PALO ALTO, Calif., July 7, 2006 – TIBCO Software Inc. (Nasdaq:TIBX), a leading business integration and process management software company that enables real-time business, today announced results for its second fiscal quarter ended June 4, 2006.
Total revenues for the second quarter of fiscal 2006 were $121.2 million, and net income was $24.5 million, or $0.11 per diluted share. This compares to total revenue of $101.4 million and net income of $21.7 million, or $0.10 per diluted share, as reported for the second quarter of fiscal 2005. Net income includes employee stock-based compensation expense due to the newly adopted SFAS 123(R) of $3.7 million for the second quarter of fiscal 2006. Net income prior to fiscal 2006 did not include employee stock-based compensation expense related to SFAS 123(R).
On a non-GAAP basis, net income for the second quarter of fiscal 2006 was $16.9 million or $0.08 per diluted share, compared with $8.6 million or $0.04 per diluted share for the second quarter of fiscal 2005. Non-GAAP operating income for the second quarter of fiscal 2006 was $22.4 million, resulting in non-GAAP operating margins of 18.4%. This compares to non-GAAP operating income of $10.5 million, or 10.3% in the second quarter of fiscal 2005. Non-GAAP results exclude stock based compensation expense, amortization of acquired intangible assets and restructuring charges, 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, and assume a non-GAAP effective tax rate of 37% for fiscal 2006 and 38% for fiscal 2005.
“I believe our focus on delivering leading solutions across our platform is paying off with customers, given our year over year license revenue growth,” said Vivek Ranadivé, Chairman and CEO of TIBCO. “In particular, our commitment to and focus on service-oriented architecture (SOA) – the dominant enabling architecture for becoming an event-driven enterprise – is an important opportunity for our future growth. Our SOA approach provides a key differentiator for our business process management (BPM) and Predictive Business offerings.”
Highlights for TIBCO’s Second Quarter of Fiscal 2006
- Year over year growth across all geographic regions with the Americas up by 15%, EMEA up by 16% and with particular strength in Asia Pacific, up by 59%.
- TIBCO’s core industry markets experienced year over year growth led by telecommunications up by 101%, energy up by 23% and financial services up by 7%. In addition, TIBCO had particular strength in its government business which grew over 200% year over year.
- 92 deals over $100,000 and 14 deals over $1 million during the quarter.
- TIBCO made significant sales to both new and existing customers, including Allegis, Claire Stores, Electronic Arts, QUALCOMM, Virgin Mobile and Wachovia.
About TIBCO TIBCO Software Inc. (NASDAQ:TIBX) is a leading business integration and process management software company that enables real-time business. Real-time business is about giving organizations the ability to sense and respond to changes and opportunities as they arise. TIBCO has delivered the value of real-time business, what TIBCO calls The Power of Now®, to over 2,500 customers around the world and in a wide variety of industries. To learn about TIBCO's solutions for service-oriented architecture (SOA), business process management (BPM) and business optimization, contact TIBCO at +1 650-846-1000 or on the Web at
www.tibco.com. TIBCO is headquartered in Palo Alto, California.
TIBCO, the TIBCO logo, 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 and the accompanying tables include 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 Non-GAAP Measures to GAAP.”
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, including, without limitation, TIBCO’s continued commitment and focus on SOA as an opportunity for future growth and TIBCO’s SOA approach as a key differentiator for its BPM and Predictive Business Offerings. Because these forward-looking statements involve risks and uncertainties, important factors could cause actual results to differ materially from such forward-looking statements. These factors include: fluctuations in the demand for integration software or economic conditions affecting the market for integration software; the effects of seasonality on TIBCO’s financial results; TIBCO’s ability to compete successfully with new or existing customers; and TIBCO’s ability to address rapidly changing markets and technology. 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, 2005 and Quarterly Report on Form 10-Q for the quarter ended March 5, 2006. TIBCO assumes no obligation to update the forward-looking statements included in this release.