UPDATE 1-Progress Software says CEO to resign, may see revenue slippage

Mon Oct 8, 2012 8:56am EDT

Oct 8 (Reuters) - Database management software maker Progress Software Corp said it could see some revenue slippage in the current quarter as a result of the resignation of Chief Executive Jay Bhatt, sending its shares down 8 percent in premarket trading.

The company had forecast revenue growth of 1 percent to minus 2 percent for the fourth quarter ending November.

Progress Software said it may see some slippage in revenue growth in the quarter in light of the CEO transition.

Bhatt, who is leaving to head a privately held software company, will continue in his role until Dec. 7.

The company also said it would be unable to complete its planned $150 million in share repurchases by the end of fiscal 2012 "in light of recent events".

Progress said it was "actively considering alternatives" to complete returning at least $350 million to shareholders by the end of 2013.

The company, which cut 100 jobs to end the third quarter with 1,500 employees, said last month it expected more layoffs with the sale of its non-core businesses.

Progress Software said it has started the search for a new CEO and has retained an executive search firm for the purpose.

It appointed a new chief financial officer in July, after the previous CFO resigned in March.

The company's shares, which closed at $21.48 on Friday on the Nasdaq, were at $19.75 before the bell on Monday.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.