PEGASYSTEMS INC: Pegasystems Announces Record Revenue of $51.1 million for Second Quarter and $99.6 million for First Six Months of 2008

Reading, UK., Aug 08, 2008 (M2 PRESSWIRE via COMTEX) -- PEGA | Quote | Chart | News | PowerRating -- Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) software, has announced financial results for the second quarter and six months ended June 30, 2008. Total revenue for the second quarter of 2008 was $51.1 million, an increase of 43%, compared to $35.7 million for the second quarter of 2007. Net income for the second quarter of 2008 was $2.9 million, compared to $0.6 million for the second quarter of 2007. The Company generated $16.5 million and $30.5 million in cash flow from operations in the second quarter and six months ended June 30, 2008, respectively, and ended the quarter with $176.8 million in cash and short-term investments.

The following table presents selected financial information for the second quarter and six months ended June 30, 2008 and 2007:

Business Perspective

"The business agility delivered by our unique Build for Change technology and solution frameworks continues to drive our growth.Customers affirm that Pega technology creates process backbones that span organizational silos, eliminating manual handoffs and automating non-value added work. Results include increased revenue, improved customer experiences, cost-saving automation, reduced operational risk and improved compliance," said Alan Trefler, Pegasystems' chairman and CEO.

"Customer wins in the quarter included a large telecommunications company and multiple successes in both the Financial Services and Insurance industries. We had a record 19 systems go live in Q2, powered by our customer enablement philosophy, which teams client business and IT staff with our growing partner ecosystem to deliver iterative benefit and continuous improvement of business operations."

"Our Q2 announcements included the release of our Internet Application Composer that facilitates multi-channel process automation and injects agile business change into preexisting customer web environments. We also deepened our InsuranceIndustry offerings with enhanced Customer Process Manager and Claims Servicing Backbone frameworks that improve customer experiences and reduce operational costs. Our products continue to receive strong reviews from industry experts, most recently a key CRM excellence award from Customer Interaction Solutions magazine," concluded Mr. Trefler.

Craig Dynes, Pegasystems' CFO, added, "We remain concerned about the uncertainties associated with the current economic times and the impact on corporate buying behaviors. To date, the value proposition of our technology is driving our growth in revenue, gross profit and net income. In addition to achieving a new record in quarterly revenue, we generated $16.5 million in cash flow from operations in the quarter and $30.5 million year-to-date."

Forward-Looking Statements

Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.The words "anticipate," "project," "expect," "plan," "intend," "believe," "estimate," "target," "forecasting," "could" and similar expressions, among others, identify forward-looking statements, which speak only as of the date the statement was made. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include, without limitation, variation in demand and the difficulty in predicting the completion of product acceptance and other factors affecting the timing of our license revenue recognition, the level of term license renewals, our ability to develop new products and evolve existing ones, the impact on our business of the recent credit market turmoil and of the ongoing consolidation in the financial services and healthcare markets, our ability to attract and retain key personnel, reliance on key third party relationships and management of the Company's growth. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and other recent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent the Company's views as of August 7, 2008. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. Although subsequent events may cause the Company's view to change, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to August 7, 2008.

About Pegasystems

Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change , deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.

All trademarks are the property of their respective owners.

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