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

Tibco Software shared a barrage of news on Thursday, including a soft third-quarter prognosis as a top Hewlett-Packard executive joined Tibco's leadership team.

Jun 20, 2014 at 9:11AM
Tibx Logo

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

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.

Anders Bylund owns shares of Tibco Software. The Motley Fool recommends Tibco Software. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers