I have to say I was quite shocked by the performance of Red Hat (RHT) yesterday, up some 20% on a small earnings beat and modest increase in guidance in the conference call. Perhaps it was the dearth of names for speculators to daytrade yesterday plus some form of short covering but the performance did not make much sense in relation to the results. Either way, Red Hat is apparently now a "cloud computing" play and it took the entire group up with it. Quite a few names now associated with this sector, I'd mark as suspicious in terms they are not really cloud plays but it is what it is. Tibco Software (TIBX) was one of the names that was run up sharply along side Red Hat yesterday, in anticipation of its earning report last evening. Much like Red Hat, a decent beat and ok guidance but the reactions are polar opposites.
- Tibco Software Inc posted quarterly results modestly above analysts' estimates. The beat, driven by a 17 percent jump in revenue from new licenses, was Tibco's smallest since the first quarter of 2011. The company bagged 20 contracts above $1 million in the first quarter, compared with 14 a year ago, with five of them coming from Europe.
- Tibco, which makes software to coordinate business processes and manage workflow, is betting on the adoption of "big data" analytics – a concept where digital information is analysed in real-time to predict trends and avoid potential problems.
- The company forecast a second quarter largely in line with analysts expectations. It expects a profit of 22 cents to 23 cents a share, excluding items, on revenue of $240 million to $244 million. Analysts were expecting an adjusted profit of 23 cents a share and revenue of $242.2 million, according to Thomson Reuters I/B/E/S.
- The company also authorized a new $300 million share repurchase program to replace its previous stock buyback plan, under which about $38 million was still remaining
- Tibco's first-quarter net income rose to $20.6 million, or 12 cents a share, from $16 million, or 9 cents a share, a year ago. Excluding items, the company earned 20 cents a share. Revenue rose 22 percent to $225.7 million, while license revenue rose to $82.3 million.
- Analysts expected an adjusted profit of 19 cents a share, on revenue of $222.4 million, according to Thomson Reuters I/B/E/S.
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