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:
"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.