Progress Software Corp (PRGS) has reported a 42.14 percent jump in profit for the quarter ended May 31, 2017. The company has earned $10.34 million, or $0.21 a share in the quarter, compared with $7.28 million, or $0.14 a share for the same period last year. On an adjusted basis, earnings per share were at $0.42 for the quarter compared with $0.33 in the same period last year.

Revenue during the quarter dropped 3.02 percent to $93.21 million from $96.12 million in the previous year period. Gross margin for the quarter contracted 174 basis points over the previous year period to 81.37 percent. Total expenses were 78.24 percent of quarterly revenues, down from 87.16 percent for the same period last year. This has led to an improvement of 892 basis points in operating margin to 21.76 percent.

Operating income for the quarter was $20.28 million, compared with $12.34 million in the previous year period.

However, the adjusted operating income for the quarter stood at $32.58 million compared to $26.98 million in the prior year period. At the same time, adjusted operating margin improved 688 basis points in the quarter to 34.95 percent from 28.07 percent in the last year period.

"I'm pleased that our Q2 revenue and earnings per share were above our expectations, and we continued to strengthen our core businesses with several key product releases during the quarter", said Yogesh Gupta, chief executive officer at Progress. "And I'm excited about our future prospects as we focus on the very large and growing market opportunity for development platforms. Our recent acquisition of Kinvey, the top-ranked leader in "The Forrester Wave" for Mobile Development Platforms, combined with our unique mobile and web development tools, machine learning capabilities, and unmatched data connectivity products, offer the best-of-breed product portfolio for building and running modern mission-critical business applications."

For the third-quarter 2017, Progress Software Corp forecasts revenue to be in the range of $93 million to $96 million and forecasts adjusted revenue to be in the range of $93 million to $96 million. The company expects diluted earnings per share to be in the range of $0.17 to $0.19. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.41 to $0.43.

For financial year 2017, Progress Software Corp forecasts revenue to be in the range of $390 million to $395 million and forecasts adjusted revenue to be in the range of $391 million to $396 million. The company projects net income to be in the range of $32.10 million to $35.80 million and expects adjusted net income to be in the range of $84 million to $87 million. The company forecasts operating income to grow in the range of 16 percent to 17 percent and forecasts adjusted operating income to grow in the range of 33 percent to 34 percent. It expects diluted earnings per share to be in the range of $0.66 to $0.73 and expects diluted earnings per share to be in the range of $1.73 to $1.78 on adjusted basis.