Progress Software announced today results for its first quarter ended February 28. Revenue for the quarter was $127.5 million, up 6 percent from $120.9 million in the first quarter of fiscal 2009. Software license revenue increased 3 percent to $47.1 million from $45.9 million in the same quarter last year.
The GAAP operating results for the first quarter of fiscal 2010 reflect a restructuring charge of $25.8 million taken in connection with the previously announced restructuring of Progress Software’s operations. This restructuring was principally completed during the first quarter. It was undertaken to enhance and re-focus the company’s product strategy, to improve the way the company takes its products to market by becoming more customer and solutions driven, and to increase Progress Software’s market awareness. To accomplish these goals, and with a view toward better optimizing operations and improving productivity and efficiency, the company reduced its global workforce by approximately 13 percent primarily within its sales, development and marketing organizations. This workforce reduction was conducted across all geographies and also resulted in a consolidation of offices in certain locations.
Richard D. Reidy, president and chief executive officer of Progress Software, said: “We grew top line non-GAAP revenue by five percent and non-GAAP earnings per share by 36 percent during the quarter while increasing revenue in our Enterprise Business Solutions portfolio by more than 25 percent year over year. In January, we acquired Savvion, a best-in-class Business Process Management (BPM) solution that complements Progress products to enable enterprises to achieve Operational Responsiveness. More recently, the company announced the Progress(R) Responsive Process Management (RPM) suite, a next generation business solution that better positions Progress to market and sell solutions to a broader market segment, comprising both its traditional IT target audience and business user segments.”
— Progress Software announced the acquisition of Savvion Inc., a privately held business enterprise software company based in Santa Clara, California, for approximately $49 million.
— The company announced the launch of the Progress(R) Responsive Process Management (RPM) suite, a next generation business solution that enables enterprises to achieve a higher level of business performance than previously possible.
— Progress Software made two key appointments during the quarter: Dr. John Bates was promoted to the position of Chief Technology Officer (CTO) and senior vice president of Corporate Development, and Rob Levy was hired to fill the newly created executive position of Senior Vice President and Chief Product Officer (CPO).
— The company made two announcements regarding enhancements to the Progress(R) OpenEdge(R) SaaS platform.
— IDC ranked the Progress(R) OpenEdge(R) business application development platform as the number one pure-play embedded database management system (DBMS) in the world for the fifth consecutive year.
Additional highlights can be found at: http://web.progress.com/inthenews/pressreleases.html.
The Progress Software quarterly investor conference call to review its fiscal first quarter 2010 results and business outlook will be Webcast live at 9:00 a.m. (EDT) on Wednesday, 24 March, 2010 on the company’s Web site, located at http://www.progress.com/investors.
The press release and the prepared remarks are available on the Progress website (www.progress.com) on the investor relations page. The conference call will include only brief comments followed by questions and answers. The prepared remarks will not be read on the call.
The conference call will be webcast and accessible on the Progress Website at http://www.progress.com/investors.