Confirmation of the Internet Infrastructure Software Boom
Tibco reported exceptional earnings today. It's a very expensive stock, but growth visibility for at least the next 12 months is exceptional. License growth booming. Also "big" announcement with Cisco coming soon.
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Tibco fourth-quarter results top expectations
NEW YORK, Dec 16 (Reuters) - Tibco Software Inc. (NASDAQ: TIBX), a supplier of high-speed data distribution software, on Thursday reported fiscal fourth-quarter earnings well ahead of Wall Street's expectations, powered by surging software license revenues.
The Palo Alto, Calif.-based company, whose products are in demand by Web publishers, posted a net loss of one cent per diluted share for the fourth quarter ended in November compared with a net loss of three cents per share in the year-earlier quarter.
Tibco remains 60 percent owned by U.K.-based media company Reuters Group Plc in the wake of the company's initial public offering last June.
Excluding noncash charges relating to stock-compensation, accounting goodwill and one-time acquisition fees, Tibco said fourth-quarter operating income showed a profit of $600,000, or one cent per share, compared with a loss of $1.7 million, or three cents a share, for the fourth quarter ended in November 1998.
The latest quarter's slight operating profit beat the 3 cent per share consensus loss expected by analysts surveyed by First Call/Thomson Financial, which compiles broker estimates.
"I believe, we exceeded our goals for the year," Chairman and Chief Executive Vivek Ranadive said during a conference call with analysts that followed the earnings report.
Total year revenues were $96.4 million, up 83 percent over fiscal 1998.
Revenues for the fourth quarter grew to $33.3 million against $17.0 million in the fourth quarter of 1998. The quarter beat out the recent analysts' consensus of about $27 million.
The company saw software licensing fees swell to $21.7 million, or 65 percent of revenue, up from the mid-50's as a percent of revenue for its third quarter ended in August. Remaining business came largely from services tied to its software, such as product installation.
Ahead of the report, shares of Tibco surged 18-11/16, or 13.2 percent, to close at 160 during regular session trading on the Nasdaq stock market Thursday and remained in that vicinity in after-hours trade following the release of the results.
Chief Financial Officer Paul Hansen told analysts during the conference call, which was broadcast on the Web, that Tibco should sustain its rapid growth rate in the coming year.
"Our revenue growth in fiscal 1999 was 83 percent and I believe we are poised for similar growth in FY (fiscal year) 2000," Hansen told analysts.
However, in response to an analyst's question, the two executives said Tibco would stay focused on boosting revenues and market share in the year ahead, not profitability. They cautioned analysts not to count on sustained profits from the company before the end of 2000, as per previous guidance.
Ranadive said Cisco Systems Inc. (NASDAQ: CSCO), owner of 6 percent of Tibco, soon would be making what he called "a major announcement" expanding on an existing partnership with Tibco. The deal would involve the top maker of Internet equipment putting its full weight behind Tibco's products, he said.
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