Post Earnings Coverage as Progress' Quarterly Adjusted EPS Jumped 26%; Revenue Grew 3%
Upcoming AWS Coverage on NQ Mobile Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 11, 2017 / Active Wall St. announces its post-earnings coverage on Progress Software Corp. (NASDAQ: PRGS). The Company announced its first quarter fiscal 2017 financial results on March 29, 2017. The business software maker provided guidance for the upcoming quarter and also announced new CFO. Register with us now for your free membership at:
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One of Progress Software's competitors within the Application Software space, NQ Mobile Inc. (NYSE: NQ), reported its results for Q4 FY16 and FY16 after the US markets closed on Thursday, April 06, 2017. AWS will be initiating a research report on NQ Mobile in the coming days.
Today, AWS is promoting its earnings coverage on PRGS; touching on NQ. Get our free coverage by signing up to:
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Earnings Reviewed
For its fiscal first quarter ended February 28, 2017, Progress Software's revenue was $91.0 million, up 2% on an actual currency basis and 3% on a constant currency basis, compared to $89.5 million in the same quarter last year. On a non-GAAP basis, revenue was $91.2 million compared to $90.2 million in Q1 FY16, an increase of 1% on an actual currency basis and 2% on a constant currency basis.
For Q1 FY17, Progress Software's income from operations was $1.2 million (including a restructuring charge of $17.1 million) compared to $6.7 million in Q1 FY16. On a non-GAAP basis, the Company's income from operations was $27.1 million in the reported quarter compared to $21.5 million in the same quarter last year. Operating margin was 30% in the reported quarter compared to 24% in the same quarter last year.
Progress Software's net loss was $0.5 million in Q1 FY17 compared to net income of $3.2 million in Q1 FY16, while diluted loss per share was $0.01 compared to diluted earnings per share of $0.06 in the same quarter last year. On an adjusted basis, the Company's net income was $16.8 million in the reported quarter compared to $13.8 million in the same quarter last year and diluted earnings per share was $0.34 compared to $0.27 in the prior year's same period.
Financial Details
For Q1 FY17, Progress Software's cash from operations was $37.3 million compared to $22.5 million in Q1 FY16. The Company's adjusted free cash flow was $43.0 million compared to $22.7 million in the same quarter last year. Cash, cash equivalents, and short-term investments were $264.2 million. Progress Software's DSO was 48 days in Q1 FY17 compared to 59 days in Q1 FY16 and 50 days in Q4 FY16.
Under the previously announced authorization by the Board of Directors to repurchase up to $200 million of shares of common stock, Progress Software repurchased 0.6 million shares for $18.1 million during Q1 FY17. As of February 28, 2017, there was $117.3 million remaining under the authorization.
On March 24, 2017, Progress Software's Board of Directors declared a quarterly dividend of $0.125 per share of common stock that will be paid on June 15, 2017, to shareholders of record as of the close of business on June 01, 2017.
New CFO
On March 29, 2017, Progress Software announced that Paul Jalbert, Chief Accounting Officer, has been named Chief Financial Officer, effective immediately. As CFO, Jalbert will be a member of the Company's executive leadership team, reporting to Yogesh Gupta, President and Chief Executive Officer, and will oversee the Company's global finance and accounting operations. Jalbert has been Chief Accounting Officer since joining the company in August 2012.
Jalbert is an accomplished finance executive with over 30 years of experience at publicly traded and privately-held companies, including UnitedHealth Group, Picis, Keane, Genuity and Verizon. As CFO, Jalbert replaces Kurt Abkemeier, who will leave the Company effective immediately.
Outlook
For Q2 FY17, Progress Software is forecasting GAAP and non-GAAP revenue in the range of $89 million to $92 million and earnings in the band of $0.13 to $0.15. The Company is anticipating full-year non-GAAP earnings in the range of $1.64 to $1.69 per share, with revenue ranging from $388 million to $396 million.
Stock Performance
At the close of trading session on Monday, April 10, 2017, Progress Software's stock price slightly fell 0.27% to end the day at $29.61. A total volume of 462.39 thousand shares were exchanged during the session, which was above the 3-month average volume of 374.21 thousand shares. The Company's share price has gained 9.27% in the past six months and 20.22% in the last twelve months. The Company's shares have a dividend yield of 1.69% and market cap of $1.43 billion.
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