Pervasive Software Increases Guidance for the June Quarter

Pervasive Software® Inc. PVSW today announced that financial results for the fourth quarter ending June 30, 2011 are expected to exceed the company's financial guidance previously provided on April 19, 2011. Based on preliminary unaudited financial results, the company now expects total revenue for the fourth quarter to be in the range of $13.5 million to $13.7 million and GAAP-basis diluted earnings per share of $0.06 to $0.07, representing Pervasive's 42nd consecutive quarter of profitability. Guidance for the fourth quarter given in the company's April 19, 2011 press release was for revenue in the range of $11.2 million to $12.2 million and GAAP-basis diluted earnings per share of $0.01 to $0.04. Revenue and GAAP-basis diluted earnings per share for the June quarter of last fiscal year were $11.7 million and $0.05, respectively. On a non-GAAP basis, Pervasive expects to realize diluted earnings per share of $0.08 to $0.09. Guidance for the fourth quarter given in the company's April 19, 2011 press release was for non-GAAP diluted earnings per share of approximately $0.03 to $0.06. Non-GAAP diluted earnings per share for the June quarter of last fiscal year was $0.07. Non-GAAP results exclude amortization of purchased intangibles and stock-based compensation expense, and assume a non-GAAP effective tax rate of 34%. Pervasive continued to generate positive cash flow from operations with $2.8 million in the fourth quarter of fiscal 2011, ending the quarter with approximately $38.5 million in cash and marketable securities. Pervasive acquired approximately 255,000 shares of Pervasive common stock on the open market at a total cost of approximately $1.6 million, or approximately $6.43 weighted average price per share, during the quarter ended June 30, 2011. The Company has approximately $3.2 million authorized repurchase funds remaining under its $10.0 million stock repurchase program announced in July 2010. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. Issued and outstanding shares of common stock as of June 30, 2011 totaled approximately 15.9 million. "We are proud to deliver our 42nd consecutive quarter and tenth consecutive year of profitability," said John Farr, president and CEO, Pervasive Software. "I'm particularly pleased that our core integration products team and database products team each grew revenue from the March quarter and from the June quarter of prior year. In addition, the company closed one relatively large transaction with a database customer representing approximately $0.9 million in revenue near the end of the June quarter. For the coming fiscal year 2012, we remain committed to profitability while also continuing our strategic investments both in our core database and integration product lines as well as in our emerging Pervasive DataCloud® and Pervasive DataRush™ businesses."