Progress Software Reports Positive Quarter, Poor Guidance
Shares of Progress Software (NASDAQ: PRGS) are halted in the after-hours following the release of the company's Q3 earnings results. Shares ended the regular session higher by 2.21%, at $19.39.
Progress Software reported Q3 EPS of $0.31 on revenues of 128.3 million; the Street was looking for $0.29 per share on revenues of $128.1 million. Revenues decreased 0.3% year over year.
Richard D. Reidy, president and chief executive officer of Progress Software, said: "Our fiscal third quarter results were disappointing due to the decline in license revenue within the Enterprise Business Solutions (EBS) segment. The challenging macroeconomic environment in August, particularly within financial services, led some customers to postpone their purchasing decisions. With our focus on solution selling, delays in closing larger deals have a material impact on our quarterly results.”
“Though we have greatly improved our sales capabilities over the last year, we are not consistently performing at desired levels. The EBS opportunity remains significant and will be the focus of the leadership team in driving continued growth."
The company is seeing Q4 non-GAAP EPS in the range of $0.30-0.33, while the full year is expected to by in the range of $1.42-1.45 per share. The Street was looking for $0.42 per share in the fourth quarter.
Progress Software Corporation is a global enterprise software company. The company offers a portfolio of real-time software solutions. A key offering is the Progress Responsive Process Management suite that enables enterprises to achieve business performance.
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