(Source: MARKETWIRE)
TIBCO Software Inc. (NASDAQ: TIBX) today announced results for its
third fiscal quarter, which ended on August 30, 2009.
Total revenue for the third quarter of fiscal 2009 was $150.3 million
and GAAP net income was $14.9 million, or $0.09 per diluted share.
This compares to total revenue of $162.3 million and GAAP net income
of $11.1 million, or $0.06 per diluted share, as reported for the
third quarter of fiscal 2008.
On a non-GAAP basis, net income for the third quarter of fiscal 2009
was $22.1 million or $0.13 per diluted share, compared with $19.6
million or $0.11 per diluted share for the third quarter of fiscal
2008. Non-GAAP operating income for the third quarter of fiscal 2009
was $32.5 million, resulting in a non-GAAP operating margin of 22%.
This compares to non-GAAP operating income of $28.7 million, or a 18%
non-GAAP operating margin in the third quarter of fiscal 2008.
Non-GAAP results exclude stock-based compensation expense,
amortization of acquired intangible assets, and assume a non-GAAP
effective tax rate of 32% and 33% for the third quarters of fiscal
2009 and 2008, respectively.
"During Q3, we exceeded guidance targets for revenue and
profitability, we repurchased $50 million of stock, and we acquired
DataSynapse, a leader in the grid and cloud computing space," said
Vivek Ranadive, TIBCO's chairman and CEO. "Year to date, we have
demonstrated strong operating leverage in our model by delivering an
incremental $0.08 in non-GAAP EPS over the first three quarters of
2008. Looking forward, we are well-positioned to benefit from the
accelerating shift away from database-centric architectures designed
to handle transactions and towards bus-based architectures designed
to handle events."
Third Quarter Fiscal 2009 Highlights
-- Total revenue was $150.3 million;
-- License revenue was $57.3 million;
-- Continued strong mix of business across industries including Financial
Services, Telecommunications, Energy, Government, Manufacturing,
Transportation & Logistics, and Insurance;
-- TIBCO closed 85 deals over $100k and had 17 deals over $1 million;
-- TIBCO expanded its business with leading companies in Q3 such as
Activision Blizzard, Auchan, Bank of Nova Scotia, Bed Bath & Beyond,
Jefferies & Company, Inc., Las Vegas Sands, Microsoft, National
Semiconductor, and OXY.
Conference Call Details
TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT
today to discuss its third quarter results. The conference call will
be hosted by Thomson Reuters and may be accessed over the Internet at
www.tibco.com or via dial-in at (888) 329-8903 or (719) 457-2702.
Please join the conference call at least 10 minutes early to
register. A replay of the conference call will be available until
midnight on October 24, 2009 at www.tibco.com or via dial-in at (888)
203-1112 or (719) 457-0820. The pass code for both the call and the
replay is 6409040.
About TIBCO
TIBCO's technology digitized Wall Street in the '80s with
event-driven "Information Bus" software, which helped make real-time
business a strategic differentiator in the '90s. Today, TIBCO's
infrastructure software gives customers the ability to constantly
innovate by connecting applications and data in a service-oriented
architecture, streamlining activities through business process
management, and giving people the information and intelligence tools
they need to make faster and smarter decisions, what we call The
Power of Now(R). TIBCO serves more than 3,000 customers around the
world with offices in more than 20 countries and an ecosystem of over
200 partners. Learn more at www.tibco.com.
TIBCO, The Power of Now and TIBCO Software are trademarks or
registered trademarks of TIBCO Software Inc. in the United States
and/or other countries. All other product and company names and marks
mentioned in this document are the property of their respective
owners and are mentioned for identification purposes only.
About Non-GAAP Financial Information
This press release includes non-GAAP financial measures. For a
description of these non-GAAP financial measures, including the
reasons management uses each measure, and reconciliations of these
non-GAAP financial measures to the most directly comparable financial
measures prepared in accordance with Generally Accepted Accounting
Principles (GAAP), please see the section entitled "About Non-GAAP
Financial Measures" and the accompanying table entitled
"Reconciliation of GAAP to Non-GAAP Measures."
Legal Notice Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the federal securities laws. The
final financial results for the third quarter of fiscal year 2009 may
differ materially from the preliminary results presented in this
release due to factors that include, but are not limited to, risks
associated with the final review of the results and preparation of
financial statements. In addition, forward-looking statements such
as statements regarding our ability to benefit from the shift towards
bus-based architectures are subject to risks and uncertainties that
could cause actual results to differ materially from such
forward-looking statements. These risks include but are not limited
to: the current uncertainty in global economic conditions and its
effect on the demand for enterprise software and services; and
competitive factors, including but not limited to competition from
alternative business models, industry consolidation and new product
introductions. Additional information regarding potential risks is
provided in our filings with the SEC, including our most recent
Annual Report on Form 10-K for the year ended November 30, 2008 and
Quarterly Report on Form 10-Q for the quarter ended May 31, 2009.
TIBCO assumes no obligation to update the forward-looking statements
included in this
release.
TIBCO Software Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
August 30, November 30,
2009 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 285,103 $ 254,400
Short-term investments 1,771 13,073
Accounts receivable, net 100,099 133,191
Prepaid expenses and other current assets 46,758 49,994
----------- -----------
Total current assets 433,731 450,658
Property and equipment, net 97,168 103,531
Goodwill 371,312 343,942
Acquired intangible assets, net 89,440 80,437
Long-term deferred income tax assets 79,293 70,135
Other assets 41,518 39,865
----------- -----------
Total assets $ 1,112,462 $ 1,088,568
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,924 $ 15,030
Accrued liabilities 81,703 90,980
Accrued excess facilities costs 5,804 6,572
Deferred revenue 141,836 140,221
Current portion of long-term debt 2,118 2,033
----------- -----------
Total current liabilities 244,385 254,836
Accrued excess facilities costs, less current
portion 2,461 5,594
Long-term deferred revenue 14,964 12,007
Long-term deferred income tax liabilities 13,208 15,329
Long-term income tax liabilities 14,412 12,439
Long-term debt, less current portion 40,925 42,525
Other long-term liabilities 4,046 3,837
----------- -----------
Total long-term liabilities 90,016 91,731
----------- -----------
Total liabilities 334,401 346,567
----------- -----------
Minority interest 610 358
Total stockholders' equity 777,451 741,643
----------- -----------
Total liabilities and stockholders' equity $ 1,112,462 $ 1,088,568
=========== ===========
TIBCO Software Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except net income per share)
Three Months Ended Nine Months Ended
------------------------ ------------------------
August 30, August 31, August 30, August 31,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenue:
License $ 57,257 $ 67,542 $ 152,563 $ 182,991
Service and
maintenance 92,995 94,795 273,255 275,956
----------- ----------- ----------- -----------
Total revenue 150,252 162,337 425,818 458,947
----------- ----------- ----------- -----------
Cost of revenue:
License 6,050 7,193 20,353 21,957
Service and
maintenance 32,253 38,083 95,902 111,941
----------- ----------- ----------- -----------
Total cost of
revenue 38,303 45,276 116,255 133,898
----------- ----------- ----------- -----------
Gross profit 111,949 117,061 309,563 325,049
----------- ----------- ----------- -----------
Operating expenses:
Research and
development 26,449 28,496 77,843 80,706
Sales and marketing 50,657 55,683 144,228 166,525
General and
administrative 11,227 13,468 33,172 40,257
Amortization of
acquired intangible
assets 3,107 4,156 10,559 12,531
----------- ----------- ----------- -----------
Total operating
expenses 91,440 101,803 265,802 300,019
----------- ----------- ----------- -----------
Income from operations 20,509 15,258 43,761 25,030
Interest income 219 1,925 2,053 7,427
Interest expense (673) (810) (2,212) (2,528)
Other income
(expense), net 471 (319) 1,672 (287)
----------- ----------- ----------- -----------
Income before provision
for income taxes and
minority interest 20,526 16,054 45,274 29,642
Provision for income
taxes 5,629 4,917 14,579 9,391
Minority interest, net
of tax 31 24 126 131
----------- ----------- ----------- -----------
Net income $ 14,866 $ 11,113 $ 30,569 $ 20,120
=========== =========== =========== ===========
Net income per share:
Basic $ 0.09 $ 0.06 $ 0.18 $ 0.11
=========== =========== =========== ===========
Diluted $ 0.09 $ 0.06 $ 0.18 $ 0.11
=========== =========== =========== ===========
Shares used to compute
net income per share:
Basic 168,036 179,094 170,318 182,496
=========== =========== =========== ===========
Diluted 172,194 183,154 172,473 186,402
=========== =========== =========== ===========
TIBCO Software Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended
---------------------
August 30, August 31,
2009 2008
--------- ---------
Cash flows from operating activities:
Net income $ 30,569 $ 20,120
Adjustments to reconcile net income to
net cash provided by
operating activities:
Depreciation of property and
equipment 11,175 11,957
Amortization of acquired intangible
assets 20,567 24,319
Stock-based compensation 17,155 15,618
Deferred income tax (7,662) (20,484)
Tax benefits related to stock benefit
plans 11,995 13,050
Excess tax benefits from stock-based
compensation (7,960) (10,812)
Minority interest, net of tax 126 131
Other non-cash adjustments, net 1,125 583
Changes in assets and liabilities:
Accounts receivable 33,470 49,504
Prepaid expenses and other assets 3,553 12,277
Accounts payable (2,976) 2,071
Accrued liabilities and excess
facilities costs (21,076) (2,659)
Deferred revenue (4,774) (855)
--------- ---------
Net cash provided by operating
activities 85,287 114,820
--------- ---------
Cash flows from investing activities:
Purchases of short-term investments - (37,047)
Maturities and sales of short-term
investments 10,966 121,896
Acquisitions, net of cash acquired (26,811) -
Purchases of private equity investments - (29)
Proceeds from private equity
investments 117 347
Purchases of property and equipment (4,108) (6,464)
Restricted cash pledged as security (2,559) 53
--------- ---------
Net cash provided by (used in)
investing activities (22,395) 78,756
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock 15,219 10,295
Repurchases of the Company's common
stock (64,639) (110,687)
Excess tax benefits from stock-based
compensation 7,960 10,812
Principal payments on long-term debt (1,515) (1,434)
--------- ---------
Net cash used in financing
activities (42,975) (91,014)
--------- ---------
Effect of foreign exchange rate changes
on cash and cash equivalents 10,786 (2,645)
--------- ---------
Net change in cash and cash equivalents 30,703 99,917
Cash and cash equivalents at beginning of
period 254,400 170,237
--------- ---------
Cash and cash equivalents at end of
period $ 285,103 $ 270,154
========= =========
About Non-GAAP Financial Measures
TIBCO provides non-GAAP measures for operating income, net income and
net income per share data as supplemental information regarding
TIBCO's business performance. TIBCO believes that these non-GAAP
financial measures are useful to investors because they exclude
non-operating charges. TIBCO's management excludes these
non-operating charges when it internally evaluates the performance of
TIBCO's business and makes operating decisions, including internal
budgeting, performance measurement and the calculation of bonuses and
discretionary compensation, because these measures provide a
consistent method of comparison to historical periods. Moreover,
management believes these non-GAAP measures reflect the essential
revenue generation activities of TIBCO. Accordingly, management
excludes stock-based compensation related to employee stock options,
amortization of acquired intangible assets, charges for acquired
in-process research and development, costs related to formal
restructuring activities, gains and losses on equity investments, and
the income tax effects of the foregoing, as well as adjustments for
the impact of changes in the valuation allowance recorded against
TIBCO's deferred tax assets when making operational decisions.
TIBCO believes that providing the non-GAAP measures that management
uses to its investors is useful to investors for a number of reasons.
The non-GAAP measures provide a consistent basis for investors to
understand TIBCO's financial performance on a trended basis across
historical periods. In addition, it allows investors to evaluate
TIBCO's performance using the same methodology and information as
that used by TIBCO's management.
Non-GAAP measures are subject to material limitations as these
measures are not in accordance with, or a substitute for, GAAP and
thus TIBCO's definition may be different from similar non-GAAP
measures used by other companies and/or analysts. However, TIBCO's
management compensates for these limitations by providing the
relevant disclosure of the items excluded in the calculation of
non-GAAP operating income, non-GAAP net income and non-GAAP net
income per share. In addition, some items such as restructuring
charges that are excluded from non-GAAP net income and non-GAAP
earnings per share can have a material impact on cash flows and stock
compensation charges can have a significant impact on earnings.
Management compensates for these limitations by evaluating the
non-GAAP measure together with the most directly comparable GAAP
measure. TIBCO has historically provided non-GAAP measures to the
investment community as a supplement to its GAAP results, to enable
investors to evaluate TIBCO's business performance in the way that
management does.
The non-GAAP adjustments, and the basis for excluding them, are
outlined below:
Stock-based Compensation
TIBCO incurs stock-based compensation expense under SFAS 123(R).
TIBCO excludes this item for the purposes of calculating non-GAAP
operating income, non-GAAP net income and non-GAAP net income per
share because it is a non-cash expense that TIBCO believes is not
reflective of its business performance. The nature of the stock-based
compensation expense also makes it very difficult to estimate
prospectively, since the expense will vary with changes in the stock
price and market conditions at the time of new grants, varying
valuation methodologies, subjective assumptions and different award
types, making the comparison of current results with forward-looking
guidance potentially difficult for investors to interpret. The tax
effects of stock-based compensation expenses may also vary
significantly from period to period, without any change in underlying
operational performance, thereby obscuring the underlying
profitability of operations relative to prior periods. Finally, TIBCO
believes that non-GAAP measures of profitability that exclude
stock-based compensation are widely used by analysts and investors in
the software industry.
Amortization of Acquired Intangible Assets
TIBCO has incurred amortization of intangible assets, included in its
GAAP financial statements, related to various acquisitions TIBCO has
made. Management excludes these items, for the purposes of
calculating non-GAAP operating income, non-GAAP net income and
non-GAAP net income per share. TIBCO believes that eliminating this
expense from its non-GAAP measures is useful to investors, because
the amortization of intangible assets can be inconsistent in amount
and frequency and is significantly impacted by the timing and
magnitude of TIBCO's acquisition transactions, which also vary
substantially in frequency from period to period.
TIBCO Software Inc.
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in thousands, except net income per share)
Three Months Ended
---------------------------------------
August 30, 2009 August 31, 2008
------------------- -------------------
Operating Net Operating Net
Income Income Income Income
--------- --------- --------- ---------
GAAP $ 20,509 $ 14,866 $ 15,258 $ 11,113
Amortization of intangible assets
- cost of revenue 2,873 2,873 3,989 3,989
Amortization of intangible assets
- operating expense 3,107 3,107 4,156 4,156
Stock-based compensation - cost of
revenue 658 658 645 645
Stock-based compensation - R&D
expense 1,486 1,486 1,181 1,181
Stock-based compensation - S&M
expense 1,906 1,906 1,682 1,682
Stock-based compensation - G&A
expense 1,925 1,925 1,749 1,749
Realized gain on sales of private
equity investment - - - (125)
Income tax adjustment for
non-GAAP (1) - (4,765) - (4,762)
--------- -------- --------- --------
Non-GAAP $ 32,464 $ 22,056 $ 28,660 $ 19,628
========= ======== ========= ========
Diluted net income per share:
GAAP $ 0.09 $ 0.06
======== ========
Non-GAAP $ 0.13 $ 0.11
======== ========
Shares used to compute diluted net
income per share 172,194 183,154
======== ========
Nine Months Ended
---------------------------------------
August 30, 2009 August 31, 2008
------------------- -------------------
Operating Net Operating Net
Income Income Income Income
--------- --------- --------- ---------
GAAP $ 43,761 $ 30,569 $ 25,030 $ 20,120
Amortization of intangible assets
- cost of revenue 10,008 10,008 11,788 11,788
Amortization of intangible assets
- operating expense 10,559 10,559 12,531 12,531
Stock-based compensation - cost of
revenue 1,900 1,900 1,972 1,972
Stock-based compensation - R&D
expense 4,140 4,140 3,456 3,456
Stock-based compensation - S&M
expense 5,318 5,318 5,089 5,089
Stock-based compensation - G&A
expense 5,797 5,797 5,101 5,101
Realized gain on sales of private
equity investment - - - (125)
Income tax adjustment for
non-GAAP (1) - (11,980) - (13,529)
--------- -------- --------- --------
Non-GAAP $ 81,483 $ 56,311 $ 64,967 $ 46,403
========= ======== ========= ========
Diluted net income per share:
GAAP $ 0.18 $ 0.11
======== ========
Non-GAAP $ 0.33 $ 0.25
======== ========
Shares used to compute diluted net
income per share 172,473 186,402
======== ========
(1) The estimated non-GAAP effective tax rate was 32% and 33% for fiscal
2009 and 2008, respectively, and has been used to adjust the
provision for income taxes for non-GAAP purposes.
Media Relations Contact:
Holly Burkhart
TIBCO Software Inc.
(650) 846-5624
hburkhart@tibco.com
Investor Relations Contact:
Matthew Langdon
TIBCO Software Inc.
(650) 846-5747
mlangdon@tibco.com
SOURCE: TIBCO Software Inc.
A service of YellowBrix, Inc.
