Pegasystems Announces Record Revenue of $63.9 Million and Net Income of $11.2 Million for Second Quarter of 2009; Increases Guidance for the Year
CAMBRIDGE, Mass. – August 4, 2009 – Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) software solutions, today announced financial results for the second quarter and first six months of 2009. Total revenue for the second quarter of 2009 increased 25% to $63.9 million compared to the second quarter of 2008. Net income for the second quarter of 2009 was $11.2 million compared to $2.9 million for the second quarter of 2008.
Total revenue for the first six months of 2009 increased 27% to $126.2 million compared to the same period last year. Net income for the first six months of 2009 was $19.9 million compared to $5.8 million for the same period last year. The Company generated $29.4 million in cash from operations during the first six months of 2009 and as of June 30, 2009 had $190.1 million in cash and marketable securities.
The following table presents selected financial information for the second quarter and first six months of 2009 and 2008:
"We have achieved remarkable results through the first half of 2009, highlighted by a 61% increase in license revenue," said Alan Trefler, Chairman and CEO of Pegasystems. "These results are driven by the pragmatic benefits our patented Build for Change® technology delivers in helping organizations increase market share, improve customer experiences, and reduce operational costs."
"We continue to both lead the industry in BPM innovation and grow faster than the market. In Q2 we released new frameworks that make project and test management a seamless complement to our BPM suite. These unique capabilities significantly improve time to market and lower costs. We also released an enhanced Customer Relationship Management framework, supporting our recent recognition as an 'industry visionary' by a leading analyst firm. Clients are increasingly adopting our customer-centric, intent-driven approach to improve customer experience at a lower cost of service. Our results show our customers are achieving significant business success through the use of Pegasystems software; and client success remains the central mission of our company," concluded Mr. Trefler.
Craig Dynes, Pegasystems' CFO, added, "Given the state of the economy, we have been cautious with our spending during the first half of the year. These outstanding financial results, along with a strong pipeline, provide us the opportunity to accelerate our investment in sales, marketing and R&D; investments which we expect will drive further growth in 2010. Accordingly, we expect net income for 2009 to surpass $25 million and 2009 cash flow from operations to be approximately $35 million."
Messrs. Trefler and Dynes will be hosting a conference call and live Webcast associated with this announcement at 9:00 a.m. ET on August 5, 2009. Dial-in information is as follows: (877) 545-1491 (domestic) or (719) 325-4872 (international).
To listen to the Webcast log onto www.pega.com at least 5 minutes prior to the event's broadcast and click on the Webcast icon in the Investor Relations section. A replay of the call will also be available on www.pega.com in the Investor Relations section Audio Archives link.
Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "project," "expect," "plan," "intend," "believe," "estimate," "target," "forecast," "could" and similar expressions, among others, identify forward-looking statements, which speak only as of the date the statement was made. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include, without limitation, variation in demand and the difficulty in predicting the completion of product acceptance and other factors affecting the timing of our license revenue recognition, the mix of perpetual and term licenses and the level of term license renewals, our ability to develop new products and evolve existing ones, the impact on our business of the recent financial crisis in the global capital markets, the negative global economic trends and the ongoing consolidation in the financial services and healthcare markets, our ability to attract and retain key personnel, reliance on key third party relationships and management of the Company's growth. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and other recent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent the Company's views as of August 4, 2009. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. Although subsequent events may cause the Company's view to change, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to August 4, 2009.
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.
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The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.
Lisa Pintchman Rogers
VP, Corporate Communications
Director, Corporate Communications
Sr. Manager, Public Relations
Director, Corporate Communications
+44 (0) 118 9651 660
PR & Communications Manager
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Cambridge, MA 02142
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