FONT-SIZE Plus   Neg

Progress Software Reveals Strategic Plan; To Cut Workforce By 10% - 15%

Progress Software Corp. (PRGS) unveiled a new strategic plan designed to enhance growth, profitability and shareholder value. Pursuant to the plan, Progress would become a provider of a next-generation, context-aware application development and deployment platform in the Cloud for the Application Platform-as-a-Service market by investing in its core OpenEdge, DataDirect Connect and Apama Analytics and Decisions products and integrating them into a single, cohesive offering.

According to the plan, Progress would divest multiple product lines that are not core to the new vision and launch immediate operational restructuring initiatives to significantly reduce annual costs. Further, Progress' board has authorized a substantial new share buyback program.

In addition, the company plans to reduce its global workforce by nearly 10 - 15 percent, anticipating to complete most of these workforce reductions during its second and third fiscal quarters of 2012. Also, Progress expects to reduce annual run-rate costs by some $55 million gross, expected to be net $40 million after additional investments, by the end of fiscal 2012.

Beginning with its fiscal second quarter, the company intends to separately report on a non-GAAP basis its core and non-core operations. For its core products, the company sees revenue growth rate of 5% in fiscal 2013 and 7% growth in fiscal 2014 and beyond and about 35% operating margins by fiscal 2013.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Apparel retailer Guess? Inc. (GES) on Tuesday reported a drop in profit for the third quarter, as revenues declined 12 percent. Earnings for the quarter trumped Wall Street estimates, while revenues were in line with expectations. Guess' third-quarter profit dropped to $12.4 million or $0.15 per share... Shares of Hewlett-Packard Co. (HPQ) slipped a near 6 percent in extended session on Tuesday after the computer and printer maker reported a fourth-quarter profit and revenues that fell short of Wall Street estimates, hurt largely by continued weak demand for PC. It is for the last time HP is releasing... Campbell Soup Co. (CPB) reported first-quarter adjusted earnings per share of $0.95, an increase of 22 percent from $0.78, last year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.76 for the quarter. Analysts' estimates typically exclude special...
comments powered by Disqus
Trade PRGS now with 
Follow RTT