-- Record quarterly total revenue of $195.6 million;
-- License revenue was $94.7 million;
-- Non-GAAP operating margin was 30%;
-- Repurchased 4.3 million shares;
-- Strong mix of business across major industries including Financial
Services, Telecommunications, Government, Energy, and Life Sciences;
-- TIBCO closed 127 deals over $100k and had 19 deals over $1 million; and
-- TIBCO expanded its business with leading companies and agencies in the
fourth quarter such as Barclays, Direct Energy, Home Depot, Grupo
Santander, Monex, Segretaria da Fazenda of Saõ Paulo, and U.S. Citizenship
and Immigration Services.
Full Year Fiscal 2009 Highlights
-- Total revenue of $621.4 million;
-- Non-GAAP operating margin was 22.5%, up 400 basis points from fiscal
2008;
-- Record non-GAAP EPS of $0.55, vs. $0.47 for fiscal 2008;
-- Cash flow from operations of $115.4 million; and
-- Repurchased 12.9 million shares.
Conference Call Details
TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT today to
discuss its fourth 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) 213-3752 or (913) 312-0947. Please join the conference
call at least 10 minutes early to register. A replay of the conference call
will be available until midnight on January 22, 2010 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 4047790.
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 fourth 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 the
extension of our innovation advantage as the leading pure-play provider of
event-driven infrastructure 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: our ability to
adapt to new technologies and evolving industry trends; 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 TIBCO's filings with
the SEC, including its 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 August 30, 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)
November 30,
-----------------------
2009 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 292,529 $ 254,400
Short-term investments 307 13,073
Accounts receivable, net 154,744 133,191
Prepaid expenses and other current assets 52,657 49,994
----------- -----------
Total current assets 500,237 450,658
Property and equipment, net 94,631 103,531
Goodwill 374,285 343,942
Acquired intangible assets, net 83,060 80,437
Long-term deferred income tax assets 70,057 70,135
Other assets 44,069 39,865
----------- -----------
Total assets $ 1,166,339 $ 1,088,568
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,350 $ 15,030
Accrued liabilities 96,595 90,980
Accrued excess facilities costs 5,848 6,572
Deferred revenue 159,241 140,221
Current portion of long-term debt 2,148 2,033
----------- -----------
Total current liabilities 282,182 254,836
Accrued excess facilities costs, less current
portion 1,083 5,594
Long-term deferred revenue 15,353 12,007
Long-term deferred income tax liabilities 9,257 15,329
Long-term income tax liabilities 17,045 12,439
Long-term debt, less current portion 40,377 42,525
Other long-term liabilities 3,561 3,837
----------- -----------
Total long-term liabilities 86,676 91,731
----------- -----------
Total liabilities 368,858 346,567
----------- -----------
Minority interest 732 358
Total stockholders' equity 796,749 741,643
----------- -----------
Total liabilities and stockholders' equity $ 1,166,339 $ 1,088,568
=========== ===========
TIBCO Software Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except net income per share)
Three Months Ended Year Ended
November 30, November 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenue:
License $ 94,674 $ 90,424 $ 247,237 $ 273,415
Service and maintenance 100,896 95,100 374,151 371,056
--------- --------- --------- ---------
Total revenue 195,570 185,524 621,388 644,471
--------- --------- --------- ---------
Cost of revenue:
License 7,899 8,319 28,252 30,276
Service and maintenance 34,898 35,681 130,800 147,622
--------- --------- --------- ---------
Total cost of revenue 42,797 44,000 159,052 177,898
--------- --------- --------- ---------
Gross profit 152,773 141,524 462,336 466,573
--------- --------- --------- ---------
Operating expenses:
Research and development 30,848 25,888 108,691 106,594
Sales and marketing 59,984 58,116 204,212 224,641
General and administrative 13,494 12,789 46,666 53,046
Amortization of acquired
intangible assets 3,606 4,026 14,165 16,557
--------- --------- --------- ---------
Total operating expenses 107,932 100,819 373,734 400,838
--------- --------- --------- ---------
Income from operations 44,841 40,705 88,602 65,735
Interest income 212 1,688 2,265 9,115
Interest expense (756) (710) (2,968) (3,238)
Other income (expense), net 46 (495) 1,718 (782)
--------- --------- --------- ---------
Income before provision for
income taxes and
minority interest 44,343 41,188 89,617 70,830
Provision for income taxes 12,518 8,923 27,097 18,314
Minority interest, net of tax 92 (26) 218 105
Net income $ 31,733 $ 32,291 $ 62,302 $ 52,411
========= ========= ========= =========
Net income per share:
Basic $ 0.19 $ 0.18 $ 0.37 $ 0.29
========= ========= ========= =========
Diluted $ 0.18 $ 0.18 $ 0.36 $ 0.29
========= ========= ========= =========
Shares used to compute net
income per share:
Basic 164,925 174,612 168,970 180,525
========= ========= ========= =========
Diluted 171,886 175,758 172,328 183,742
========= ========= ========= =========
TIBCO Software Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Year Ended November 30,
----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net income $ 62,302 $ 52,411
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation of property and equipment 15,107 15,814
Amortization of acquired intangible assets 27,628 32,302
Stock-based compensation 23,546 20,972
Deferred income tax (12,630) (26,194)
Tax benefits related to stock benefit plans 21,573 27,025
Excess tax benefits from stock-based
compensation (17,016) (24,713)
Minority interest, net of tax 218 105
Other non-cash adjustments, net 1,207 991
Changes in assets and liabilities:
Accounts receivable (20,896) 20,683
Prepaid expenses and other assets 7,465 9,060
Accounts payable 2,300 3,531
Accrued liabilities and excess facilities
costs (7,735) 12,528
Deferred revenue 12,328 7,977
---------- ----------
Net cash provided by operating activities 115,397 152,492
---------- ----------
Cash flows from investing activities:
Purchases of short-term investments - (37,047)
Maturities and sales of short-term investments 12,448 124,032
Acquisitions, net of cash acquired (27,340) (20,098)
Purchases of private equity investments - (38)
Proceeds from private equity investments 117 347
Purchases of property and equipment (5,388) (8,937)
Restricted cash pledged as security (2,571) 652
---------- ----------
Net cash provided by (used in) investing
activities (22,734) 58,911
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of common stock 26,120 10,630
Repurchases of the Company's common stock (106,447) (148,989)
Excess tax benefits from stock-based
compensation 17,016 24,713
Principal payments on long-term debt (2,033) (1,924)
Payment of issuance costs on line of credit (2,317) -
---------- ----------
Net cash used in financing activities (67,661) (115,570)
---------- ----------
Effect of foreign exchange rate changes on cash
and cash equivalents 13,127 (11,670)
---------- ----------
Net change in cash and cash equivalents 38,129 84,163
Cash and cash equivalents at beginning of period 254,400 170,237
---------- ----------
Cash and cash equivalents at end of period $ 292,529 $ 254,400
========== ==========
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.
Equity Investment Activities
TIBCO records gains or losses on its equity investments based on its
pro-rata share of gains or the net losses of
the investment. These gains or net losses are included in TIBCO's GAAP
presentation of operating income, net
income and net income per share. TIBCO's business is not to invest in third
parties, and such investments do not
constitute a material portion of TIBCO's assets. The timing and magnitude
of gains and losses are unpredictable,
as they are inherently based on the performance of the third party subject
to a particular investment. TIBCO
excludes these items, for the purposes of calculating non-GAAP operating
income, non-GAAP net income and
non-GAAP net income per share, when it evaluates the continuing business
performance of TIBCO. TIBCO
believes that these items do not necessarily reflect expected future
operating expense or income, nor does
TIBCO believe that they provide a meaningful evaluation of current versus
past business results or the expense
levels required to support TIBCO's operating plan.
TIBCO Software Inc.
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in thousands, except net income per share)
Three Months Ended November 30,
----------------------------------
2009 2008
---------------- ----------------
Operating Net Operating Net
Income Income Income Income
-------- ------- -------- -------
GAAP $ 44,841 $31,733 $ 40,705 $32,291
Amortization of
intangible assets
- cost of revenue 3,455 3,455 3,957 3,957
Amortization of
intangible assets
- operating
expense 3,606 3,606 4,026 4,026
Stock-based
compensation -
cost of revenue 626 626 640 640
Stock-based
compensation - R&D
expense 1,457 1,457 1,128 1,128
Stock-based
compensation - S&M
expense 2,122 2,122 1,874 1,874
Stock-based
compensation - G&A
expense 2,186 2,186 1,712 1,712
Realized gain on
sales of private
equity investment - - - -
Income tax
adjustment for
non-GAAP (1) - (5,976) - (5,690)
-------- ------- -------- -------
Non-GAAP $ 58,293 $39,209 $ 54,042 $39,938
======== ======= ======== =======
Diluted net income
per share:
GAAP $ 0.18 $ 0.18
======= =======
Non-GAAP $ 0.23 $ 0.23
======= =======
Shares used to
compute diluted net
income per share 171,886 175,758
======= =======
Year Ended November 30,
----------------------------------
2009 2008
---------------- ----------------
Operating Net Operating Net
Income Income Income Income
-------- ------- -------- -------
GAAP $ 88,602 $62,302 $ 65,735 $52,411
Amortization of
intangible assets
- cost of revenue 13,463 13,463 15,745 15,745
Amortization of
intangible assets
- operating
expense 14,165 14,165 16,557 16,557
Stock-based
compensation -
cost of revenue 2,526 2,526 2,612 2,612
Stock-based
compensation - R&D
expense 5,597 5,597 4,584 4,584
Stock-based
compensation - S&M
expense 7,440 7,440 6,963 6,963
Stock-based
compensation - G&A
expense 7,983 7,983 6,813 6,813
Realized gain on
sales of private
equity investment - - - (125)
Income tax
adjustment for
non-GAAP (1) - (17,956) - (19,434)
-------- ------- -------- -------
Non-GAAP $139,776 $95,520 $119,009 $86,126
======== ======= ======== =======
Diluted net income
per share:
GAAP $ 0.36 $ 0.29
======= =======
Non-GAAP $ 0.55 $ 0.47
======= =======
Shares used to
compute diluted net
income per share 172,328 183,742
======= =======
(1) The estimated non-GAAP effective tax rate was 32% and 30% for 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: Holly Burkhart TIBCO Software Inc. (650) 846-5624 hburkhar@tibco.com Investor Relations Contact: Matthew Langdon TIBCO Software Inc. (650) 846-5747 mlangdon@tibco.com