Pegasystems Announces Record Revenues for the Seventh Consecutive Quarter; Revenue of $62 Million and Net Income of $9 Million for First Quarter of 2009
CAMBRIDGE, Mass. – May 4, 2009 – Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) software solutions, today announced financial results for the first quarter of 2009. Total revenue for the first quarter of 2009 increased 29% to $62.4 million compared to the first quarter of 2008. License revenue for the first quarter of 2009 increased 60% to $28 million compared to the first quarter of 2008. Net income for the first quarter of 2009 was $8.6 million compared to $2.9 million for the first quarter of 2008. The Company generated $13.9 million in cash from operations and ended the quarter with $173 million in cash and marketable securities.
The following table presents selected financial information for the first quarter of 2009 and 2008:
"This was the seventh consecutive quarter of record setting revenue; demonstrating that our vision of how SmartBPM® can revolutionize business execution and provide dramatic cost savings is shared by our customers. Pegasystems' unique approach to delivering successful applications has made us the industry's leading choice for customers and partners," said Alan Trefler, Pegasystems' Chairman and CEO.
"In addition to our strong business growth, we saw other successes in Q1. Our BPM leadership was again confirmed by a leading industry analyst. The new releases of our SmartBPM® Suite and Federated Business Frameworks set the bar even higher for business agility. To further advance our leadership, we continue to significantly invest in BPM innovation, which creates the customer value and follow-on sales that drove our 60% growth in license revenue," concluded Mr. Trefler.
Craig Dynes, Pegasystems' CFO, added, "We are off to a great start for 2009 with record revenues and impressive cash flows. Our net income of $9 million and 34% increase in maintenance revenue compared to Q1, 2008 are both good indicators of our traction despite the weakened economy. We expect these challenging conditions will continue and so we are working hard on building pipeline and backlog for the remainder of 2009."
Messrs. Trefler and Dynes will be hosting a conference call and live Webcast associated with this announcement at 9:00 a.m. ET on May 6, 2009. Dial-in information is as follows: 877-874-1571 (domestic) or 719-325-4779 (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 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 May 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 May 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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