Progress Software Reports 2015 Second Quarter Results 

BEDFORD, Mass., July 2 -- Progress Software Corporation, a global software company that simplifies and enables the development, deployment and management of business applications, today announced results for its fiscal second quarter ended May 31, 2015.

Revenue in the quarter was $88.8 million compared to $80.8 million in the same quarter last year, a year over year increase of 10% on an actual currency basis and 19% on a constant currency basis. On a non-GAAP basis, revenue was $100.9 million compared to $80.8 million in the same quarter last year.

Additional financial highlights included:

On a GAAP basis in the fiscal second quarter of 2015:

• Revenue was $88.8 million compared to $80.8 million in the same quarter in fiscal year 2014;
• Loss from operations was $2.7 million compared to income from operations of $20.3 million in the same quarter last year;
• Net income was $5.8 million compared to $12.8 million in the same quarter last year; and
• Diluted earnings per share was $0.11 compared to $0.25 in the same quarter last year.

On a non-GAAP basis in the fiscal second quarter of 2015:

• Revenue was $100.9 million compared to $80.8 million in the same quarter last year;
• Income from operations was $27.8 million compared to $28.4 million in the same quarter last year;
• Operating margin was 28% compared to 35% in the same quarter last year;
• Net income was $18.1 million compared to $19.2 million in the same quarter last year;
• Diluted earnings per share was $0.35 compared to $0.37 in the same quarter last year; and
• Free cash flow was $17.6 million compared to $15.6 million in the same quarter last year.

"Our FY15 momentum continues with a strong performance in Q2 as we continue to execute on our strategy," said Phil Pead, President and CEO of Progress Software. "All business units contributed solid results with some key technology releases during the quarter."

Other fiscal second quarter 2015 metrics and recent results included:

• Cash, cash equivalents and short-term investments were $199.1 million;
• Cash flows from operations were $20.8 million compared to $17.1 million in the same quarter in fiscal year 2014;
• DSO was 50 days, compared to 56 days in the fiscal first quarter of 2015; and
• Under the previously announced authorization by the Board of Directors to repurchase up to $100 million of shares of common stock, Progress repurchased 1.0 million shares for $25.0 million during the fiscal second quarter of 2015, with $14.5 million remaining under the current authorization.

Business Outlook

Progress Software's fiscal 2015 financial guidance includes the impact of the significant strengthening of the US dollar that began in late 2014 and is based on current exchange rates. The negative currency translation impact on Progress Software's 2015 business outlook compared to 2014 exchange rates is $25 - $26 million on non-GAAP revenue and $0.13 - $0.14 on non-GAAP earnings per share. To the extent that there are further changes in exchange rates versus the current environment, this may have an additional impact on Progress Software's business outlook.

Progress Software provides the following revised guidance for the fiscal year ending November 30, 2015:

• Non-GAAP revenue is expected to be between $415 million and $425 million (unchanged);
• Non-GAAP earnings per share is expected to be between $1.45 and $1.52 (previously $1.35 and $1.45);
• Non-GAAP operating margin is expected to be approximately 28% (previously approximately 27%);
• Free cash flow is expected to be between $92 million and $95 million (previously $90 million and $93 million); and
• Non-GAAP effective tax rate is expected to be approximately 33% (previously between 33% and 34%).

Progress Software provides the following guidance for the fiscal third quarter ending August 31, 2015:

• Non-GAAP revenue is expected to be between $101 million and $104 million; and
• Non-GAAP earnings per share is expected to be between $0.35 and $0.38.

About Progress Software Corporation

Progress Software Corporation 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.

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Source: Progress Software Corporation