Progress Software Corp (NASDAQ: PRGS) stock surged 16.66% on March 29^th, 2019 and holding tight even on April 1^st, 2019 session rising over 0.8% (as of 10:31 AM EDT; Source: Google finance). The company posted better than expected results for the first quarter of FY 19. The company hiked its fiscal 2019 outlook to reflect its announced $225 million acquisition of network management company Ipswitch Inc. Cash, cash equivalents and short-term investments were $133.5 million at the end of the quarter. The company has reported fiscal first-quarter net income of $9.4 million compared with $13.7 million in the year-ago period.

PRGS in the first quarter of FY 19 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 47 cents, according to analysts surveyed by FactSet. The company had reported 6 percent fall in the adjusted revenue to $89.5 million in the first quarter of FY 19, beating the analysts’ estimates for revenue of $87.6 million. DSO was 56 days compared to 51 days in the fiscal first quarter of 2018 and 47 days in the fiscal fourth quarter of 2018

For the FY19, Progress expects adjusted earnings of $2.46 to $2.52 a share on adjusted revenue of $422 million to $428 million, while analysts had forecast earnings of $2.37 a share on revenue of $383.4 million.

As per the $250 million share authorization by the Board of Directors, Progress had repurchased 688,000 shares for $25.0 million during the fiscal first quarter of 2019. As of February 28, 2019, there was $75.0 million remaining to repurchase under this authorization. The company has declared a quarterly dividend of $0.155 per share of common stock that will be paid on June 17, 2019 to shareholders of record as of the close of business on June 3, 2019.

Meanwhile, PRGS has entered into a definitive agreement to acquire privately held Ipswitch, Inc., a leading producer of award-winning and easy-to-use secure data file transfer and network management software, for $225 million in cash. Progress will fund the transaction with existing cash on hand and funds secured under a new credit facility. The transaction is expected to be immediately accretive to both non-GAAP earnings per share and cash flow. The acquisition will bolster Progress’ core offerings to small and medium-sized businesses (SMBs) and enterprises, enabling those businesses to respond faster to business demands and to improve productivity. The acquisition is expected to close in late April, subject to obtaining regulatory consents and satisfaction of other customary closing conditions.