View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
28 May 2012updated 04 Oct 2023 12:02pm

Progress Software struggles to make headway

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

By Jason Stamper

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.”

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

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 https://bit.ly/Ju11Ev.

Jason Stamper is the editor of Computer Business Review.

Content from our partners
Individually rare, collectively common – how do we transform the lives of people with rare diseases?
Future proofing the NHS
Where do we get the money to fix the world's biggest problems? – with ONE

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU