Why Third Point moved out of Tibco Software
Dan Loeb’s Third Point liquidated a 2.77% stake in Tibco Software, Inc. (TIBX) last quarter. Tibco provides infrastructure and business intelligence software worldwide. The company offers products in the areas of integration and core infrastructure; business optimization; and process automation and collaboration.
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Tibco’s 4Q 2013 earnings declared in December last year beat market expectations but failed to meet estimates on outlook, while license revenue was just in line with the company’s guidance. The company reported fourth quarter earnings of $44.5 million, or $0.27 a share, on revenue up 6% to $315.5 million. Non-GAAP earnings for the fourth quarter were $0.42 a share. License revenue was $139.7 million, up 3% year-over-year. Services revenue, which includes professional services, hosted services and maintenance revenue, was $175.7 million, up 10% from last year.
For 1Q 2014, Tibco expects total revenue to be in a range of $247 million to $253 million and license revenue to range between $78 million to $84 million. The non-GAAP operating margin is expected to be 17% to 18% and non-GAAP EPS for the quarter is expected to come in between $0.17 and $0.18 with an assumed tax rate of 26%. A soft guidance led to a fall in the share price post earnings.