Wednesday, December 22, 2010

Progress Software stock split prompts rise in share price

By Galen Moore

Shares in Progress Software Corp. (Nasdaq: PRGS) were up 2.4 percent in after-hours trading, after the company announced a three-for-two stock split, and a street-beating 28-percent boost to its net income on quarterly revenues of $145.2 million. The Bedford company’s top line grew 6 percent, it reported.

Progress’ share price has been on an impressive three-month run. At the beginning of September, shares in Progress traded at $26.71. Earlier this month, they crossed the $40 mark and closed yesterday at $41.17.

In a quarterly earnings press release, Progress president and CEO Richard Reidy credited 43 percent growth in the company’s enterprise business solutions (EBS) portfolio of products. The stock split, set for Jan. 12, will take Progress from 44 million shares to 66 million – and is being undertaken “to obtain wider distribution and greater liquidity,” the press release stated.

Progress makes software products designed to improve its customers’ operational responsiveness. Customers are spread across a wide range of industries, including financial services, government, healthcare and manufacturing.