Tibco Software (Nasdaq: TIBX) gained US$1.88to $9.91 in morning trading Friday, a 23.4 percent jump, after reporting quarterly results thattopped its previously lowered expectations.
Tibco, a Palo Alto, California-based maker of e-business software, saidrevenue for the first quarter ended March 2nd rose to $82.1 million from $42million a year earlier. Income before extraordinary items totaled $12.4million, or 6 cents per share, compared with $1.3 million, or 1 cent, ayear earlier.
Tibco had predicted revenue of $80 million to $84 million, below previousexpectations, saying that a slowing economy and related drop in business spendingwas pressuring results. Analysts reportedly lowered their estimates, withthe consensus calling for income before items of 3 cents per share.
The company’s”fundamental business remains strong,” according to Tibco chairman and chief executive officer Vivek Ranadive.
“Our customers and partners are leaders in their industries, our technologyis essential to the success of our customers’ business, and our balancesheet is solid,” Ranadive said. “Despite the slowing economy, we nearlydoubled our revenue over the same quarter last year.”
Tibco said that it added 11 new customers during the quarter, announcing new orexpanded agreements with companies including FedEx, Chevron, Telecom Italiaand Enron. The company also released 17 new software products.
Tibco went public in July 1999 at $15 per share. The shares reached a high of $147before falling to a low of $7.22.
For the fourth quarter ended November 30th, Tibco reported revenue of $89million, up from $33 million in the year-earlier quarter, and income beforecharges of $22 million, or 10 cents per share, up from $1 million, orbreakeven. The company attributed the gains to increasing demand for itsinfrastructure software.