Business process management software company Pegasystems, Inc. (PEGA, Financial) reported mixed financial results. Coupled with broad multiple contraction across the software sector, its shares fell. Pegasystems' revenue was modestly short of investor expectations due to a customer shift from perpetual to term licenses. Although this negatively impacts near-term results, we believe it is accretive to long-term value. (Neal Rosenberg)
From Baron Funds' first quarter 2014 letter to investors.
