-- 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