TIBCO Trips Up: Fool by Numbers

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On June 28, middleware specialist TIBCO (Nasdaq: TIBX) released second-quarter earnings for the period ended June 3.

• The gross margin dip might be forgiven, considering the lumpy nature of a small company's revenue streams.
• Operating income suffered under increased spending on sales and marketing. OK, that's a legit way to grow the business, so I'll let that one slip as well.
• Net income was seriously hampered by a $6.5 million tax provision, compared to a $5.1 million tax benefit one year ago. That's an $11.6 million tax-related bottom-line hit, or almost half of the company's year-ago income.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$130.5	$121.2	7.6%
Net Profit	$9.2	$24.5	(62.3%)
EPS	$0.04	$0.11	(63.6%)
Diluted Shares	211.9	219.8	(3.6%)

Get back to basics with the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
Gross Margin	72.1%	73.5%	(1.4)
Operating Margin	8.4%	12.4%	(3.9)
Net Margin	7.1%	20.2%	(13.1)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$470.1	$495.3	(5.1%)
Accounts Rec.	$115.2	$119.8	(3.8%)

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$9.7	$9.8	(1.7%)
Long-Term Debt	$45.5	$47.4	(4.1%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q2 2007	Q2 2006	Change
Cash From Ops.	$10.6	$15.0	(29.2%)
Capital Expenditures	$4.0	$2.3	72.8%
Free Cash Flow	$6.6	$12.7	(47.8%)
Owner Earnings	$13.2	$29.6	(55.6%)

Free cash flow is a Fool's best friend.

Related Foolishness:

• Foolish Forecast: TIBCO Looks Tremendous
• How to Never Lose Money
• Foolish Fundamentals: Margins

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.