Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Progress Software (PRGS 7.93%) have plunged today by as much as 14% after its CEO is resigning and issued a warning on its revenue guidance.
So what: Jay Bhatt is stepping down as CEO in order to "pursue another leadership opportunity," effective in December, while the board has begun searching for a new CEO. Phil Pead has been appointed the executive chairman, effective immediately. The company continues to work through its strategic initiatives to reduce costs.
Now what: Shares had jumped after last quarter's earnings, but have given up all those gains and then some with today's announcement that Progress may see "some slippage in revenue growth" as a result of the CEO transition. At the time, it expected revenue growth this quarter between negative 2% and positive 1%, but the company is now pulling back on that guidance by "not reaffirming" its outlook. Some analysts think there's more going on within the company than Progress is letting on.
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