Progress Software Corporation (NASDAQ: PRGS), a provider of leading application infrastructure software to develop, deploy, integrate and manage business applications, today announced results for its first quarter ended February 28, 2007. Revenue for the quarter was $115 million, up 11 percent (6 percent at constant currency) from $104 million in the first quarter of fiscal 2006. Software license revenue increased 5 percent (flat at constant currency) to $44.7 million from $42.8 million in the same quarter last year.
On a generally accepted accounting principles (GAAP) basis, operating income increased 49 percent to $12.4 million from $8.3 million in the first quarter of fiscal 2006. Net income increased 48 percent to $8.7 million from $5.9 million in the same quarter last year. Diluted earnings per share increased 43 percent to 20 cents from 14 cents in the first quarter of fiscal 2006.
On a non-GAAP basis, operating income increased 26 percent to $23.5 million from $18.7 million in the same quarter last year. Non-GAAP net income increased 25 percent to $16.2 million from $12.9 million in the same quarter last year and non-GAAP diluted earnings per share increased 23 percent to 37 cents per share from 30 cents in the first quarter of fiscal 2006.
The non-GAAP results in the first quarter of fiscal 2007 exclude after-tax charges of $3.3 million for stock-based compensation, $0.1 million for an accrual for payments to be made to current and former employees for reimbursements for excise taxes resulting from the exercise of below market options in fiscal 2007, $3.0 million for amortization of acquired intangibles and $1.1 million for professional services fees associated with our stock option accounting investigation and restatement. The non-GAAP results in the first quarter of fiscal 2006 exclude after-tax charges of $4.0 million for stock-based compensation, $2.0 million for amortization of acquired intangibles and $1.0 million for certain other acquisition-related expenses.
The company's cash and short-term investments at the end of the quarter totaled $234 million. The company purchased 695,000 shares at a cost of $19.2 million in the first quarter of fiscal 2007. The company's existing repurchase authorization, under which approximately 9.3 million shares remain available for repurchase, expires on September 30, 2007.
"We achieved double-digit growth in total revenue for the first quarter, with a 23 percent increase in non-GAAP earnings per share. Our Progress OpenEdge division and particularly our DataDirect Technologies division performed extremely well this quarter," stated Joseph Alsop, co-founder and chief executive officer of Progress Software. "Revenue in our Enterprise Infrastructure product line grew 7 percent this quarter, with our newer products comprising Sonic(TM), Apama(R) and DataXtend(R) SI (formerly Pantero) demonstrating solid combined growth exceeding 25 per cent, while our mature products were weak. Our outlook for the balance of the year remains solid."