Progress Software Corporation (NASDAQ: PRGS), a provider of leading application infrastructure software to develop, deploy, integrate and manage business applications, today announced financial information for its third quarter ended August 31, 2006. Revenue for the quarter was a record $111.4 million, up 12 percent (10 percent at constant currency) from $99.5 million in the third quarter of fiscal 2005. Software license revenue increased 11 percent (10 percent at constant currency) to $42.3 million from $38.0 million in the same quarter last year.
"Our Progress OpenEdge business performed as anticipated, and our DataDirect Technologies product line, which includes the recently acquired Shadow mainframe integration products, had an extremely strong quarter. Overall, we achieved double-digit growth in software license revenue and total revenue," stated Joseph Alsop, co-founder and chief executive officer of Progress Software. "Our Enterprise Infrastructure product lines, formerly Sonic and Real-Time, also achieved double-digit software license revenue and total revenue growth, with Data Services products performing less than anticipated and Sonic and Apama demonstrating solid growth."
The company's cash and short-term investments at the end of the quarter totaled $237 million. During the third quarter, the company did not purchase any shares of its stock. On September 13, 2006, the board of directors authorised, effective as of the company's filing of its restated financial reports, the repurchase of up to 10 million shares of the company's outstanding common stock, at such times when the company deems such purchases to be an effective use of cash, during the period from October 1, 2006, through September 30, 2007. The company's existing repurchase authorisation, under which 9.5 million shares remain available for repurchase, expires on September 30, 2006.
A Special Committee of the Company's board of directors is continuing the review commenced by the Audit Committee with respect to the Company's historical practices regarding its stock option program. The Special Committee is being assisted by both the Company's outside legal counsel and independent legal counsel. On August 29, 2006, the company announced that:
-- it will restate its previously issued financial statements in order to correct errors relating to its accounting for stock-based compensation;
-- it expects to record additional non-cash charges in the range of $20 million to $30 million for stock-based compensation over the period from December 1, 1995 to February 28, 2006;
-- it expects that it will be unable to announce its financial results for the third quarter of fiscal 2006 or file its related Quarterly Report on Form 10-Q until a final determination of the appropriate stock-based compensation expense has been made.
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