ProgressSoftware Corp. (PRGS) Wednesday reported a 64 percent decline in first-quarter profit, as software license revenues continued to drop while expenses increased. In another development, ProgressSoftware said CFO Charles Wagner will leave the company immediately.
Software licenses revenues for the quarter dropped 19 percent to $41.5 million, while maintenance and service revenues, which makes up more than 65 percent of revenues, remained flat.
ProgressSoftware, which competes with entities such as Tibco Software, said its total revenues declined 7 percent to 124.4 million. Wall Street analysts on a consensus estimated revenues of $120.51 million for the quarter.
The Bedford, Massachusetts-based company's first-quarter profit declined to $7.5 million or $0.12 per share from $20.5 million or $0.29 per share last year.
On an adjusted basis, earnings dropped to $0.28 per share from $0.42 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Total costs of revenues increased 5 percent to $25.4 million, while operating expenses rose 7 percent to 87.1 million.
Chief executive Jay Bhatt said, "Despite the stated year-over-year declines, the company performed better than expected, largely due to our OpenEdge product line. As we navigate through the current environment, we will continue to tightly control spending to protect our profitability."
Separately, ProgressSoftware said CFO Charles Wagner will leave the company effective immediately. Bhatt will take over the CFO's role until a successor for Wagner is appointed.
While not providing any reasons for Wagner's departure, ProgressSoftware noted that the development was not based on any disagreement on any matter relating to its accounting practices or financial statements.
ProgressSoftware also appointed Andy Zupsic as the global head of field operations, effective April 2. Zupsic will be responsible for all company-wide sales, services and partners.
Looking forward, the company said it will not provide any guidance for the second quarter, due to the ongoing evaluation and forthcoming announcement of its revised business plan.
PRGS is currently trading on the NYSE at $23.61, down 3.32%.
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