Boston, MA 09/26/2014 (wallstreetpr) – Global software company, Progress Software Corporation (NASDAQ:PRGS) said that its adjusted operating margin jumped nine percentage points in the third quarter, which helped the company to record 36.6% growth in non-GAAP profit. It has also provided an upbeat outlook for the fiscal year 2014.
Improved Margin
The company stated that while its GAAP operating margin more than doubled to 25% in the third quarter from 12%, its adjusted operating margin increased to 37% from 28% in the prior year quarter, its statement indicated.
Progress Software Corporation (NASDAQ:PRGS)’s total operating costs dipped 12% to $51.98 million from $59.4 million as restructuring expenses witnessed a drop of 69% to $1.68 million from $5.4 million while acquisition-related costs fell 40% to $572K from $957K in the year earlier quarter. Except product development costs, which witnessed 2% increase year-over-year, other expenses witnessed downtick thus contributing significantly to overall operating margin.
The company’s CEO Phil Pead, said that its OpenEdge revenue growth apart from the continued momentum in its Pacific Platform has strengthened its value to its customers and partners. He said that the company was well-placed to become a preferred choice for application developers.
3Q Results
Progress Software Corporation (NASDAQ:PRGS) reported net income of $11.1 million for the third quarter, down 55% from $24.84 million, and the earnings plunged 52% to 22 cents a share from 46 cents a share in the year-ago quarter. On an adjusted basis, net income from continuing operations jumped 36.6% to $20.04 million, and the earnings surged 44.44% to 39 cents a share from 27 cents a share in the previous year quarter.
Total revenue advanced 2% to $79.27 million from $77.58 million in the same quarter last year. While software licenses revenue grew 3% to $26.39 million from $25.67 million, maintenance and services revenue advanced 2% to $52.88 million from $51.91 million in the third quarter of 2013.
Outlook
The Progress Software Corporation (NASDAQ:PRGS) expects to achieve adjusted earnings of $1.47 – $1.50 a share for the current fiscal year 2014 on revenues of $331 – $335 million. It also expects adjusted operating margin to be 34%. On average, Wall Street analysts’ expect the company to report earnings of $1.42 a share on revenues of $331.05 million.
