Progress Report

Progress Software , an infrastructure indepedent software vendor (ISV), today announced results for its fourth quarter and full fiscal year that ended Nov. 30, 2001.

Revenue for the quarter increased four percent to $69.3 million, up from $66.4 million in the same quarter last year. Operating income, however, was $6.6 million and represented a decrease of 26 percent over the same quarter last year. Net income was also down. Its net income of $5.1 million was down 37 percent from $8.1 million in the same quarter last year. Diluted earnings per share of 13 cents represented a decrease of 38 percent over the 21 cents achieved in the fourth quarter of 2000.

For the 12 months ended November 30, 2001, revenue decreased three percent to $262 million from $271 million in 2000. Operating income decreased 45 percent to $21.3 million from $38.7 million in 2000. Net income decreased 48 percent to $17.6 million from $33.7 million in 2000 and diluted earnings per share decreased 46 percent to 46 cents from 85 cents in 2000.

According to a company statement, revenue and earnings were adversely affected by the strengthening of the U.S. dollar during fiscal 2001 as compared to fiscal 2000. On a constant currency basis, revenue for the full fiscal year of 2001 would have been approximately the same as in fiscal 2000, Progress reports. In the fourth quarter of fiscal 2001, the impact of changes in exchange rates on revenue was not significant.

During the fourth quarter the company continued its share buy-back program, purchasing approximately 196,000 shares of its stock at a cost of $2.7 million. Since beginning its buy-back program in the first quarter of 1996, the company has purchased approximately 13.5 million shares of its common stock at a cost of $121 million. The company has 9.9 million shares available to purchase under its current board-authorized stock repurchase program. The company’s cash and short-term investments at the end of the year totaled $175 million.

“We are pleased with our continued revenue growth over the past two quarters, at a challenging time for other software companies,” said Joseph Alsop, CEO of Progress Software, in a released statement. “Additionally, we have achieved annual revenue equal to the prior year when adjusted for currency fluctuations.

The Sonic product line more than tripled revenue this past year. We look to the Progress Company to grow in FY 2002, and for revenue from the Sonic product line to more than double next year.” Sonic Software provides e-business messaging software and services.

Progress Software is listed as a Top 20 Application Infrastructure Provider by ASPnews.

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