Progress Software Corporation (NASDAQ: PRGS), a leading software provider that enables enterprises to be operationally responsive,announced today results for its fiscal first quarter ended February 29, 2012.
Revenue for the quarter was $124.4 million, a decrease of 7% from $134.2 million in the fiscal first quarter of 2011.
On a GAAP basis in the fiscal first quarter of 2012:
- Income from operations was $11.9 million, a decrease of 58% compared to $28.3 million in the same quarter last year;
- Net income was $7.5 million, a decrease of 64% compared to $20.5 million in the same quarter last year; and
- Diluted earnings per share were $0.12, a decrease of 59% compared to $0.29 in the same quarter last year.
On a non-GAAP basis in the fiscal first quarter of 2012:
- Income from operations was $26.1 million, a decrease of 37% compared to $41.3 million in the same quarter last year;
- Net income was $17.7 million, a decrease of 40% compared to $29.4 million in the same quarter last year; and
- Diluted earnings per share were $0.28, a decrease of 33% compared to $0.42 in the same quarter last year.
Jay Bhatt, president and chief executive officer of Progress Software, said: “Despite the stated year-over-year declines, the company performed better than expected, largely due to our OpenEdge product line. As we navigate through the current environment, we will continue to tightly control spending to protect our profitability.”
Bhatt also noted: “Since I joined Progress Software in early December, the management team and Board of Directors have been conducting a comprehensive evaluation of the company. This effort includes perspectives from shareholders, customers, partners and from external independent advisors including J.P. Morgan. We are nearing the end of our evaluation and expect to share our revised plan with the marketplace in late April. We understand that the status quo is unacceptable and our plan may include actions on the company’s strategy, product portfolio, expense run rate and capital allocation to strengthen the business and to deliver higher levels of shareholder value.”
Cash flows from operations for the quarter were $38.5 million, down from $50.2 million in the same quarter in fiscal 2011. Cash, cash equivalents and short-term investments increased to $315.2 million from $261.4 million at the end of the fiscal fourth quarter 2011, primarily as a result of cash flows from operations and stock option exercises.
In light of the ongoing evaluation and forthcoming announcement of the company’s revised business plan, the company will not provide guidance for the fiscal second quarter or fiscal year at this time.