* Q2 adj EPS $0.15 vs est $0.13
* Q2 rev $173.3 mln vs est $161.4
* Sees strong Q3 results
* Shares rise 6 pct in extended trade (Adds CEO comments, background)
By Saqib Iqbal Ahmed
BANGALORE, June 24 (Reuters) - Business software maker Tibco Software Inc TIBX.O posted better-than-expected quarterly results, helped by growth in its core service-oriented architecture (SOA) business, and forecast third-quarter results above estimates.
Shares of the company rose 6 percent in extended trade.
Tibco’s results are the latest to suggest that spending on information technology remains on track. Oracle Corp ORCL.O, the world’s No. 2 business software maker, reported a quarterly profit that exceeded Wall Street projections on Thursday. [ID:nN24168374]
“It’s (Tibco’s results) a combination of improving environment, growing appetite (among customers) and good execution on our part,” Tibco Chief Executive Vivek Ranadive told Reuters.
Tibco, which has trumped consensus earnings estimates for the past eight quarters, forecast third-quarter adjusted earnings of 15 cents a share, on revenue of $172 million to $177 million.
The forecast tops analysts’ expectations for earnings of 14 cents a share, excluding special items, on revenue of $165.3 million, according to Thomson Reuters I/B/E/S.
“Our second half (of the year) pipeline continues to strengthen as we see strong demand for our products,” Chief Financial Officer Sydney Carey said on a call with analysts.
Deferred revenue, an indicator of future revenue, grew 26 percent to $195 million, CEO Ranadive said. The strong growth lends him confidence in Tibco’s prospects for the next quarter.
Tibco’s license revenue has been getting a boost from growth in demand for its core SOA business.
“Our core SOA business grew 34 percent (during the second quarter) over last year,” Ranadive said in a statement.
Tibco has long been linked with SOA, a technology that allows for the breaking down of bulky applications into separate business services and trim the cost of delivery.
SOA made up nearly two-thirds of total license revenue during the second quarter.
During the quarter, there were 12 deals over $1 million, up from 11 deals over $1 million last year.
Tibco posted a second-quarter net income of $12.8 million, or 8 cents a share, compared with $10.1 million, or 6 cents a share, last year.
Excluding items, the company earned 15 cents a share.
Revenue rose 21 percent to $173.3 million.
License revenue, which made up 36 percent of total revenue, jumped 23 percent to $62.1 million.
Analysts on average were expecting earnings of 13 cents a share, excluding special items, on revenue of $161.4 million.
Palo Alto, California-based Tibco’s shares, which have risen 80 percent in value over the past year, closed at $11.34 Thursday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Don Sebastian)