Progress Software Reports Fourth Quarter Results; Record Revenue for the Quarter and Year
BEDFORD, Mass. (BUSINESS WIRE)
20-Dec-2006
Progress Software Corporation (Nasdaq: PRGS), a provider of leading application infrastructure software to develop, deploy, integrate and manage business applications, today announced results for its fourth quarter ended November 30, 2006. Revenue for the quarter was a record $122 million, up 13 percent (10 percent at constant currency) from $108 million in the fourth quarter of fiscal 2005. Software license revenue increased 12 percent (10 percent at constant currency) to $49.4 million from $44.1 million in the same quarter last year.
On a generally accepted accounting principles (GAAP) basis, operating income decreased 49 percent to $9.5 million from $18.6 million in the fourth quarter of fiscal 2005. Net income decreased 49 percent to $6.9 million from $13.6 million in the same quarter last year. Diluted earnings per share decreased 50 percent to 16 cents from 32 cents in the fourth quarter of fiscal 2005.
On a non-GAAP basis, operating income decreased 11 percent to $20.1 million from $22.5 million in the same quarter last year. Non-GAAP net income decreased 13 percent to $14.1 million from $16.2 million in the same quarter last year and non-GAAP diluted earnings per share decreased 16 percent to 32 cents per share from 38 cents in the fourth quarter of fiscal 2005.
The non-GAAP results in the fourth quarter of fiscal 2006 exclude after-tax charges of $4.0 million for stock-based compensation, $0.4 million for an accrual for payments to be made to current and former employees for options that were cancelled or expired during the suspension of the issuance of shares under the company's option plans and reimbursements for excise taxes resulting from the exercise of below market options in fiscal 2006 and $2.8 million for amortization of acquired intangibles. The non-GAAP results in the fourth quarter of fiscal 2005 exclude after-tax charges of $0.5 million for stock-based compensation, $1.7 million for amortization of acquired intangibles and $0.4 million for certain other acquisition-related expenses.
The GAAP and non-GAAP results for the fourth quarter of fiscal 2006 include an after-tax charge of $1.5 million, or 3 cents per share, for legal and accounting expenses associated with our stock option accounting investigation and restatement.
For the twelve months ended November 30, 2006, revenue increased 10 percent (11 percent at constant currency) to $447 million from $405 million in fiscal 2005. On a GAAP basis, operating income decreased 32 percent to $40.9 million from $60.0 million in fiscal 2005. Net income decreased 36 percent to $29.4 million from $46.3 million in fiscal 2005 and diluted earnings per share decreased 39 percent to 68 cents from $1.12 in fiscal 2005.
On a non-GAAP basis, operating income increased 4 percent to $81.4 million from $78.3 million last year. Non-GAAP net income increased 4 percent to $56.8 million from $54.8 million last year and non-GAAP diluted earnings per share decreased 1 percent to $1.31 from $1.32 in fiscal 2005.
The non-GAAP results in fiscal 2006 exclude after-tax charges of $15.9 million for stock-based compensation, $0.4 million for an accrual for payments to be made to current and former employees for options that were cancelled or expired during the suspension of the issuance of shares under the company's option plans and reimbursements for excise taxes resulting from the exercise of below market options in fiscal 2006, $9.8 million for amortization of acquired intangibles and $1.3 million for certain other acquisition-related expenses. The non-GAAP results in fiscal 2005 exclude after-tax charges of $1.9 million for stock-based compensation, $6.3 million for amortization of acquired intangibles, $2.3 million for certain other acquisition-related expenses and $1.9 million for compensation expense from repurchase of subsidiary stock and a tax benefit of $3.8 million.
The GAAP and non-GAAP results for fiscal 2006 include an after-tax charge of $2.2 million, or 5 cents per share, for legal and accounting expenses associated with our stock option accounting investigation and restatement.
The company's cash and short-term investments at the end of the quarter totaled $241 million. The company did not purchase any shares in the open market in the fourth quarter of fiscal 2006. The company's existing repurchase authorization, under which approximately 10 million shares remain available for repurchase, expires on September 30, 2007.
The above amounts reflect the restatement of the company's previously issued consolidated financial statements, which were recently filed with the Securities and Exchange Commission.
"Overall, we achieved double-digit growth in software license revenue and total revenue for the fourth quarter and for the full fiscal year. Our Progress(R) OpenEdge(R) division and our DataDirect Technologies(R) division, which includes the DataDirect(R) Shadow(R) mainframe integration products acquired earlier this year, performed extremely well this quarter and for the entire fiscal year," stated Joseph Alsop, co-founder and chief executive officer of Progress Software. "Our Enterprise Infrastructure product line was slightly down this quarter, but achieved double-digit software license revenue and total revenue growth for the year, with Data Services products performing less than anticipated and Sonic and Apama products demonstrating solid growth."
Other Developments
On December 19, 2006, the Board of Directors elected Michael Mark, who is currently serving as an independent member of our Board of Directors, as Non-Executive Chairman of the Board of Directors and appointed Chuck Kane, who joined the board in November, as Chairman of the Audit Committee of our Board of Directors.
In June 2006, we announced that we had received an informal inquiry from the SEC regarding our option-granting practices. On December 19, 2006, the SEC informed us that it had issued a formal order of investigation.
Highlights
DataDirect Technologies announced the launch of XQuery.com (www.xquery.com). The Web site provides software developers and IT architects with a comprehensive resource for navigating the complexity of today's application architectures via the power of XQuery - the XML Query Language under development by the World Wide Web Consortium (W3C).
http://www.progress.com/xquerylaunch
Progress Software announced that Expedia, Inc., the world's leading online travel company, has selected Progress Sonic products as the messaging infrastructure for its reservation system.
http://www.progress.com/expedia
Progress Software announced that leading Korean financial IT vendor, Koscom, has selected the Progress(R) Apama(R) algorithmic trading platform to enable algorithmic trading on the Korea Exchange (KRX). In addition, Progress and Koscom have entered into a strategic partnership, whereby Koscom will develop a localized version of the Apama platform for distribution in Asia. This partnership makes the Apama platform the first commercial algorithmic trading system available in Korea.
http://www.progress.com/koscom
DataDirect Technologies announced its acquisition of OpenAccess Software, Inc., a provider of development toolkits for rapid development of ODBC and JDBC drivers, as well as ADO.NET and OLE DB providers.
http://www.progress.com/openaccess
Significant New Customer and Partner Wins, New Technology Adoptions, and Major Deployments
Significant new partners and customers adopting technology from Progress Software operating companies, or deploying solutions using Progress technology, include: Federal Retirement Thrift Investment Board, Fidelity Information Services, Gesenu Spa, Global DVD Ltd, Group Mutuel, Hernando County Property Appraiser, IRI Ubiteq, Journal Sentinel Inc., Kuraray Company, Mercedes-Benz USA, Mississippi Lime Company, New York City Housing Authority, Nord-West Oelleitung GMBH, Normah Medical Specialists, Open Integration Incorporate, Operax, Orange Lake Resort & Country Club, Plamatels Corporation, Public School Retirement Systems, Rex Materials Inc., Scottish Power PLC., Shin Nikkei Company Ltd., Sincor, Somerfield Stores Ltd., Sonofon, Star Garment Company Ltd., State of Maryland, T&K Toka Company Ltd., Trust Solutions., Unitrin Services Company, Valley Medial Center, Ventura Foods, Visiting Nurse Service of New York and Vocel Inc.
Significant existing partners and customers adopting technology from different Progress Software operating companies, or making substantial additional deployments of Progress technology, include: A.O. Smith Electrical Products, Alliance One, Altivity Packaging, Banco Hipotecario S.A., BANK DELEN, Banque Privee Edmond de Rothschild, Beneficiencia Medica Brasileira, Bolsa Mexicana de Valores, Bristol Group S.A., City of San Francisco, El Comercio Cia.de Seguros, Conseco Services, DBS Bank Ltd., Del Monte Foods, Federal Home Loan Bank, Freedom Mortgage, Homeserve GB Ltd., Imprivata, Inc., Imtac, Inva Spa, Kal Tire, Laboratorios Combix, Micro Electronics Inc., Mikaru, Norfolk Southern, O'Neill Europe, Origin Energy Services Ltd., Ouro Fino Saude Animal Ltda, Purolator Courier Ltd., Quicken Loans, Rakuten Inc., Reimbursement Technologies Inc., Sanmina-SCI, SELESTA S.P.A., Teacher Housing Authority NS, Technological Resources Ltd., Telmex, Tecsidel, Toemda Soriana, Tintas Coral Ltda., Wachovia Corporation, Wells Fargo & Company, Wolf Informatik GmbH, Yui Co. Ltd. and Zacharias Group.
Business Outlook
The company is providing the following guidance for the fiscal year ending November 30, 2007:
- Revenue is expected to be in the range of $465 million to $475 million.
- GAAP diluted earnings per share are expected to be in the range of $1.07 to $1.14.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of $1.65 to $1.72.
- The non-GAAP projections exclude after-tax charges of approximately $15 million (34 cents per share) for stock-based compensation and approximately $11 million (24 cents per share) for amortization of acquired intangibles.
- The GAAP and non-GAAP projections exclude any costs associated with the stock option inquiry and restatement, shareholder-related litigation and the current or any future investigations by regulatory agencies.
The company is providing the following guidance for the first fiscal quarter ending February 28, 2007:
- Revenue is expected to be in the range of $110 million to $112 million.
- GAAP diluted earnings per share are expected to be in the range of 18 cents to 20 cents.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of 34 cents to 36 cents.
- The non-GAAP projections exclude after-tax charges of approximately $4 million (9 cents per share) for stock-based compensation and $3 million (7 cents per share) for amortization of acquired intangibles.
- The GAAP and non-GAAP projections exclude any costs associated with the stock option inquiry and restatement, shareholder-related litigation and the current or any future investigations by regulatory agencies.
Legal Notice Regarding Non-GAAP Financial Information
The company provides non-GAAP operating income, net income and earnings per share as additional information for investors. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). Such measures are intended to supplement GAAP and may be different from non-GAAP measures used by other companies. The company believes that the non-GAAP results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results.
Management of the company uses these non-GAAP results to compare the company's performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of non-GAAP adjustments to the company's GAAP financial results is included in the tables below.
Conference Call
PSC's conference call to discuss its fourth quarter results will be Webcast live today at 9:00 a.m. Eastern via CCBN on the company's Web site, located at www.progress.com/investors. The call will also be Webcast live via Yahoo (www.yahoo.com), Motley Fool (www.fool.com), Streetevents (www.streetevents.com), TD Waterhouse (www.tdwaterhouse.com) and Fidelity.com (www.fidelity.com). An archived version of the conference call will be available for replay.
About Progress Software Corporation
Progress Software Corporation (Nasdaq: PRGS) provides application infrastructure software for the development, deployment, integration and management of business applications. Our goal is to maximize the benefits of information technology while minimizing its complexity and total cost of ownership. Progress can be reached at www.progress.com or +1-781-280-4000.
Safe Harbor Statement
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including but not limited to the following: the receipt and shipment of new orders, the timely release of enhancements to the company's products, the growth rates of certain market segments, the positioning of the company's products in those market segments, variations in the demand for customer service and technical support, pricing pressures and the competitive environment in the software industry, business and consumer use of the Internet, and the company's ability to penetrate international markets and manage its international operations; unanticipated consequences of the restatement; the risk that the Nasdaq Stock Market will delist the company's common stock; risks associated with the SEC's formal investigation of the company's option-grant practices; the risk that the company will face additional claims and proceedings in connection with those stock option grant practices, including additional shareholder litigation and additional proceedings by the other governmental agencies; and the financial impact of the foregoing, including potentially significant litigation defense costs and claims for indemnification and advancement of expenses by directors, officers and others. The company undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with the company's business, please refer to the company's filings with the Securities and Exchange Commission.
Progress, Actional, DataDirect, OpenEdge, Sonic ESB, Apama, EasyAsk,
DataDirect Technologies, Shadow, DataXtend, ObjectStore, and
Progress OpenEdge are trademarks or registered trademarks of Progress
Software Corporation or one of its subsidiaries or affiliates in the
U.S. and other countries. Any other trademarks or service marks
contained herein are the property of their respective owners.
Progress Software Corporation
Condensed Consolidated Statements of Income
Three Months Ended
-----------------------------
November November
(In thousands except per share data) 30, 30, Percent
2006 2005 Change
----------------------------------------------------------------------
Revenue:
Software licenses $49,412 $44,084 12 %
Maintenance and services 72,782 63,873 14 %
-------------------
Total revenue 122,194 107,957 13 %
-------------------
Costs of revenue:
Cost of software licenses 1,380 2,505
Cost of maintenance and services 16,796 14,048
Amortization of purchased
technology 2,378 1,350
-------------------
Total costs of revenue 20,554 17,903 15 %
-------------------
Gross profit 101,640 90,054 13 %
-------------------
Operating expenses:
Sales and marketing 54,050 43,592
Product development 19,708 15,465
General and administrative 16,358 10,584
Amortization of other acquired
intangibles 2,030 1,188
Acquisition-related expenses, net 15 653
-------------------
Total operating expenses 92,161 71,482 29 %
-------------------
Income from operations 9,479 18,572 (49)%
Other income, net 1,757 1,557
-------------------
Income before provision for income taxes 11,236 20,129 (44)%
Provision for income taxes 4,332 6,571
-------------------
Net income $6,904 $13,558 (49)%
-------------------
Earnings per share:
Basic $0.17 $0.34 (50)%
Diluted $0.16 $0.32 (50)%
-------------------
Weighted average shares outstanding:
Basic 41,207 39,953 3 %
Diluted 43,643 42,962 2 %
-------------------
Non-GAAP Condensed Consolidated Statements of Income
Three Months Ended November
30, 2006
------------------------------
As
(In thousands except per share data) Reported Adjustments Non-GAAP
------------------------------------------------- ----------- --------
Revenue:
Software licenses $49,412 $49,412
Maintenance and services 72,782 72,782
--------- ----------- --------
Total revenue 122,194 122,194
--------- ----------- --------
Costs and expenses:
Cost of software licenses (1) 1,380 (38) 1,342
Cost of maintenance and services (1)
(2) 16,796 (441) 16,355
Amortization
of purchased tech
nology 2,378 (2,378) -
--------- ----------- --------
Total costs of revenue 20,554 (2,857) 17,697
--------- ----------- --------
Gross profit 101,640 2,857 104,497
--------- ----------- --------
Operating expenses:
Sales and marketing (1) (2) 54,050 (2,281) 51,769
Product development (1) (2) 19,708 (1,422) 18,286
General and admini
strative (1) (2) 16,358 (2,012) 14,346
Amortization of other acquired int-
angibles 2,030 (2,030) -
Acquisition-related expenses, net 15 (15) -
--------- ----------- --------
Total costs and expenses 92,161 (7,760) 84,401
--------- ----------- --------
Income from operations 9,479 10,617 20,096
Other income, net 1,757 1,757
--------- ----------- --------
Income before provision for income taxes 11,236 10,617 21,853
Provision for income taxes 4,332 3,419 7,751
--------- ----------- --------
Net income $6,904 $7,198 $14,102
--------- ----------- --------
Earnings per share:
Basic $0.17 $0.34
Diluted $0.16 $0.32
--------- ----------- --------
Weighted average shares outstanding:
Basic 41,207 41,207
Diluted 43,643 43,643
--------- ----------- --------
Three Months Ended November 30, 2005
---------------------------------------
(In thousands except per share As Percent
data) Reported Adjustments Non-GAAP Change
---------------------------------------- ----------- -------- --------
Revenue:
Software licenses $44,084 $44,084 12 %
Maintenance and services 63,873 63,873 14 %
---------- ----------- --------
Total revenue 107,957 107,957 13 %
---------- ----------- --------
Costs and expenses:
Cost of software licenses
(1) 2,505 (4) 2,501
Cost of maintenance and
services (1) (2) 14,048 (52) 13,996
Amortization
of purchased tech
nology 1,350 (1,350) -
---------- ----------- --------
Total costs of revenue 17,903 (1,406) 16,497
---------- ----------- --------
Gross profit 90,054 1,406 91,460
---------- ----------- --------
Operating expenses:
Sales and marketing (1)
(2) 43,592 (291) 43,301
Product development (1)
(2) 15,465 (169) 15,296
General and admini
strative (1) (2) 10,584 (202) 10,382
Amortization of other
acquired int-
angibles 1,188 (1,188) -
Acquisition-related
expenses, net 653 (653) -
---------- ----------- --------
Total costs and
expenses 71,482 (2,503) 68,979 22 %
---------- ----------- --------
Income from operations 18,572 3,909 22,481 (11)%
Other income, net 1,557 1,557
---------- ----------- --------
Income before provision for
income taxes 20,129 3,909 24,038 (9)%
Provision for income taxes 6,571 1,275 7,846
---------- ----------- --------
Net income $13,558 $2,634 $16,192 (13)%
---------- ----------- --------
Earnings per share:
Basic $0.34 $0.41 (17)%
Diluted $0.32 $0.38 (16)%
---------- ----------- --------
Weighted average shares
outstanding:
Basic 39,953 39,953 3 %
Diluted 42,962 42,962 2 %
---------- ----------- --------
(1) Non-GAAP adjustments represent amounts recorded for stock-based
compensation in these costs and expenses
(2) Non-GAAP adjustments also include an accrual for payments to be
made to current and former employees for options that were cancelled
or expired during suspension of the issuance of shares under the
company's option plans and reimbursements for excise taxes resulting
from the exercise of below market options in fiscal 2006
Progress Software Corporation
Condensed Consolidated Statements of Income
Twelve Months Ended
-------------------------------
November November Percent
(In thousands except per share data) 30, 2006 30, 2005 Change
----------------------------------------------------------------------
Revenue:
Software licenses $175,845 $156,846 12 %
Maintenance and services 271,218 248,530 9 %
---------------------
Total revenue 447,063 405,376 10 %
---------------------
Costs of revenue:
Cost of software licenses 7,441 8,170
Cost of maintenance and services 61,196 55,752
Amortization of purchased
technology 8,150 5,122
---------------------
Total costs of revenue 76,787 69,044 11 %
---------------------
Gross profit 370,276 336,332 10 %
---------------------
Operating expenses:
Sales and marketing 186,286 158,544
Product development 77,269 64,010
General and administrative 56,571 43,345
Amortization of other acquired
intangibles 7,358 4,277
Compensation expense from
repurchase of subsidiary stock
options - 2,803
Acquisition-related expenses, net 1,849 3,403
---------------------
Total operating expenses 329,333 276,382 19 %
---------------------
Income from operations 40,943 59,950 (32)%
Other income, net 4,640 3,099
---------------------
Income before provision for income
taxes 45,583 63,049 (28)%
Provision for income taxes 16,182 16,792
---------------------
Net income $29,401 $46,257 (36)%
---------------------
Earnings per share:
Basic $0.72 $1.21 (40)%
Diluted $0.68 $1.12 (39)%
---------------------
Weighted average shares outstanding:
Basic 40,976 38,227 7 %
Diluted 43,269 41,424 4 %
---------------------
Non-GAAP Condensed Consolidated Statements of Income
Twelve Months Ended November
30, 2006
-------------------------------
As
(In thousands except per share data) Reported Adjustments Non-GAAP
------------------------------------------------ ----------- ---------
Revenue:
Software licenses $175,845 $175,845
Maintenance and services 271,218 271,218
--------- ----------- ---------
Total revenue 447,063 447,063
--------- ----------- ---------
Costs and expenses:
Cost of software licenses (1) 7,441 (148) 7,293
Cost of maintenance and services
(1) (2) 61,196 (1,692) 59,504
Amortization of purchased
technology 8,150 (8,150) -
--------- ----------- ---------
Total costs of revenue 76,787 (9,990) 66,797
--------- ----------- ---------
Gross profit 370,276 9,990 380,266
--------- ----------- ---------
Operating expenses:
Sales and marketing (1) (2) 186,286 (8,560) 177,726
Product development (1) (2) 77,269 (5,281) 71,988
General and administrative (1) (2) 56,571 (7,387) 49,184
Amortization of other acquired
intangibles 7,358 (7,358) -
Compensation expense from
repurchase of subsidiary stock
options - - -
Acquisition-related expenses, net 1,849 (1,849) -
--------- ----------- ---------
Total costs and expenses 329,333 (30,435) 298,898
--------- ----------- ---------
Income from operations 40,943 40,425 81,368
Other income, net 4,640 4,640
--------- ----------- ---------
Income before provision for income
taxes 45,583 40,425 86,008
Provision for income taxes 16,182 13,061 29,243
--------- ----------- ---------
Net income $29,401 $27,364 $56,765
--------- ----------- ---------
Earnings per share:
Basic $0.72 $1.39
Diluted $0.68 $1.31
--------- ----------- ---------
Weighted average shares outstanding:
Basic 40,976 40,976
Diluted 43,269 43,269
--------- ----------- ---------
Twelve Months Ended November 30, 2005
-----------------------------------------
(In thousands except per As Percent
share data) Reported Adjustments Non-GAAP Change
-------------------------------------- ------------ --------- --------
Revenue:
Software licenses $156,846 $156,846 12 %
Maintenance and
services 248,530 248,530 9 %
---------- ------------ ---------
Total revenue 405,376 405,376 10 %
---------- ------------ ---------
Costs and expenses:
Cost of software
licenses (1) 8,170 (20) 8,150
Cost of maintenance and
services (1) (2) 55,752 (202) 55,550
Amortization of
purchased technology 5,122 (5,122) -
---------- ------------ ---------
Total costs of
revenue 69,044 (5,344) 63,700
---------- ------------ ---------
Gross profit 336,332 5,344 341,676
---------- ------------ ---------
Operating expenses:
Sales and marketing (1)
(2) 158,544 (1,050) 157,494
Product development (1)
(2) 64,010 (571) 63,439
General and
administrative (1) (2) 43,345 (902) 42,443
Amortization of other
acquired intangibles 4,277 (4,277) -
Compensation expense
from repurchase of
subsidiary stock
options 2,803 (2,803) -
Acquisition-related
expenses, net 3,403 (3,403) -
---------- ------------ ---------
Total costs and
expenses 276,382 (13,006) 263,376 13 %
---------- ------------ ---------
Income from operations 59,950 18,350 78,300 4 %
Other income, net 3,099 3,099
---------- ------------ ---------
Income before provision for
income taxes 63,049 18,350 81,399 6 %
Provision for income taxes 16,792 9,793 26,585
---------- ------------ ---------
Net income $46,257 $8,557 $54,814 4 %
---------- ------------ ---------
Earnings per share:
Basic $1.21 $1.43 (3)%
Diluted $1.12 $1.32 (1)%
---------- ------------ ---------
Weighted average shares
outstanding:
Basic 38,227 38,227 7 %
Diluted 41,424 41,424 4 %
---------- ------------ ---------
(1) Non-GAAP adjustments represent amounts recorded for stock-based
compensation in these costs and expenses
(2) Non-GAAP adjustments also include an accrual for payments to be
made to current and former employees for options that were cancelled
or expired during suspension of the issuance of shares under the
company's option plans and reimbursements for excise taxes resulting
from the exercise of below market options in fiscal 2006
Progress Software Corporation
Condensed Consolidated Balance Sheets
November November
30, 30,
(In thousands) 2006 2005
----------------------------------------------------------------------
Assets
Cash and short-term investments $241,315 $266,420
Accounts receivable, net 82,762 66,592
Other current assets 36,062 28,192
-------------------
Total current assets 360,139 361,204
-------------------
Property and equipment, net 57,585 42,816
Goodwill and intangible assets, net 232,927 132,187
Other assets 19,588 25,508
-------------------
Total $670,239 $561,715
-------------------
Liabilities and shareholders' equity
Accounts payable and other current liabilities $93,195 $77,428
Short-term deferred revenue 120,974 99,697
-------------------
Total current liabilities 214,169 177,125
-------------------
Long-term debt 1,657 1,938
Long-term deferred revenue 6,355 5,068
Other liabilities 3,494 3,580
Shareholders' equity:
Common stock and additional paid-in capital 197,748 155,205
Retained earnings 246,816 218,799
-------------------
Total shareholders' equity 444,564 374,004
-------------------
Total $670,239 $561,715
-------------------
Condensed Consolidated Statements of Cash Flows
Twelve Months Ended
November 30,
-------------------
(In thousands except per share data) 2006 2005
----------------------------------------------------------------------
Cash flows from operations:
Net income $29,401 $46,257
Depreciation, amortization and other noncash
charges 48,084 20,934
Tax benefit from stock plans 1,064 17,745
Other changes in operating assets and
liabilities (11,882) (4,306)
-------------------
Net cash flows from operations 66,667 80,630
Capital expenditures (21,738) (10,909)
Acquisitions, net of cash acquired (78,040) (31,488)
Share issuances, net of repurchases 53 43,481
Other 7,953 (6,561)
-------------------
Net change in cash and short-term investments (25,105) 75,153
Cash and short-term investments, beginning of
period 266,420 191,267
-------------------
Cash and short-term investments, end of period $241,315 $266,420
-------------------
SOURCE:
Progress Software Corporation
CONTACTS:
Progress Software Corporation
John Stewart, 781-280-4101
jstewart@progress.com
Schwartz Communications, Inc.
John Moran, 781-684-0770
progress@schwartz-pr.com
