PRGS), a global supplier of application infrastructure software used to develop, deploy, integrate and manage business applications, today announced results for its second quarter ended May 31, 2005. Revenue for the quarter was $100.2 million, up 10 percent (seven percent at constant
currency) from $90.8 million in the second quarter of 2004. Software license revenue increased one percent (down two percent at constant
currency) to $37.2 million from $36.9 million in the same quarter last year.
On a generally accepted accounting principles (GAAP) basis, operating income increased 51 percent to $17.3 million from $11.5 million in the second quarter of fiscal 2004. Net income increased 51 percent to $12.2 million from $8.1 million in the same quarter last year. Diluted earnings per share increased 43 percent to 30 cents per share from 21 cents per share in the second quarter of 2004.
On a pro forma basis, operating income increased 55 percent to $20.6 million from $13.3 million in the same quarter last year. Pro forma net income increased 54 percent to $14.4 million from $9.4 million in the same quarter last year and pro forma diluted earnings per share increased 46 percent to 35 cents per share from 24 cents in the second quarter of fiscal 2004. The pro forma results exclude amortisation of acquired intangibles and certain other acquisition-related expenses such as in-process research and development, retention bonus expense for key employees and credits associated with settlement of pre-acquisition assets and liabilities.
The company's cash and short-term investments at the end of the quarter totaled $220 million. During the second quarter, the company purchased approximately 10,000 shares of its stock at a cost of $0.3 million. The company's existing repurchase authorisation, under which 9.7 million shares remain available for repurchase, expires on September 30, 2005.
"During the second quarter of 2005 we continued to see the benefits from our growth initiatives and significant increases in overall PSC profitability. Our Progress Real Time, DataDirect and Sonic Software businesses delivered solid revenue growth, and the OpenEdge Division also delivered growth, with substantial operating improvements," stated Joseph Alsop, co-founder and chief executive officer of PSC. "Our newer companies now account for over 30 percent of our software license revenue while revenue from OpenEdge continues to grow and is well positioned to deliver solid results for the balance of 2005."