TIBCO Software Reports Q4 GAAP EPS of $0.18, Non-GAAP EPS of $0.23

Full Year Non-GAAP EPS Increases by 17% and Operating Margin Expands by 400 Basis Points Over 2008


PALO ALTO, CA--(Marketwire - December 22, 2009) - TIBCO Software Inc. (NASDAQ: TIBX) today announced results for its fourth quarter, which ended on November 30, 2009.

Total revenue for the fourth quarter of fiscal 2009 was $195.6 million and net income was $31.7 million, or $0.18 per diluted share. This compares to total revenue of $185.5 million and net income of $32.3 million, or $0.18 per diluted share, as reported for the fourth quarter of fiscal 2008.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2009 was $39.2 million or $0.23 per diluted share, compared with $39.9 million or $0.23 per diluted share for the fourth quarter of fiscal 2008. Non-GAAP operating income for the fourth quarter of fiscal 2009 was $58.3 million, resulting in a non-GAAP operating margin of 30%. This compares to non-GAAP operating income of $54.0 million, or a 29% non-GAAP operating margin in the fourth quarter of fiscal 2008. Non-GAAP results exclude stock-based compensation expense, amortization of acquired intangible assets, and equity investment activities and assume a non-GAAP effective tax rate of 32% for fiscal 2009 and 30% for fiscal 2008.

"We executed well in 2009 -- bringing innovative new technologies to market, showcasing the stability in our core business, expanding our footprint in key verticals and geographies, and meaningfully increasing our profitability," said Vivek Ranadivé, TIBCO's chairman and chief executive officer. "As we enter 2010, we're focused on continuing to extend our innovation advantage as the leading pure-play provider of event-driven infrastructure."

Fourth Quarter Fiscal 2009 Highlights

--  Record quarterly total revenue of $195.6 million;
--  License revenue was $94.7 million;
--  Non-GAAP operating margin was 30%;
--  Repurchased 4.3 million shares;
--  Strong mix of business across major industries including Financial
    Services, Telecommunications, Government, Energy, and Life Sciences;
--  TIBCO closed 127 deals over $100k and had 19 deals over $1 million; and
--  TIBCO expanded its business with leading companies and agencies in the
    fourth quarter such as Barclays, Direct Energy, Home Depot, Grupo
    Santander, Monex, Segretaria da Fazenda of Saõ Paulo, and U.S. Citizenship
    and Immigration Services.
    

Full Year Fiscal 2009 Highlights

--  Total revenue of $621.4 million;
--  Non-GAAP operating margin was 22.5%, up 400 basis points from fiscal
    2008;
--  Record non-GAAP EPS of $0.55, vs. $0.47 for fiscal 2008;
--  Cash flow from operations of $115.4 million; and
--  Repurchased 12.9 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 (888) 213-3752 or (913) 312-0947. 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, 2010 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 4047790.

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 2009 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 extension of our innovation advantage as the leading pure-play provider of event-driven infrastructure 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, 2008 and Quarterly Report on Form 10-Q for the quarter ended August 30, 2009. 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,
                                                    -----------------------
                                                       2009        2008
                                                    ----------- -----------
                                ASSETS

Current assets:
  Cash and cash equivalents                         $   292,529 $   254,400
  Short-term investments                                    307      13,073
  Accounts receivable, net                              154,744     133,191
  Prepaid expenses and other current assets              52,657      49,994
                                                    ----------- -----------
    Total current assets                                500,237     450,658

Property and equipment, net                              94,631     103,531
Goodwill                                                374,285     343,942
Acquired intangible assets, net                          83,060      80,437
Long-term deferred income tax assets                     70,057      70,135
Other assets                                             44,069      39,865
                                                    ----------- -----------
    Total assets                                    $ 1,166,339 $ 1,088,568
                                                    =========== ===========

                LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                  $    18,350 $    15,030
  Accrued liabilities                                    96,595      90,980
  Accrued excess facilities costs                         5,848       6,572
  Deferred revenue                                      159,241     140,221
  Current portion of long-term debt                       2,148       2,033
                                                    ----------- -----------
    Total current liabilities                           282,182     254,836

Accrued excess facilities costs, less current
 portion                                                  1,083       5,594
Long-term deferred revenue                               15,353      12,007
Long-term deferred income tax liabilities                 9,257      15,329
Long-term income tax liabilities                         17,045      12,439
Long-term debt, less current portion                     40,377      42,525
Other long-term liabilities                               3,561       3,837
                                                    ----------- -----------
    Total long-term liabilities                          86,676      91,731
                                                    ----------- -----------
    Total liabilities                                   368,858     346,567
                                                    ----------- -----------

Minority interest                                           732         358

Total stockholders' equity                              796,749     741,643
                                                    ----------- -----------
    Total liabilities and stockholders' equity      $ 1,166,339 $ 1,088,568
                                                    =========== ===========



                            TIBCO Software Inc.
              Condensed Consolidated Statements of Operations
                                (unaudited)
                (in thousands, except net income per share)

                                 Three Months Ended        Year Ended
                                    November 30,          November 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenue:
   License                      $  94,674  $  90,424  $ 247,237  $ 273,415
   Service and maintenance        100,896     95,100    374,151    371,056
                                ---------  ---------  ---------  ---------
     Total revenue                195,570    185,524    621,388    644,471
                                ---------  ---------  ---------  ---------

Cost of revenue:
   License                          7,899      8,319     28,252     30,276
   Service and maintenance         34,898     35,681    130,800    147,622
                                ---------  ---------  ---------  ---------
     Total cost of revenue         42,797     44,000    159,052    177,898
                                ---------  ---------  ---------  ---------
Gross profit                      152,773    141,524    462,336    466,573
                                ---------  ---------  ---------  ---------

Operating expenses:
   Research and development        30,848     25,888    108,691    106,594
   Sales and marketing             59,984     58,116    204,212    224,641
   General and administrative      13,494     12,789     46,666     53,046
   Amortization of acquired
    intangible assets               3,606      4,026     14,165     16,557
                                ---------  ---------  ---------  ---------
     Total operating expenses     107,932    100,819    373,734    400,838
                                ---------  ---------  ---------  ---------
Income from operations             44,841     40,705     88,602     65,735

   Interest income                    212      1,688      2,265      9,115
   Interest expense                  (756)      (710)    (2,968)    (3,238)
   Other income (expense), net         46       (495)     1,718       (782)
                                ---------  ---------  ---------  ---------
Income before provision for
 income taxes and
 minority interest                 44,343     41,188     89,617     70,830
Provision for income taxes         12,518      8,923     27,097     18,314
Minority interest, net of tax          92        (26)       218        105
Net income                      $  31,733  $  32,291  $  62,302  $  52,411
                                =========  =========  =========  =========

Net income per share:
  Basic                         $    0.19  $    0.18  $    0.37  $    0.29
                                =========  =========  =========  =========
  Diluted                       $    0.18  $    0.18  $    0.36  $    0.29
                                =========  =========  =========  =========
Shares used to compute net
 income per share:
  Basic                           164,925    174,612    168,970    180,525
                                =========  =========  =========  =========
  Diluted                         171,886    175,758    172,328    183,742
                                =========  =========  =========  =========



                            TIBCO Software Inc.
              Condensed Consolidated Statements of Cash Flows
                                (unaudited)
                              (in thousands)

                                                    Year Ended November 30,
                                                    ----------------------
                                                       2009        2008
                                                    ----------  ----------
Cash flows from operating activities:
  Net income                                        $   62,302  $   52,411
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation of property and equipment             15,107      15,814
     Amortization of acquired intangible assets         27,628      32,302
     Stock-based compensation                           23,546      20,972
     Deferred income tax                               (12,630)    (26,194)
     Tax benefits related to stock benefit plans        21,573      27,025
     Excess tax benefits from stock-based
      compensation                                     (17,016)    (24,713)
     Minority interest, net of tax                         218         105
     Other non-cash adjustments, net                     1,207         991
  Changes in assets and liabilities:
     Accounts receivable                               (20,896)     20,683
     Prepaid expenses and other assets                   7,465       9,060
     Accounts payable                                    2,300       3,531
     Accrued liabilities and excess facilities
      costs                                             (7,735)     12,528
     Deferred revenue                                   12,328       7,977
                                                    ----------  ----------
       Net cash provided by operating activities       115,397     152,492
                                                    ----------  ----------

Cash flows from investing activities:
   Purchases of short-term investments                       -     (37,047)
   Maturities and sales of short-term investments       12,448     124,032
   Acquisitions, net of cash acquired                  (27,340)    (20,098)
   Purchases of private equity investments                   -         (38)
   Proceeds from private equity investments                117         347
   Purchases of property and equipment                  (5,388)     (8,937)
   Restricted cash pledged as security                  (2,571)        652
                                                    ----------  ----------
       Net cash provided by (used in) investing
        activities                                     (22,734)     58,911
                                                    ----------  ----------

Cash flows from financing activities:
   Proceeds from issuance of common stock               26,120      10,630
   Repurchases of the Company's common stock          (106,447)   (148,989)
   Excess tax benefits from stock-based
    compensation                                        17,016      24,713
   Principal payments on long-term debt                 (2,033)     (1,924)
   Payment of issuance costs on line of credit          (2,317)          -
                                                    ----------  ----------
       Net cash used in financing activities           (67,661)   (115,570)
                                                    ----------  ----------

Effect of foreign exchange rate changes on cash
 and cash equivalents                                   13,127     (11,670)
                                                    ----------  ----------

Net change in cash and cash equivalents                 38,129      84,163

Cash and cash equivalents at beginning of period       254,400     170,237

                                                    ----------  ----------
Cash and cash equivalents at end of period          $  292,529  $  254,400
                                                    ==========  ==========

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. 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.

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,
                     ----------------------------------
                           2009              2008
                     ----------------  ----------------
                    Operating   Net   Operating   Net
                      Income  Income   Income   Income
                     -------- -------  -------- -------

GAAP                 $ 44,841 $31,733  $ 40,705 $32,291

  Amortization of
   intangible assets
   - cost of revenue    3,455   3,455     3,957   3,957
  Amortization of
   intangible assets
   - operating
   expense              3,606   3,606     4,026   4,026
  Stock-based
   compensation -
   cost of revenue        626     626       640     640
  Stock-based
   compensation - R&D
   expense              1,457   1,457     1,128   1,128
  Stock-based
   compensation - S&M
   expense              2,122   2,122     1,874   1,874
  Stock-based
   compensation - G&A
   expense              2,186   2,186     1,712   1,712
  Realized gain on
   sales of private
   equity investment        -       -         -       -
  Income tax
   adjustment for
   non-GAAP (1)             -  (5,976)        -  (5,690)

                     -------- -------  -------- -------
Non-GAAP             $ 58,293 $39,209  $ 54,042 $39,938
                     ======== =======  ======== =======

Diluted net income
 per share:
  GAAP                        $  0.18           $  0.18
                              =======           =======
  Non-GAAP                    $  0.23           $  0.23
                              =======           =======

Shares used to
 compute diluted net
 income per share             171,886           175,758
                              =======           =======


                           Year Ended November 30,
                     ----------------------------------
                           2009              2008
                     ----------------  ----------------
                    Operating   Net   Operating   Net
                     Income   Income   Income   Income
                     -------- -------  -------- -------

GAAP                 $ 88,602 $62,302  $ 65,735 $52,411

  Amortization of
   intangible assets
   - cost of revenue   13,463  13,463    15,745  15,745
  Amortization of
   intangible assets
   - operating
   expense             14,165  14,165    16,557  16,557
  Stock-based
   compensation -
   cost of revenue      2,526   2,526     2,612   2,612
  Stock-based
   compensation - R&D
   expense              5,597   5,597     4,584   4,584
  Stock-based
   compensation - S&M
   expense              7,440   7,440     6,963   6,963
  Stock-based
   compensation - G&A
   expense              7,983   7,983     6,813   6,813
  Realized gain on
   sales of private
   equity investment        -       -         -    (125)
  Income tax
   adjustment for
   non-GAAP (1)             - (17,956)        - (19,434)

                     -------- -------  -------- -------
Non-GAAP             $139,776 $95,520  $119,009 $86,126
                     ======== =======  ======== =======

Diluted net income
 per share:
  GAAP                        $  0.36           $  0.29
                              =======           =======
  Non-GAAP                    $  0.55           $  0.47
                              =======           =======

Shares used to
 compute diluted net
 income per share             172,328           183,742
                              =======           =======


(1) The estimated non-GAAP effective tax rate was 32% and 30% for fiscal
    2009 and 2008, respectively, and has been used to adjust the provision
    for income taxes for non-GAAP purposes.

Contact Information: Media Relations Contact: Holly Burkhart TIBCO Software Inc. (650) 846-5624 hburkhar@tibco.com Investor Relations Contact: Matthew Langdon TIBCO Software Inc. (650) 846-5747 mlangdon@tibco.com