September 24, 2009 / 8:47 PM / 8 years ago

UPDATE 2-Tibco Q3 profit beats expectations, shares rise

* Q3 shr $0.13 vs $0.11 estimates

* Q3 rev $150.3 mln vs $144.6 mln estimates

* Forecasts strong Q4

* Shares up 10 pct in after-hours trade (Adds analyst's comments, Q4 outlook)

By Sudipto Ganguly

BANGALORE, Sept 24 (Reuters) - Business software maker Tibco Software Inc TIBX.O posted higher quarterly profit, which beat analysts' expectations, helped by lower expenses, sending its shares up 10 percent in trading after the bell.

On a conference call with analysts, the company gave fourth-quarter earnings outlook, the low end of which was in line with Wall Street expectations.

"Looking forward, we are well-positioned to benefit from the accelerating shift away from database-centric architectures designed to handle transactions and towards bus-based architectures designed to handle events," Chief Executive Vivek Ranadive said in a statement.

The strength in Europe and revenue from the financial services protocol were the main highlights of the quarter, Piper Jaffray analyst Mark Murphy told Reuters by phone.

"The financial services protocol contributed 25 percent of revenue, its the most in quite some time," Murphy said.

For the fourth quarter, Tibco forecast earnings of 14 cents to 16 cents a share, on revenue of $176 million to $184 million.

Excluding items, it expects to earn 19 cents to 21 cents a share.

Analysts on average were expecting earnings of 19 cents a share, on revenue of $176.5 million, according to Reuters Estimates.

The fourth quarter is the seasonally strong quarter for IT spending, Murphy said.

"Our assessment is that their forecast will be achievable," he said.

For the third quarter ended Aug. 30, the company earned $14.9 million, or 9 cents a share, compared with $11.1 million, or 6 cents a share, in the year-ago period.

Excluding items, earnings were 13 cents a share.

Revenue fell about 7 percent to $150.3 million.

Analysts were expecting earning of 11 cents a share, before items, on revenue of $144.6 million.

Palo Alto, California-based Tibco makes programs that help computer systems communicate with each other and quickly analyze vast amounts of data. Competitors include IBM Corp (IBM.N), Oracle ORCL.O, SAP AG and Sun Microsystems JAVA.O. (Reporting by Sudipto Ganguly in Bangalore; Editing by Anil D'Silva)

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