Science & Technology
Science and Technology
Science and Technology
Mon, March 30, 2009
Sun, March 29, 2009
Fri, March 27, 2009
Thu, March 26, 2009 TIBCO Software Inc.: TIBCO Software Reports Q1 Results
PALO ALTO, CA--(Marketwire - March 26, 2009) - TIBCO Software Inc. (
Total revenue for the first quarter of fiscal 2009 was $132.9 million and net income was $5.6 million, or $0.03 per diluted share. This compares to total revenue of $146.6 million and net income of $5.5 million, or $0.03 per diluted share, as reported for the first quarter of fiscal 2008.
On a non-GAAP basis, net income for the first quarter of fiscal 2009 was $15.2 million or $0.09 per diluted share, compared with $14.1 million or $0.07 per diluted share for the first quarter of fiscal 2008. Non-GAAP operating income for the first quarter of fiscal 2009 was $21.9 million, resulting in non-GAAP operating margins of 16%. This compares to non-GAAP operating income of $18.9 million, or 13% non-GAAP operating margins in the first 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 34% for the first quarters of fiscal 2009 and 2008, respectively.
"Despite macroeconomic headwinds and typical Q1 seasonality, we delivered strong operating profits and EPS this quarter," said Vivek Ranadivé, TIBCO's chairman and chief executive officer. "We continue to see opportunity ahead as companies look increasingly towards infrastructure software to drive greater IT efficiency, but we are also managing our business carefully so as to protect margins and returns to shareholders. Our world-class products, strong market position and disciplined operations will position us well for growth as the environment improves."
First Quarter Fiscal 2009 Highlights
-- Total revenue was $132.9 million; -- License revenue was $44.8 million; -- Strong mix of business across major industries including Financial Services, Telecommunications, Government, Transportation & Logistics, and Energy; -- TIBCO closed 66 deals over $100k and had 11 deals over $1 million; -- TIBCO expanded its business with leading companies in Q1 such as Abu Dhabi Commercial Bank, Guitar Center, HT - Hrvatske Telekomunikacije, The Nielsen Company, State Compensation Insurance Fund of California, UBS, United Airlines, and Wyndham Hotels and Resorts.
Conference Call Details
TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT today to discuss its first quarter results. The conference call will be hosted by Thomson Financial and may be accessed over the Internet at [ www.tibco.com ] or via dial-in at (888) 397-5352 or (719) 325-2159. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until midnight on April 26, 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 2014411.
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®. 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 first 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 future demand for infrastructure software, our ability to manage our business to protect margins in the future and our ability to grow the business when the economic environment improves 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. TIBCO assumes no obligation to update the forward-looking statements included in this release.
TIBCO Software Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) March 1, November 30, ------------- ------------- 2009 2008 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 285,723 $ 254,400 Short-term investments 7,626 13,073 Accounts receivable, net 106,486 133,191 Prepaid expenses and other current assets 47,948 49,994 ------------- ------------- Total current assets 447,783 450,658 Property and equipment, net 100,796 103,531 Goodwill 327,447 343,942 Acquired intangible assets, net 68,744 80,437 Long-term deferred income tax assets 70,335 70,135 Other assets 41,245 39,865 ------------- ------------- Total assets $ 1,056,350 $ 1,088,568 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 14,387 $ 15,030 Accrued liabilities 66,689 90,980 Accrued excess facilities costs 6,466 6,572 Deferred revenue 147,047 140,221 Current portion of long-term debt 2,061 2,033 ------------- ------------- Total current liabilities 236,650 254,836 Accrued excess facilities costs, less current portion 4,246 5,594 Long-term deferred revenue 10,832 12,007 Long-term deferred income tax liabilities 8,314 15,329 Long-term income tax liabilities 12,202 12,439 Long-term debt, less current portion 41,999 42,525 Other long-term liabilities 4,018 3,837 ------------- ------------- Total long-term liabilities 81,611 91,731 ------------- ------------- Total liabilities 318,261 346,567 ------------- ------------- Minority interest 333 358 Total stockholders' equity 737,756 741,643 ------------- ------------- Total liabilities and stockholders' equity $ 1,056,350 $ 1,088,568 ============= ============= TIBCO Software Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except net income per share) Three Months Ended --------------------------- March 1, March 2, 2009 2008 ------------ ------------ Revenue: License $ 44,849 $ 57,753 Service and maintenance 88,047 88,825 ------------ ------------ Total revenue 132,896 146,578 ------------ ------------ Cost of revenue: License 6,810 7,280 Service and maintenance 31,245 35,770 ------------ ------------ Total cost of revenue 38,055 43,050 ------------ ------------ Gross profit 94,841 103,528 ------------ ------------ Operating expenses: Research and development 25,134 25,454 Sales and marketing 46,126 54,388 General and administrative 10,628 13,798 Amortization of acquired intangible assets 3,716 4,140 ------------ ------------ Total operating expenses 85,604 97,780 ------------ ------------ Income from operations 9,237 5,748 Interest income 1,077 3,258 Interest expense (746) (842) Other income, net 159 238 ------------ ------------ Income before provision for income taxes and minority interest 9,727 8,402 Provision for income taxes 4,122 2,833 Minority interest, net of tax (21) 55 ------------ ------------ Net income $ 5,626 $ 5,514 ============ ============ Net income per share: Basic $ 0.03 $ 0.03 ============ ============ Diluted $ 0.03 $ 0.03 ============ ============ Shares used to compute net income per share: Basic 171,284 186,315 ============ ============ Diluted 172,092 190,064 ============ ============ TIBCO Software Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended --------------------------- March 1, March 2, 2009 2008 ------------ ------------ Cash flows from operating activities: Net income $ 5,626 $ 5,514 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 3,820 4,015 Amortization of acquired intangible assets 7,279 7,957 Stock-based compensation 5,361 5,150 Deferred income tax (2,397) (5,368) Tax benefits related to stock benefit plans 2,711 3,887 Excess tax benefits from stock-based compensation (2,318) (3,801) Minority interest, net of tax (21) 55 Other non-cash adjustments, net 493 67 Changes in assets and liabilities: Accounts receivable 24,710 47,491 Prepaid expenses and other assets 2,928 1,096 Accounts payable (598) (3,778) Accrued liabilities and excess facilities costs (23,931) (9,776) Deferred revenue 5,650 7,666 ------------ ------------ Net cash provided by operating activities 29,313 60,175 ------------ ------------ Cash flows from investing activities: Purchases of short-term investments - (34,999) Maturities and sales of short-term investments 5,174 48,264 Acquisitions, net of cash acquired (163) - Purchases of private equity investments - (9) Proceeds from private equity investments - 222 Purchases of property and equipment (1,318) (2,256) Restricted cash pledged as security (2,315) (124) ------------ ------------ Net cash provided by investing activities 1,378 11,098 ------------ ------------ Cash flows from financing activities: Proceeds from issuance of common stock 2,127 3,464 Repurchases of the Company's common stock - (45,271) Excess tax benefits from stock-based compensation 2,318 3,801 Principal payments on long-term debt (498) (471) ------------ ------------ Net cash provided by (used in) financing activities 3,947 (38,477) ------------ ------------ Effect of foreign exchange rate changes on cash and cash equivalents (3,315) 209 ------------ ------------ Net change in cash and cash equivalents 31,323 33,005 Cash and cash equivalents at beginning of period 254,400 170,237 ------------ ------------ Cash and cash equivalents at end of period $ 285,723 $ 203,242 ============ ============
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 (including prior periods following the adoption of SFAS 123(R)). The exclusion of stock-based compensation from the non-GAAP measures also allows a consistent comparison of TIBCO's relative historical financial performance, since the method for accounting for stock-based compensation changed at the beginning of fiscal 2006 when TIBCO adopted SFAS 123(R). 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 --------------------------------------- March 1, 2009 March 2, 2008 ------------------- ------------------- Operating Net Operating Net Income Income Income Income --------- -------- --------- -------- GAAP $ 9,237 $ 5,626 $ 5,748 $ 5,514 Amortization of intangible assets - cost of revenue 3,563 3,563 3,817 3,817 Amortization of intangible assets - operating expense 3,716 3,716 4,140 4,140 Stock-based compensation - cost of revenue 610 610 595 595 Stock-based compensation - R&D expense 1,123 1,123 1,019 1,019 Stock-based compensation - S&M expense 1,706 1,706 1,730 1,730 Stock-based compensation - G&A expense 1,923 1,923 1,806 1,806 Income tax adjustment for non-GAAP (1) - (3,036) - (4,480) --------- -------- --------- -------- Non-GAAP $ 21,878 $ 15,231 $ 18,855 $ 14,141 ========= ======== ========= ======== Diluted net income per share: GAAP $ 0.03 $ 0.03 ======== ======== Non-GAAP $ 0.09 $ 0.07 ======== ======== Shares used to compute diluted net income per share 172,092 190,064 ======== ======== (1) The estimated non-GAAP effective tax rate was 32% and 34% for the first quarter of fiscal 2009 and 2008, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.
