Pegasystems Announces Tenth Consecutive Quarterly Record Revenue of $72.9 million
CAMBRIDGE, Mass. – February 22, 2010 – Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) software solutions, today announced financial results for the year and fourth quarter ended December 31, 2009. Revenue for 2009 increased 25% to $264 million compared to 2008. Net income for 2009 nearly tripled and increased to $32.2 million.
The Company generated $49.6 million in cash from operations and had $202.7 million in cash, cash equivalents, and marketable securities as of December 31, 2009.
The following table presents selected financial information for the quarters and years ended December 31, 2009 and 2008:
"Our business showed continued strength in 2009, highlighted by our second consecutive year of 50% license revenue growth," said Alan Trefler, Chairman and CEO of Pegasystems. "Growth has been driven by the pragmatic benefits that our patented Build for Change® technology delivers in helping our clients increase market share, improve customer experience, and reduce operating costs."
"We have been able to deliver a rapid return on our clients' investments, with many of their Pegasystems projects paying for themselves within a matter of months. Our clients continue to tell us that our software's unique ability to directly capture their business objectives radically improves collaboration between business and IT. This has resulted in exceptional quality and speed to market for their business applications, enabling them to rapidly seize new growth opportunities," concluded Mr. Trefler.
"In addition to record revenues, we had strong license signings in Q4," added Craig Dynes, Pegasystems' CFO. "We now expect 2010 revenue to be approximately $315 million. We will continue to invest in growth and estimate net income in 2010, on a GAAP basis, to be approximately $36.5 million or $1.00 per share. Our after tax charge for stock-based compensation expense is estimated to be approximately $3 million. These estimates assume a stable U.S. dollar."
Messrs. Trefler and Dynes will be hosting a conference call and live Webcast associated with this announcement at 9:00 a.m. ET on February 23, 2010. Dial-in information is as follows: (877) 638-9568 (domestic) or (914) 495-8529 (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" "preliminary" 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 weak global economy 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, the potential loss of vendor specific objective evidence for our professional services, 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, 2009 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 February 22, 2010. 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 February 22, 2010.
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
Phone +1 617-374-9600
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