Pervasive Software® Inc. (Nasdaq:PVSW), a leading provider of data-management solutions powering the success of application developers worldwide, today reported that revenue and net income for the second quarter of fiscal year 2003 increased 6% and 9%, respectively, from the second quarter of last fiscal year. This is Pervasive's second consecutive quarter of year-over-year increases in revenue and profitability and the eighth consecutive quarter of profitability.
For the second fiscal quarter ended December 31, 2002, net income was $1.6 million or $0.09 diluted earnings per share, compared to net income of $1.5 million or $0.08 diluted earnings per share for the same period last year. Revenues were $9.8 million for the quarter, compared to $9.2 million for the same period last year.
The company once again generated positive cash flow from continuing operations of $2.5 million in the second fiscal quarter, while achieving days sales outstanding at an excellent 43 days and ending the quarter with $37.9 million in cash and marketable securities and no debt.
Net income for the six months ended December 31, 2002, excluding a gain from discontinued operations, was $2.9 million, or $0.16 diluted earnings per share, compared to net income, excluding a charge related to early adoption of a new accounting principle, of $2.4 million, or $0.14 diluted earnings per share, for the same period last year. For the six months ended December 31, 2002, revenues were $19.0 million, compared to $18.2 million for the same period last year.
"These strong results reflect our ability to power the success of application developers worldwide by providing solutions that deliver the industry's best combination of performance, reliability and low administration costs," said David Sikora, president and CEO of Pervasive Software. "We maintained momentum throughout the quarter, while also announcing in early October and delivering in December the latest version of our core database product, Pervasive.SQL? version 8 (V8). Our team executed flawlessly during the quarter to produce these results and deliver V8 to market, and we are excited about the opportunities ahead with this new product."
On December 2, the company announced the availability of V8, which combines performance, embeddability and low total cost of ownership into a powerful, flexible and scalable database engine. At the time of release, the new version was endorsed by some 40 application development firms around the world who had early access in order to extensively test the product prior to release. In addition, the product was accessed by more than 1200 additional independent developers, a number of whom provided feedback during the beta testing cycle.
"The tremendous response from our diverse customer base representing nearly every industry segment and global geographic region is validating the improved reliability and performance of this new product," Sikora continued. "We are proud to continue offering developers the data-management foundation of choice for building mission-critical solutions."
Also during the quarter, Pervasive announced that Pervasive.SQL is shipping with every IBM Customer Information Control System (CICS) for Windows®, which manages online transactions and connectivity for various mission-critical applications including those for Automated Teller Machines.
The latest addition to Pervasive's list of customers, Lanier Healthcare, a division of MedQuist Inc., launched new state-of-the-art digital dictation and document workflow systems powered by Pervasive.SQL databases. These systems, designed for both large enterprises and small to mid-sized organizations, enable users to dictate and receive digital voice files from any location, station, personal computer, telephone or wireless dictation device.
As a reflection of its continued confidence in the company's future, Pervasive acquired approximately 127,000 shares of Pervasive common stock on the open market at a total cost of approximately $436,000, during the quarter ended December 31, 2002. This brings the total number of shares repurchased to more than 963,000 shares of Pervasive common stock at a total cost of approximately $2.4 million, since the inception of the stock repurchase program in December 2000.
Business Outlook
For the third fiscal quarter ending March 31, 2003, Pervasive expects revenues in the quarter to be in the range of $10.0 million. Further, Pervasive expects net income to be in the range of $1.8 million, representing a modest increase over the same quarter of last year.
"Given our increasingly favorable results, sizable cash position of nearly $38 million, strong value proposition and proven ability to consistently generate positive cash flow, we believe we are well positioned to further develop and expand our position as a leading provider of data-management solutions for developers of mission-critical applications. We are also continuing to aggressively seek and evaluate new opportunities to build, license or acquire products for introduction to and through our expansive worldwide channel," Sikora concluded.