logo
Share SHARE
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
Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations. Backtracking on its early announcements on digital privacy, WhatsApp is planning to share member information, phone numbers and analytical data with Facebook, to make revenue from the platform. Discount retailers Dollar Tree Inc. and Dollar General Corp. both reported results for the second quarter that missed analysts' expectations. Looking ahead, Dollar Tree also forecast revenue for the third quarter below analysts' estimates and lowered its full-year revenue outlook. Shares of both companies are falling in pre-market activity.
comments powered by Disqus
Follow RTT