Go BackPegasystems announces record revenue of US$48.5 million and net income of US$2.9 million for the first quarter of 2008
Pegasystems Inc the leader in Business Process Management announced financial results for the quarter ended March 31, 2008. Total revenue for the quarter was $48.5 million, an increase of 29%, compared to $37.5 million for the first quarter of 2007. License revenue for the quarter increased 45% to $17.5 million, compared to $12.1 million for the first quarter of 2007.
Net income for the first quarter of 2008 was $2.9 million, compared to $1.0 million for the first quarter of 2007. The Company generated $13.9 million in cash flow from operations and ended the quarter with $160.9 million in cash and short-term investments.
"I am pleased that we started 2008 with continued acceptance and adoption of our Build for Change(R) technology. The strong process automation capabilities of our SmartBPM Suite and our solution frameworks technology are enabling our customers to reduce operational expenses by up to 40%," said Alan Trefler, Pegasystems' chairman and CEO.
"Our value proposition of increasing business agility while significantly reducing costs across organizational silos is resonating in today's challenging economic environment. The interest of large organizations seeking to improve customer service continues to be strong. In addition to winning a competitive bid by a large healthcare company seeking to dramatically improve its call center processes, we also closed several license sales with leading banks that are applying our SmartBPM Suite to create 'servicing backbones' for improved operational efficiency."
"We had 17 new systems go live in Q1, 2008 with customers across all of our key vertical markets and with several Business Process Outsourcers who are applying the business agility enabled by our SmartBPM Suite to more effectively deliver increased value to their individual clients."
"This quarter we released, to analyst and customer accolades, the latest version of our SmartBPM Suite, 5.4, and we introduced key new solution frameworks that will speed time to market for our customers. We continue to increase our investment in our core product and solution frameworks to improve our clients' response to important issues, such as financial crime compliance. There is a growing commitment to our technology by key systems integration partners, which affirms our continued investment in promoting adoption of our SmartBPM Suite by a broader ecosystem."
Craig Dynes, Pegasystems' CFO, added, "Our Q1, 2008 revenue of $48.5 million represents a 29% increase over the same period last year and 17% growth over Q4, 2007. Our net income increased to $2.9 million fueled by license growth of 45% compared to Q1, 2007 and we generated $13.9 million in cash flow from operations in the quarter. These are exceptional financial results in light of the current economic conditions."
"We believe maintenance is a meaningful indicator of our strong and growing customer base. Therefore, we have expanded our financial statement presentation to report our maintenance revenue, and associated direct costs, as distinct line items on our Income Statement. Maintenance revenue, which was $8.9 million for the quarter, grew by 27% from Q1, 2007."
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 9, 2008. Dial-in information is as follows: (877) 548-7901 (domestic) or (719) 325-4911 (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.
About Pegasystems
Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM(R) suite to improve customer service, reach new markets and boost operational effectiveness.
Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change(R), deliver value quickly and outperform their competitors.
Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.
Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.
All trademarks are the property of their respective owners.
Date - 09/05/2008
