Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - PROS Holdings, Inc. | h75828e8vk.htm |
| EX-10.1 - EX-10.1 - PROS Holdings, Inc. | h75828exv10w1.htm |
Exhibit 99.1
PROS Holdings, Inc. announces settlement of litigation and updates third quarter 2010 GAAP
financial expectations — no changes to non-GAAP financial expectations
financial expectations — no changes to non-GAAP financial expectations
Houston,
Texas — September 2, 2010 — PROS Holdings, Inc. (NYSE: PRO), today announced that
it has settled its sole legal dispute and updated the Company’s third quarter 2010 GAAP financial
expectations to reflect the settlement. The settlement will result in a third quarter 2010 pre-tax
charge to operating income of $5.3 million, of which $3.1 million will be a reduction of revenue
and $2.2 million will be an expense. Included in the $5.3 million third quarter charge are
anticipated legal fees of $1.2 million reduced from $1.4 million previously estimated. The cash
settlement totals $9.0 million, which approximates the cash
received by the Company related to the legal dispute. The Company
will no longer incur legal fees associated with this litigation.
As a
result of the settlement, GAAP revenue in the third quarter is
anticipated to be $15.1 million
to $15.5 million and non-GAAP revenue remains unchanged at $18.2 to $18.6 million. After
consideration of the associated tax benefit from the settlement of the litigation, the Company is
anticipating a GAAP net loss in the third quarter of 2010 of
$3.4 million to $3.7 million and GAAP
loss per share of $0.13 to $0.14.
The Company’s previously issued non-GAAP income from operations and non-GAAP earnings per shares
estimates remains unchanged at $1.8 million to $2.2 million and $0.04 to $0.05, respectively.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a leading provider of pricing and margin optimization software
products, specializing in price analytics, price execution, and price optimization. By using PROS’
software products, companies gain insight into their pricing strategies, identify pricing-based
profit leaks, optimize their pricing decision making and improve their business processes and
financial performance. PROS’ software products implement advanced pricing science, which includes
operations research, forecasting and statistics. PROS high performance software architecture
supports real-time high volume transaction processing and allows PROS to handle the processing and
database requirements of the most sophisticated and largest customers, including customers with
100’s of simultaneous users and sub-second electronic transactions. PROS provides professional
services to configure its software products to meet the specific pricing needs of each customer.
PROS has implemented over 250 solutions across a range of industries in more than 40 countries.
Founded in 1985, PROS is headquartered in Houston, Texas. Today, PROS has over 350 employees, more
than 100 with advanced degrees and over 25 with Ph.D.s. To learn more about PROS, please visit
www.prospricing.com.
Forward-looking Statements
This press release contains forward-looking statements, including statements about PROS’ future
financial performance, markets, the predictability of the PROS business and PROS’ effective tax
rate and the reinstatement of the R&E tax credit. The forward-looking statements contained in this
press release are based upon PROS’ historical performance and its current plans, estimates and
expectations and are not a representation that such plans, estimates or expectations will be
achieved. Factors that could cause actual results to differ materially from those described herein
include: (a) the risk that the continued slowdown in the economy has on PROS’ sales cycles,
prospects’ and customers’ spending decisions and timing of implementation decisions, (b) PROS’
ability to sell its solutions and successfully install and deliver the products and services at
levels required to meet its future financial performance expectations, (c) PROS’ ability to develop
and sell new products and product enhancements with the required
technical specifications and functionality desired by customers, (d) the ability of the market for
enterprise pricing and margin optimization software to grow, (e) the ability of the PROS
revenue model to continue to provide the
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level of predictability to the PROS business which it historically has provided, (f) PROS’ ability
to maintain its current level of gross margins, (g) PROS’ ability to maintain historical
maintenance renewal rates, (h) PROS’ ability to deliver its solutions according to the acceptance
criteria of its customers and the avoidance of dispute related thereto; (i) the costs of litigation
related to the existing customer dispute; (j) PROS’ successful implementation of its solutions
without modification or negotiation of contractual arrangements; (k) the impact of the R&E tax
credit if reinstated and (l) the impact of currency fluctuations on our results of operations.
Additional information relating to the uncertainty affecting the PROS business are contained in
PROS’ filings with the Securities and Exchange Commission. These forward-looking statements
represent PROS’ expectations as of the date of this press release. Subsequent events may cause
these expectations to change, and PROS disclaims any obligations to update or alter these
forward-looking statements in the future, whether as a result of new information, future
events or otherwise.
Non-GAAP Financial Measures
PROS has referenced in this release certain financial information that has not been prepared in
accordance with GAAP. This information includes non-GAAP income from operations, net income and
diluted earnings per share. PROS uses these non-GAAP financial measures internally in analyzing
its financial results and believes they are useful to investors, as a supplement to GAAP measures,
in evaluating PROS’ ongoing operational performance. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial information prepared in accordance
with GAAP. PROS use of non-GAAP financial measures may not be consistent with the presentations by
similar companies in PROS industry.
Investor Contact:
PROS Investor Relations
Tel: 713-335-5879
e-mail: ir@PROSpricing.com
PROS Investor Relations
Tel: 713-335-5879
e-mail: ir@PROSpricing.com
Media Contact:
PROS Corporate Communications
Tel: 713-335-5197
e-mail: corpcomm@PROSpricing.com
PROS Corporate Communications
Tel: 713-335-5197
e-mail: corpcomm@PROSpricing.com
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