Progress Software posts profit above estimates, forecasts weak fourth quarter
(Reuters) - Database management software maker Progress Software Corp (PRGS.O) reported a higher-than-expected third-quarter profit helped by cost cuts, but forecast weak growth in the current quarter.
The company forecast core revenue to be down 2 percent from the year-earlier period to up 1 percent on a constant currency basis.
"As is true in the broader macro environment for software companies ... there are economic headwinds that are slowing the achievement of business results," Chief Executive Jay Bhatt said on a conference call.
Rival Tibco Software Inc (TIBX.O) reported lower-than-expected revenue last week and forecast fourth-quarter results below estimates on currency headwinds hitting revenue from its services segment.
Progress Software, which cut 100 jobs to end the third quarter with 1500 employees, said it expects to lay off more people with the sale of its non-core businesses.
The company said on April 25 that it would divest a number of its non-core product lines and reduce 10 to 15 percent of its workforce.
Operating costs fell 15 percent to $73 million in the third quarter.
Net income from continuing operations fell to $5.8 million, or 12 cents per share, from $9.1 million, or 14 cents per share, a year earlier.
Excluding items, the company earned 31 cents per share from continuing operations.
Revenue fell 14 percent to $107.2 million.
Analysts had expected earnings of 24 cents per share on revenue of $112.3 million, according to Thomson Reuters I/B/E/S.
Shares of the Bedford, Massachusetts-based company rose 5 percent in after market trading on Wednesday. It closed at $19.16 on the Nasdaq.
(Reporting By Aditya Kondalamahanty in Bangalore; Editing by Anil D'Silva and Don Sebastian)
- Moscow fights back after sanctions; battle rages near Ukraine crash site |
- U.S. man sues soccer star Cristiano Ronaldo over CR7 trademark
- Gaza toll soars as Israel 'days' from completing tunnel hunt
- Obama to Republicans: ‘Stop just hatin’ all the time’
- Argentina braces for market reaction to second default in 12 years