diff --git a/configure.ac b/configure.ac
index b042f7e2c28..62d5a0383f7 100644
--- a/configure.ac
+++ b/configure.ac
@@ -12,7 +12,7 @@
 #
 
 AC_PREREQ(2.2)
-AC_INIT([libxo], [1.3.0], [phil@juniper.net])
+AC_INIT([libxo], [1.3.1], [phil@juniper.net])
 AM_INIT_AUTOMAKE([-Wall -Werror foreign -Wno-portability])
 
 # Support silent build rules.  Requires at least automake-1.11.
diff --git a/libxo/libxo.c b/libxo/libxo.c
index 09d2bd827f9..14268d1b250 100644
--- a/libxo/libxo.c
+++ b/libxo/libxo.c
@@ -8104,12 +8104,14 @@ xo_parse_args (int argc, char **argv)
     cp = strrchr(xo_program, '/');
     if (cp)
 	xo_program = ++cp;
+    else
+	cp = argv[0];		/* Reset to front of string */
 
     /* GNU tools add an annoying ".test" as the program extension; remove it */
     size_t len = strlen(xo_program);
     static const char gnu_ext[] = ".test";
     if (len >= sizeof(gnu_ext)) {
-	cp = &cp[len + 1 - sizeof(gnu_ext)];
+	cp += len + 1 - sizeof(gnu_ext);
 	if (xo_streq(cp, gnu_ext))
 	    *cp = '\0';
     }
diff --git a/tests/core/test_01.c b/tests/core/test_01.c
index 35dc15df611..aeeb0c9ca67 100644
--- a/tests/core/test_01.c
+++ b/tests/core/test_01.c
@@ -50,6 +50,9 @@ main (int argc, char **argv)
 	{ "sold", "number", "Number of items sold" },
 	{ XO_INFO_NULL },
     };
+
+    char name[] = "test_01.test";  /* test trimming of xo_program */
+    argv[0] = name;
     
     argc = xo_parse_args(argc, argv);
     if (argc < 0)