Progress 4Q results beat Street but outlook sags

BEDFORD, Mass. (AP) ? Business software maker Progress Software Corp. said Tuesday that its fourth-quarter net income declined 45 percent as revenue fell. Its outlook for the current quarter was weaker than expected and its shares sank in extended trading.

Net income in the three months to Nov. 30 came to $11.7 million, or 18 cents per share, down from $21.3 million, or 31 cents per share, a year earlier.

Excluding stock-based compensation expenses and other items, adjusted earnings came to 34 cents per share, beating the expectations of analysts by a penny.

Revenue fell 6 percent to $136.3 million from $145.2 million, also coming in slightly higher than analysts’ expectation of $133.5 million.

Its first-quarter outlook for revenue of $120 million, down 10 percent from a year ago, was significantly below the $132 million that analysts were looking for. The company also forecast first-quarter adjusted earnings of 25 cents per share, while analysts were looking for 38 cents.

Progress CEO Jay Bhatt said in a statement that the fourth-quarter results met expectations but they “reflect challenges the company is facing in its ongoing transformation.”

Shares fell $1.50, or 7.6 percent, to $18.30 in after-hours trading Tuesday, after closing up 45 cents, or 2.3 percent, at $19.80.