Progress Swings into Profit in Q2, Shares Skyrocket in Afterhours (PRGS)
Progress Software Corporation (NASDAQ: PRGS) said late last evening that it swung into a profit in its fiscal second quarter, aided by higher revenue from software licensing and lower charges linked to an asset sale.
For the fiscal third quarter, the business software maker expects revenue to grow by 2% to 4% or $76 million to $77 million while analysts forecast was for $78.9 million.
For the quarter ended May 31, Progress Software reported net income of $3.9 million or 7 cents a share compared to a loss of $1.9 million or 3 cents a share, in the year-earlier quarter.
Stripping out onetime items, such as loss linked to an asset sell (Apama), stock based compensation and some other charges, adjusted earnings remained unchanged at 27 cents a share. Analysts’ consensus estimate was for earnings of 22 cents a share.
Revenue from continuing operations climbed 10% to $81.7 million, beating analysts’ consensus estimate for $79 million, according to a data compiled by FactSet. Revenue was boosted by software licensing sales, which soared 43% to $29.3 million.
During the conference call, the Company said that improved marketing efforts were driving up sales, adding that several deals are likely to be closed in the near future.
Separately, the Company also announced that the Board has approved its plans for additional stock repurchase. The Company said that it will repurchase additional $100 million worth common shares by the year-end.
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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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