Progress' preliminary financial results for the fiscal second quarter 2012 include:
-
Consolidated revenue is expected to be
$110 million to $115 million :- On a constant currency basis, the year-over-year decline was between 12 percent and 15 percent;
- Otherwise, the year-over-year decline was between 15 percent and 18 percent.
-
Revenue for the strategic "Core" products of OpenEdge,
DataDirect Connect and Apama Decision Analytics is expected to be$77 million to$80 million :- On a constant currency basis, the year-over-year decline was between 8 percent and 11 percent;
- Otherwise, the year-over-year decline was between 12 percent and 16 percent.
-
Non-GAAP diluted EPS is expected to be
$0.17 to $0.19 per share, a year-over-year decline of between 51 percent and 56 percent.
The Company's financial results were adversely impacted by the following factors, which contributed to a very uncertain environment in the quarter:
- Customer, partner and employee uncertainty created by the announcement of the strategic plan;
- The undertaking of large global restructuring efforts;
- The marketing for divestiture of non-Core products;
- The re-architecture of our organization and our go-to-market strategy; and
- Overall weakness in the global economy.
Bhatt added, "I look forward to providing more color regarding the quarter and the progress we've made in executing our plan as well as financial guidance on June 27."
The Company is moving aggressively to implement its new strategic plan including the following specific actions:
-
Cost Reductions - Progress initiated its
$55 million cost reduction efforts during the fiscal second quarter as reductions in its global workforce were substantially completed in all jurisdictions besidesEurope , where the legal notification has begun; -
Re-investment - The Company has begun to
re-invest
$15 million of this cost reduction back into sales, marketing and product development for the Core business; -
Share Repurchase - The Company remains
committed to completing
$150 million of its $350+ million authorized share repurchase program this fiscal year, with the balance to come in fiscal 2013; and - Divest non-Core Product Lines - The Company has made substantial progress toward the divestiture of the ten product lines identified as non-Core in its strategic plan. Interest has been expressed in these product lines by many third parties, and the Company remains optimistic that it can complete the divestitures by the middle to end of fiscal 2013.
The preliminary financial results contained in this release are subject
to revision until the Company reports its full fiscal second quarter
results on
Progress to Host Fiscal Second Quarter Conference Call on
The Company will release full results for its fiscal second quarter
ended
The earnings conference call will begin on
Note Regarding Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Progress has identified some of these forward-looking
statements with words like "believe," "may," "could," "would," "might,"
"should," "expect," "intend," "plan," "target," "anticipate" and
"continue," the negative of these words, other terms of similar meaning
or the use of future dates. Forward-looking statements in this press
release include, but are not limited to, statements regarding Progress's
strategic plan and the expected timing for completion; the components of
that plan including operational restructuring, product divestitures and
return of capital to shareholders; acquisitions; future revenue growth,
operating margin and cost savings; product development, strategic
partnering and marketing initiatives; the growth rates of certain
markets; and other statements regarding the future operation, direction
and success of Progress's business. There are a number of factors that
could cause actual results or future events to differ materially from
those anticipated by the forward-looking statements, including, without
limitation: (1) Progress's ability to realize the expected benefits and
cost savings from its strategic plan; (2) market acceptance of
Progress's strategic plan and product development initiatives; (3)
disruption caused by implementation of the strategic plan and related
restructuring and divestitures on relationships with employees,
customers, vendors and other business partners; (4) pricing pressures
and the competitive environment in the software industry and
Platform-as-a-Service market; (5) Progress's ability to complete the
proposed product divestitures in a timely manner, at favorable prices or
at all; (6) Progress's ability to make technology acquisitions and to
realize the expected benefits and anticipated synergies from such
acquisitions; (7) the continuing weakness in the U.S. and international
economies, which could result in fewer sales of Progress's products
and/or delays in the implementation of Progress's strategic plan and may
otherwise harm Progress's business; (8) business and consumer use of the
Internet and the continuing adoption of Cloud technologies; (9) the
receipt and shipment of new orders; (10) Progress's ability to expand
its relationships with channel partners and to manage the interaction of
channel partners with its direct sales force; (11) the timely release of
enhancements to Progress's products and customer acceptance of new
products; (12) the positioning of Progress's products in its existing
and new markets; (13) variations in the demand for professional services
and technical support; (14) Progress's ability to penetrate
international markets and manage its international operations; and (15)
changes in exchange rates. For further information regarding risks and
uncertainties associated with Progress's business, please refer to
Progress's filings with the
Investor Relations Contact:
tobarth@progress.com
or
Public
Relations Contact:
jstewart@progress.com
Source:
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