Tibco Q2 Earnings Down 67% (TIBX)

Tibco Software Inc. (NASDAQ: TIBX) said on Thursday that its fiscal second-quarter income fell 67% as lower margin, fall in licensing revenue and increase in operating cost, all weighed on the bottom line.

The Palo Alto California-based Company, which makes analysts and data management software, has more often than not posted double digit earnings growth in recent quarters, aided by fast expanding cloud computing business. Nevertheless, poor execution strategy in its core infrastructure business in some recent quarters has put pressure on the bottom line.

Commenting over this issue, Tibco Software’s Chief Executive, Vivek Ranadive said to analysts in a conference call, “Improving sales execution remains our top priority…While work remains to be done, we saw signs of improvement and a healthier base of activity this quarter.”

For the fiscal second quarter ended June 2, Tibco posted a net income of $8.7 million or 5 cents a share compared to a profit of $26.5 million or 16 cents a share, in the same quarter of last year.

After excluding onetime items such as stock based compensation, acquisition and restructuring related charges along with some other items, the Company earned 18 cents a share down from non-GAAP earnings of 26 cents a share, in the year-earlier quarter.

Revenue edged down 0.6% to $245.8 million. Revenue from licensing fell 11% to $82.3 million.

Earlier in March, the Company projected earnings to be in the range of 17 cents to 19 cents a share on revenue of $242 million to $252 million, which was lower than analysts’ consensus estimate, at that moment.

Analysts’ most recent forecast was for 18 cents a share on revenue of $247 million.

Gross margin narrowed to 69.9% from 72.2%, in the same quarter of last year. Operating expenses rose 7% as research and development expenses jumped 10% while sales, administration and marketing costs increased 8%.





Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.