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Sales And Profits Jump At Progress Software

The business-software vendor says 2Q sales were up 17% while net income jumped 21%, thanks to a big jump in software license revenue.
Progress Software Corp., riding a 36% surge in software license revenue, on Thursday reported a 17% sales increase to $90.8 million in its second quarter ended May 31. Net income rose 21% from the same period a year ago to $8.1 million.

Progress sells software, including a database and development tools, that IT departments and independent software vendors use to build, deploy, and integrate business applications. Software license revenue in the quarter reached $36.9 million, up 36% from $27.1 million a year ago.

Sales growth was generated by new customers such as CommScope Inc. and Century Drills & Tool Co., as well as by expanded purchases by existing customers such as J.P. Morgan Chase, Lockheed Martin, and Merck.

For the current quarter ending Aug. 31, Progress said it expects revenue in the range of $88 million to $90 million with net income of 20 cents to 21 cents per share. For the fiscal year ending Nov. 30, the company expects revenue in the range of $360 million to $365 million with net income of 77 cents to 80 cents per share.