TIBCO Software Inc. (TIBX: Quote) Thursday reported a higher profit for the third quarter as demand for its infrastructure software picked up amid a robust cloud computing environment, leading to double-digit revenue growth. Nonetheless, earnings were partly offset by increased amortization charges and one-time interest expense.
TIBCO's quarterly adjusted earnings were in line with Street estimates, while revenues came in below expectations.
Investors were not impressed with the results and shares of the company are currently losing over 5.0 percent in after-hours trade on the Nasdaq.
"We continue to steadily build our business, with total revenue and license revenue up...," said TIBCO Chief Executive Vivek Ranadivé.
Ranadivé also said that TIBCO is in a strategic position to benefit as IT shifts to event-driven architectures.
TIBCO provides infrastructure software for companies to use on-premise or as part of cloud computing environments. It provides what it calls the two-second advantage - the ability to capture the right information at the right time and act on it preemptively for a competitive advantage.
During the quarter, TIBCO's revenue grew 11 percent year-over-year, and on a constant currency basis, was up 18 percent. License revenue was up 9 percent from a year ago, and Service and maintenance also improved.
Overall, the Palo Alto, California-based company reported third quarter net income of $26 million or $0.15 per share, up from $23.5 million or $0.14 per share last year.
Excluding items, adjusted earnings for the quarter were $46 million or $0.27 per share, compared to $39.4 million or $0.23 per share in the prior year.
On average, 20 analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
TIBCO reported quarterly revenues of $255 million, up from $229 million a year ago. Twenty-one analysts expected revenues of $259.79 million for the quarter.
TIBX closed Thursday at $29.86, down 2.00%, on a volume of over 4.0 million shares on the Nasdaq. In after hours, the stock dropped $1.11 or 3.72%. In the past year, the stock has traded in a range of $20.04 - $34.67.
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by RTT Staff Writer
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