Exhibit 99.1
P R E S S A N N O U N C E M E N T
Investor Relations Contact:
|
Media Relations Contact: | |
Tom Barth
|
John Stewart | |
Progress Software Corporation
|
Progress Software Corporation | |
(781) 280-4135
|
(781) 280-4101 | |
tobarth@progress.com
|
jstewart@progress.com |
Progress
Software Reports Second Fiscal Quarter 2011 Results
Enterprise Business Solutions Total Revenue up 37%; Non-GAAP Operating Margin at 30%;
Company Increasing Share Repurchase Authorization
Company Increasing Share Repurchase Authorization
BEDFORD,
MA, June 28, 2011 (MARKETWIRE) — Progress Software Corporation
(NASDAQ: PRGS), a leading software provider that enables enterprises to be operationally responsive
announced today results for its fiscal second quarter ended May 31, 2011. On a generally accepted
accounting principles (GAAP) basis, revenue for the quarter was $134.7 million, up 6 percent from
$127.7 million in the fiscal second quarter of 2010. On a non-GAAP basis, revenue totaled $134.7
million, up 5 percent from $128.3 million in the same period a year ago. Software license revenue
increased 3 percent to $45.4 million from $44.2 million in the same quarter last year.
On a GAAP basis in the fiscal second quarter of 2011:
| • | Operating income increased 20 percent to $27.2 million from $22.7 million in the same quarter last year; | ||
| • | Net income decreased 6 percent to $18.0 million as compared to $19.1 million in the same quarter last year; | ||
| • | Diluted earnings per share decreased 10 percent to 26 cents as compared 29 cents in the same quarter a year ago. |
On a non-GAAP basis in the fiscal second quarter of 2011:
| • | Operating income increased 11 percent to $39.8 million from $35.9 million in the same quarter last year; | ||
| • | Net income increased 1 percent to $26.6 million from $26.3 million in the same quarter last year; | ||
| • | Diluted earnings per share decreased 5 percent to 38 cents from 40 cents in the same quarter last year. |
The non-GAAP amounts primarily exclude the amortization of acquired intangibles, stock-based
compensation, restructuring and transition costs, acquisition-related costs and purchase accounting
adjustments for deferred revenue.
1
The non-GAAP results noted above and the non-GAAP financial outlook for 2011 discussed below
represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP
measures for the three and six months ended May 31, 2011 and May 31, 2010, as well as further
information regarding these measures, is included in the condensed financial information provided
with this release.
The company’s cash flow from operations for the quarter was $38.8 million, up from $16.7 million in
the same quarter in fiscal 2010, and the company’s cash and short-term investments grew to $389.0
million.
The company purchased approximately $40 million of its common stock during the quarter and as of
May 31, 2011, had approximately $35 million remaining under its existing repurchase authorization.
On June 27, 2011, the Board of Directors increased and extended the company’s stock buyback program
by authorizing the repurchase of an additional $100 million of the company’s common stock (or an
aggregate of $135 million) until May 31, 2012. The shares may be repurchased from time to time in
open market transactions or privately negotiated transactions at the company’s discretion, subject
to securities laws, market conditions and other factors.
Richard D. Reidy, president and chief executive officer of Progress Software, said: “The Company’s
second quarter performance did not meet our expectations due primarily to shortfalls in the
Enterprise Data Solutions business unit. However, we are pleased with the continued performance of
our Enterprise Business Solutions (EBS) business unit with its 37% year over year growth and 49%
increase in license revenue. As a result, we continue to invest in the EBS business unit with
particular focus on deepening our field capabilities to meet the growing demand for our products
and solutions. Additionally, our OpenEdge product within our Application Development Platforms
(ADP) business unit was within our expectations and continues to provide the company a firm
financial footing.”
Recent Highlights
| • | Two top industry analyst firms, International Data Corporation (IDC) and Forrester Research, ranked Progress Software offerings as leaders in recent reports. Significantly, IDC began reporting on a newly created market category, named Business Process Platforms, in which IDC named the Progress® Responsive Process Management (RPM) suite a leader. In the Forrester Research report, Progress was listed as one of a select group of vendors who are leaders in both the Forrester ESB and Comprehensive Integration Solution Waves, thus garnering the top position in the integration software provider market. | ||
| • | Progress Software launched several new products and solutions including the second major release of its Progress Responsive Process Management™ (RPM) 2.0 suite, including an updated version of the Progress Control Towerä, the Progress® Responsive Business Integration™ (RBI) solution, an enhanced Progress Market Surveillance and Monitoring solution and the Progress Situation-Based Promotion solution accelerator. | ||
| • | Several new deals within the EBS unit were announced recently including Betfair, the world’s largest international sports exchange, as well as Ativa Corretora and Banif Corretora, leading Brazilian brokerage firms. |
2
| • | Progress Software was awarded a 5-star Partner rating by CRN for offering solution providers the best possible partnering elements for channel success. Omega Management Corp. announced that Progress’s Customer Support group received the NorthFace ScoreBoard AwardSM for achieving excellence in customer satisfaction during the prior calendar year. |
Additional
highlights can be found at:
http://web.progress.com/inthenews/pressreleases.html.
Business Outlook
Progress Software is providing the following guidance for the third fiscal quarter ending August
31, 2011:
| • | On a GAAP and non-GAAP basis, revenue is expected to be in the range of $133 million to $136 million. | ||
| • | GAAP diluted earnings per share are expected to be in the range of 20 cents to 24 cents. | ||
| • | On a non-GAAP basis, diluted earnings per share are expected to be in the range of 34 cents to 36 cents. |
Progress Software is providing the following updated guidance for the fiscal year ending November
30, 2011:
| • | On a GAAP and non-GAAP basis, revenue is expected to be in the range of $550 million to $560 million. | ||
| • | GAAP diluted earnings per share are expected to be in the range of $1.08 to $1.15. | ||
| • | On a non-GAAP basis, diluted earnings per share are expected to be in the range of $1.60 to $1.65. |
The outlook for non-GAAP earnings excludes the amortization of acquired intangibles, stock-based
compensation, restructuring and transition costs and related tax effects.
Legal Notice Regarding Non-GAAP Financial Information
Progress Software provides non-GAAP revenue, operating income, operating margin, 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. Progress Software 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 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
The Progress Software quarterly investor conference call to review its fiscal second quarter 2011
results and business outlook will be broadcast live at 9:00 a.m. (EDT) on Wednesday, June 29, 2011
on the investor relations section of the company’s website,
located at www.progress.com. The
conference call will include only brief comments followed by questions and answers. An archived
version of the conference call and supporting materials will be available on the Progress Software
Investor Relations Website after the live conference call.
Note to Editors
Progress Software is providing, in advance, a copy of prepared remarks for its conference call.
These prepared remarks will not be read on the call. The press release, the prepared remarks,
3
related presentations and additional financial disclosures are available on the Progress website
www.progress.com within the investor relations section.
Progress Software Corporation
Progress Software Corporation (NASDAQ: PRGS) is a global software company that enables enterprises
to be operationally responsive to changing conditions and customer interactions as they occur — to
capitalize on new opportunities, drive greater efficiencies and reduce risk. The company offers a
comprehensive portfolio of best-in-class infrastructure software spanning event-driven visibility
and real-time response, open integration, data access and integration, and application development
and deployment — all supporting on-premises and SaaS/Cloud deployments. Progress Software
maximizes the benefits of operational responsiveness while minimizing IT complexity and total cost
of ownership. Progress Software can be reached at
www.progress.com or +1-781-280-4000.
Note Regarding Forward-Looking Statements
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, which include statements regarding the
Company’s business outlook for its third fiscal quarter, 2011, and the full 2011 fiscal year and
strategic plans, 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; the
customer demand and acceptance of our new product initiative, the Progress RPM suite; variations in
the demand for professional services and technical support; pricing pressures and the competitive
environment in the software industry; continuing uncertainty in the U.S. and international
economies, which could result in fewer sales of the Company’s products and may otherwise harm the
Company’s business; the Company’s ability to complete and integrate acquisitions; the Company’s
ability to realize the expected benefits and anticipated synergies from acquired businesses; the
Company’s ability to penetrate international markets and manage its international operations; and
changes in exchange rates. 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.
Actional, Apama, FUSE ESB, FUSE, OpenEdge, Progress, Progress RPM, Responsive Process
Management, Savvion and SonicMQ, Sonic 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 contained herein are the property of their respective owners.
4
GAAP Condensed Consolidated Statements of Income
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| May 31, | May 31, | Percentage | ||||||||||
| 2011 | 2010 | Change | ||||||||||
Revenue: |
||||||||||||
Software licenses |
$ | 45,417 | $ | 44,228 | 3 | % | ||||||
Maintenance and services |
89,267 | 83,428 | 7 | % | ||||||||
Total revenue |
134,684 | 127,656 | 6 | % | ||||||||
Costs of revenue: |
||||||||||||
Cost of software licenses |
2,321 | 1,619 | 43 | % | ||||||||
Cost of maintenance and services |
19,906 | 18,327 | 9 | % | ||||||||
Amortization of purchased technology |
3,930 | 5,285 | (26 | )% | ||||||||
Total costs of revenue |
26,157 | 25,231 | 4 | % | ||||||||
Gross profit |
108,527 | 102,425 | 6 | % | ||||||||
Operating expenses: |
||||||||||||
Sales and marketing |
44,312 | 40,140 | 10 | % | ||||||||
Product development |
20,137 | 23,153 | (13 | )% | ||||||||
General and administrative |
13,742 | 13,448 | 2 | % | ||||||||
Amortization of other acquired intangibles |
1,982 | 2,736 | (28 | )% | ||||||||
Restructuring expense |
1,144 | 203 | 464 | % | ||||||||
Acquisition-related expenses |
— | — | 0 | % | ||||||||
Total operating expenses |
81,317 | 79,680 | 2 | % | ||||||||
Income from operations |
27,210 | 22,745 | 20 | % | ||||||||
Other income, net |
209 | 3,919 | (95 | )% | ||||||||
Income before income taxes |
27,419 | 26,664 | 3 | % | ||||||||
Provision for income taxes |
9,459 | 7,606 | 24 | % | ||||||||
Net income |
$ | 17,960 | $ | 19,058 | (6 | )% | ||||||
Earnings per share: |
||||||||||||
Basic |
$ | 0.27 | $ | 0.30 | (10 | )% | ||||||
Diluted |
$ | 0.26 | $ | 0.29 | (10 | )% | ||||||
Weighted average shares outstanding: |
||||||||||||
Basic |
66,897 | 63,805 | 5 | % | ||||||||
Diluted |
69,246 | 66,355 | 4 | % | ||||||||
5
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
| Three Months Ended May 31, 2011 | ||||||||||||||||
| As | Percentage | |||||||||||||||
| Reported | Adjustments | Non-GAAP | Change | |||||||||||||
Total revenue (1) |
$ | 134,684 | $ | 30 | $ | 134,714 | 5 | % | ||||||||
Income from operations |
$ | 27,210 | $ | 12,621 | $ | 39,831 | 11 | % | ||||||||
Purchase
accounting adjustments for deferred revenue (1) |
(30 | ) | 30 | |||||||||||||
Amortization of acquired intangibles |
(5,912 | ) | 5,912 | |||||||||||||
Stock-based compensation (2) |
(5,103 | ) | 5,103 | |||||||||||||
Transition expense (3) |
(432 | ) | 432 | |||||||||||||
Restructuring expense |
(1,144 | ) | 1,144 | |||||||||||||
Operating margin percentage |
20.2 | % | 29.6 | % | ||||||||||||
Other income (expense), net |
$ | 209 | $ | — | $ | 209 | (95 | )% | ||||||||
Provision for income taxes (5) |
$ | 9,459 | $ | 3,955 | $ | 13,414 | (1 | )% | ||||||||
Net Income |
$ | 17,960 | $ | 8,666 | $ | 26,626 | 1 | % | ||||||||
Earnings per share |
$ | 0.26 | $ | 0.38 | (5 | )% | ||||||||||
Diluted shares outstanding |
69,246 | — | 69,246 | 4 | % | |||||||||||
| Three Months Ended May 31, 2010 | ||||||||||||
| As | ||||||||||||
| Reported | Adjustments | Non-GAAP | ||||||||||
Total revenue (1) |
$ | 127,656 | $ | 605 | $ | 128,261 | ||||||
Income from operations |
$ | 22,745 | $ | 13,144 | $ | 35,889 | ||||||
Purchase
accounting adjustments for deferred revenue (1) |
(605 | ) | 605 | |||||||||
Amortization of acquired intangibles |
(8,021 | ) | 8,021 | |||||||||
Stock-based compensation (2) |
(4,445 | ) | 4,445 | |||||||||
Restructuring expense |
(203 | ) | 203 | |||||||||
Other (4) |
130 | (130 | ) | |||||||||
Operating margin percentage |
17.8 | % | 28.0 | % | ||||||||
Other income, net |
$ | 3,919 | — | $ | 3,919 | |||||||
Provision for income taxes (5) |
$ | 7,606 | $ | 5,942 | $ | 13,548 | ||||||
Net Income |
$ | 19,058 | $ | 7,202 | $ | 26,260 | ||||||
Earnings per share |
$ | 0.29 | $ | 0.40 | ||||||||
Diluted shares outstanding |
66,355 | — | 66,355 | |||||||||
6
| (1) | The purchase accounting adjustment for deferred revenue is included within maintenance and services revenue and represents the write-down to fair value of the deferred maintenance revenue of Savvion and Iona Technologies at the date of the acquisitions | |
| (2) | Stock-based compensation expense, representing the fair value of equity awards, is included in the following GAAP expenses: |
(In thousands)
| Three Months Ended May 31, 2011 | |||||||||||||
| As | |||||||||||||
| Reported | Adjustments | Non-GAAP | |||||||||||
Cost of revenue |
$ | 156 | $ | (156 | ) | $ | — | ||||||
Sales and marketing |
901 | (901 | ) | — | |||||||||
Product development |
1,290 | (1,290 | ) | — | |||||||||
General and administrative |
2,756 | (2,756 | ) | — | |||||||||
Total |
$ | 5,103 | $ | (5,103 | ) | $ | — | ||||||
| Three Months Ended May 31, 2010 | ||||||||||||
| As | ||||||||||||
| Reported | Adjustments | Non-GAAP | ||||||||||
Cost of revenue |
$ | 210 | $ | (210 | ) | $ | — | |||||
Sales and marketing |
1,215 | (1,215 | ) | — | ||||||||
Product development |
966 | (966 | ) | — | ||||||||
General and administrative |
2,054 | (2,054 | ) | — | ||||||||
Total |
$ | 4,445 | $ | (4,445 | ) | $ | — | |||||
| (3) | Transition expenses for the three months ended May 31, 2011 represent incremental costs incurred to transform our cost structure to a more efficient cost model and such expenses are included primarily within our product development and general and administrative expenses. | |
| (4) | Other adjustments for the three months ended May 31, 2010 include a credit of $0.1 million in general and administrative expenses for an insurance reimbursement in excess of previously estimated amounts related to professional service fees associated with the stock option investigation and related shareholder derivative lawsuit. | |
| (5) | The non-GAAP provision for income taxes was calculated reflecting an effective rate of 33.5% and 34.0% for the three months ended May 31, 2011 and 2010, respectively. The difference between the effective tax rate under GAAP and the effective tax rate utilized in the preparation of non-GAAP financial measures primarily relates to the tax effects of stock-based compensation expense and amortization of acquired intangibles, which are excluded from the determination of non-GAAP net income. |
7
GAAP Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Six Months Ended | ||||||||||||
| May 31, | May 31, | Percentage | ||||||||||
| 2011 | 2010 | Change | ||||||||||
Revenue: |
||||||||||||
Software licenses |
$ | 96,753 | $ | 91,345 | 6 | % | ||||||
Maintenance and services |
172,168 | 163,858 | 5 | % | ||||||||
Total revenue |
268,921 | 255,203 | 5 | % | ||||||||
Costs of revenue: |
||||||||||||
Cost of software licenses |
4,702 | 3,608 | 30 | % | ||||||||
Cost of maintenance and services |
37,674 | 35,241 | 7 | % | ||||||||
Amortization of purchased technology |
7,905 | 10,383 | (24 | )% | ||||||||
Total costs of revenue |
50,281 | 49,232 | 2 | % | ||||||||
Gross profit |
218,640 | 205,971 | 6 | % | ||||||||
Operating expenses: |
||||||||||||
Sales and marketing |
89,010 | 83,346 | 7 | % | ||||||||
Product development |
40,996 | 46,540 | (12 | )% | ||||||||
General and administrative |
25,594 | 26,230 | (2 | )% | ||||||||
Amortization of other acquired intangibles |
4,256 | 5,100 | (17 | )% | ||||||||
Restructuring expense |
3,258 | 25,974 | (87 | )% | ||||||||
Acquisition-related expenses |
— | 415 | (100 | )% | ||||||||
Total operating expenses |
163,114 | 187,605 | (13 | )% | ||||||||
Income from operations |
55,526 | 18,366 | 202 | % | ||||||||
Other income, net |
170 | 6,675 | (97 | )% | ||||||||
Income before income taxes |
55,696 | 25,041 | 122 | % | ||||||||
Provision for income taxes |
17,215 | 6,989 | 146 | % | ||||||||
Net income |
$ | 38,481 | $ | 18,052 | 113 | % | ||||||
Earnings per share: |
||||||||||||
Basic |
$ | 0.57 | $ | 0.29 | 97 | % | ||||||
Diluted |
$ | 0.55 | $ | 0.28 | 96 | % | ||||||
Weighted average shares outstanding: |
||||||||||||
Basic |
66,942 | 62,712 | 7 | % | ||||||||
Diluted |
69,453 | 65,191 | 7 | % | ||||||||
8
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
| Six Months Ended May 31, 2011 | ||||||||||||||||
| As | Percentage | |||||||||||||||
| Reported | Adjustments | Non-GAAP | Change | |||||||||||||
Total revenue (1) |
$ | 268,921 | $ | 75 | $ | 268,996 | 5 | % | ||||||||
Income from operations |
$ | 55,526 | $ | 25,637 | $ | 81,163 | 18 | % | ||||||||
Purchase accounting adjustments
for deferred revenue (1) |
(75 | ) | 75 | |||||||||||||
Amortization of acquired intangibles |
(12,161 | ) | 12,161 | |||||||||||||
Stock-based compensation (2) |
(9,287 | ) | 9,287 | |||||||||||||
Transition expense (3) |
(856 | ) | 856 | |||||||||||||
Restructuring expense |
(3,258 | ) | 3,258 | |||||||||||||
Operating margin percentage |
20.6 | % | 30.2 | % | ||||||||||||
Other income, net |
$ | 170 | $ | — | $ | 170 | (97 | )% | ||||||||
Provision for income taxes (6) |
$ | 17,215 | $ | 8,032 | $ | 25,247 | (1 | )% | ||||||||
Net Income |
$ | 38,481 | $ | 17,605 | $ | 56,086 | 15 | % | ||||||||
Earnings per share |
$ | 0.55 | $ | 0.81 | 8 | % | ||||||||||
Diluted shares outstanding |
69,453 | — | 69,453 | 7 | % | |||||||||||
| Six Months Ended May 31, 2010 | ||||||||||||
| As | ||||||||||||
| Reported | Adjustments | Non-GAAP | ||||||||||
Total revenue (1) |
$ | 255,203 | $ | 1,059 | $ | 256,262 | ||||||
Income from operations |
$ | 18,366 | $ | 50,278 | $ | 68,644 | ||||||
Purchase accounting adjustments
for deferred revenue (1) |
(1,059 | ) | 1,059 | |||||||||
Amortization of acquired intangibles |
(15,483 | ) | 15,483 | |||||||||
Stock-based compensation (2) |
(8,677 | ) | 8,677 | |||||||||
Restructuring expense |
(25,974 | ) | 25,974 | |||||||||
Other (4) |
915 | (915 | ) | |||||||||
Operating margin percentage |
7.2 | % | 26.8 | % | ||||||||
Other income, net (5) |
$ | 6,675 | $ | (899 | ) | $ | 5,776 | |||||
Provision for income taxes (6) |
$ | 6,989 | $ | 18,500 | $ | 25,489 | ||||||
Net Income |
$ | 18,052 | $ | 30,879 | $ | 48,931 | ||||||
Earnings per share |
$ | 0.28 | $ | 0.75 | ||||||||
Diluted shares outstanding |
65,191 | — | 65,191 | |||||||||
9
| (1) | The purchase accounting adjustment for deferred revenue is included within maintenance and services revenue and represents the write-down to fair value of the deferred maintenance revenue of Savvion and Iona Technologies at the date of the acquisitions | |
| (2) | Stock-based compensation expense, representing the fair value of equity awards, is included in the following GAAP expenses: |
(In thousands)
| Six Months Ended May 31, 2011 | ||||||||||||
| As | ||||||||||||
| Reported | Adjustments | Non-GAAP | ||||||||||
Cost of revenue |
$ | 379 | $ | (379 | ) | $ | — | |||||
Sales and marketing |
2,191 | (2,191 | ) | — | ||||||||
Product development |
2,559 | (2,559 | ) | — | ||||||||
General and administrative |
4,158 | (4,158 | ) | — | ||||||||
Total |
$ | 9,287 | $ | (9,287 | ) | $ | — | |||||
| Six Months Ended May 31, 2010 | ||||||||||||
| As | ||||||||||||
| Reported | Adjustments | Non-GAAP | ||||||||||
Cost of revenue |
$ | 473 | $ | (473 | ) | $ | — | |||||
Sales and marketing |
2,793 | (2,793 | ) | — | ||||||||
Product development |
2,074 | (2,074 | ) | — | ||||||||
General and administrative |
3,337 | (3,337 | ) | — | ||||||||
Total |
$ | 8,677 | $ | (8,677 | ) | $ | — | |||||
| (3) | Transition expenses for the six months ended May 31, 2011 represent incremental costs incurred to transform our cost structure to a more efficient cost model and such expenses are included primarily within our product development and general and administrative expenses. | |
| (4) | Other adjustments for the six months ended May 31, 2010 include acquisition-related expenses of $0.4 million for the Savvion transaction and a credit of $1.3 million in general and administrative expenses for an insurance reimbursement in excess of previously estimated amounts related to professional service fees associated with the stock option investigation and related shareholder derivative lawsuit. | |
| (5) | The non-GAAP adjustment in other income for the six months ended May 31, 2010 relates to an insurance settlement gain from a pre-acquisition contingency assumed as part of a prior acquisition. | |
| (6) | The non-GAAP provision for income taxes was calculated reflecting an effective rate of 31.0% and 34.3% for the six months ended May 31, 2011 and 2010, respectively. The difference between the effective tax rate under GAAP and the effective tax rate utilized in the preparation of non-GAAP financial measures primarily relates to the tax effects of stock-based compensation expense and amortization of acquired intangibles, which are excluded from the determination of non-GAAP net income. |
10
Condensed Consolidated Balance Sheets
(In thousands)
| May 31, | November 30, | |||||||
| 2011 | 2010 | |||||||
Assets |
||||||||
Cash and short-term investments |
$ | 388,978 | $ | 322,396 | ||||
Accounts receivable |
91,738 | 119,273 | ||||||
Other current assets |
38,041 | 42,189 | ||||||
Total current assets |
518,757 | 483,858 | ||||||
Property and equipment |
63,023 | 58,207 | ||||||
Goodwill and intangibles |
309,845 | 321,551 | ||||||
Other assets |
68,604 | 73,207 | ||||||
Total |
$ | 960,229 | $ | 936,823 | ||||
Liabilities and Shareholders’ Equity |
||||||||
Accounts payable and other current liabilities |
$ | 81,207 | $ | 98,715 | ||||
Short-term deferred revenue |
149,888 | 138,961 | ||||||
Total current liabilities |
231,095 | 237,676 | ||||||
Long-term deferred revenue |
5,222 | 2,908 | ||||||
Other noncurrent liabilities |
6,989 | 7,907 | ||||||
Shareholders’ Equity: |
||||||||
Common stock and additional paid-in capital |
366,204 | 347,604 | ||||||
Retained earnings |
350,719 | 340,728 | ||||||
Total shareholders’ equity |
716,923 | 688,332 | ||||||
Total |
$ | 960,229 | $ | 936,823 | ||||
Condensed Consolidated Statements of Cash Flows
(In thousands)
| Six Months Ended | ||||||||
| May 31, | May 31, | |||||||
| 2011 | 2010 | |||||||
Cash flows from operations: |
||||||||
Net income |
$ | 38,481 | $ | 18,052 | ||||
Depreciation, amortization and other noncash charges |
25,844 | 30,224 | ||||||
Changes in operating assets and liabilities |
24,718 | 2,643 | ||||||
Net cash flows from operations |
89,043 | 50,919 | ||||||
Capital expenditures |
(8,494 | ) | (4,076 | ) | ||||
Redemptions of auction-rate-securities |
6,200 | 575 | ||||||
Acquisitions |
— | (49,177 | ) | |||||
Issuance (repurchase) of common stock, net |
(29,102 | ) | 51,460 | |||||
Other |
8,935 | (13,254 | ) | |||||
Net change in cash and short-term investments |
66,582 | 36,447 | ||||||
Cash and short-term investments, beginning of period |
322,396 | 224,121 | ||||||
Cash and short-term investments, end of period |
$ | 388,978 | $ | 260,568 | ||||
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Reconciliation of Forward-Looking Guidance
Reconciliation of GAAP to Non-GAAP forward-looking guidance range of diluted earnings per share for
the three months ended August 31, 2011:
GAAP expectation for diluted earnings per share |
$ | 0.20 to $0.24 | ||||||
Adjustment to exclude stock-based compensation |
$ | 0.05 to $0.06 | ||||||
Adjustment to exclude amortization of acquired intangibles |
$ | 0.06 to $0.06 | ||||||
Adjustment to exclude restructuring & transition-related expenses |
$ | 0.01 to $0.02 | ||||||
Non-GAAP expectation for diluted earnings per share |
$ | 0.34 to $0.36 | ||||||
Reconciliation of GAAP to Non-GAAP forward-looking guidance range of diluted earnings per share for
the twelve months ended November 30, 2011:
GAAP expectation for diluted earnings per share |
$ | 1.08 to $1.15 | ||||||
Adjustment to exclude stock-based compensation |
$ | 0.20 to $0.21 | ||||||
Adjustment to exclude amortization of acquired intangibles |
$ | 0.23 to $0.23 | ||||||
Adjustment to exclude restructuring & transition-related expenses |
$ | 0.07 to $0.08 | ||||||
Non-GAAP expectation for diluted earnings per share |
$ | 1.60 to $1.65 | ||||||
END
12