Progress Software has reported all-time record revenues of $309 million for its 2003 fiscal year ended 30 November. This represents an increase of 13% relative to its 2002 revenues of $273 million. Operating income increased 30% to $36.8 million, from $28.2 million in 2002; net income increased 32% to $27.1 million from $20.6 million in 2002; and diluted earnings per share increased 33% to 72c from 54c in 2002.
For the fourth quarter, Progress reported revenues of $82 million, up 14% from $72.1 million in the fourth quarter of 2002. Software licence revenue was $29.9 million, up 19% from $25.1 million relative to 2002`s fourth quarter.
Reflecting the company`s overall strength, cash and short-term investments at the end of the quarter totalled $219 million.
"This is Progress`s 10th straight quarter of year-over-year revenue growth and eighth straight quarter of net income growth," says Rick Parry, MD of Progress Software South Africa. "Locally, we`ve had another very solid year, especially in the software as a service area of our business. This has grown more than threefold, and now represents more than 14% of our overall revenues. With the momentum we have established, I expect this to hit 25% of our revenues in 2004."
Progress South Africa leads the world in terms of software as a service: in terms of this initiative, clients only pay for software once it is installed and live. They pay a monthly amount rather than a large capital sum up-front; clients benefit from smooth and predictable budgeting, and Progress enjoys recurring revenue.
"This has been an unqualified success," says Parry, "especially in this country. South African companies have adopted software as a service well ahead of the rest of the world, due largely to the hard work, quality of solutions and commitment of our partner base. By next year I expect renewal maintenance and software as a service to contribute as much as 60% to our revenues.
"In absolute figures, we grew our business 7% this year, and with an excellent pipeline ahead, I anticipate that SA will again be among the best performing regions worldwide for Progress."
The December acquisition of DataDirect will immediately add to Progress`s revenues, says Joseph W Alsop, co-founder and CEO of Progress. "Our new operating companies, including Sonic Software, PeerDirect, ObjectStore and DataDirect, continue to focus on emerging markets."
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