Progress Software (PRGS 34.77, +0.36) is higher by 1.1% after the company announced its third quarter results ahead of schedule, increased its quarterly dividend, and issued a special letter to shareholders. Shares of Progress Software have moved to a new record high in response.
The software company delivered above-consensus third quarter earnings of $0.48 per share on revenue of $96.37 million, which declined 5.9% year-over-year, but still exceeded expectations.
In addition to beating expectations, the company announced that its Board of Directors authorized a 12.0% quarterly dividend hike to $0.14 per share.
Management was pleased with the company's financial results, noting that additional details about its growth strategy will be announced on September 27 when full quarterly results are released.
Chief Executive Officer Yogesh Gupta issued a letter to shareholders, in which he talked up preliminary third quarter results and reiterated goals that have been set by the company. In his letter, the CEO highlighted acquisitions of Kinvey and DataRPM, which should strengthen the company's platform for building and deploying business applications. Cost control efforts helped the company's operating margin grow to 34.0% from 28.0% year-over-year.
The letter from the CEO also revealed that the company evaluated a potential acquisition that was proposed by Praesidium Investment Management, but ultimately decided against making an offer.