(Source: Business Wire)
Pervasive Software® Inc. (NASDAQ:PVSW), a global value leader in embeddable data management and data integration software and revolutionary next-generation analytics, today announced financial results for the fourth quarter and fiscal year ending June 30, 2009. The company also announced a definitive agreement to acquire assets of Greenville, South Carolina-based ChanneLinx, Inc., a privately held business-to-business Web-based data interchange (WebDI) technology company. The transaction is expected to be completed during the quarter ending September 30, 2009 for total consideration of approximately $2.6 million in cash.
"We are pleased to report results for fourth quarter and fiscal year ending June 30, 2009, representing our 34th consecutive quarter and eighth consecutive year of profitability. We are also pleased to report revenue growth for the full fiscal year of 11%," said John Farr, president and CEO of Pervasive Software.
"Our database products continued to generate approximately two-thirds of our revenue during the fourth quarter and fiscal year 2009. Version 10 of our Pervasive PSQL database continues to be well-received by our installed base of customers. We grew our database revenue by approximately 13% in fiscal year 2009, due in part to a relatively large transaction with a database customer in the third quarter of the fiscal year representing approximately $3.0 million in revenue," Farr continued.
"Our integration products continued to generate the remaining one-third of our revenue. These products and services continue to be embraced by our existing and new customers, including end users and commercial software developers alike, resulting in revenue growth of approximately 8% in fiscal year 2009 for this business.
"Our solid results allow us to capitalize on acquisition opportunities such as ChanneLinx' assets and to continue to fund our commitment to innovation," added Farr. "With ChanneLinx' innovative WebDI technology and loyal customer base, we will add a compelling solution to our Pervasive DataSolutionsTM product family. The ChanneLinx assets to be acquired generated approximately $2.0 million (unaudited) in revenue over the twelve months ended June 30, 2009 and will include 16 dedicated software professionals.
"Our Pervasive DataSolutions team continues to rapidly innovate, including recently migrating our 130+ subscription customers to our next-generation Pervasive DataCloud®, leveraging Amazon's elastic cloud technology. And, in June, our Innovation Labs and Pervasive DataRush teams collaborated with The UniversityofTexas at Austinto present joint data mining work using Pervasive DataRush at KDD 2009. The presentation, titled"Pervasive Parallelism in Data Mining: Dataflow Solution to Co-Clustering Large and Sparse Netflix Data" demonstrated our unique Pervasive DataRush technology applying parallel processing in the expanding world of data mining and analytics, fully leveraging a new generation of multicore processors in commodity hardware. We are very pleased with the positive feedback we have received related to our innovation investments."
For the fiscal year ended June 30, 2009:
Revenue was $47.2 million, an increase of 11% compared to $42.5 million for last fiscal year.
Net income was $5.3 million, or $0.29 diluted earnings per share, compared to net income of $3.0 million, or $0.15 diluted earnings per share, for last fiscal year.
On a non-GAAP basis, as described below, Pervasive realized net income of $6.3 million, or $0.34 diluted earnings per share, compared to net income of $4.9 million, or $0.24 diluted earnings per share, in last fiscal year. Non-GAAP results exclude amortization of purchased intangibles and stock-based compensation expense, and assume a non-GAAP effective tax rate of 34%.
For the fourth quarter ended June 30, 2009:
Revenue was $11.1 million, a decrease of 1% compared to $11.2 million for the fourth quarter of last fiscal year.
Net income was $1.0 million, or $0.06 diluted earnings per share, compared to net income of $0.8 million, or $0.04 diluted earnings per share, for the fourth quarter of last fiscal year.
On a non-GAAP basis, as described below, Pervasive realized net income of $1.2 million, or $0.07 diluted earnings per share, compared to net income of $1.3 million, or $0.07 diluted earnings per share, in the fourth quarter of last fiscal year. Non-GAAP results exclude amortization of purchased intangibles and stock-based compensation expense, and assume a non-GAAP effective tax rate of 34%.
Pervasive continued to generate positive cash flow from operations with $0.6 million in the fourth quarter of fiscal 2009, ending the quarter with approximately $43.4 million in cash and marketable securities. Pervasive acquired approximately 216,000 shares of Pervasive common stock on the open market at a total cost of approximately $1.1 million, or approximately $5.04 weighted average price per share, during the quarter ended June 30, 2009. The company has approximately $8.9 million authorized repurchase funds remaining under its $10 million stock repurchase program announced in March 2009. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. Issued and outstanding shares of common stock as of June 30, 2009 totaled approximately 18.1 million.
"This brings to a close our fiscal year 2009 and we look forward to fiscal 2010," continued Farr. "Our focus for 2010 will be on:
the continued marketing of our embedded database product, Pervasive PSQL Summit v10.10, and development of our next version release, Pervasive PSQL 11, scheduled for release in the second half of calendar 2010;
growing the sales of our integration product line both through direct sales and through highly leverageable indirect channels;
and the continued development and deployment of innovative new products by our Pervasive DataSolutions team to take advantage of market trends in Integration-as-a-Service and by our Pervasive DataRush team to serve new application development for the next generation of data-intensive processing and analytics.
We also look forward to closing our transaction to acquire assets of ChanneLinx. We are making strategic investments for the future, while also maintaining our intense focus on profitability."
Business Outlook
Pervasive expects revenue for the first fiscal quarter ending September 30, 2009 to be in the range of $10.5 million to $11.5 million and GAAP-basis diluted earnings per share of $0.03 to $0.06, compared to $11.9 million revenue and $0.07 diluted earnings per share for the September quarter of the previous fiscal year. The expectation for revenue for the quarter ending September 30, 2009 reflects the potential for a sequential decrease from the quarter ended June 30, 2009 and a year over year decrease from the quarter ended September 30, 2008. The September quarter is typically a challenging quarter due to the seasonality generally associated with the summer months; however, Pervasive did have relatively strong results in the quarter ended September 30, 2008 due to the inclusion of one relatively large database customer transaction representing approximately $0.7 million in revenue in that quarter.
GAAP-basis profitability is expected to include amortization of stock-based compensation expense representing approximately $0.4 million, pre-tax, in the first quarter of fiscal year 2010. The company expects non-GAAP adjustments to result in non-GAAP diluted and fully taxed earnings per share of approximately $0.04 to $0.07 in the September quarter, compared to $0.09 non-GAAP diluted and fully taxed earnings per share for the September quarter of the previous fiscal year.
Pervasive guidance for the quarter ending September 30, 2009 does not reflect any results of the ChanneLinx business, pending closing of that transaction.
Regularly Scheduled Earnings Release Conference Call -- July 21, 2009
Pervasive will provide the full financial results for its fourth quarter and fiscal year ending June 30, 2009 in its regularly scheduled earnings release conference call on July 21, 2009 at 5:00 P.M. Eastern time. The dial-in numbers for the call are 877-808-2426(toll-free) or 973-200-3975 (international). The conference name is "Pervasive Software Inc." The conference call may also be accessed live over the Web at http://investor.pervasive.com/events.cfm. Check the Web site before the call for login information. Replay will be available 8:00 P.M. Eastern Tuesday, July 21, to midnight, Tuesday, July 28, by dialing800-642-1687 (toll-free) or 706-645-9291 (international), and selecting Conference ID 18378087. Additionally, the Webcast will be archived on Pervasive's Web site at http://investor.pervasive.com/events.cfm.
About Pervasive Software
Pervasive Software (NASDAQ:PVSW) helps companies get the most out of their data investments through embeddable data management, agile data integration software and revolutionary next-generation analytics. The embeddable Pervasive PSQL database engine allows organizations to successfully embrace new technologies while maintaining application compatibility and robust database reliability in a near-zero database administration environment. Pervasive's multi-purpose data integration platform accelerates the sharing of information between multiple data stores, applications, and hosted business systems across a broad range of diverse integration scenarios, including prepackaged out-of-the-box integration solutions. Pervasive DataRush is an embeddable high-performance software platform for data-intensive processing applications such as claims processing, risk analysis, fraud detection, data mining, predictive analytics, sales optimization and marketing analytics. For more than two decades, Pervasive products have delivered value to tens of thousands of customers in more than 150 countries with a compelling combination of performance, flexibility, reliability and low total cost of ownership. Through Pervasive Innovation Labs, the company also invests in exploring and creating cutting edge solutions for the toughest data analysis and data delivery challenges. Robin Bloor, founder of Bloor Research and partner at Hurwitz and Associates, recently cited Pervasive as one of the 10 IT Companies to Watch in 2009. For additional information, go to www.pervasive.com.
About Non-GAAP Financial Information
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section entitled "About Non-GAAP Financial Measures" and the accompanying tables entitled "Reconciliation of GAAP Measures to Non-GAAP" and "Reconciliation of Forward-Looking Guidance."
Cautionary Statement
This document contains forward-looking statements that involve risks and uncertainties concerning the company, including the company's expected performance for the first quarter ending September 30, 2009, the pending acquisition of assets of ChanneLinx and the company's strategy and profitability going forward. More specifically with respect to our pending acquisition of assets of ChanneLinx, forward-looking statements may include, without limitation, statements regarding the consummation and timing of the transaction, the integration of ChanneLinx product offerings with our Pervasive DataSolutions product family and the addition and retention of ChanneLinx customers following the acquisition. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties.
