Tibco Software Inc Shares Fall After Company Reports Final Q2 Results, Hires a President, Issues Soft Guidance

Source: Tibco.

Tibco Software (NASDAQ: TIBX  ) reported final results for the second quarter of 2014 last evening, following an early June rundown of preliminary sales and estimated earnings. In the June rundown, Tibco pinned second-quarter sales at roughly $251 million, resulting in approximately $0.12 to $0.13 of non-GAAP earnings per diluted share. In Thursday's update, total revenue increased 3% year-over-year to land at $252 million. Adjusted earnings were $0.14 per diluted share, down from $0.18 per share in the year-ago period.

Software sales fell 4% year-over-year to $82.3 million while service and maintenance revenue of $170 million was a 6% annual increase. In a conference call with analysts, CFO Murray Rode explained that sales of the Spotfire analytics suite were lower than expected, particularly in Europe.

In a prepared statement, Tibco CEO Vivek Ranadive expressed disappointment with second-quarter results.

"Although we achieved record second quarter revenue, our results fell short of our expectations," Ranadive said. "We are aggressively focusing on making strategic, operational and organizational changes to address our execution challenges and position TIBCO for sustained growth."

Ranadive also explained the growth opportunities he sees in front of Tibco:

Todd Bradley, president of Tibco Systems. Source: HP.

"We see a large and growing opportunity ahead of us in big data, where our technologies can integrate both static and real-time data sources to enable fast data solutions," he said. "These are systems that companies use to create more responsive and customized digital experiences for their customers, fostering greater loyalty and unlocking new avenues for revenue generation."

On this basis, Tibco expects to deliver non-GAAP earnings near $0.17 per share on roughly $273 million in third-quarter sales. Analysts are looking for $0.24 per share and $278 million.

In other news, Tibco appointed Hewlett-Packard (NYSE: HPQ  ) PC and printing VP Todd Bradley as president, reporting to Ranadive. Furthermore, industry veteran Phil Fernandez was added to Tibco's board of directors, increasing the board size from 6 to 7. Fernandez is the co-founder, chairman, and chief executive officer of Marketo.

Tibco shares traded down 1.5% in early Friday pre-market action.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3001710, ~/Articles/ArticleHandler.aspx, 10/23/2014 6:37:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement