Progress Software 2Q in line with estimates

Progress Software Corp. (Nasdaq: PRGS) said Wednesday that second-quarter revenue for the quarter decreased due to the strengthening of the U.S. dollar, but earnings had increased to 24 cents a share. The results met First Call Corp. estimates.

Progress' revenue decreased 5 percent to $67.4 million, down from $70.8 million in the same quarter last year. "On a constant currency basis, revenue in the second quarter of 2000 was the same as the second quarter of 1999,'' said Progress president Joseph Alsop in a release.

Operating income was $11.1 million and represented an increase of 6 percent over the same quarter last year. Net income was $9.6 million, up 22 percent from $7.8 million in the same quarter last year. Earnings came in at 24 cents a share on a diluted basis, an increase of 20 percent over the 20 cents a share in the second quarter of 1999.

Shares closed at 15 9/16 Tuesday. The stock has declined since spiking after it topped estimates in its fourth quarter and announced a stock split.

The company said the impact to revenue, caused by a post-2000 slowdown in sales by Independent Software Vendors (ISVs), who sell applications based on Progress' technology, should lessen throughout the remainder of the year and into next year as more ISVs make Progress' applications available over the Internet on a purchase or subscription basis.

During the quarter, Progress Software announced Version 9.1 of its software, available on a subscription basis over the Internet rather than purchased .The company said this allows small and mid-tier organizations to use its applications.

The company's top competitors include Oracle (Nasdaq: ORCL), Informix (Nasdaq: IFMX) and Sybase (Nasdaq: SYBS) according to Hoover's Online.