Progress Software Corporation (PRGS)’s 4th Quarter 2014 Earnings Conference Call Transcript

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Entering 2015, Progress solutions seamlessly addressed the entire development lifecycle including application design, deployment, data and business rules integration, testing and management, and analytics. We understand that developers want an integrated platform for building business applications and websites, with elegant, intuitive and sticky application interfaces that run on any device. To build these applications, Progress offers the Telerik platform and Rollbase. The Telerik platform is a full lifecycle platform for building enterprise grade mobile applications. Gartner underline Telerik’s success in addressing these needs by positioning it in the visionary category of Gartner’s Magic Quadrant for mobile application development platforms. Rollbase are point-and-click, drag-and-drop productivity platform for building line of business employee facing SaaS applications is part of our Pacific platform and enables Progress to be positioned in the visionary category of Gartner’s magic quadrant for enterprise application platform as a service.

For building and managing websites, developers can use Telerik’s Sitefinity, a renowned solution for web content management, digital marketing and customer analytics used by major enterprise worldwide. Sitefinity also debuted in Gartner’s web content management Magic Quadrant during 2014. And through our Telerik DevTools suite, developers benefit from an expansive library of ready-to-deploy user interface widgets or reusable code to rapidly create beautiful custom front ends for their mobile web based and on-premise applications. For deployment, developers can use Modulus, our deployment platform for Node.js applications. Node.js is ideal for building today’s data intensive high transaction real time applications but setting up, running and maintaining the required infrastructure is complicated and time consuming. Modulus provides a complete platform for deploying Node.js applications at scale without requiring dedicated development operations resources.

Developers also want to integrate data and business rules into their applications and Progress is end to end offering includes solutions for those challenges as well. Our market leading DataDirect Cloud product provides access to all business data, no matter where it resides and by essentially making data plug and play, it simplifies connectivity and reduces the cost and complexity of data integration. For business rules, developers can incorporate our powerful no-coding Corticon rules engine into their application to allow users to make decisions and act on their business data. For testing and management of their applications we offer Telerik’s application lifecycle management and testing products. This includes an automated testing suite for mobile, web and desktop applications and an application lifecycle management suite for managing development projects.

Progress provides all the tools developers need to develop, manage and deploy their applications from end to end throughout the development lifecycle. However, it’s important to know that we understand there can be many entry points into our business. We are as agile and approaching developers seeking out single solutions as we are in delivering comprehensive platforms and suites. For instance, developers looking for data integration only can use our DataDirect Cloud product while those with deployment challenges can use Modulus. If they are looking to create a website and manage it with integrated email marketing and tracking they can use Sitefinity, and if they need to build an elegant engaging front end for their application they can use Telerik DevTools. They can purchase all of these on our website just by swiping a credit card through our no touch digital sales strategy. However, once they solve their initial challenge, we can assist them in expanding their use of our solutions to help resolve other challenges. This enables them to reduce their total cost of ownership and simplify the deployment by having to manage fewer moving parts.

With Telerik now a part of progress, we benefit from the breadth of technologies that assist hundreds of thousands of developers across the globe. Telerik provides us with digital marketing capabilities that have resulted in more than 50% of their revenues being generated with no touch. Their leadership in so many areas and application development is helping to drive the success of our business unit.

Turning to data connectivity and integration segment, we achieved strong performance in the 4th Quarter. First, our traditional data connectivity solutions experience strong growth as not only data sources continue to increase but also the need to access those data sources of high speed becomes more critical. It becomes a significant competitive disadvantage for companies operating in markets that demand high data availability in order to make critical business decisions to have to wait for that data to become actionable. Our market leading DataDirect Solutions solves that problem. No other vendor in the market comes close to providing the breadth of sources and enterprise features available from Progress.

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