Company Reports 46th Consecutive Profitable Quarter
Pervasive Software® Inc. (NASDAQ: PVSW), a global leader in cloud-based and on-premises data innovation, today announced financial results for the fourth quarter ending June 30, 2012.
For the fourth quarter ended June 30, 2012:
- Revenue was $12.8 million, consistent with the company’s $12.0 million to $13.0 million expectations communicated on April 24, 2012, and compared to $13.7 million for the fourth quarter of last fiscal year. As a reminder, the company closed a relatively large transaction with a database customer representing approximately $0.9 million in revenue near the end of the June quarter of the previous fiscal year.
- Net income was $0.4 million, or $0.03 diluted earnings per share, consistent with expectations in the range of $0.02 to $0.05 communicated on April 24, 2012, and compared to net income of $1.2 million, or $0.07 diluted earnings per share, for the fourth quarter of last fiscal year.
- On a non-GAAP basis, as described below, Pervasive realized net income of $1.0 million, or $0.06 diluted earnings per share, consistent with expectations in the range of $0.04 to $0.07 communicated on April 24, 2012, and compared to net income of $1.4 million, or $0.08 diluted earnings per share, in the fourth quarter of last fiscal year. Non-GAAP results exclude amortization of purchased intangibles and stock-based compensation expense, and assume a non-GAAP effective tax rate of 34%.
Pervasive continued to generate positive cash flow from operations with approximately $1.1 million in the fourth quarter, ending the quarter with approximately $42.7 million in cash and marketable securities. Pervasive acquired approximately 25,000 shares of Pervasive common stock on the open market at a total cost of approximately $0.2 million, or approximately $6.24 weighted average price per share, during the quarter ended June 30, 2012. The company has approximately $1.4 million authorized repurchase funds remaining under its $10.0 million stock repurchase program announced in July 2010. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. Issued and outstanding shares of common stock as of June 30, 2012 totaled approximately 16.4 million.
"We executed well in the June quarter, which marks our 46th consecutive quarter and 11th consecutive year of profitability," said John Farr, president and CEO, Pervasive Software. "I am proud of the execution from our two core products teams. Our database products continued to deliver consistently solid revenue and high margins by matching its annual revenue performance from the prior year, representing 57% of our total annual revenue. Our core integration products team again grew quarterly and annual revenue over prior year, representing the 11th consecutive quarter and 5th consecutive fiscal year of year-over-year growth for our integration products team. Our balance sheet continues to be incredibly strong with $43 million in cash and marketable securities and no debt. Going forward, we remain committed to profitability while also investing heavily in research and development (~26% of revenue in fiscal 2012), including our strategic innovation investments both in our flagship database and integration product lines as well as in our evolving Cloud and Big Data-focused businesses."
For the first fiscal quarter ending September 30, 2012, Pervasive expects revenue to be in the range of $11.8 million to $12.8 million and GAAP-basis diluted earnings per share of $0.01 to $0.04, compared to $11.7 million revenue and $0.01 diluted earnings per share for the September quarter of the previous fiscal year. The expectation for revenue for the quarter ending September 30, 2012 reflects the potential for a sequential decrease from the quarter ended June 30, 2012. The September quarter is typically a challenging quarter due to the seasonality associated with the summer months.
GAAP-basis profitability is expected to include amortization of purchased intangibles and stock-based compensation expense representing approximately $0.6 million, pre-tax, in the first quarter of fiscal year 2013. The company expects non-GAAP adjustments to result in non-GAAP diluted and fully taxed earnings per share of approximately $0.03 to $0.06 in the September quarter, compared to $0.03 non-GAAP diluted and fully taxed earnings per share for the September quarter of the previous fiscal year.