Progress shares fall on flat revenue outlook
Progress sees fiscal 1Q revenue flat, shares fall after hours
BEDFORD, Mass. (AP) -- Progress Software Corp. shares fell in after-hours trading Thursday after the company forecast flat revenue for its fiscal first quarter.
Progress reported that it earned $36 million, or 57 cents per share, in its fiscal fourth quarter that ended Nov. 30. That is up from $12.2 million, or 19 cents per share, in the same quarter last year. It made 42 cents per share in the recent quarter on an adjusted basis, excluding one-time items.
Revenue fell 2 percent to $91.3 million as weaker maintenance and service revenue offset increased revenue from software licenses. That excludes revenue from discontinued operations in the current quarter and same quarter last year, respectively.
Analysts polled by FactSet expected the company to earn 34 cents per share on revenue of $109.4 million.
Progress, based in Bedford, Mass., makes software to simplify deployment and management of cloud-based platforms. It announced in October that its CEO was leaving to go to another software company as it was is in the midst of a number of changes, including plans to aggressively cut costs and sell off 10 non-core business lines.
The company's new leader, Phil Pead, said management is pleased with the company's performance. Now that the company has sold off nearly all its non-core businesses, he said it is ready to grow in 2013.
Progress, however, expects revenue growth to be essentially flat in its first quarter.
Shares fell nearly 4 percent to $20.09 in after-hours trading. That follows a 3 percent drop in the regular session to close at $20.89.
