Progress Software Corporation - library.corporate-ir.netlibrary.corporate-ir.net/library/86/869/86919/items/268664/AeA.pdf · Progress Software Corporation November 2007 AeA Classic

Progress Software Corporation

November 2007AeA Classic Financial Conference

Bud Robertson Senior V.P. Finance & AdministrationChief Financial Officer

© 2007 Progress Software Corporation2

Progress Software CorporationForward Looking Statements

Various remarks that we may make about the Company’s future expectations, plans and prospects constitute forward looking-statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company's most recent Form 10-K and Form 10-Q which are on file with the SEC. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.


Progress Software Corporation What Business Are We In?

Application Infrastructure Software

The software application developers use to build and deploy their applications.

From server-centric, to client-server, to web, and now to Service Oriented Architecture (SOA) we have adapted to the changing environment with

industry leading products.

DEVELOP DEPLOY INTEGRATE MANAGE


Application Platforms

Data Infrastructure

Services Infrastructure



Data Infrastructure

Develop, Deploy and ManageBusiness Applications

Connect, Mediate, Control and MonitorServices

Manage, Integrate, Replicate, Cacheand Access Data

Progress SoftwareSuperior Products Across All Product Lines


DataXtend Data Integration

EasyAsk Natural Language Search and Query

DataDirect Data Connectivity

ObjectStore

OpenEdgeApama

ActionalShadow

Sonic

Object Data Management

Business Application Platform

Event Processing

Enterprise Service Bus

SOA & Web Services Management

Mainframe Integration


Data Infrastructure


First model-driven semantic data integration

First unified mainframe integration platform

Market leading ESB

Market leading event processing platform

First and leading natural language query

Market leader in data connectivity

Integrated platform optimized for business

Leading enterprise-class SOA management

Market leading object database

Progress SoftwareSuperior Products Across All Product Lines


Progress SoftwareMarket Recognition for Our Products

ApamaEvent Processing Platform Market Leader

OpenEdge40% Savings vs. Alternative Platforms

Sonic ESBBest Enterprise Service Bus

ActionalSOA & Web Services Management Leader

DataXtend SI2007 Excellence Award for Best New Product


Progress SoftwareInnovative Technology

Well-Connected Award: Actional

Best-of-Show: OpenEdge eLearning

Winner: Progress DataXtend Semantic IntegratorInnovation Billing & Information Management

Winner: Progress Apama CEP PlatformPerformance Management and Analytics

Top Ten IT Innovator: Sonic ESB

Winner: DataDirect TechnologiesDatabase Management Systems


Progress SoftwareMarket Presence

… in over 140 countries … in over 140 countries

…including over 90% of the Fortune 100…including over 90% of the Fortune 100

… at over 60,000 organizations … at over 60,000 organizations

… deployed at over 100,000 sites… deployed at over 100,000 sites

… with over 2000 Channel Partners… with over 2000 Channel Partners… offering over 5000 applications… offering over 5000 applications

… and over 5 million users … and over 5 million users

Application Development, Deployment, Integration and Management Products…


Progress Software Corporation Product Line Growth Strategy

$486M

% RevenueFY07*

% Revenue

OpenEdge 98% Sonic 2%

OpenEdge 68%DataDirect 15%

$264 M

FY01

Enterprise 17%Infrastructure

* Per October Company Forecast





ObjectStore

OpenEdgeApama

ActionalShadow

Sonic



Event Processing





Data Infrastructure


Progress OpenEdge Product Line


Progress OpenEdge Revenue

Complete platform for developing and deploying business applications

FY06

$316.5MRevenue

3%Growth

FY07*

$328 - 330MRevenue

4%Growth

* Company Guidance


Progress OpenEdge – Unique Relationship1500 Application Partners Worldwide





ObjectStore

OpenEdgeApama

ActionalShadow

Sonic



Event Processing





Data Infrastructure


DataDirect Technologies


The leading provider of components for connecting software to data

DataDirect Technologies Revenue

FY06

$61.9MRevenue

FY07*

$70-72MRevenue

13-16%Growth

* Company Guidance

73%Growth


DataDirect Technologies ISV Partners and Global 2000 Direct Accounts

Selected ISV Customers

Selected Direct Customers





ObjectStore

OpenEdgeApama

ActionalShadow

Sonic



Event Processing





Data Infrastructure


Enterprise Infrastructure


Enterprise Infrastructure Revenue

FY06

$68.7MRevenue

12%Growth

FY07*

$82-84MRevenue

19-22%Growth

* Company Guidance

Best-of-Breed SOA and Web Services technologies


Enterprise InfrastructureCustomers Across All Industries


Centraal Boekhuis

BooksTagged & Packaged In

fo

OpenEdge“Nobis”

Back Office Application

OpenEdgeRFID Services

EasyAskNatural

LanguageSearch

ASNProcessing

Sonic Enterprise Service Bus

Sonic Enterprise Service Bus

OpenEdge“Atlas”

Stock Tracking

CaptureTechRFID Gate

BGN Central

CustomerSelf-Service

Kiosk

WebSpeedCustomer Info Portal

Shop Staff Inventory Access

Apama ESPASN

Reconciliation

BGN Store

Advanced Shipping Notice Issued

RFIDTunnelat store

Customer OrdersAwait Pickup Store Shelves Cash Register

BooksShippedto Store

Progress Technologies at BGN:Dramatic Benefits Across the Entire Business

Back and Front Office Application (Nobis)Reconciles ASN with customer and order information

Manages all physical inventory operationsProvides front/back office application

Reconciles ASN and RFID data in real-timeTransforms RFID events into real-time business updates

Identifies and addresses reconciliation errors immediatelyGenerates labor savings in unpacking and sorting

The Customer Kiosk InterfaceEasier search using everyday language in local language

Multiple search techniquesAdvanced merchandising

Embedded Integration EngineScalable & highly reliable connectivity

All local and remote services dynamically managedReconfiguration ‘on-the-fly’ as business demands dictate

Progress Pioneers Retail Automation With World’s First Item-Level RFID & SOA Deployment


$Millions

$98 $100 $99$108$104 $110 $111

$122$115 $122 $129$120

$0

$150

FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07

Q1 Q4Q3Q2

Progress Software CorporationQuarterly Revenue

Growth: 11% 10% 11% 12%9% 12% 13%13% 6% 9%* Per Analysts Estimates obtained from First Call

*9%

*

6%


% Revenue

FY07 – Q3 FY06 – Q3% Revenue

EMEA 44%Asia/Pacific 6%

North America 43% Latin America 7%

EMEA 44%Asia/Pacific 5%

North America 46% Latin America 5%

Progress Software Corporation Geographic Revenue Analysis


$0.35 $0.33$0.38

$0.30$0.34

$0.37 $0.35$0.37$0.41

$0.44

$0.52

$0.26

$0.00

$0.20

$0.40

$0.60

FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07

Progress Software CorporationNon-GAAP Earnings Per Share**

Growth: 37% 46%15% 32% 23%(3%) 12%

**Non-GAAP operating income excludes amortization of acquired intangibles, in-process research and development, other acquisition related expenses, stock-based compensation, option review costs & tax benefit.

(8%)23% 21% 19%

Q1 Q4Q3Q2

*49%

* Per Analysts Estimates obtained from First Call

*


$Millions

$405

$486$447

$0

$550

FY04 FY05 FY06 FY07

$U.S.

$1.32

$1.74

$1.36

$0.00

$2.00

FY04 FY05 FY06 FY07

Total Annual Revenue Non-GAAP EPS**

10%Growth: 9% Growth: 4%

*

**Per Analysts Estimates obtained from First Call **Non-GAAP operating income excludes amortization of acquired intangibles, in-process research and development, other acquisition related expenses, stock-based compensation and tax benefit. See reconciliation to GAAP results on our Web site.

*

28%*

Progress Software CorporationAnnual Revenue and Non-GAAP EPS

12% 33%

$363

$.99


Progress Software Corporation Revenue by Type: FY’06

Services 9%

Maintenance 52%

Product 39%


Cash

L-T Debt

DSO

$241M

$1.7M

61

$237M

$1.7M

54

$307M

$1.4M

56

Aug 31, 2007

Progress Software Corporation Balance Sheet ~ Recent Results

Nov 30,2006

Aug 31, 2006


Documents

Progress Software Corporation - library.corporate-ir.netlibrary.corporate-ir.net/library/86/869/86919/items/268664/AeA.pdf · Progress Software Corporation November 2007 AeA Classic