BEDFORD, Mass., Sept. 08, 2020 (GLOBE NEWSWIRE) — Progress (NASDAQ:PRGS), the main supplier of utility growth and digital expertise applied sciences, immediately introduced preliminary monetary outcomes for its fiscal third quarter ended August 31, 2020 and enterprise outlook for the complete 12 months of 2020.

Fiscal Third Quarter 2020 Preliminary Outcomes

Progress’ regular monetary closing and monetary assertion preparation processes are of their preliminary levels.  Nonetheless, utilizing essentially the most present data out there to administration, Progress expects its fiscal third quarter 2020 monetary outcomes to be throughout the following ranges:

  Prior Steering
(June 25, 2020)
  Preliminary Outcomes
(September 8, 2020)
(In hundreds of thousands, besides per share quantities) Q3 2020
GAAP
  Q3 2020
Non-GAAP
  Q3 2020
GAAP
  Q3 2020
Non-GAAP
Income $103 – $108   $104 – $109   $108 – $110   $109 – $111
Diluted earnings per share $0.47 – $0.49   $0.69 – $0.71   $0.50 – $0.53   $0.75 – $0.78

Progress’ preliminary monetary outcomes for the fiscal third quarter 2020 mirror higher than anticipated income efficiency throughout sure of our product strains coupled with a continued give attention to price administration and working effectivity.

These preliminary monetary outcomes are topic to revision till Progress reviews its fiscal third quarter 2020 outcomes on September 29, 2020. These estimated ranges and drivers of fiscal third quarter monetary efficiency characterize essentially the most present data out there to administration and should not meant to be a complete assertion of our monetary outcomes for the quarter ended August 31, 2020.

2020 Enterprise Outlook

Based mostly on data out there as of September 8, 2020, Progress expects the next revised enterprise outlook for the fiscal 12 months ending November 30, 2020:

  Prior FY 2020 Steering
(June 25, 2020)
  Up to date FY 2020 Steering
(September 8, 2020)
(In hundreds of thousands, besides per share quantities) FY 2020
GAAP
  FY 2020
Non-GAAP
  FY 2020
GAAP
  FY 2020
Non-GAAP
Income $425 – $435   $433 – $443   $438 – $442   $452 – $456
Diluted earnings per share $1.81 – $1.85   $2.82 – $2.86   $1.66 – $1.69   $2.94 – $2.97

The revised enterprise outlook for the complete fiscal 12 months of 2020 is topic to revision till Progress reviews its enterprise outlook for the complete 12 months 2020 on September 29, 2020.  As individually introduced on September 8, 2020, Progress has entered right into a definitive settlement to accumulate Chef Software program, Inc (“Chef”).  The revised enterprise outlook within the desk above contains an anticipated contribution from Chef of roughly $5 to $7 million to GAAP income and $10 to $12 million to non-GAAP income, and a detrimental impression of $0.27 to $0.31 to GAAP earnings per share and $0.00 to $0.04 to non-GAAP earnings per share.

Convention Name

At the side of this announcement, Progress will maintain a convention name at 8:00 a.m. ET on Tuesday, September 8, 2020. The decision might be accessed on the investor relations part of the corporate’s web site, positioned at www.progress.com. Moreover, you possibly can take heed to the decision by phone by dialing 1-800-367-2403, go code 4134193. The convention name will embody feedback adopted by questions and solutions. An archived model of the convention name and supporting supplies might be out there on the Progress web site throughout the investor relations part after the dwell convention name.

Authorized Discover Concerning Non-GAAP Monetary Info

Progress supplies non-GAAP monetary data as extra data for traders. These non-GAAP measures should not in accordance with, or a substitute for, usually accepted accounting rules in america (“GAAP”). Progress believes that the non-GAAP outcomes described on this launch are helpful for an understanding of its ongoing operations and supply extra element and an alternate technique of assessing its working outcomes.  A reconciliation of non-GAAP changes to the corporate’s GAAP monetary outcomes is included within the tables beneath and is accessible on the Progress web site at www.progress.com throughout the investor relations part. Extra data relating to the corporate’s non-GAAP monetary data is contained within the firm’s Present Report on Kind 8-Okay furnished to the Securities and Change Fee in reference to this press launch, which can also be out there on the Progress web site throughout the investor relations part.

Observe Concerning Ahead-Wanting Statements

This press launch accommodates statements which might be “forward-looking statements” throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. Progress has recognized a few of these forward-looking statements with phrases like “consider,” “could,” “might,” “would,” “may,” “ought to,” “count on,” “intend,” “plan,” “goal,” “anticipate” and “proceed,” the detrimental of those phrases, different phrases of comparable which means or the usage of future dates.

Ahead-looking statements on this press launch embody, however should not restricted to, statements relating to Progress’ enterprise outlook and monetary steerage. There are a variety of things that would trigger precise outcomes or future occasions to vary materially from these anticipated by the forward-looking statements, together with, with out limitation:

(1) Financial, geopolitical and market circumstances can adversely have an effect on our enterprise, outcomes of operations and monetary situation, together with our income development and profitability, which in flip might adversely have an effect on our inventory worth. (2) We could fail to realize our monetary forecasts as a result of such elements as delays or dimension reductions in transactions, fewer giant transactions in a specific quarter, fluctuations in forex alternate charges, or a decline in our renewal charges for contracts. (3) Our capacity to efficiently handle transitions to new enterprise fashions and markets, together with an elevated emphasis on a cloud and subscription technique, might not be profitable. (4) If we’re unable to develop new or sufficiently differentiated services and products, or to reinforce and enhance our current services and products in a well timed method to satisfy market demand, companions and prospects could not buy new software program licenses or subscriptions or buy or renew assist contracts. (5) We rely upon our in depth accomplice channel and we might not be profitable in retaining or increasing {our relationships} with channel companions. (6) Our worldwide gross sales and operations topic us to extra dangers that may adversely have an effect on our working outcomes, together with dangers referring to overseas forex positive aspects and losses. (7) If the safety measures for our software program, companies or different choices are compromised or topic to a profitable cyber-attack, or if such choices include important coding or configuration errors, we could expertise reputational hurt, authorized claims and monetary publicity. (8) We’ve got made acquisitions, and will make acquisitions sooner or later, together with our pending acquisition of Chef, and people acquisitions might not be profitable, could contain unanticipated prices or different integration points or could disrupt our current operations. (9) Delay or failure to consummate the proposed acquisition of Chef might negatively impression our future outcomes of operations and monetary situation; (10) The coronavirus illness (COVID-19) outbreak and the impression it might have on our staff, prospects, companions, and the worldwide monetary markets might adversely have an effect on our enterprise, outcomes of operations and monetary situation. For additional data relating to dangers and uncertainties related to Progress’ enterprise, please seek advice from Progress’ filings with the Securities and Change Fee, together with its Annual Report on Kind 10-Okay for the fiscal 12 months ended November 30, 2019. Progress undertakes no obligation to replace any forward-looking statements, which converse solely as of the date of this press launch.

About Progress

Progress (NASDAQ:PRGS) presents the main platform for growing and deploying strategic enterprise purposes. We allow prospects and companions to ship fashionable, high-impact digital experiences with a fraction of the trouble, time and price. Progress presents highly effective instruments for simply constructing adaptive consumer experiences throughout any sort of system or touchpoint, the flexibleness of a cloud-native app dev platform to ship fashionable apps, main information connectivity expertise, internet content material administration, enterprise guidelines, safe file switch, community monitoring, plus award-winning machine studying that allows cognitive capabilities to be part of any utility. Over 1,700 impartial software program distributors, 100,000 enterprise prospects, and two million builders depend on Progress to energy their purposes. Find out about Progress at www.progress.com or +1-800-477-6473.

Progress and Progress Software program are logos or registered logos of Progress Software program Company and/or its subsidiaries or associates within the U.S. and different nations. Every other names contained herein could also be logos of their respective house owners.

Investor Contact: Press Contact:
Garo Toomajanian Erica McShane
Progress Software program Progress Software program
+1 781 280 4817 +1 888 365 2779 (x3135)
Investor-Relations@progress.com PR@progress.com

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2020 PRELIMINARY RESULTS
(Unaudited)

Preliminary Q3 2020 Income
  Three Months Ended   Three Months Ending
  August 31, 2019   August 31, 2020
(In hundreds of thousands, besides percentages)     Low   % Change   Excessive   % Change
GAAP income $ 106.7     $ 107.8     1 %   $ 109.8     3 %
Acquisition-related changes – income(1) 8.8     1.2     (86 )%   1.2     (86 )%
Non-GAAP income $ 115.5     $ 109.0     (6 )%   $ 111.0     (4 )%
(1)Acquisition-related income constitutes income mirrored as pre-acquisition deferred income that may in any other case have been acknowledged however for the acquisition accounting therapy of acquisitions. Since GAAP accounting requires the elimination of this income, GAAP outcomes alone don’t totally seize all of our financial actions. Acquisition-related income changes relate to Progress’ OpenEdge enterprise phase for Ipswitch.
Preliminary Q3 2020 Non-GAAP Earnings per Share
  Three Months Ending August 31, 2020
  Low   Excessive
GAAP diluted earnings per share $ 0.50     $ 0.53  
Acquisition-related income 0.03     0.03  
Acquisition-related expense 0.01     0.01  
Inventory-based compensation 0.12     0.12  
Amortization of acquired intangibles 0.13     0.13  
Complete changes 0.29     0.29  
Earnings tax adjustment (0.04 )   (0.04 )
Non-GAAP diluted earnings per share $ 0.75     $ 0.78  

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2020 GUIDANCE
(Unaudited)

Fiscal Yr 2020 Up to date Income Steering
  Fiscal Yr Ended   Fiscal Yr Ending
  November 30, 2019   November 30, 2020
(In hundreds of thousands, besides percentages)     Low   % Change   Excessive   % Change
GAAP income $ 413.3     $ 438.3     6 %   $ 442.3     7 %
Acquisition-related changes – income(1) 18.7     13.7     (27 )%   13.7     (27 )%
Non-GAAP income $ 432.0     $ 452.0     5 %   $ 456.0     6 %
(1)Acquisition-related income constitutes income mirrored as pre-acquisition deferred income that may in any other case have been acknowledged however for the acquisition accounting therapy of acquisitions. Since GAAP accounting requires the elimination of this income, GAAP outcomes alone don’t totally seize all of our financial actions. Acquisition-related income changes relate to Progress’ OpenEdge enterprise phase for Ipswitch and Progress’ Utility Improvement and Deployment phase for Chef.
Fiscal Yr 2020 Up to date Non-GAAP Earnings per Share Steering
  Fiscal Yr Ending November 30, 2020
(In hundreds of thousands, besides per share information) Low   Excessive
GAAP web revenue $ 75.2     $ 76.6  
Acquisition-related income 13.7     13.7  
Acquisition-related expense 1.4     1.4  
Restructuring expense 7.5     7.5  
Inventory-based compensation 22.7     22.7  
Amortization of acquired intangibles 26.6     26.6  
Complete changes(2) 71.9     71.9  
Earnings tax adjustment (13.4 )   (13.5 )
Non-GAAP web revenue $ 133.7     $ 135.0  
       
GAAP diluted earnings per share $ 1.66     $ 1.69  
Non-GAAP diluted earnings per share $ 2.94     $ 2.97  
       
Diluted weighted common shares excellent 45.4     45.4  
(2)Complete changes embody preliminary estimates referring to the valuation of intangible belongings acquired from Chef and restructuring bills. The ultimate quantities is not going to be out there till the Firm’s inside procedures and critiques are accomplished.

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