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 company’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 company’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 company’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 company’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 PRGS’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 PRGS’s business and the significant amount of change required to execute the strategic plan announced on April 25th. Bhatt noted that PRGS’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 PRGS’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.
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