EmailProgress Software (PRGS $19.75 -0.14) reported second quarter earnings of $0.21 per share, $0.04 better than the Capital IQ Consensus of $0.17, while revenues fell 14.9% year/year to $114.6 million versus the $113.12 million consensus. The company reiterated plans to execute a $150 million share repurchase before the end of the fiscal year ending November 30, 2012, and its intent to repurchase at least another $200 million in fiscal 2013. The company has made substantial progress toward the divestiture of the ten product lines identified as non-Core in its strategic plan, including entering into a definitive purchase and sale agreement for the FuseSource product line with Red Hat (RHT). Due to continued anticipated disruption, co is not providing guidance for the fiscal third quarter ending August 31, 2012.
However, co is providing the following guidance for the fiscal fourth quarter ending November 30, 2012: Core revenue is expected to be in the range of $90-95 million (excludes revenue from our non-Core product, not comparable to total $130 million consensus); On a constant currency basis, revenue growth is expected to be 0-1%; and Core op margin 25% to 30%. Co is reiterating the following guidance: Core revenue for fiscal year 2013 is expected to grow 5% on a constant currency basis; and Core op margin for the fiscal Q4 ending November 30, 2013 is expected to be 35%.
