Progress Software Stock Down As It Cuts Q1 Adj. EPS, Sales View

(RTTNews) - Progress Software Corp.'s (PRGS) shares declined around 12 percent in the extended trading on Thursday after the business software maker warned on its first-quarter adjusted earnings and revenues mainly due to lower license sales.

In its statement, the company said its preliminary revenue and adjusted earnings per share for the first quarter ending February 28 are lower than guidance.

Progress currently expects revenue to be between $74 million and $75 million, compared to previous estimate between $80 million and $82 million.

Adjusted earnings per share would be between $0.27 and $0.28 for the quarter, lower than previous forecast between $0.29 and $0.31.

On average, five analysts polled by Thomson Reuters expect the company to earn $0.31 per share on revenues of $81.34 million. Analysts' estimates typically exclude special items.

Including the amortization of acquired intangibles, stock-based compensation, acquisition related expenses and restructuring expenses, earnings per share on a reported basis would be between $0.21 and $0.22, while previous estimate was between $0.19 and $0.21.

The company is scheduled to report its full first quarter results on March 27.

President and Chief Executive Officer Phil Pead said, "Revenue this quarter fell short of our expectations, primarily due to lower license sales where the timing of deal closures shifted out of the first quarter. While we are disappointed with our execution in the first quarter, we remain confident in our strategy and the value our products provide to our partners and customers."

Progress Software closed Thursday's regular trading at $25.38, up $0.16 or 0.63 percent. In the extended trading, shares lost $2.98 or 11.74 percent, and traded at $22.40.