Pegasystems (NASDAQ: PEGA), the leader in Business Process Management (BPM), today announced results for the third quarter 2007.
Total revenue for the quarter was $42.0 million, up 18% from the second quarter of 2007 and up 25% from the third quarter of 2006. License revenue increased 33% to $13.7 million from the second quarter of 2007 and 61% from the third quarter of 2006. Services revenue increased 12% to $28.3 million from the second quarter of 2007 and 13% from the third quarter of 2006.
Net income for the third quarter of 2007 was $3.5 million, compared to $0.6 million for the second quarter of 2007 and compared to a net loss of $0.4 million in the third quarter of 2006. Through the first nine months of 2007, the Company generated $18.1 million in cash flow from operations and ended the period with $145.2 million in cash and short-term investments.
Alan Trefler, Pegasystems founder and CEO, commented, "We are very pleased with our results for the third quarter, which reflect strong, balanced growth and progress on our strategic initiatives. During the quarter, we closed significant new business with existing customers, continuing to drive growth with our target account strategy. As examples, two large UK government agencies, each with over 10,000 users, and one of the leading global players in financial services significantly expanded their use of Pegasystems products to meet additional business needs across operations and departments. We also won important new customers around the world, including one of the largest life insurers in the United States; the largest bank in Canada; one of the largest commercial banks in Western Europe; and a leading provider of customer relationship management and credit collection services with over 100 different customers in 28 countries."
"Our target industries - insurance, banking and financial services, and healthcare - and the customer relationship management, or CRM, market all performed well for us during the quarter, confirming the value of our content-rich industry frameworks and robust, out-of-the-box CRM offering," Trefler continued. "Seventeen of our customers' BPM project implementations were completed and went live, several of them in weeks, not months."
Craig Dynes, Pegasystems' CFO, added, "Our current financial statements show strong, steady improvement, with license revenue, services revenue, and gross profit all exhibiting solid year-over-year and quarter-to-quarter growth. We're pleased with these financial results in light of the concern and uncertainty that the sub-prime mortgage problems have caused in the financial services sector."
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