-- 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®. 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.
Contact Information: 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