Progress Software struggles to make headway

Firm to sell 10 products and lay off 10 per cent of staff.

US-based application development and middleware firm Progress Software is to sell off 10 "non-core" products, and make headcount reductions of up to 15 per cent after disappointing results.

The firm led a strategic review, conducted internally but also with the help of J.P. Morgan, that appears to have recommended a complete change of tack away from its "Responsive Process Management" vision.

CEO Jay Bhatt said the review took five months, and the conclusion was that the firm needs to keep its feet on the ground but get its head in the clouds. Specifically, it will continue to invest in as well as 'cloudify' what it now calls its core products - the OpenEdge, DataDirect Connect and Apama Analytics and Decisions products.

Pretty much everything else is getting the heave-ho by the middle of 2013 at the latest, and the list of things that are non-core makes surprising reading. The ten products for the chop are Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic – many of which were acquired for considerable sums over the years, for example Actional for $32m in 2006 and Savvion for $49m in January 2010.

Anyway, Bhatt said everything will be fine once the plan is executed. "Valuable analysis, market feedback and lessons learned from previous product strategies helped inform our view and we fully intend to evolve Progress into a leaner company that will help to lead the computing evolution from on-premise to the Cloud. The Board and I are confident that Progress has the right DNA, scale and experience to make this transformation successful for the benefit of all stakeholders."

Shareholders in particular will be feeling a little bruised by Progress' recent, er, progress (and yes, it did unfortunately trademark the term "Business Making Progress".) On the announcement of its rather poor first quarter (revenue down 7 per cent, operating and net income both down around 40 per cent) its stock fell 40 per cent in a day.

Perhaps realising that its shareholders' patience has already worn thin, the firm also announced a stock repurchase worth $350m which could help the shares regain a little ground.

Read more at http://bit.ly/Ju11Ev.

Jason Stamper is the editor of Computer Business Review.

Photograph: Getty Images

Jason Stamper is editor of Computer Business Review

Photo: Getty Images
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What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.