Pervasive Software Announces $10 Million Share Repurchase Authorization

AUSTIN, Texas--(BUSINESS WIRE)--

Pervasive Software Inc. (NASDAQ:PVSW), a global value leader in embeddable data management and agile integration software, today announced that its Board of Directors authorized a new $10 million stock repurchase plan.

As of March 25, 2008, Pervasive Software Inc. (the “Company") has acquired 1.3 million shares of the Company’s common stock on the open market at a total cost of approximately $4.8 million, or approximately $3.72 price per share, during the quarter ending March 31, 2008. The Company has now utilized $9.2 million of the authorized repurchase funds under its $10 million stock repurchase program announced on June 11, 2007. The Company’s Board of Directors has approved a new stock repurchase plan effective immediately, whereby the Company may repurchase additional shares of its common stock with a value of up to $10 million. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice.

During the eight fiscal quarters since March 31, 2006, the Company has acquired approximately 5.4 million shares of its common stock on the open market at a total cost of approximately $21.8 million, or approximately $4.01 price per share. Total issued and outstanding shares of common stock has decreased over this period of time with approximately 19.2 million shares issued and outstanding as of March 25, 2008, compared to approximately 23.2 million shares issued and outstanding as of March 31, 2006. In addition, employee and director stock options outstanding as of March 25, 2008, including both “in-the-money” and “out-of-the-money” options, totaled approximately 2.6 million, a reduction compared to stock options outstanding as of March 31, 2006, of approximately 4.2 million. And, cash and marketable securities are anticipated to be in excess of $43 million, or $2.24 per issued and outstanding share, as of March 31, 2008, representing an increase compared to cash and marketable securities of $42.8 million, or $1.85 per issued and outstanding share, as of March 31, 2006.

“We are pleased with the results of our share repurchase program over the past two years, which has resulted in a reduction of our total shares issued and outstanding and the potential dilution represented by our outstanding stock options. Meanwhile, our consistent profitability and positive cash flow have resulted in increases in our absolute cash position while also enabling us to strategically invest in both our flagship products and new innovation initiatives for the future,” said John Farr, president and CEO of Pervasive Software. “The newly authorized share repurchase program reflects our continued confidence in the future of the business while also providing us a vehicle through which we can return value to our shareholders.”

About Pervasive Software

Pervasive Software (NASDAQ:PVSW) helps companies get the most out of their data investments through embeddable data management and agile integration software. The embeddable PSQL database engine allows organizations to successfully embrace new technologies while maintaining application compatibility and robust database reliability in a near-zero database administration environment. Pervasive’s agile, multi-purpose integration platform accelerates the sharing of information between multiple databases, applications, or hosted business systems and allows customers to re-use the same software for diverse integration scenarios. For more than two decades, Pervasive products have delivered value with a compelling combination of performance, flexibility, reliability and low total cost of ownership. Pervasive’s hallmark is the size, diversity and loyalty of its customer base, partners and channels: tens of thousands of customers in virtually every industry, in more than 150 countries, rely on Pervasive to manage, integrate, analyze and secure their critical data. For additional information, go to http://www.pervasive.com.

Cautionary Statement

Statements made in this press release regarding the Company’s share repurchase program and future cash balances are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things, sufficient shares may not be available at appropriate prices, alternative uses may develop for the Company’s funds, and market and other conditions may change. These factors are not intended to be an all-encompassing list of applicable risks and uncertainties. Additional information regarding these and other factors can be found in Pervasive’s reports filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended December 31, 2007. In providing forward-looking statements, the Company expressly disclaims any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

Source: Pervasive Software