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Progress Software Q4 Revenue Guidance Upbeat

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Shares of Progress Software Corp. (NASDAQ: PRGS) climbed almost 4% in aftermarket hours on Wednesday after the business software provider said that fiscal third  quarter net income more than quadrupled due to lower input costs and gains arising from the divestiture of Apama product line. In July, the Company sold Apama product line to Software AG for $44.3 million.

Core earnings and revenue just managed to beat expectation. The Company also handed better-than-expected guidance for the current quarter.

For the fiscal fourth quarter, Progress Software expects revenue-growth of 4% to 6% while analysts’ polled by Thomson Reuters were anticipating a revenue decline of 4%.

For the period ended Aug. 31, Progress Software posted a net income of $24.8 million or 46 cents a share compared to a profit of $5.8 million or 9 cents a share, in the same period of last year.

In the latest period, the results included onetime gain of $17.6 million linked to discontinued operations compared to a charge of $1.9 million, in the year-earlier quarter.

Stripping out onetime items, the adjusted earnings stood at 27 cents a share up from 19 cents a share, in the same period of last year.

Revenue increased 4.3% to $77.6 million. Revenue from maintenance and services segment, which accounts for bulk of the top line, increased to $51.9 million.  Revenue from software licensing jumped 13% to $25.7 million.

Analysts surveyed by Thomson Reuters had expected earnings of 24 cents a share on revenue of $77 million.

Gross margin improved to 89% from 87.2% as input costs fell 10%.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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