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HomeCyberSecurityProgress Software continues to cooperate with SEC probe into MOVEit exploitation

Progress Software continues to cooperate with SEC probe into MOVEit exploitation

Progress Software is fully cooperating with investigations by the Securities and Exchange Commission and other entities in connection with its handling of the MOVEit vulnerabilities, CEO Yogesh Gupta said during the company’s fiscal first quarter conference call Tuesday. However the company is unable to quantify any potential impact from the inquiries

The company originally disclosed the SEC inquiry in October 2023, after thousands of companies and other organizations were impacted by mass exploitation activity. Gupta said the inquiries do not indicate anyone at the company violated any laws or that the agencies have a negative impression of the company. 

“We have received very positive feedback regarding our response to the situation and I believe that our customer-first approach to everything that we do has helped us navigate a difficult situation and minimize the impact to our business,” Gupta said on the call. 

The company reported revenue of $185 million for the quarter, which ended Feb. 29. For the full year of fiscal 2024, the company expects revenue of $722 million to $732 million, which is consistent with earlier guidance. 

The company disclosed about $987,000 in cyber incident and vulnerability response expenses for the quarter. The forecast calls for about $5.8 million in cyber incident and vulnerability response expenses for the fiscal year. 

Progress Software also may acquire MariaDB, a firm that provides open source relational database management software. The potential offer is for 60 cents a share, which is 9% more than the prior potential offer made by K1 Investment Management in February, according to Progress. The original K1 offer was valued at about $37 million, according to reports.

The company previously disclosed in its 10-K filing that the SEC, Federal Trade Commission, data privacy regulators in the U.S. and abroad and several attorneys general are investigating the MOVEit vulnerability and related attacks.

About 118 class action lawsuits were also disclosed in the 10-K filing. 

Though MOVEit only represents about 4% of the company’s total revenues,  Gupta emphasized that every MOVEit customer is important. 


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