Progress Software Corp. (PRGS, Financial) filed Quarterly Report for the period ended 2009-05-31.
Progress Software Corporation is a global supplier of application development deployment and management technology Internet andintranet enabling technologies and support services to business industry and government. The company's software products and services address these challenges by increasing developer productivity by delivering applications with a low total cost of ownership and by enhancingperformance and availability. The company's products include applicationservers databases development tools and application management products. Progress Software Corp. has a market cap of $817.5 million; its shares were traded at around $20.53 with a P/E ratio of 19.7 and P/S ratio of 1.6. Progress Software Corp. had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Progress Software Corp. the business predictability rank of 4-star.
six months of fiscal 2009 from the product lines acquired in the IONA transaction in the fourth quarter of last year. Revenue from our Data Infrastructure product line increased 3% from $23.4 million in the second quarter of fiscal 2008 to $24.2 million in the second quarter of fiscal 2009 and increased less than 1% from $46.2 million in the first six months of fiscal 2008 to $46.3 million in the first six months of fiscal 2009.
Cost of Maintenance and Services. Cost of maintenance and services consists primarily of costs of providing customer technical support, education and consulting. Cost of maintenance and services decreased 10% from $17.7 million in the second quarter of fiscal 2008 to $16.0 million in the second quarter of fiscal 2009, and decreased as a percentage of maintenance and services revenue from 21% in the first quarter of fiscal 2008 to 20% in the first quarter of fiscal 2009. Cost of maintenance and services decreased 5% from $35.4 million in the first six months of fiscal 2008 to $33.3 million in the first six months of fiscal 2009, and remained the same percentage of maintenance and services revenue at 22%. The total dollar amount in the second quarter of fiscal 2009 and in the first six months of fiscal 2009 decreased primarily due to lower usage of third-party contractors for service engagements, partially offset by higher headcount related expenses. Our technical support, education and consulting headcount increased by 18% from the end of the second quarter of fiscal 2008 to the end of the second quarter of fiscal 2009.
Amortization of Acquired Intangibles for Purchased Technology. Amortization of acquired intangibles for purchased technology represents the amortization of the value assigned to technology-related intangible assets obtained in business combinations. Amortization of acquired intangibles for purchased technology increased 80% from $2.8 million in the second quarter of fiscal 2008 to $5.1 million in the second quarter of fiscal 2009. Amortization of acquired intangibles for purchased technology increased 78% from $5.5 million in the first six months of fiscal 2008 to $9.8 million in the first six months of fiscal 2009. The increase was due to amortization expense associated with the acquisitions of Mindreef and IONA which occurred in the second half of fiscal 2008.
Amortization of Other Acquired Intangibles. Amortization of other acquired intangibles primarily represents the amortization of value assigned to non-technology-related intangible assets obtained in business combinations. Amortization of other acquired intangibles increased from $1.3 million in the second quarter of fiscal 2008 to $2.5 million in the second quarter of fiscal 2009. Amortization of other acquired intangibles increased from $2.7 million in the first six months of fiscal 2008 to $4.8 million in the first six months of fiscal 2009. The increase in both periods was due to amortization expense associated with the acquisitions of Mindreef and IONA which occurred in the second half of fiscal 2008.
In addition to the $148.7 million of cash and short-term investments, we had $56.2 million in investments related to auction rate securities (ARS) that are classified as noncurrent. Our ARS are floating rate securities with longer-term maturities that were marketed by financial institutions with auction reset dates at primarily 28 or 35 day intervals to provide short-term liquidity. The remaining contractual maturities of these securities range from 7 to 38 years. The underlying collateral of the ARS consist of municipal bonds, which are insured by monoline insurance companies, and student loans, which are supported by the federal government as part of the Federal Family Education Loan Program (FFELP) and by the monoline insurance companies. Beginning in February 2008, auctions for these securities began to fail, and the interest rates for these ARS reset to the maximum rate per the applicable investment offering document. At November 30, 2008, our ARS investments totaled $72.4 million at par value. During the first six months of fiscal 2009, investments totaling $5.4 million were redeemed at par by the issuer, resulting in a net reduction of the par value of our ARS investments to $67.0 million.
Read the The complete ReportPRGS is in the portfolios of Bruce Sherman of Private Capital Management.
Progress Software Corporation is a global supplier of application development deployment and management technology Internet andintranet enabling technologies and support services to business industry and government. The company's software products and services address these challenges by increasing developer productivity by delivering applications with a low total cost of ownership and by enhancingperformance and availability. The company's products include applicationservers databases development tools and application management products. Progress Software Corp. has a market cap of $817.5 million; its shares were traded at around $20.53 with a P/E ratio of 19.7 and P/S ratio of 1.6. Progress Software Corp. had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Progress Software Corp. the business predictability rank of 4-star.
Highlight of Business Operations:
Revenue from our OpenEdge product line decreased 23% from $87.1 million in the second quarter of fiscal 2008 to $67.1 million in the second quarter of fiscal 2009 and decreased 20% from $170.1 million in the first six months of fiscal 2008 to $135.8 million in the first six months of fiscal 2008. Revenue derived from our Enterprise Infrastructure product lines increased 48% from $17.4 million in the second quarter of fiscal 2008 to $25.8 million in the second quarter of fiscal 2009 and increased 68% from $33.2 million in the first six months of fiscal 2008 to $55.8 million in the first six months of fiscal 2009. Revenue for the Enterprise Infrastructure product line included approximately $10.3 million of revenue in the second quarter of fiscal 2009 and $21.6 million of revenue in the firstsix months of fiscal 2009 from the product lines acquired in the IONA transaction in the fourth quarter of last year. Revenue from our Data Infrastructure product line increased 3% from $23.4 million in the second quarter of fiscal 2008 to $24.2 million in the second quarter of fiscal 2009 and increased less than 1% from $46.2 million in the first six months of fiscal 2008 to $46.3 million in the first six months of fiscal 2009.
Cost of Maintenance and Services. Cost of maintenance and services consists primarily of costs of providing customer technical support, education and consulting. Cost of maintenance and services decreased 10% from $17.7 million in the second quarter of fiscal 2008 to $16.0 million in the second quarter of fiscal 2009, and decreased as a percentage of maintenance and services revenue from 21% in the first quarter of fiscal 2008 to 20% in the first quarter of fiscal 2009. Cost of maintenance and services decreased 5% from $35.4 million in the first six months of fiscal 2008 to $33.3 million in the first six months of fiscal 2009, and remained the same percentage of maintenance and services revenue at 22%. The total dollar amount in the second quarter of fiscal 2009 and in the first six months of fiscal 2009 decreased primarily due to lower usage of third-party contractors for service engagements, partially offset by higher headcount related expenses. Our technical support, education and consulting headcount increased by 18% from the end of the second quarter of fiscal 2008 to the end of the second quarter of fiscal 2009.
Amortization of Acquired Intangibles for Purchased Technology. Amortization of acquired intangibles for purchased technology represents the amortization of the value assigned to technology-related intangible assets obtained in business combinations. Amortization of acquired intangibles for purchased technology increased 80% from $2.8 million in the second quarter of fiscal 2008 to $5.1 million in the second quarter of fiscal 2009. Amortization of acquired intangibles for purchased technology increased 78% from $5.5 million in the first six months of fiscal 2008 to $9.8 million in the first six months of fiscal 2009. The increase was due to amortization expense associated with the acquisitions of Mindreef and IONA which occurred in the second half of fiscal 2008.
Amortization of Other Acquired Intangibles. Amortization of other acquired intangibles primarily represents the amortization of value assigned to non-technology-related intangible assets obtained in business combinations. Amortization of other acquired intangibles increased from $1.3 million in the second quarter of fiscal 2008 to $2.5 million in the second quarter of fiscal 2009. Amortization of other acquired intangibles increased from $2.7 million in the first six months of fiscal 2008 to $4.8 million in the first six months of fiscal 2009. The increase in both periods was due to amortization expense associated with the acquisitions of Mindreef and IONA which occurred in the second half of fiscal 2008.
In addition to the $148.7 million of cash and short-term investments, we had $56.2 million in investments related to auction rate securities (ARS) that are classified as noncurrent. Our ARS are floating rate securities with longer-term maturities that were marketed by financial institutions with auction reset dates at primarily 28 or 35 day intervals to provide short-term liquidity. The remaining contractual maturities of these securities range from 7 to 38 years. The underlying collateral of the ARS consist of municipal bonds, which are insured by monoline insurance companies, and student loans, which are supported by the federal government as part of the Federal Family Education Loan Program (FFELP) and by the monoline insurance companies. Beginning in February 2008, auctions for these securities began to fail, and the interest rates for these ARS reset to the maximum rate per the applicable investment offering document. At November 30, 2008, our ARS investments totaled $72.4 million at par value. During the first six months of fiscal 2009, investments totaling $5.4 million were redeemed at par by the issuer, resulting in a net reduction of the par value of our ARS investments to $67.0 million.
Read the The complete ReportPRGS is in the portfolios of Bruce Sherman of Private Capital Management.
