Progress Software Corporation

  • Overview

Progress Software can help you make significant headway when managing and deploying business applications. The company's software is used for tasks such as business process management, application integration, data management and analysis, and application development and deployment. Progress' products encompass desktops, servers, mainframes, and data centers, and can be implemented in a variety of computing environments such as Linux, Unix, and Windows. Progress serves about 140,000 organizations in more than 180 countries, with clients coming from industries such as financial services, health care, manufacturing, and technology.

Geographic Reach

Progress Software operates by region in the Americas, EMEA (Europe, Middle East, and Africa), and Asia/Pacific. North America generates about half of the company's total revenue.


Progress Software reorganized into three business segments in fiscal 2010: Application Development Platforms, Enterprise Business Solutions, and Enterprise Data Solutions. The Application Development Platforms segment includes the Progress OpenEdge product suite, which the company is heavily dependent on as far as revenue. The OpenEdge suite allows independent software vendors (ISVs) to develop, deploy, and manage business applications in complex environments. The Enterprise Business Solutions segment provides products that enable business process management, transaction management, real-time visibility, and event processing. Finally, the Enterprise Data Solutions segment focuses on products that provide data management, data integration, replication, caching, access, and security across multiple data sources.

Sales & Marketing

The company generates revenue by selling software licenses (35% of sales in fiscal 2011) and maintenance and services (65% of sales). It markets these offerings globally through two main channels: direct to end users and indirect to ISVs, OEMs, and system integrators. Direct sales customers usually are business managers or IT managers in corporations and government agencies. It also markets through indirect channels, such as application partners and OEMs that embed Progress products into their own. International distributors are used in certain markets where the company does not have a direct presence. About half of its sales come from indirect channels.

Financial Analysis

Year-over-year total revenue rose only 1% in fiscal 2011, driven by increased revenue in the Enterprise Business Solutions segment and partially offset by declines in the Application Development Platforms and Enterprise Data Solutions segments. By segment, revenue for Enterprise Business Solutions rose 12% thanks mainly to strong demand for Apama, Savvion, and FuseSource products, while revenue for Enterprise Data Solutions was down 6% and Application Development Platforms -- the company's largest segment -- fell 2%. By geography, revenue generated in North America increased 3% in FY2011 over 2010, while revenue generated in markets outside North America decreased 1% in the same period. After faltering in FY2009, Progress Software's earnings have been increasing at a steady clip over the last three fiscal years.


Since introducing the Progress RPM (responsive process management) product suite in 2010, which enables businesses to gain visibility into critical processes and respond to events, the suite has been seeing promising sales growth. Accordingly, Progress Software is continuing to invest heavily in RPM (essentially an integration of products within its Enterprise Business Solutions segment). The company hopes the RPM suite will enhance its competitiveness and better diversify its revenue stream so that it is less dependent on software license and maintenance revenue derived from OpenEdge.

Progress Software's other main area of investment is in sales and marketing. In anticipation of a continued increase in license arrangements, it it hiring additional sales and services personnel, mainly to provide services, training, and maintenance for the RPM suite.

To concentrate on its core operations, Progress has been selling non-core assets. In late 2012 it agreed to divest its Sonic, Savvion, Actional, and DataXtend product lines, as well as its Orbix, Artix, and Orbacus offerings.

Mergers & Acquisitions

Progress has expanded its product lines through a series of acquisitions, including the 2011 purchase of California-based Corticon Technologies for $23 million. Corticon is a provider of business rules management systems and was integrated into the Enterprise Business Solutions segment.

Past deals included the 2010 purchase of business process management software provider Savvion for about $49.2 million. The purchase added business process management capabilities to Progress' product lines and it expanded its customer base. Progress also purchased enterprise application integration specialist IONA Technologies for about $150 million (which added the Sonic product line to Progress' offerings). Smaller deals included the acquisition of Xcalia and Mindreef.

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Progress Software Corporation

14 Oak Park Dr
Bedford, MA 01730-1485
Phone: 1 (781) 280-4000
Fax: 1 (781) 2804095


  • Employer Type: Public
  • Stock Symbol: PRGS,
  • Stock Exchange: , NASDAQ
  • President and CEO: Philip Pead
  • President and CEO: Philip Pead
  • Senior Vice President, Finance & Administration, Chief Financial Officer: Chris Perkins

Major Office Locations

  • Bedford, MA

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