Progress Software has delivered strong results for its first quarter ended 28 February 2005. Revenue for the quarter was a record $97.7 million, up 13% from $86.4 million in the first quarter of 2004. Software licence revenue increased 11% to $37.6 million from $33.9 million in the same quarter last year.
On a generally accepted accounting principles (GAAP) basis, operating income increased 127% to $14.4 million from $6.3 million in the first quarter of 2004. Net income increased 101% to $9.3 million from $4.6 million in the same quarter last year. Diluted earnings per share increased 92% to 23c per share from 12c per share in the first quarter of 2004.
On a pro forma basis operating income increased 56% to $16.4 million from $10.5 million in the first quarter of 2004. Pro forma net income increased 42% to $10.7 million from $7.5 million in the same quarter last year. Diluted earnings per share (EPS) increased 42% to 27c per share from 19c in the first quarter of 2004.
Locally, Progress Software South Africa`s performance was in line with that of its parent, with new licence business having shown a 10% year on year growth. In addition, local licence revenue for the first quarter was 143% on budget.
"During the first quarter of 2005, Progress saw the payoff from its multi-year growth initiatives and significant increases in overall profitability," says Rick Parry, MD of Progress Software South Africa. "The ObjectStore and DataDirect operating units delivered excellent revenue growth while Sonic Software and the OpenEdge division produced solid growth with substantial operating improvements. The newer companies now account for over 30% of Progress`s software licence revenue while revenue from OpenEdge continues to grow and is well positioned to deliver solid results for the balance of 2005.
"Locally, the outlook for the rest of the year is equally positive. We have significant partner and customer wins, coupled with some major deployments of Progress technology."
Highlights
During the quarter, Progress Software received extensive media coverage on US company Interactive Taxi`s use of the PeerDirect product line from ObjectStore to create a new kind of Internet portal designed for deployment in the backseat of taxicabs. Initial deployments of hundreds of these new "cybercabs" have begun in Boston, Chicago and San Francisco. Passengers can now access the most accurate, up-to-date news from major national and local outlets, real-time traffic information and emergency news, and get fully localised listings of special events and happenings in and around the city, book restaurant and show reservations, buy movie tickets and pay their cab fare with a credit or debit card all on the computer screen embedded in the back of the front seat of the taxicab. PeerDirect technology enables lightning-fast access to Internet content even when no cellular data network connection is available.
The IDC report "Worldwide Embedded Database Management Systems 2003 Vendor Shares" published in December 2004 showed the Progress OpenEdge RDBMS retaining its worldwide leadership of the growing embedded database market, for the seventh consecutive year, with 19.7% market share, over 50% greater than the share of any other vendor in this market space.
Sonic Software enhanced and expanded its service-oriented architecture (SOA) infrastructure for the enterprise with the release of version 6.1. The inventor and leading provider of the enterprise service bus (ESB), Sonic has extended its ESB-based SOA infrastructure line with two new products: the Sonic Collaboration Server for managing partner interactions; and the Sonic Database Service, which simplifies access to relational data.
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Progress Software South Africa is a subsidiary of US-based Progress Software Corporation, the world leader in the embedded database market. The company provides the underlying software technology and services required for successfully developing, deploying, integrating and managing e-business solutions. Progress actively pursues innovative technologies and new business opportunities that allow companies to make an effective transition to true e-business environments. Progress`s OpenEdge platform enables its partners to deliver lowest cost-of-ownership applications that are rapidly implemented and easily integrated within and across the extended enterprise.
The company`s extensive partner base includes more than 2 000 application partners and application service providers who supply more than $5 billion in Progress-based applications and services annually. Over 50 000 organisations across 100 countries - including 70% of the Fortune 100 - rely on Progress technology.
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