WASHINGTON (dpa-AFX) - Business software maker Progress Software Corp. (PRGS), Wednesday posted a profit for the second quarter, turning around from a loss last year, driven mainly by revenue growth and lower losses from discontinued operations. Shares of the company climbed nine percent in extended trade, following the news.
Bedford, Massachusetts-based Progress Software reported second-quarter profit of $3.9 million or $0.07 per share, compared to a loss of $1.9 million or $0.03 per share in the year-ago quarter.
Income from continuing operations for the quarter dropped to $8.1 million or $0.15 per share from to $8.9 million or $0.14 per share last year. Adjusted earnings for the quarter was $0.27 per share, same as last year.
Loss from discontinued operations declined to $4.2 million from $10.8 million last year.
In the past few quarters, Progress' results have been lackluster amidst a weak global economy and business seasonality. Progress is currently working on its plans to divest non-core product lines and layoff about 10 to 15 percent of its workforce.
In June, Progress Software agreed to sell its Apama product line to to Software AG (STWRY.PK). The sale is expected to close in July. The company has reported Apama product line results as discontinued operations.
Progress Software, which competes with the likes of Tibco Software, said revenues for the quarter grew 10 percent to $81.7 million from $74.1 million last year.
Analysts polled by Thomson Reuters expected earnings of $0.22 per share on revenues of $79.04 million for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the third quarter, the company expects revenue growth between 2 to 4 percent, on a constant currency basis.
PRGS closed Wednesday's trading at $22.05, up $0.45 or 2.08%, on the Nasdaq. The stock further gained $1.98 or 8.98% in after hours trade.
Copyright RTT News/dpa-AFX
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