Progress Software Corporation
April 2007
Bud Robertson
Senior V.P. Finance & Administration Chief Financial Officer
Progress Software Corporation Forward 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 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.
Application Platforms Data Infrastructure Services Infrastructure Application Platforms Services Infrastructure Data Infrastructure
Develop, Deploy and Manage Business Applications
Connect, Mediate, Control and Monitor Services
Manage, Integrate, Replicate, Cache and Access Data
Progress Software
DataXtend Data Integration
EasyAsk Natural Language Search and Query DataDirect Data Connectivity
ObjectStore OpenEdge Apama Actional Shadow Sonic
Object Data Management Business Application Platform Event Processing
Enterprise Service Bus
SOA & Web Services Management Mainframe Integration
Application Platforms
Data Infrastructure Services 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 Software
Progress Software
Market Recognition for Superior Products
Apama
Event Processing Platform Market Leader
OpenEdge
40% Savings vs. Alternative Platforms
Sonic ESB
#1 Worldwide for ESB Segment
Apama
Winner ’06 Buy-Side Innovation
Sonic ESB
Best Enterprise Service Bus
Actional
Progress Software
Innovative Technology
Sonic Continuous Availability
Apama Event Stream Processing DataDirect XQuery
Top Ten IT Innovator: Sonic ESB
Well-Connected Award: Actional
Five-Star for Third Year: OpenEdge Top 25 CTO: Actional
Best Enterprise Service Bus: Sonic
Best-of-Show Awards for OpenEdge eLearning Industry Recognition
Progress Software Market Presence
… in over 140 countries
… in over 140 countries
…including over 80% of the Fortune 100
…including over 80% 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 Application Partners
… with over 2000 Application Partners
… offering over 5000 applications
… offering over 5000 applications
… and over 5 million users
… and over 5 million users Application Development, Deployment, Integration
Progress Software
Product Line Growth Strategy
$447M % Revenue FY06 % Revenue OpenEdge 98% Sonic 2% OpenEdge 71% DataDirect 14% $264 M FY01 Enterprise 15% Infrastructure
DataXtend Data Integration
EasyAsk Natural Language Search and Query
DataDirect Data Connectivity
ObjectStore OpenEdge Apama Actional Shadow Sonic
Business Application Platform
Event Processing
Enterprise Service Bus
SOA & Web Services Management Mainframe Integration
Application Platforms
Data Infrastructure Services Infrastructure
Progress OpenEdge Revenue
Complete platform for developing and deploying business applications
FY06
$316.5M
Revenue3%
Growth FY07*$320 - 325M
Revenue1 - 3%
GrowthProgress OpenEdge – Unique Relationship 2,000 Application Partners Worldwide
DataXtend Data Integration
EasyAsk Natural Language Search and Query
DataDirect Data Connectivity
ObjectStore OpenEdge Apama Actional Shadow Sonic
Object Data Management
Business Application Platform
Event Processing
Enterprise Service Bus
SOA & Web Services Management
Mainframe Integration
Application Platforms
Data Infrastructure Services Infrastructure
Enterprise Infrastructure Revenue FY06
$68.7M
Revenue12%
Growth FY07*$75-80M
Revenue10-20%
GrowthBest-of-Breed SOA and Web Services technologies
Enterprise Infrastructure
DataXtend Data Integration
EasyAsk Natural Language Search and Query DataDirect Data Connectivity
ObjectStore OpenEdge Apama Actional Shadow Sonic
Business Application Platform Event Processing
Enterprise Service Bus
SOA & Web Services Management
Mainframe Integration
Application Platforms
Data Infrastructure Services Infrastructure
The leading provider of components for connecting software to data
DataDirect Technologies Revenue
FY06
$61.9M
Revenue FY07*$70-75M
Revenue10-20%
Growth73%
GrowthDataDirect Technologies
ISV Partners and Global 2000 Direct Accounts
Selected ISV Customers
Centraal Boekhuis Books Tagged & Packaged Info OpenEdge “Nobis” Back Office Application OpenEdge RFID Services EasyAsk Natural Language Search ASN Processing
Sonic Enterprise Service Bus
Sonic Enterprise Service Bus
OpenEdge “Atlas” Stock Tracking CaptureTech RFID Gate BGN Central Customer Self-Service Kiosk WebSpeed Customer Info Portal Shop Staff Inventory Access Apama ESP ASN Reconciliation BGN Store Advanced Shipping Notice Issued RFID Tunnel at store Books Shipped to 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 operations
Provides front/back office application
Reconciles ASN and RFID data in real-time
Transforms RFID events into real-time business updates Identifies and addresses reconciliation errors immediately
Generates labor savings in unpacking and sorting
The Customer Kiosk Interface
Easier search using everyday language in local language Multiple search techniques
Advanced merchandising
Embedded Integration Engine
Scalable & highly reliable connectivity
All local and remote services dynamically managed Reconfiguration ‘on-the-fly’ as business demands dictate
Progress Pioneers Retail Automation With World’s First Item-Level RFID & SOA Deployment
$Millions $98 $104 $100 $110 $99 $111 $108 $122 $115 $116 $0 $150
FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07
Q1 Q2 Q3 Q4
Progress Software Corporation Quarterly Revenue
Growth: 13% 6% 11% 10% 9% 11% 12% 12% 13%
*
$0.35 $0.33 $0.38 $0.30 $0.34 $0.37 $0.35 $0.37 $0.41 $0.26 $0.00 $0.50
FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07
Q1 Q2 Q3 Q4
Progress Software Corporation Non-GAAP Earnings per Share**
Growth: 37% 15% 46% (3%) 32% 12% 23%
**Non-GAAP operating income excludes amortization of acquired intangibles, in-process research and development, other acquisition
(8%)
23%
*
21%*
$Millions $405 $477 $447 $0 $550
FY04 FY05 FY06 FY07
$U.S. $1.32 $1.72 $1.36 $0.00 $2.00
FY04 FY05 FY06 FY07
Total Annual Revenue Non-GAAP EPS**
10%
Growth: 7% Growth: 4%
*
*
*Per Analysts Estimates obtained from First Call
*
26%*
Progress Software Corporation
Annual Revenue and Non-GAAP EPS
17% 33%
$363
Cash Debt DSO Balance Sheet $241M $1.7M 61 $207M $1.9M 67 $234M $1.6M 72 Feb. 28 2007
Progress Software Corporation Recent Results
Nov. 30
