TIBCO Software Earnings: Exceeds Forecasts with Boost of Profit Rise

TIBCO Software, Inc. (NASDAQ:TIBX) reported net income above Wall Street’s expectations for the third quarter. TIBCO Software Inc. is a provider of infrastructure software. It provides a range of standards-based infrastructure software solutions that help organizations achieve the benefits of real-time business.

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TIBCO Software Earnings Cheat Sheet for the Third Quarter

Results: Net income for TIBCO Software, Inc. rose to $23.5 million (14 cents per share) vs. $17.4 million (10 cents per share) in the same quarter a year earlier. This marks a rise of 35.6% from the year earlier quarter.

Revenue: Rose 24.1% to $229 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TIBX reported adjusted net income of 23 cents per share. By that measure, the company beat the mean estimate of 16 cents per share. It beat the average revenue estimate of $219.9 million.

Quoting Management: “Once again, we delivered strong growth in revenue and profitability this quarter, as we continue to see broad-based demand for TIBCO’s event-driven platform. In Q3, total revenue grew 24%, license revenue grew 29%, and non-GAAP operating profits grew 28% over the same period a year ago,” said Vivek Ranadive, TIBCO’s chairman and CEO.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.9%, with the biggest boost coming in the second quarter when revenue rose 24.9% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 0.5 percentage point to 72.3% from the year earlier quarter. Over that time, margins have contracted on average 1.3 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 64.2% and in the first quarter, the figure rose 53%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the second quarter and by 2 cents in the first quarter.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Progress Software Corp. (NASDAQ:PRGS), CA, Inc. (NASDAQ:CA), Intl. Business Machines Corp. (NYSE:IBM), Pegasystems Inc. (NASDAQ:PEGA), MicroStrategy Incorporated (NASDAQ:MSTR), SAP AG (NYSE:SAP), Microsoft Corporation (NASDAQ:MSFT), Red Hat, Inc. (NYSE:RHT), and Sybase, Inc. (SY).

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(Source: Xignite Financials)