Progress Software Jumps on Q2 Results

released its fiscal second-quarter earnings results after the closing bell on Wednesday. The company reported earnings and revenue that were ahead of Wall Street estimates, sending the stock up almost 9 percent to $23.99 in late trading.

“Our focus this year has been on improving the operating performance of the company and building a foundation for future revenue growth. We are pleased that we remain on track to achieve efficiencies previously outlined and that revenue growth is beginning to take hold," said Phil Pead, President and Chief Executive Officer of Progress Software. "The second fiscal quarter results reflect our efforts to energize our customer and partner base through improved product functionality and targeted marketing activities. In addition, we benefited from closing a number of opportunities sooner than expected.”

The company reported net income of $3.9 million or $0.07 per share, compared to a net loss of $1.9 million or $0.03 per share, in the year ago period. Income from continuing operations was $8.1 million or $0.15 per share, compared to $8.9 million or $0.14 per share, in last year's corresponding quarter. On an adjusted basis, Progress Software reported income from continuing operations of $15 million or $0.27 per share, versus $17.3 million or $0.27 per share, last year. This came in ahead of Wall Street analysts' consensus EPS estimates of $0.22. Total revenue for the quarter was $81.71 million from $74.13 million a year ago. This also came in ahead of consensus estimates calling for revenue of $79.01 million in the second-quarter. Looking ahead to Q3, Progress Software guided for revenue to be up between 2 percent and 4 percent versus last year's third-quarter.