Houston, Texas – December 8, 2005 — PROS, a world leader in pricing and revenue optimization science and software, announced strong positive results for the third quarter and the first nine months of 2005.  PROS extended its record of profitability and positive cash flow to 27 straight quarters. The first nine months of 2005 maintain PROS strong balance sheet with a record cash position, record backlog, and no bank debt.

“We are thrilled with our performance because it represents the continuing confidence of our customers and our leadership in Pricing,” says Bert Winemiller, Chairman and CEO. “PROS has established itself as the global leader in pricing analytics and profit optimization solutions with the leading companies in 10 major industries. Being the largest and most profitable software company in this market has allowed us to accelerate our growth and accelerate investment in advanced science and high performance scalable solutions.”

PROS has been recognized as the leader in the Pricing Revenue Optimization space by the members of the analyst community. PROS received the highest ratings in all categories of Price Management and Profit Optimization in a new report by Yankee Group.  The report is entitled Price Management and Profit Optimization Solutions Are the Best-Kept Secrets in Enterprise Software. Forrester Research identified PROS as the best-of-breed vendor with the strongest current product offering, product strategy, and market presence in the Price Solutions market.

A recent IDC Analyst Report titled “PROS Pricing Solutions: The Price is Right on Target – The Advantage of Understanding Your Customer’s Business” explores PROS' strategy for developing and delivering pricing solutions with demonstrable financial impact in customer environments. PROS' solutions' capabilities are described along with situational experiences for each step in the process that illustrate the principles behind the approach. "Companies understand that they are losing deals and leaving money on the table with ad hoc approaches to pricing," says Robert Blumstein, research director, CRM analytics and marketing applications. "Pricing optimization software systematically brings together the relevant data and applies the necessary algorithms to help pricing meet a company's revenue and profit objectives."

 

Major milestones to date include:

• 25 new solution contracts closed; purchased solutions include the latest versions of the PROS Price Management System as well as our Advanced Revenue Management, Price List Optimization, Contract Price Optimization and Pricing Analytics solutions.
• Completed the production rollout of the PROS Pricing Solution to 900+ sales representatives that make 20,000+ optimized price quotes everyday.
• Major investment in new science, new software development, and new consulting services.
• Record setting attendance for the PROS 11th Annual Pricing Revenue Optimization Conference held May 1-4, 2005 in Houston, Texas at the Hilton Americas Hotel.  The conference was comprised of two separate tracks: a Pricing Excellence Summit and a Revenue Management Conference, over 460 people attended the combined event, making it PROS largest conference ever.
• Registration is open for the March 5-7, 2006 Pricing Excellence Summit which will be hosted at the Hilton Americas Hotel in Downtown Houston. This conference is designed for executives of Fortune 1000 companies who have a direct or supporting role in developing and implementing their company’s pricing strategy.

Financial Highlights:

• Profitability and positive cash flow for 27 continuous quarters
• Positive cash flow resulting in an all time high cash position of $30+ million
• Capital expenditures in high-performance application servers, database servers, and mass storage
• Headcount up 18% to 232 employees
• No debt
• Backlog of $30+ million

“PROS has achieved the highest levels of customer satisfaction and financial strength by developing PROS Pricing Solutions that incorporate the most advanced science in a configurable software platform that has one version of source code,” says Winemiller. “The PROS Solution Platform allows unique configured implementations for each customer. It also provides high performance scalable solutions for calculation intensive batch processing, real-time optimized transaction processing, and e-commerce processing handling 500+ transactions per second.”

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Corporate Communications
PROS
info@prospricing.com
713-335-5151