Shares of Progress Software Corp. (NASDAQ: PRGS), an enterprise software company offering a portfolio of real-time software solutions, rallied in trading today as investors digested the companyâ€™s third-quarter financial results.
For the third quarter ended August 31, 2012, PRGS reported revenue of $107.2 million, compared to $124.5 million reported for the same period in the previous year. The companyâ€™s income from operations for the quarter was $14 million, compared to $14.3 million reported for the same period in the previous year.
Income from continuing operations stood at $8 million in the third quarter, compared to $9.6 million reported for the same period in the previous year. The companyâ€™s diluted earnings per share from continuing operations for the quarter was $0.12, compared to $0.14 reported for the same period in the previous year. On a non-GAAP basis, the companyâ€™s diluted earnings per share from continuing operations were $0.31, compared to $0.32 reported for the same period in the previous year.
Jay Bhatt, President and CEO of Progress Software, said that last quarter PRGSâ€™s tone was optimistic long term but cautious regarding the fiscal third quarter. Bhatt said that the company felt this was prudent given the global economy, seasonality within PRGSâ€™s business and the significant amount of change required to execute the strategic plan announced on April 25th. Bhatt noted that PRGSâ€™s third-quarter results reflect improvements on many fronts over the second quarter and remain on track. He added that although several challenges and continued changes remain to fulfill PRGSâ€™s transformation, he is pleased to report that during the third quarter, the company successfully executed its strategic plan.
Looking ahead to the fourth quarter, PRGS expects core revenue growth, on a constant currency basis, to be between -2% and 1%, compared to fiscal fourth quarter of 2011. Core segment operating margin for the fourth quarter is expected to be between 25% and 30%.
PRGS shares rose to an intra-day high of $22.24 in trading today before finishing the day 10.80% higher at $21.23 on above average volume of 1.59 million.
Year-to-date, the stock has gained 9.72%, underperforming the S&P 500.