Progress Software (NASDAQ:PRGS) Corp shares slid 1.5% after hours Tuesday even though the business software giant posted fiscal third-quarter results that surpassed expectations.
The company reported revenue of $175 million, up 16% year-over-year and above expectations of $173.3 million. Adjusted earnings were $1.08 per share, up 8% from the year-ago quarter and topping projections of $1 per share.
“We are delighted that we delivered another strong quarter driven by sustained demand around the world, and continue to be confident in our business as evidenced by our increased guidance for the full year,” CEO Yogesh Gupta said in a statement.
Progress Software (NASDAQ:PRGS) narrowly upped its full-year revenue projection to between $688 million and $694 million from a previous range of $686 million to $694 million. Its adjusted earnings projection improved to $4.20 to $4.26 per share from $4.16 to $4.24 per share.
However, the positive outlook wasn’t enough to outrun a continued flow of bad news stemming from a significant data breach of the company’s MOVEit Transfer software in June.
The breach has repeatedly been resolved, but news of the companies impacted has trickled out over weeks, including Monday when it was reported that healthcare software service provider Nuance Communication notified more than 1.2 million individuals of the breach.
Elsewhere, the National Student Clearinghouse, an education nonprofit, said this week that the breach of its MOVEit server affected nearly 900 colleges and universities and resulted in the theft of students’ personal information.
Shares of Progress Software dropped 1.5% to $54.55 in extended trading after slipping 1.4% during the Tuesday session.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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