Tibco shares rise on strong results
(Reuters) - Shares of Tibco Software Inc (TIBX.O) rose as much as 11 percent on Friday after the software maker reported second-quarter results above analysts' expectations, helped by higher revenue from new licenses.
Tibco on Thursday said revenue rose 14 percent to $247.4 million. Revenue from licenses grew 13 percent to $92.6 million.
The company's verticals outside of financial services and telecom grew 20 percent year over year, showing improved vertical diversification, and strong performance came from the healthcare, life sciences and retail segments, analysts at Susquehanna said in note to clients.
Tibco also removed its U.S. head of sales, Robin Gilthorpe, as the company's growth in its biggest market, the Americas, lagged Europe and Asia.
"Americas execution seemed to be a disappointment, and Tibco fired its head of Americas sales and plans to make minor tweaks to its sales focus," the brokerage said.
Tibco shares touched more than a month's high of $29.86 in early trading on the Nasdaq.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Maju Samuel)