WASHINGTON (dpa-AFX) - Progress Software Corp. (PRGS) Thursday reported an increase in profit for the fourth quarter, driven mainly by gains from the sale of non-core assets. Nevertheless, income from continuing operations for the quarter declined from last year, hurt by lower revenues and higher costs.
In the past few quarters, Progress' results have been suffering amidst a weak global economy and business seasonality. In April, Progress revealed its restructuring plans to divest ten of its non-core product lines and layoff about 10 to 15 percent of its workforce.
Software licenses revenue for the quarter advanced 4 percent to $35.7 million, while maintenance and services revenues decreased 6 percent to $55.5 million.
Progress Software, which competes with the likes of Tibco Software, said revenues for the quarter dropped 2 percent to $91.3 million from $93.5 million last year.
Revenues, including both from continued and discontinued operations, were $121.7 million, down from $136.3 million last year. Six analysts had consensus revenue estimate of $116.31 million for the quarter.
The Beford, Massachusetts-based company's fourth-quarter profit rose to $36.0 million or $0.57 per share from $12.2 million or $0.19 per share last year.
Earnings from continuing operations declined to $0.18 per share from $0.27 per share last year.
Adjusted earnings improved to $0.42 per share from $0.34 per share last year. Adjusted earnings from continuing operations dropped to $0.23 per share from $0.36 per share last year.
Analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the first quarter, Progress expects, on a constant currency basis, revenue growth to be essentially flat with last year.
PRGS closed Thursday's trading at $20.89, down $0.65 or 3.02%, on the Nasdaq. In after-hours trade, the stock lost $0.89 or 4.26%.
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