge

49,789

50,866

50,418

58,760

209,833

Data Connectivity and Integration

6,783

7,640

4,865

8,404

27,692

Application Development and Deployment

4

(372

)

(845

)

(1,213

)

Total contribution margin

56,572

58,510

54,911

66,319

236,312

Corporate expenses (1)

35,020

34,795

33,552

32,809

136,176

Non-GAAP operating income

21,552

23,715

21,359

33,510

100,136

GAAP adjustment (2)

5,759

9,329

11,698

9,610

36,396

GAAP operating income

15,793

14,386

9,661

23,900

63,740

(1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, and general and administration.
(2) The following expenses are included in the GAAP adjustment: amortization of acquired intangibles, stock-based compensation, restructuring, acquisition related, and transition expenses.

SUPPLEMENTAL INFORMATION

Revenue from continuing operations by Type

(In thousands)

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

FY 2014

FY 2013

License

$

37,392

$

22,264

$

27,988

$

26,393

$

41,154

$

117,799

$

122,312

Maintenance

51,230

50,181

50,305

50,746

51,268

202,500

202,857

Professional services

2,358

2,093

2,534

2,135

5,472

12,234

8,827

Total revenue

$

90,980

$

74,538

$

80,827

$

79,274

$

97,894

$

332,533

$

333,996

Revenue from continuing operations by Region

(In thousands)

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

FY 2014

FY 2013

North America

$

42,833

$

34,586

$

36,827

$

35,654

$

43,654

$

150,721

$

154,279

EMEA

35,256

29,315

33,698

32,995

35,327

131,335

133,600

Latin America

6,526

5,108

5,703

5,695

8,406

24,912

25,370

Asia Pacific

6,365

5,529

4,599

4,930

10,507

25,565

20,747

Total revenue

$

90,980

$

74,538

$

80,827

$

79,274

$

97,894

$

332,533

$

333,996

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Three Months Ended

Fiscal Year Ended

(In thousands, except per share data)

November 30,
2014

November 30,
2013

November 30,
2014

November 30,
2013

GAAP income from operations

$

27,027

$

23,900

$

80,740

$

63,740

GAAP operating margin

28

%

26

%

24

%

19

%

Amortization of acquired intangibles

1,331

740

3,652

2,100

Stock-based compensation (1)

6,679

5,039

24,873

19,109

Restructuring expenses

265

2,856

2,266

11,983

Acquisition-related expenses

2,427

975

5,575

3,204

Transition expenses

287

287

Total operating adjustments

10,989

9,610

36,653

36,396

Non-GAAP income from operations

$

38,016

$

33,510

$

117,393

$

100,136

Non-GAAP operating margin

39

%

37

%

35

%

30

%

GAAP income from continuing operations

$

14,463

$

14,618

$

49,458

$

39,777

Operating adjustments (from above)

10,989

9,610

36,653

36,396

Realized loss on sales of auction-rate-securities

2,554

Income tax adjustment

(1,383

)

(1,759

)

(10,768

)

(10,159

)

Total income from continuing operations adjustments

9,606

7,851

28,439

26,237

Non-GAAP income from continuing operations

$

24,069

$

22,469

$

77,897

$

66,014

GAAP diluted earnings per share from continuing operations

$

0.28

$

0.28

$

0.96

$

0.72

Income from continuing operations adjustments (from above)

0.19

0.15

0.55

0.47

Non-GAAP diluted earnings per share from continuing operations

$

0.47

$

0.43

$

1.51

$

1.19

Diluted weighted average shares outstanding

51,121

52,655

51,466

55,379

(1) Stock-based compensation is included in the GAAP statements of income, as follows:

Cost of revenue

$

173

$

101

$

612

$

601

Sales and marketing

907

931

4,642

3,599

Product development

1,103

1,036

5,289

4,723

General and administrative

4,496

2,971

14,330

10,186

Stock-based compensation from continuing operations

$

6,679

$

5,039

$

24,873

$

19,109

Three Months Ended

Fiscal Year Ended

(In thousands, except per share data)

November 30,
2014

November 30,
2013

November 30,
2014

November 30,
2013

GAAP costs of revenue

$

11,125

$

8,095

$

34,259

$

34,982

GAAP operating expenses

59,742

58,985

217,534

235,274

GAAP expenses

70,867

67,080

251,793

270,256

Operating adjustments (from above)

10,989

9,610

36,653

36,396

Non-GAAP expenses

$

59,878

$

57,470

$

215,140

$

233,860

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2015 GUIDANCE

(Unaudited)

Fiscal Year 2015 Revenue Growth Guidance

Fiscal Year Ended

Fiscal Year Ending

November 30, 2014

November 30, 2015

(In millions)

Low

% Change

High

% Change

GAAP revenue

$

332.5

$

390.0

17

%

$

400.0

20

%

Acquisition-related adjustments - revenue (1)

$

$

35.0

100

%

$

35.0

100

%

Non-GAAP revenue

$

332.5

$

425.0

28

%

$

435.0

31

%

(1) Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue by Telerik that would otherwise have been recognized but for the purchase accounting treatment of the acquisition of Telerik. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities.

Fiscal Year 2015 Non-GAAP Operating Margin Guidance

Fiscal Year Ending November 30, 2015

(In millions)

Low

High

GAAP income from operations

$

22.4

$

26.2

GAAP operating margins

6

%

7

%

Acquisition-related revenue

35.0

35.0

Restructuring expense

5.5

5.5

Stock-based compensation

30.6

30.6

Acquisition related expense

3.4

3.4

Amortization of intangibles

16.8

16.8

Total adjustments

91.3

91.3

Non-GAAP income from operations

$

113.7

$

117.5

Non-GAAP operating margin

27

%

27

%

Fiscal Year 2015 Non-GAAP Earnings per Share and Effective Tax Rate Guidance

Fiscal Year Ending November 30, 2015

(In millions, except per share data)

Low

High

GAAP net income

$

11.7

$

14.3

Adjustments (from above)

91.3

91.3

Income tax adjustment (2)

(30.5

)

(29.5

)

Non-GAAP net income

$

72.5

$

76.1

GAAP diluted earnings per share

$

0.22

$

0.28

Non-GAAP diluted earnings per share

$

1.37

$

1.47

Diluted weighted average shares outstanding

53.0

51.7

(2) Tax adjustment is based on a non-GAAP effective tax rate of 34% for Low and 33% for High, calculated as follows:

Non-GAAP income from operations

$

113.7

$

117.5

Other income (expense)

(3.9

)

(3.9

)

Non-GAAP income from continuing operations before income taxes

109.8

113.6

Non-GAAP net income

72.5

76.1

Tax provision

37.3

37.5

Non-GAAP tax rate

34

%

33

%

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q1 2015 GUIDANCE

(Unaudited)

Q1 2015 Revenue Growth Guidance

Three Months Ended

Three Months Ending

February 28, 2014

February 28, 2015

(In millions)

Low

% Change

High

% Change

GAAP revenue

$

74.5

$

79.5

7

%

$

82.5

11

%

Acquisition-related adjustments - revenue (1)

$

$

13.5

100

%

$

13.5

100

%

Non-GAAP revenue

$

74.5

$

93.0

25

%

$

96.0

29

%

(1) Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue by Telerik that would otherwise have been recognized but for the purchase accounting treatment of the acquisition of Telerik. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities.

Q1 2015 Non-GAAP Earnings per Share Guidance

Three Months Ending February 28, 2015

Low

High

GAAP diluted earnings per share

$

(0.14

)

$

(0.12

)

Acquisition-related revenue

0.26

0.26

Restructuring expense

0.03

0.03

Stock-based compensation

0.15

0.15

Acquisition related expense

0.02

0.02

Amortization of intangibles

0.08

0.08

Total adjustments

0.54

0.54

Income tax adjustment

$

(0.18

)

$

(0.18

)

Non-GAAP diluted earnings per share

$

0.22

$

0.24

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150113006481r1&sid=acqr7&distro=nx&lang=en

Progress Software
Investor Contact:
Brian Flanagan, +1 781-280-4817
flanagan@progress.com
or
Press Contact:
Erica Burns, +1 888-365-2779 (x3135)
erica.burns@progress.com

Source: Progress Software Corporation

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