-- 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.
Contact Information: Media Relations Contact: Phillip Tree TIBCO Software Inc. (650) 846-8529 Investor Relations Contact: Matthew Langdon TIBCO Software Inc. (650) 846-5747