Tibco licensing revenue tops estimates, shares rise
Dec 20 (Reuters) - Tibco Software Inc's fourth-quarter profit topped muted Wall Street estimates and the business software maker forecast better-than-expected licensing revenue for the current quarter.
Shares of the company, which makes software that helps businesses coordinate processes and manage workflow, rose 5 percent to $21.73 in after-market trade.
First-quarter profit forecast, however, came in below analysts' estimates as the company failed to close several deals amid pullbacks in government spending.
The company said it expects licensing revenue of $84-$88 million for the quarter. Susquehanna Financial Group's Derrick Wood had forecast $85 million.
"Software licensing revenue growth is expected to accelerate, which is relief for investors," said BMO Capital Markets analyst Karl Keirstead.
Tibco had cut estimates for the fourth quarter earlier this month, citing poor performance in North America, government spending pullbacks and deal delays caused by superstorm Sandy.
"I am not going to make excuses. The fact is we simply did not execute this quarter and I am disappointed in the result," Chief Executive Vivek Ranadivé said.
The company has been restructuring its business in the Americas, its biggest market, and has appointed a new sales head for the region.
Tibco forecast first-quarter adjusted profit of 17 cents per share to 18 cents per share, while Wall Street analysts were expecting 21 cents per share, according to Thomson Reuters I/B/E/S.
For the fourth quarter, adjusted profit was 42 cents per share. Revenue rose 2 percent to $296.5 million.
Analysts had expected the company to earn 39 cents per share on revenue of $297.6 million.