WASHINGTON (dpa-AFX) - Progress Software Corp. (PRGS) Wednesday reported a lower profit for the third quarter, due mainly to a drop in software licensing and services revenues. Nonetheless, quarterly earnings topped Street estimates.
Progress' results were not totally unexpected as the company has been grappling with global economic weakness as well as business seasonality. To shore up profit, Progress in April revealed new restructuring plans to divest ten of its non-core product lines and layoff about 10 to 15 percent of its workforce.
During the quarter, Progress' total revenues slid 14 percent, compared to a year ago. Licenses revenues declined 20 percent, and maintenance and services revenues dropped 11 percent.
The Beford, Massachusetts-based company reported third quarter net income of $5.8 million or $0.09 per share, down from $9 million or $0.13 per share last year.
Excluding items, adjusted earnings for the quarter totaled $20 million or $0.31 per share, compared to $21 million or $0.32 per share last year.
On average, 7 analysts polled by Thomson Reuters expected earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
Progress Software, which competes with the likes of Tibco Software, reported quarterly revenues of $107 million, compared to $125 million last year.
Analysts expected revenues of $112.32 million for the quarter.
Looking ahead to the fourth quarter, Progress expects, on a constant currency basis, core revenue to range between a decline of 2 percent to a growth of 1 percent, compared with last year.
In its prior forecast, Progress projected fourth quarter core revenue, on a constant currency, to grow 0 to 1 percent, and had projected core revenue of $90 million to $95 million.
PRGS closed Wednesday's trading at $19.16, down 2.64%, on a volume of 0.7 million shares on the Nasdaq. In after-hours trade, the stock gained $0.34 1.77%.
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