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Progress Software Shares Tumble on Preliminary Q2 Results (PRGS)

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Progress Software CorporationShares of Progress Software Corporation (NASDAQ: PRGS), an enterprise software company offering a portfolio of real-time software solutions, tumbled in trading on Friday after the company released its preliminary second-quarter financial results.

PGRS shares fell to an intra-day low of $17.30 before finishing the day 11.19% lower at $18.02 on above average volume of 2.08 million.


Progress Software expects consolidated revenue for the second quarter ended May 31, 2012 to come in between $110 million and $115 million, which represents a year-over-year decline of between 15% and 18%. On a constant currency basis, the year-over-year decline was between 12% and 15%.

Revenue from the company’s strategic core products of OpenEdge, DataDirect Connect and Apama Decision Analytics is expected to come in between $77 million and $80 million.

Progress expects non-GAAP diluted earnings per share for the second quarter to come in between $0.17 per share and $0.19 per share, down between 51% and 56% on a year-over-year basis.

Progress Software said that its financial results were adversely impacted by consumer, partner and employee uncertainty due to the announcement of the strategic plan, the undertaking of large global restructuring efforts, the marketing for divesture of non-Core products, the re-architecture of the organization and overall weakness in the global economy.

Jay Bhatt, President and CEO of Progress Software, said that because of disruption resulting from the above, the company expected the quarter to be challenged and did not provide guidance. Bhatt said that PRGS recognizes that this created lack of visibility around fiscal second quarter performance expectations and, as a result, the company has been expeditious in pre-announcing its results. He added that the results reflect a time of transition at Progress, yet the company remains optimistic and confident about its long-term prospects that leverage its core strengths.








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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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