To: SMALL FRY who wrote (50714 ) 7/15/1999 10:31:00 PM From: red_dog Read Replies (3) | Respond to of 120523
TIBCO Software Some skeptics were shocked to see that the IPO of TIBCO Software (TIBX) raised $109 million and then more than doubled in trading Wednesday. Many refer to TIBCO Software as a middleware provider, but that's just because "push" technology has become a four-letter word on the Street. TIBCO offers TIB, a cute little acronym for The Information Bus, which is a form of push technology. The purpose of TIB is to provide its corporate clients with instantaneous updates via the Internet or Intranet, which pop up on their computer screens. Push technology became the object of mass ridicule after PointCast's much-hyped plans to push everything proved cumbersome and unwanted after all. But TIBCO's chief executive, Vivek Ranadive, has carved out a growing niche for its software that isn't at all frivolous. TIBCO's corporate clients are informed in real time as soon as, say, their manufacturing equipment starts overheating or inventory gets too low. TIBCO started out offering stock quotes and financial information, but saw opportunities to sign on new clients outside the world of finance. Now TIBCO Software's more than 300 clients hail from the worlds of telecom, high-tech manufacturing, energy and more. Notables include 3Com (COMS), Netscape (a unit of America Online (AOL)), NEC Electronics (NIPNY), Yahoo! (YHOO) and Glaxo Wellcome (GLX). Each of its top clients contributes at least $500,000 in revenue, the company says. In the future, TIBCO hopes to grow like a weed by signing on more and more e-commerce companies. Growth should help TIBCO erase some of its losses. Last fiscal year (which ended November) the company lost $13 million on revenue of $52.8 million. Based in Palo Alto, Calif., TIBCO evolved from a company called Teknekron, which was acquired by Reuters (RTRSY) in 1994 for $125 million. London-based Reuters still owns sibling company TIBCO Finance Technology, which offers its products to banks and brokerages, while TIBCO Software was carved out in 1997. After the offering Reuters will control just over 50% of the company, while 12% will be publicly owned. Concurrent with the IPO, Yahoo! and Sun Microsystems (SUNW) said they are buying 266,667 and 500,000 shares, respectively. Maybe those two with-it investors helped push technology look hip again. R