Tibco falls as preliminary 2Q results disappoint

Shares of Tibco Software fell after the information technology company preannounced fiscal second-quarter income and revenue below analyst estimates.

Late Tuesday, Palo Alto, Calif.-based Tibco Software Inc. estimated adjusted income of 5 cents to 6 cents per share for the quarter ended June 1, with revenue of $147 million to $149 million. Analysts polled by Thomson Financial expects income of 8 cents per share on revenue of $154.1 million.

In a note to clients Wednesday, Deutsche Bank analyst Todd Raker reduced his price target to $7 from $7.75 and maintained a "Hold" rating. He also lowered his earnings estimates for fiscal 2008 and 2009.

"We have been cautious on Tibco given its significant exposure to the financial sector, large deal dependency and the possibility of deal slippage given macroeconomic environment," he wrote.

Shares of Tibco fell 60 cents, or 7.8 percent, to $7.12. The stock has traded in a 52-week range of $6.50 to $9.38.