Enterprise software provider Progress Software Corp. (PRGS) said Wednesday that it would reduce its workforce by 12% to 14% globally in order to optimize its operations, improve productivity and efficiency. The company also updated its earlier issued fourth quarter outlook.
The company while announcing initiatives to position it for long-term growth and improved profitability said it would focus on growth opportunities in the enterprise software market by bringing new products and solutions to market.
The company also plans to change the way Progress Software takes its products to market by
becoming more customer and solutions driven and increase its market awareness by leveraging more visible product brands that carry strong recognition in their respective markets.
In order to execute the company's planned initiatives the company is restructuring its sales, development and marketing organizations as well as other functions to optimize operations, improve productivity and efficiency.
Executing the initiatives would result in reducing the company's workforce by approximately 12% to 14% across all functions and geographies, as well as consolidate its offices in certain locations globally.
Commenting on the company's restructuring initiatives Richard Reidy, President and Chief Executive Officer said, "...we are restructuring our organization in order to go to market as one company, or 'One Progress', to more effectively offer multi-product solutions, support, and services."
Updating on the earlier issued fourth quarter revenue and earnings guidance, the company said it now expects to achieve or exceed its earlier issued outlook.
The company had said it expects fourth quarter GAAP earnings to be in the range of $0.33 to $0.35 per share and non-GAAP earnings in the range of $0.54 to $0.56 per share. The company had expected fourth-quarter revenue to be in the range of $130 million to $133 million.
Analysts currently expect the company to post earnings of $0.55 per share on revenues of $131.90 million for the fourth quarter.
Wednesday, PRGS closed at $24.34, up $0.14 or $0.58 on a volume of 0.19 million shares on Nasdaq.
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