001-33554 | 76-0168604 | |
(Commission File Number) | (IRS Employer Identification No.) | |
3100 Main Street, Suite 900 | ||
Houston, TX | 77002 | |
(Address of principal executive offices) | (Zip Code) |
99.1 | Press release dated August 4, 2011. |
Date: August 4, 2011 |
PROS HOLDINGS, INC. |
|||
/s/ Charles H. Murphy | ||||
Charles H. Murphy | ||||
Chief Financial Officer and Executive Vice President |
| Total revenue of $23.8 million, exceeded the high end of revenue guidance, an increase of 33% over the second quarter of 2010 | ||
| GAAP operating income of $2.1 million. Non-GAAP operating income was $3.7 million, an increase of 80% over the second quarter of 2010 | ||
| GAAP net income of $0.05 per share, non-GAAP net income of $0.09 per share, also above guided range |
| Signed new and existing customers, including Sunoco, Novozymes, Ural Airlines, and Pluna among others | ||
| Awarded a top rating of Strong Positive in Gartner MarketScope report on pricing optimization software | ||
| Released latest version of PROS Pricing Solution Suite with key features designed to improve customer profitability, increase business agility, and improve controls and compliance | ||
| Signed enterprise software reseller Integritas Pacific in Asia to expand global reach and scale |
| Total revenue in the range of $24.3 million to $24.8 million | ||
| GAAP income from operations of $1.3 million to $1.8 million and GAAP earnings per share of $0.03 to $0.04 | ||
| Non-GAAP income from operations of $3.0 million to $3.5 million and non-GAAP earnings per share of $0.07 to $0.08, which exclude estimated non-cash share-based compensation charges of approximately $1.7 million | ||
| GAAP and non-GAAP estimated tax rate of 33% in the third quarter and full year 2011 | ||
| Estimated weighted average of 28.3 million diluted shares outstanding |
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 64,396 | $ | 55,845 | ||||
Short-term investments |
| 73 | ||||||
Accounts and unbilled receivables, net of allowance of $950 and $1,020, respectively |
24,839 | 27,402 | ||||||
Prepaid expenses and other current assets |
7,499 | 6,170 | ||||||
Total current assets |
96,734 | 89,490 | ||||||
Restricted cash |
329 | 293 | ||||||
Property and equipment, net |
3,832 | 3,248 | ||||||
Other long term assets, net |
5,345 | 5,097 | ||||||
Total assets |
$ | 106,240 | $ | 98,128 | ||||
Liabilities and stockholders equity: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,198 | $ | 2,131 | ||||
Accrued liabilities |
1,817 | 1,998 | ||||||
Accrued payroll and other employee benefits |
5,938 | 4,606 | ||||||
Deferred revenue |
28,093 | 28,429 | ||||||
Total current liabilities |
39,046 | 37,164 | ||||||
Long-term deferred revenue |
874 | 1,461 | ||||||
Total liabilities |
39,920 | 38,625 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Common stock, $0.001 par value, 75,000,000 shares authorized, 31,301,743 and
30,777,000 shares issued, respectively, 26,884,158 and 26,359,415 shares
outstanding, respectively |
31 | 31 | ||||||
Additional paid-in capital |
74,364 | 69,844 | ||||||
Treasury stock, 4,417,585 common shares, at cost |
(13,938 | ) | (13,938 | ) | ||||
Accumulated other comprehensive loss |
(11 | ) | (11 | ) | ||||
Retained earnings |
5,874 | 3,577 | ||||||
Total stockholders equity |
66,320 | 59,503 | ||||||
Total liabilities and stockholders equity |
$ | 106,240 | $ | 98,128 | ||||
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
License and implementation |
$ | 15,082 | $ | 10,430 | $ | 28,875 | $ | 20,802 | ||||||||
Maintenance and support |
8,703 | 7,409 | 16,316 | 14,364 | ||||||||||||
Total revenue |
23,785 | 17,839 | 45,191 | 35,166 | ||||||||||||
Cost of revenue: |
||||||||||||||||
License and implementation |
4,798 | 3,414 | 9,421 | 6,634 | ||||||||||||
Maintenance and support |
1,643 | 1,401 | 3,353 | 2,896 | ||||||||||||
Total cost of revenue |
6,441 | 4,815 | 12,774 | 9,530 | ||||||||||||
Gross profit |
17,344 | 13,024 | 32,417 | 25,636 | ||||||||||||
Gross margin |
72.9 | % | 73.0 | % | 71.7 | % | 72.9 | % | ||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
9,115 | 8,517 | 16,986 | 15,149 | ||||||||||||
Research and development |
6,149 | 5,472 | 12,109 | 10,686 | ||||||||||||
Total operating expenses |
15,264 | 13,989 | 29,095 | 25,835 | ||||||||||||
Income (loss) from operations |
2,080 | (965 | ) | 3,322 | (199 | ) | ||||||||||
Other income: |
||||||||||||||||
Interest income |
12 | 18 | 30 | 29 | ||||||||||||
Income (loss) before income tax
provision |
2,092 | (947 | ) | 3,352 | (170 | ) | ||||||||||
Income tax provision (benefit) |
651 | (319 | ) | 1,055 | (13 | ) | ||||||||||
Net income (loss) |
$ | 1,441 | $ | (628 | ) | 2,297 | (157 | ) | ||||||||
Net earnings (loss) attributable to
common stockholders per share: |
||||||||||||||||
Basic |
$ | 0.05 | $ | (0.02 | ) | $ | 0.09 | $ | (0.01 | ) | ||||||
Diluted |
$ | 0.05 | $ | (0.02 | ) | $ | 0.08 | $ | (0.01 | ) | ||||||
Weighted average number of shares: |
||||||||||||||||
Basic |
26,829,158 | 26,033,003 | 26,711,621 | 25,972,723 | ||||||||||||
Diluted |
27,828,209 | 26,033,003 | 27,615,189 | 25,972,723 |
For the Six Months | ||||||||
Ended June 30, | ||||||||
2011 | 2010 | |||||||
Operating activities: |
||||||||
Net income |
$ | 2,297 | $ | (157 | ) | |||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||
Depreciation |
782 | 673 | ||||||
Share-based compensation |
3,361 | 3,411 | ||||||
Excess tax benefits on share-based compensation |
(1,241 | ) | (593 | ) | ||||
Other noncash |
(2 | ) | (3 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts and unbilled receivable |
2,547 | (9,573 | ) | |||||
Prepaid expenses and other |
(378 | ) | (77 | ) | ||||
Accounts payable, accrued liabilities, accrued contract labor and
accrued payroll |
2,179 | 1,031 | ||||||
Deferred revenue |
(923 | ) | 5,341 | |||||
Net cash provided by operating activities |
8,622 | 53 | ||||||
Investing activities: |
||||||||
Purchases of property and equipment |
(1,310 | ) | (901 | ) | ||||
Increase in restricted cash |
(36 | ) | (293 | ) | ||||
Decrease (increase) in short-term investment |
73 | (73 | ) | |||||
Net cash used in investing activities |
(1,273 | ) | (1,267 | ) | ||||
Financing activities: |
||||||||
Proceeds from the exercise of stock options |
1,563 | 137 | ||||||
Excess tax benefits on share-based compensation |
1,241 | 593 | ||||||
Tax withholding related to net share settlement of restricted stock units |
(1,602 | ) | (1,194 | ) | ||||
Net cash provided by (used in) financing activities |
1,202 | (464 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
8,551 | (1,678 | ) | |||||
Cash and cash equivalents: |
||||||||
Beginning of period |
55,845 | 62,449 | ||||||
End of period |
$ | 64,396 | $ | 60,771 | ||||
For the Three Months | Quarter over | For the Six Months | Year over | |||||||||||||||||||||
Ended June 30, | Quarter | Ended June 30, | Year | |||||||||||||||||||||
2011 | 2010 | %change | 2011 | 2010 | %change | |||||||||||||||||||
GAAP gross profit |
$ | 17,344 | $ | 13,024 | 33 | % | $ | 32,417 | $ | 25,636 | 26 | % | ||||||||||||
Non-GAAP adjustment: |
||||||||||||||||||||||||
GAAP share-based compensation |
278 | 285 | 612 | 518 | ||||||||||||||||||||
Non-GAAP gross profit |
$ | 17,622 | $ | 13,309 | 32 | % | $ | 33,029 | $ | 26,154 | 26 | % | ||||||||||||
Non-GAAP gross margin |
74.1 | % | 74.6 | % | 73.1 | % | 74.4 | % | ||||||||||||||||
GAAP selling, general and administrative |
$ | 9,115 | $ | 8,517 | 7 | % | $ | 16,986 | $ | 15,149 | 12 | % | ||||||||||||
Non-GAAP adjustment: |
||||||||||||||||||||||||
GAAP share-based compensation |
932 | 1,258 | 2,004 | 2,054 | ||||||||||||||||||||
Litigation expense |
| 1,022 | | 1,022 | ||||||||||||||||||||
Non- GAAP selling, general and administrative |
$ | 8,183 | $ | 6,237 | 31 | % | $ | 14,982 | $ | 12,073 | 24 | % | ||||||||||||
GAAP research and development |
$ | 6,149 | $ | 5,472 | 12 | % | $ | 12,109 | $ | 10,686 | 13 | % | ||||||||||||
Non-GAAP adjustment: |
||||||||||||||||||||||||
GAAP share-based compensation |
395 | 449 | 745 | 839 | ||||||||||||||||||||
Non- GAAP research and development |
$ | 5,754 | $ | 5,023 | 15 | % | $ | 11,364 | $ | 9,847 | 15 | % | ||||||||||||
Income from operations |
$ | 2,080 | $ | (965 | ) | nm | $ | 3,322 | $ | (199 | ) | nm | ||||||||||||
Non-GAAP adjustment: |
||||||||||||||||||||||||
GAAP share-based compensation |
1,605 | 1,992 | 3,361 | 3,411 | ||||||||||||||||||||
Litigation expense |
| 1,022 | | 1,022 | ||||||||||||||||||||
Non-GAAP income from operations |
$ | 3,685 | $ | 2,049 | 80 | % | $ | 6,683 | $ | 4,234 | 58 | % | ||||||||||||
Non-GAAP income from operations % |
15.5 | % | 11.5 | % | 14.8 | % | 12.0 | % | ||||||||||||||||
GAAP net income |
$ | 1,441 | $ | (628 | ) | nm | $ | 2,297 | $ | (157 | ) | nm | ||||||||||||
Non-GAAP adjustment: |
||||||||||||||||||||||||
GAAP share-based compensation |
1,605 | 1,992 | 3,361 | 3,411 | ||||||||||||||||||||
Litigation expense |
| 1,022 | | 1,022 | ||||||||||||||||||||
Tax impact related to non-GAAP adjustments |
(559 | ) | (999 | ) | (1,144 | ) | (1,557 | ) | ||||||||||||||||
Non-GAAP net income |
$ | 2,487 | $ | 1,387 | 79 | % | $ | 4,514 | $ | 2,719 | 66 | % | ||||||||||||
Non-GAAP diluted earnings per share |
$ | 0.09 | $ | 0.05 | $ | 0.16 | $ | 0.10 | ||||||||||||||||
Shares used in computing non-GAAP earnings per share |
27,828 | 26,457 | 27,615 | 26,397 | ||||||||||||||||||||
Detail of non-GAAP share-based compensation expense: |
||||||||||||||||||||||||
Cost of revenue |
$ | 278 | $ | 285 | $ | 612 | $ | 518 | ||||||||||||||||
Selling, general and administrative |
932 | 1,258 | 2,004 | 2,054 | ||||||||||||||||||||
Research and development |
395 | 449 | 745 | 839 | ||||||||||||||||||||
Total share-based compensation expense |
$ | 1,605 | $ | 1,992 | $ | 3,361 | $ | 3,411 | ||||||||||||||||
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