5 February 2015: PGi (NYSE: PGI), the world’s largest pure-play provider of collaboration software and services, today announced the acquisition of Modality Systems Limited, the world’s largest dedicated Microsoft® Lync® services and software firm. PGi funded the purchase through its credit facility.
“Modality Systems is one of the most well-respected Lync® practices globally, and we are excited to deliver their unique value and expertise to our customers,” said Boland T. Jones, PGi founder, chairman and CEO. “Together with Modality, PGi empowers enterprises with a single trusted partner to support them through every stage of the unified communications process—design, implementation, user adoption, support and development—with the goals of boosting end-user success, driving productivity and maximizing the return on their Lync® investments.”
The following statements are based on PGi’s current expectations. These statements contain forward-looking statements and company estimates and anticipated results, and actual results may differ materially. PGi assumes no duty to update any forward-looking statements made in this press release.
Based on current business trends and current foreign currency exchange rates, and assuming no additional acquisitions, PGi anticipates that results in 2015 will be within the following ranges: non-GAAP revenues are projected to be in the range of $575-$585* million and non-GAAP diluted EPS from continuing operations are projected to be in the range of $0.89-$0.92*. These ranges include an estimated negative year-over-year impact from changes in foreign currency exchange rates of approximately $18 million and $0.04 to non-GAAP revenues and non-GAAP diluted EPS from continuing operations, respectively, which is greater than the projected negative impact included in the company’s 2015 financial outlook provided on January 22, 2015. PGi anticipates that sales of its SaaS-based products will increase over 50% in 2015 compared to 2014.
The company’s non-GAAP revenues exclude the impact of purchase accounting adjustments related to deferred revenue, and non-GAAP diluted earnings per share (EPS) from continuing operations projections exclude equity-based compensation, amortization expenses, non-recurring tax adjustments and related interest, restructuring costs, excise and sales tax expense and related interest, asset impairments, net legal settlements and related expenses, acquisition-related costs and the impact of purchase accounting adjustments related to deferred revenue. Management uses these measures internally as a means of analyzing the company’s current and future financial performance and identifying trends in our financial condition and results of operations. We have provided this information to investors to assist in meaningful comparisons of past, present and future operating results and to assist in highlighting the results of ongoing core operations. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure will be included in the company’s final 2014 fourth quarter and year-end earnings release.