Higher Input Costs Weigh on Tibco Software’s Q1 Earnings (TIBX)
Tibco Software Inc. (NASDAQ: TIBX) reported late last evening that fiscal first quarter earnings slumped 54% as the bottom line was weighed by lower margin and big onetime charge. And although adjusted earnings were in-line with expectation, revenue fell short of Street’s estimate.
Shares plummeted 15.19% in aftermarket hours on Thursday.
For the fiscal first quarter which ended March 3, Tibco Software reported a net income of $9.5 million or 6 cents a share compared to a profit of $20.6 million or 12 cents a share, in the year-earlier quarter.
Stripping out onetime items such as stock based compensation, acquisition related charges and other expenses, adjusted or non-GAAP earnings stood at 18 cents a share down from 20 cents a share, in the same period of last year.
Revenue during the period increased 5.4% to $237.8 million.
Analysts’ consensus estimate was for earnings of 18 cents a share on revenue of $242 million, according to a data compiled by Thomson Reuters.
Gross margin shrank to 69% from 70.7% as input costs jumped 11% in the fiscal first quarter.
Revenue from licensing declined 4.9% to $78.3 million while from services and maintenance division, which accounts for most part of the company’s top line, it climbed 11% to $159.5 million.
In spite disappointing results, Chief Executive Vivek Ranadive sounded positive as he said to analysts in earnings call, “Our competitive differentiation remains strong, and we are well positioned to benefit from the current trends driving enterprise IT spending, such as ‘big data,’ especially with our event-driven platform approach to integrating and analyzing data in real-time.”
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Post Written By: Ed Liston
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.
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