Based on preliminary financial data, Progress expects fiscal third quarter GAAP and non-GAAP revenue to be approximately $128 million, GAAP diluted earnings per share to be between 10 cents and 12 cents and non-GAAP diluted earnings per share to be between 27 cents and 29 cents. The non-GAAP amounts primarily exclude the amortization of acquired intangibles, stock-based compensation and restructuring and transition costs. These preliminary financial results are subject to revision until the Company reports its full fiscal third quarter results on September 27, 2011.

Richard D. Reidy, president and chief executive officer of Progress Software, said: "Our revenue this quarter fell short of our expectations primarily due to underperformance in the Enterprise Business Solutions (EBS) segment. Over the last year we have made many improvements in our field organization, but some programs are taking longer than expected to deliver results. In addition, during the quarter we saw several customers - especially in financial services - delay decisions on large software purchases. We have made changes in the regional sales leadership during the quarter to improve sales focus and accelerate the closure of existing opportunities in the sales pipeline. Our earnings were also below guidance, primarily because of the aforementioned revenue shortfall and employee separation costs recorded during the quarter."

Reidy further stated: "Our Application Development Platforms (ADP) and Enterprise Data Solutions (EDS) segments both delivered revenues that came in above our expectations."

On June 29, 2011, Progress provided guidance for the third quarter of fiscal 2011 of GAAP and non-GAAP revenue between $133 million and $136 million, GAAP diluted earnings per share between 20 cents and 24 cents and non-GAAP diluted earnings per share between 34 cents and 36 cents.