This summary is based on the first quarter fiscal 2008 earnings call conducted by TIBCO Software Inc. (TIBX) on March 27, 2008.
Chairman and Chief Executive Officer: Vivek Ranadivé
Executive Vice President & Chief Financial Officer: Murray Rode
Key Investors Issues
- The earnings per share dropped to 3 cents from 5 cents in the prior year quarter.
- The revenue grew 17% over last year to $146.6 million.
- For Q2, the firm expects total revenues to be between $153 million and $156 million.
First Quarter Fiscal 2008 Financial Highlights
The net income was $5.5 million, or 3 cents per diluted share.
The net income of $10.4 million, or 5 cents per diluted share, as reported for the first quarter of fiscal 2007. This quarter’s performance included results from Spotfire, which was acquired in the third quarter of fiscal 2007. On a non-GAAP basis, net income for the first quarter of fiscal 2008 was $14.1 million or 7 cents per share, compared with $15.2 million or 7 cents per share for the first quarter of fiscal 2007.
The non-GAAP operating income was $18.9 million, resulting in a non-GAAP operating margin of 13%.
This compares to non-GAAP operating income of $19.4 million, resulting in a non-GAAP operating margin of 15% in the first quarter of fiscal 2007. Non-GAAP results exclude stock-based compensation expense and amortization of acquired intangible assets, and assume a non-GAAP effective tax rate of 34% for fiscal 2008 and 37% for fiscal 2007.
Total revenue was $146.6 million, up 17% over the prior year quarter.
The license revenue was $57.8 million, up 11% year-over-year; services and maintenance revenue with $88.8 million, up 21% year-over-year.
The geographic breakdown of revenue was as follows: the U.S. represented 53% of total revenue; Europe 38% of total revenue; and Asia-Pac 10%.
Total revenue by vertical was as follows: financial services, 27%; telecommunications, 11%; life sciences, 8%; manufacturing, 8%; energy, 7%; government, 5%. No other industry represented more than 5% of revenue.
The approximate allocation of license revenue by product family, given the frequency of bundled product sales was as follows: SOA was 61%; business optimization, 28%; and BPM, 11%. Although BPM wasn’t high on allocated revenue this quarter, it was a key driver in a variety of larger platform sales.
The firm’s top ten customers represented 22% of revenue, somewhat less concentrated than recent past quarters and the firm had 14 deals over $1 million in license.
License deals over $100,000 rose to 87% versus 75% in the year ago period. Four license deals over $100,000, the average deal size was approximately $602,000 versus $687,000 in Q4 and $652,000 in Q1 a year ago. The firm added about 30 new license customers in the quarter versus 15 in the year-ago period.
The firm increased and expanded its business with market leaders across industries, including AT&T Mobility, Deutsche Bank, Immigrants Bank, Fannie Mae, Infinity Property & Casualty Company, Lexus Nexus, Live Nation, and Alliance communications.
The quota headcount increased by 18, taking the total current quota heads to 170.
The number of quota heads is a limiting factor on the firm’s growth and it looks to these additional quota heads to help it capture untapped market opportunity. The firm’s target is to reach about 190 quota personnel by the end of the year.
- Non-GAAP gross margin was 74% in the quarter.
- Overall, operating expenses came in slightly under plan despite the quarter carrying hires that the firm made during the quarter.
- The non-GAAP tax rate for the quarter was 34%.
