WASHINGTON (dpa-AFX) - Tibco Software Inc. (TIBX) Thursday reported a drop in profit for the second quarter despite higher revenues, hurt mainly by lower margins and increase in operating costs. Nonetheless, earnings for the quarter came in line with analysts' expectations, while revenues fell short.
Palo Alto, California-based Tibco's second-quarter profit dropped to $1.6 million or $0.01 per share from $8.7 million or $0.05 per share last year.
Adjusted earnings for the quarter dropped to $23.0 million or $0.14 per share from $29.7 million or $0.18 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose 3 percent to $252.30 million from $245.9 million last year. Sixteen analysts had a consensus revenue estimate of $252.37 million for the quarter. Tibco provides infrastructure software for companies to use on-premise or as part of cloud computing environment.
'Although we achieved record second quarter revenue, our results fell short of our expectations and we are aggressively focusing on making strategic, operational and organizational changes to address our execution challenges and position TIBCO for sustained growth,' said Chief Executive Vivek Ranadive said.
Total cost of revenues rose to $79.5 million from $74.0 million last year. Total operating costs rose to $159.3 million from $151.0 million last year.
Separately, Tibco said it has appointed Hewlett-Packard executive Todd Bradley as President. Bradley joins Tibco from Hewlett-Packard where he served in various capacities from 2005-2014, including executive vice president of the Printing and Personal Systems Group, a $60 billion annual business.
TIBX closed Thursday's trading at $20.82, down $0.26 or 1.23%, on the Nasdaq. The stock further dropped $0.42 or 2.02% in after-hours trade.
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