Thursday, application infrastructure software provider Progress Software Corp. (PRGS) reported a sharp fall in its second-quarter net income, hurt by lower revenues impacted by difficult economic environment and unfavorable currency rates. Nevertheless, the company raised its fiscal 2009 non-GAAP earnings forecast and reaffirmed revenue estimate.
Progress Software posted second-quarter net income of $6.9 million, down 52% from $14.47 million reported in the same quarter last year. Earnings per share declined 48% to $0.17 from $0.33 per share reported in the year-ago quarter.
Non-GAAP net income decreased 21% to $16.1 million from $20.4 million in the same quarter last year and non-GAAP earnings per share dropped 17% to $0.39 from $0.47 in the second quarter of fiscal 2008.
On average, three analysts polled by Thomson Reuters expected the company to earn $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Rick Reidy, president and chief executive officer of Progress Software, stated: "Our results reflect the difficult economic environment and unfavorable year-over-year currency rates present in Q2."
Total revenue declined 9% to $117.05 million from $127.94 million in the prior-year quarter.
On a non-GAAP basis, revenue totaled $118 million, down 8%, but up 2% at constant currency, from the year-ago quarter.
Wall Street analysts were looking for revenues of $119 million for the quarter.
Progress' software license revenue decreased 14% to $38.5 million from $45.0 million in the same quarter last year.
For the six-month period, net income decreased 61% to $10.55 million from $27.3 million a year earlier. Earnings per share dropped 58% to $0.26 from $0.62 in the same period last year.
Non-GAAP net income was $31.81 million or $0.78 per share, compared to $38.93 million or $0.89 per share in the prior-year period. Total revenue was $237.9 million, down 5% from $249.5 million in the previous-year period.
Looking ahead, for the third fiscal quarter, the company expects earnings per share to be in the range of $0.17 - $0.20. On a non-GAAP basis, earnings per share are expected to be in the range of $0.38 - $0.41.
The company anticipates GAAP and non-GAAP revenue to be in the range of $120 million - $123 million for the upcoming quarter. Analysts expect the company to report earnings of $0.42 per share, on revenues of $121.83 million for the next quarter.
Additionally, the company still expects fiscal 2009 GAAP revenue in the range of $492 million - $502 million. While, on a non-GAAP basis, Progress Software continues to expect revenues in the range of $495 million - $505 million.
Currently, full-year GAAP earnings per share are expected to be in the range of 77 cents - 86 cents. Earlier, GAAP earnings per share were expected to be in a range of $0.78 - $0.88.
On the other hand, Progress Software's present non-GAAP earnings per share outlook is in the range of $1.72 - $1.81, compared to earlier guidance of $1.70 - $1.80. Analysts expect the company to report earnings of $1.74 per share, on revenues of $499.6 million for the year.
PRGS closed Wednesday's trading session at $22.67.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.