Infotech Lead America: Progress Software CEO Jay Bhatt will step down soon.
He will pursue another leadership opportunity.
Bhatt will assist the Board in its search process to ensure a smooth transition.
Phil Pead, non-executive chairman of the Board of Directors, has been appointed executive chairman of the Board.
“The Board believes that Progress is on the right path and is committed to continuing to execute on the Company’s strategic plan to increase growth, profitability and shareholder value,” said Phil Pead, Executive Chairman of the Board of Directors.
Progress claims that it implemented cost reduction initiatives and substantially completed the reduction of budgeted 2012 expense run rate by approximately $55 million gross value, with the net reduction of $40 million after reinvesting $15 million back into the Core segment.
The company will also divest 10 non-core product lines as per schedule.
Due to CEO’s resignation, Progress may experience some slippage in revenue growth in the fiscal fourth quarter of 2012.
Progress and the Board remain committed to returning capital of at least $350 million to shareholders over time and the company is considering alternatives to complete this initiative by the end of 2013.
Progress noted that in light of recent events, however, it will be unable to complete its anticipated $150 million in share repurchases by the end of fiscal 2012.
Recently, Progress Software said it is set to sell Shadow, a middleware software, to Rocket Software. Rocket customers will benefit as it offer improvements in total cost of ownership and performance of integration projects that involve mainframe assets.