UPDATE 1-Progress Q2 rev misses Street, Q3 rev view weak

Tue Jun 22, 2010 5:22pm EDT

* Q2 rev misses Street

* Q2 adj EPS $0.59 vs est $0.54

* Sees Q3 rev below market expectations

* Shares down 9 percent

June 22 (Reuters) - Business software maker Progress Software Corp (PRGS.O) posted lower-than-expected second-quarter revenue and gave a weak third-quarter revenue forecast, sending its shares down 9 percent.

For the second quarter, the company's net income was $19.1 million, or 43 cents a share, compared with $6.9 million, or 17 cents a share, last year. Excluding items, it earned 59 cents a share.

Revenue rose 9 percent to $127.7 million.

Analysts on average were looking for earnings of 54 cents a share, excluding items, on revenue of $130 million, according to Thomson Reuters I/B/E/S.

Progress expects third-quarter adjusted earnings of 53 cents to 56 cents a share, excluding items, on revenue of $121 million to $124 million.

Analysts were expecting 54 cents a share, excluding items, on revenue of $132.6 million.

On June 10, the company said it will cut about 7 percent to 9 percent of its global workforce and record a pre-tax charge of about $11 million to $16 million in the third quarter.

Bedford, Massachusetts-based Progress Software's shares, which have gained 51 percent over the last one year, were down $2.68 at $28.82 in extended trade. They closed at $31.50 Tuesday on Nasdaq. (Reporting by S. John Tilak in Bangalore; Editing by Jarshad Kakkrakandy)

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