In-Line Quarter for Pervasive

Pervasive Software Inc. (PVSW) recently reported revenues of $12.2 million in the fiscal first quarter, up 3% from the year-ago quarter and 9.9% sequentially.
 
Pervasive closed one relatively large transaction with a database customer representing approximately $2.4 million in revenues during the September quarter. Data integration business continues to perform well. The company recently announced that its upgraded software products are compatible with Windows 7.
 
Net income dipped to $1.6 million compared to $1.8 million in the year-ago quarter. Earnings per share came in at 8 cents beating the Zacks Consensus Estimate by a penny.
 
The results came in line with the management’s revised guidance provided on Oct 1.

The company generated $1.2 million of cash from operations in the quarter. Pervasive used approximately $2.6 million of cash in the September quarter to acquire assets of Greenville, South Carolina-based ChanneLinx, Inc., a privately held business-to-business technological company. The company also repurchased approximately 258,000 shares of the common stock for approximately $1.3 million at an average price of $5.08. Pervasive still has approximately $7.6 million left under its $10.0 million stock repurchase program announced in March 2009.
 
Pervasive ended the quarter with cash and equivalents of $40.3 million and no debt.
 
Going forward, management expects revenues between $11.0 and $12.0 million in the second quarter of fiscal 2010. Earnings per share is projected between 5 cents and 8 cents.

Achieving and maintaining consistent profitability in trying times has been the underlying theme in the Pervasive story. The company has succeeded in achieving growth in both top and bottom lines by focusing on growth drivers, including accretive M&A opportunities.

Headquartered in Austin, Texas, Pervasive provides data management and integration software products to small- and mid-sized enterprises through a well-developed channel of independent software vendors, value-added resellers and system integrators. Its solutions enable customers to manage, integrate, analyze and secure their data.

Read the full analyst report on PVSW