-- Total revenue was $185.5 million;
-- License revenue was $90.4 million;
-- Repurchased 6.9 million shares;
-- Strong mix of business across major industries including Financial
Services, Telecommunications, Energy, Life Sciences and Government;
-- TIBCO closed 135 deals over $100k and had 20 deals over $1 million;
-- TIBCO expanded its business with leading companies in Q4 such as BNP
Paribas, CIBC World Markets, CareFirst BlueCross BlueShield, Grupo
Santander, Harvard Pilgrim Healthcare, Merck, Microsoft, Northrop Grumman,
Scripps Networks, Swisscom, UNUM and Vodafone Group.
Full Year Fiscal 2008 Highlights
-- Record total revenue of $644.5 million, an increase of 12% over fiscal
2007;
-- Record cash flow from operations of $152.5 million, an increase of 49%
over fiscal 2007;
-- Record non-GAAP EPS of $0.47, vs. $0.38 for fiscal 2007; and
-- Repurchased over 21 million shares.
Conference Call Details
TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT today to
discuss its fourth quarter results. The conference call will be hosted by
Thomson Financial and may be accessed over the Internet at www.tibco.com or
via dial-in at (877) 856-1956 or (719) 325-4756. Please join the conference
call at least 10 minutes early to register. A replay of the conference call
will be available until midnight on January 22, 2009 at www.tibco.com or
via dial-in at (888) 203-1112 or (719) 457-0820. The pass code for both the
call and the replay is 4604945.
About TIBCO
TIBCO's technology digitized Wall Street in the '80s with event-driven
"Information Bus" software, which helped make real-time business a
strategic differentiator in the '90s. Today, TIBCO's infrastructure
software gives customers the ability to constantly innovate by connecting
applications and data in a service-oriented architecture, streamlining
activities through business process management, and giving people the
information and intelligence tools they need to make faster and smarter
decisions, what we call The Power of Now®. TIBCO serves more than 3,000
customers around the world with offices in more than 20 countries and an
ecosystem of over 200 partners. Learn more at www.tibco.com.
TIBCO, 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 includes 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 GAAP to Non-GAAP Measures."
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. The final
financial results for fourth quarter of fiscal year 2008 may differ
materially from the preliminary results presented in this release due to
factors that include, but are not limited to, risks associated with the
final review of the results and preparation of financial statements. In
addition, forward-looking statements such as statements regarding the
anticipated shift to event-based solutions built on 'in-memory' data
management systems and away from old database technologies and TIBCO's
ability to benefit from that shift are subject to risks and uncertainties
that could cause actual results to differ materially from such
forward-looking statements. These risks include but are not limited to: our
ability to adapt to new technologies and evolving industry trends; and
competitive factors, including but not limited to competition from
alternative business models, industry consolidation and new product
introductions. 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, 2007 and Quarterly Report on Form
10-Q for the quarter ended August 30, 2008. TIBCO assumes no obligation to
update the
forward-looking statements included in this release.
TIBCO Software Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
November 30,
-----------------------
2008 2007
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 254,400 $ 170,237
Short-term investments 13,073 95,534
Accounts receivable, net 133,191 161,730
Prepaid expenses and other current assets 46,495 53,540
----------- -----------
Total current assets 447,159 481,041
Property and equipment, net 103,531 111,390
Goodwill 343,942 412,256
Acquired intangible assets, net 80,437 110,930
Long-term deferred income tax assets 73,634 35,307
Other assets 39,865 47,535
----------- -----------
Total assets $ 1,088,568 $ 1,198,459
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,030 $ 12,076
Accrued liabilities 91,397 95,526
Accrued excess facilities costs 6,572 5,421
Deferred revenue 140,221 127,200
Current portion of long-term debt 2,033 1,924
----------- -----------
Total current liabilities 255,253 242,147
Accrued excess facilities costs, less current
portion 5,594 10,811
Long-term deferred revenue 12,007 14,319
Long-term deferred income tax liabilities 14,912 25,821
Long-term income tax liabilities 12,439 -
Long-term debt, less current portion 42,525 44,558
Other long-term liabilities 3,837 5,006
----------- -----------
Total long-term liabilities 91,314 100,515
----------- -----------
Total liabilities 346,567 342,662
----------- -----------
Minority interest 358 401
Total stockholders' equity 741,643 855,396
----------- -----------
Total liabilities and stockholders' equity $ 1,088,568 $ 1,198,459
=========== ===========
TIBCO Software Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except net income per share)
Three Months Ended Year Ended
-------------------- --------------------
November November November November
30, 30, 30, 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenue:
License revenue $ 90,424 $ 99,609 $ 273,415 $ 259,313
Service and maintenance
revenue:
Service and maintenance 92,716 84,211 361,880 310,444
Reimbursable expenses 2,384 2,281 9,176 7,629
--------- --------- --------- ---------
Total service and
maintenance revenue 95,100 86,492 371,056 318,073
--------- --------- --------- ---------
Total revenue 185,524 186,101 644,471 577,386
--------- --------- --------- ---------
Cost of revenue:
License 8,319 8,591 30,276 24,024
Service and maintenance 35,681 37,522 147,622 134,877
--------- --------- --------- ---------
Total cost of revenue 44,000 46,113 177,898 158,901
--------- --------- --------- ---------
Gross profit 141,524 139,988 466,573 418,485
--------- --------- --------- ---------
Operating expenses:
Research and development 25,888 26,069 106,594 92,924
Sales and marketing 58,116 59,260 224,641 197,397
General and administrative 12,789 13,009 53,046 51,538
Restructuring adjustment - - - (1,095)
Amortization of acquired
intangible assets 4,026 4,164 16,557 13,164
Acquired in-process research
and development - - - 1,600
--------- --------- --------- ---------
Total operating
expenses 100,819 102,502 400,838 355,528
--------- --------- --------- ---------
Income from operations 40,705 37,486 65,735 62,957
Interest income 1,688 3,499 9,115 18,447
Interest expense (710) (1,170) (3,238) (2,824)
Other income (expense), net (495) 56 (782) (1,181)
--------- --------- --------- ---------
Income before provision for
income taxes and minority
interest 41,188 39,871 70,830 77,399
Provision for income taxes 8,923 12,186 18,314 25,401
Minority interest, net of tax (26) 40 105 110
--------- --------- --------- ---------
Net income $ 32,291 $ 27,645 $ 52,411 $ 51,888
========= ========= ========= =========
Net income per share:
Basic $ 0.18 $ 0.15 $ 0.29 $ 0.26
========= ========= ========= =========
Diluted $ 0.18 $ 0.14 $ 0.29 $ 0.25
========= ========= ========= =========
Shares used to compute net
income per share:
Basic 174,612 188,748 180,525 198,885
========= ========= ========= =========
Diluted 175,758 192,940 183,742 205,316
========= ========= ========= =========
TIBCO Software Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Year Ended
--------------------
November November
30, 30,
2008 2007
--------- ---------
Cash flows from operating activities:
Net income $ 52,411 $ 51,888
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation of property and
equipment 15,814 16,167
Amortization of acquired intangible
assets 32,302 23,490
Stock-based compensation 20,972 17,563
Acquired in-process research and
development - 1,600
Deferred income tax (26,667) (6,077)
Tax benefits related to stock benefit
plans 27,025 19,456
Excess tax benefits from stock-based
compensation (24,713) (17,980)
Minority interest, net of tax 105 110
Other non-cash adjustments, net 991 (1,506)
Changes in assets and liabilities:
Accounts receivable 20,683 (5,459)
Prepaid expenses and other assets 9,060 (4,778)
Accounts payable 3,531 (885)
Accrued liabilities and excess
facilities costs 13,001 (8,613)
Deferred revenue 7,977 17,304
--------- ---------
Net cash provided by operating
activities 152,492 102,280
--------- ---------
Cash flows from investing activities:
Purchases of short-term investments (37,047) (140,928)
Maturities and sales of short-term
investments 124,032 450,311
Acquisitions, net of cash acquired (20,098) (182,912)
Purchases of private equity investments (38) (63)
Proceeds from private equity
investments 347 803
Purchases of property and equipment (8,937) (12,599)
Restricted cash pledged as security 652 368
--------- ---------
Net cash provided by investing
activities 58,911 114,980
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock 10,630 25,043
Repurchases of the Company's common
stock (148,989) (226,932)
Excess tax benefits from stock-based
compensation 24,713 17,980
Principal payments on long-term debt (1,924) (6,277)
Proceeds from minority investors - 189
--------- ---------
Net cash used for financing
activities (115,570) (189,997)
--------- ---------
Effect of foreign exchange rate changes
on cash and cash equivalents (11,670) 4,062
--------- ---------
Net change in cash and cash equivalents 84,163 31,325
Cash and cash equivalents at beginning of
period 170,237 138,912
--------- ---------
Cash and cash equivalents at end of
period $ 254,400 $ 170,237
========= =========
About Non-GAAP Financial Measures
TIBCO provides non-GAAP measures for operating income, net income and net
income per share data as supplemental information regarding TIBCO's
business performance. TIBCO believes that these non-GAAP financial measures
are useful to investors because they exclude non-operating charges. TIBCO's
management
excludes these non-operating charges when it internally evaluates the
performance of TIBCO's business and
makes operating decisions, including internal budgeting, performance
measurement and the calculation of
bonuses and discretionary compensation, because these measures provide a
consistent method of comparison to
historical periods. Moreover, management believes these non-GAAP measures
reflect the essential revenue
generation activities of TIBCO. Accordingly, management excludes
stock-based compensation related to employee stock options, amortization of
acquired intangible assets, charges for acquired in-process research and
development, costs related to formal restructuring activities, gains and
losses on equity investments, 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 when making operational
decisions.
TIBCO believes that providing the non-GAAP measures that management uses to
its investors is useful to
investors for a number of reasons. The non-GAAP measures provide a
consistent basis for investors to
understand TIBCO's financial performance on a trended basis across
historical periods. In addition, it allows
investors to evaluate TIBCO's performance using the same methodology and
information as that used by
TIBCO's management.
Non-GAAP measures are subject to material limitations as these measures are
not in accordance with, or a
substitute for, GAAP and thus TIBCO's definition may be different from
similar non-GAAP measures used by
other companies and/or analysts. However, TIBCO's management compensates
for these limitations by
providing the relevant disclosure of the items excluded in the calculation
of
non-GAAP operating income,
non-GAAP net income and
non-GAAP net income per share. In addition, some items such as
restructuring charges
that are excluded from
non-GAAP net income and
non-GAAP earnings per share can have a material impact on
cash flows and stock compensation charges can have a significant impact on
earnings. Management
compensates for these limitations by evaluating the
non-GAAP measure together with the most directly
comparable GAAP measure. TIBCO has historically provided
non-GAAP measures to the investment
community as a supplement to its GAAP results, to enable investors to
evaluate TIBCO's business performance
in the way that management does.
The non-GAAP adjustments, and the basis for excluding them, are outlined
below:
Stock-based Compensation
TIBCO incurs stock-based compensation expense under SFAS 123(R). TIBCO
excludes this item for the
purposes of calculating
non-GAAP operating income,
non-GAAP net income and non-GAAP net income per
share because it is a non-cash expense that TIBCO believes is not
reflective of its business performance. The
nature of the stock-based compensation expense also makes it very difficult
to estimate prospectively, since the
expense will vary with changes in the stock price and market conditions at
the time of new grants, varying
valuation methodologies, subjective assumptions and different award types,
making the comparison of current
results with forward-looking guidance potentially difficult for investors
to interpret. The tax effects of stock-based compensation expenses may also
vary significantly from period to period, without any change in
underlying operational performance, thereby obscuring the underlying
profitability of operations relative to prior
periods (including prior periods following the adoption of SFAS 123(R)).
The exclusion of stock-based
compensation from the non-GAAP measures also allows a consistent comparison
of TIBCO's relative historical
financial performance, since the method for accounting for stock-based
compensation changed at the beginning
of fiscal 2006 when TIBCO adopted SFAS 123(R). Finally, TIBCO believes that
non-GAAP measures of
profitability that exclude stock-based compensation are widely used by
analysts and investors in the software
industry.
Amortization of Acquired Intangible Assets
TIBCO has incurred amortization of intangible assets, included in its GAAP
financial statements, related to
various acquisitions TIBCO has made. Management excludes these items, for
the purposes of calculating
non-GAAP operating income, non-GAAP net income and non-GAAP net income per
share. TIBCO believes that
eliminating this expense from its non-GAAP measures is useful to investors,
because the amortization of
intangible assets can be inconsistent in amount and frequency and is
significantly impacted by the timing and
magnitude of TIBCO's acquisition transactions, which also vary
substantially in frequency from period to
period.
Acquired In-Process Research and Development
TIBCO recorded charges for acquired in-process research and development
("IPR&D"), included in its
GAAP presentation of operating expense, in connection with its
acquisitions. These amounts were expensed on
the acquisition dates as the acquired technology had not yet reached
technological feasibility and had no future
alternative uses. There can be no assurance that acquisition of businesses,
products or technologies in the future
will not result in substantial charges for acquired IPR&D. Accordingly,
acquired IPR&D are non-recurring and
generally unpredictable. TIBCO believes that eliminating this expense, for
the purposes of calculating
non-GAAP operating income, non-GAAP net income and non-GAAP net income per
share, is useful to
investors.
Formal Restructuring Activities
TIBCO has incurred restructuring expenses, included in its GAAP
presentation of operating expense, primarily
due to workforce related charges such as payments for severance and
benefits and estimated costs of exiting and
terminating facility lease commitments related to a formal restructuring
plan. TIBCO excludes these items, for
the purposes of calculating non-GAAP operating income, non-GAAP net income
and non-GAAP net income
per share, when it evaluates the continuing business performance of TIBCO.
TIBCO believes that these items
are not consistently recurring and do not necessarily reflect expected
future operating expense, nor does TIBCO
believe that they provide a meaningful evaluation of current versus past
business results or the expense levels
required to support TIBCO's operating plan.
Equity Investment Activities
TIBCO records gains or losses on its equity investments based on its
pro-rata share of gains or the net losses of
the investment. These gains or net losses are included in TIBCO's GAAP
presentation of operating income, net
income and net income per share. TIBCO's business is not to invest in third
parties, and such investments do not
constitute a material portion of TIBCO's assets. The timing and magnitude
of gains and losses are unpredictable,
as they are inherently based on the performance of the third party subject
to a particular investment. TIBCO
excludes these items, for the purposes of calculating non-GAAP operating
income, non-GAAP net income and
non-GAAP net income per share, when it evaluates the continuing business
performance of TIBCO. TIBCO
believes that these items do not necessarily reflect expected future
operating expense or income, nor does
TIBCO believe that they provide a meaningful evaluation of current versus
past business results or the expense
levels required to support TIBCO's operating plan.
TIBCO Software Inc.
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in thousands, except net income per share)
Three Months Ended
-------------------------------------------
November 30, 2008 November 30, 2007
--------------------- ---------------------
Operating Net Operating Net
Income Income Income Income
---------- --------- ---------- ---------
GAAP $ 40,705 $ 32,291 $ 37,486 $ 27,645
Amortization of intangible
assets - cost of revenue 3,957 3,957 3,829 3,829
Amortization of intangible
assets - operating expense 4,026 4,026 4,164 4,164
Stock-based compensation -
cost of revenue 640 640 647 647
Stock-based compensation -
R&D expense 1,128 1,128 897 897
Stock-based compensation -
S&M expense 1,874 1,874 1,593 1,593
Stock-based compensation -
G&A expense 1,712 1,712 1,601 1,601
Acquired in-process research
and development - - - -
Restructuring adjustment - - - -
Realized gain on sales of
private equity investment - - - -
Income tax adjustment for
non-GAAP (1) - (5,690) - (6,225)
---------- --------- ---------- ---------
Non-GAAP $ 54,042 $ 39,938 $ 50,217 $ 34,151
========== ========= ========== =========
Diluted net income per share:
GAAP $ 0.18 $ 0.14
========= =========
Non-GAAP $ 0.23 $ 0.18
========= =========
Shares used to compute diluted
net income per share 175,758 192,940
========= =========
Year Ended
-------------------------------------------
November 30, 2008 November 30, 2007
--------------------- --------------------
Operating Net Operating Net
Income Income Income Income
---------- --------- --------- ---------
GAAP $ 65,735 $ 52,411 $ 62,957 $ 51,888
Amortization of intangible
assets - cost of revenue 15,745 15,745 10,326 10,326
Amortization of intangible
assets - operating expense 16,557 16,557 13,164 13,164
Stock-based compensation -
cost of revenue 2,612 2,612 2,465 2,465
Stock-based compensation -
R&D expense 4,584 4,584 3,712 3,712
Stock-based compensation -
S&M expense 6,963 6,963 5,695 5,695
Stock-based compensation -
G&A expense 6,813 6,813 5,691 5,691
Acquired in-process research
and development - - 1,600 1,600
Restructuring adjustment - - (1,095) (1,095)
Realized gain on sales of
private equity investment - (125) - (64)
Income tax adjustment for
non-GAAP (1) - (19,434) - (16,212)
---------- --------- --------- ---------
Non-GAAP $ 119,009 $ 86,126 $ 104,515 $ 77,170
========== ========= ========= =========
Diluted net income per share:
GAAP $ 0.29 $ 0.25
========= =========
Non-GAAP $ 0.47 $ 0.38
========= =========
Shares used to compute diluted
net income per share 183,742 205,316
========= =========
(1) The estimated non-GAAP effective tax rate was approximately at 30%
and 35% for fiscal 2008 and 2007, respectively, and has been used to
adjust the provision for income taxes for non-GAAP purposes.
Contact Information: Media Relations Contact: Phillip Tree TIBCO Software Inc. (650) 846-8529 Investor Relations Contact: Matthew Langdon TIBCO Software Inc. (650) 846-5747