Progress Software Corporation (PRGS) saw its loss widen to $73.79 million, or $1.52 a share for the quarter ended Nov. 30, 2016. In the previous year period, the company reported a loss of $9.47 million, or $0.19 a share. On the other hand, adjusted net income for the quarter stood at $30.47 million, or $0.62 a share compared with $27.27 million or $0.53 a share, a year ago.

Revenue during the quarter grew 4.44 percent to $117.72 million from $112.72 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 85.95 percent. Operating margin for the quarter stood at negative 52.97 percent as compared to a positive 17.82 percent for the previous year period.

Operating loss for the quarter was $62.36 million, compared with an operating income of $20.08 million in the previous year period.

However, the adjusted operating income for the quarter stood at $42.57 million compared to $40.48 million in the prior year period. At the same time, adjusted operating margin improved 24 basis points in the quarter to 36.16 percent from 35.91 percent in the last year period.

Yogesh Gupta, chief executive officer at Progress, said: "I am pleased with our earnings per share and adjusted free cash flow performance during the quarter despite revenue falling short of our goals. Initiatives undertaken during the quarter to manage our expenses allowed us to reach this outcome. I am excited by the opportunities we have in front of us, and look forward to what we can accomplish in 2017 and beyond."

For fiscal year 2017,  Progress Software Corporation expects revenue to be in the range of $387 million to $395 million and expects adjusted revenue to be in the range of $388 million to $396 million. The company expects operating income to grow in the range of 14 percent to 15 percent and expects adjusted operating income to grow in the range of 32 percent to 33 percent. It projects diluted earnings per share to be in the range of $0.56 to $0.64 and projects diluted earnings per share to be in the range of $1.64 to $1.69 on adjusted basis.

For the first-quarter 2017, Progress Software Corporation expects revenue to be in the range of $86 million to $89 million and expects adjusted revenue to be in the range of $86 million to $89 million. The company forecasts diluted loss per share to be in the range of $0.12 to $0.06. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.25 to $0.27.

Cash and cash equivalents stood at $249.75 million as on Nov. 30, 2016, up 3.51 percent or $8.47 million from $241.28 million on Nov. 30, 2015.

Working capital increases

Progress Software Corporation has recorded an increase in the working capital over the last year. It stood at $132.32 million as at Nov. 30, 2016, up 7.14 percent or $8.82 million from $123.49 million on Nov. 30, 2015. Current ratio was at 1.65 as on Nov. 30, 2016, up from 1.62 on Nov. 30, 2015.

Days sales outstanding went down to 25 days for the quarter compared with 27 days for the same period last year.

At the same time, days payable outstanding went down to 164 days for the quarter from 195 for the same period last year.