http://www.morningstar.com/earnings/46536494-tibx-tibx-q4-2012.aspx

TIBX TIBX
Q4 2012 Earnings Call Transcript

Transcript Call Date 12/21/2012

Operator: Good afternoon, ladies and gentlemen. I am Dustin. Welcome to TIBCO's Fourth Quarter 2012 Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. You can also listen to this call via the Internet at www.tibco.com.

Today's call is being recorded and will be available for playback from TIBCO Software's website at www.tibco.com. In addition, replay will be available through InterCall for one month following today's call by dialing 800-585-8367 or 404-537-3406. The passcode for both the call and the replay is 77950749.

The following conference call includes forward-looking statements, which represent TIBCO Software's outlook and guidance only as of today and which are subject to risks and uncertainties. These forward-looking statements include, but are not limited to forecast of revenues, operating margin, operating expenses, outstanding shares, and earnings per share for future periods. Our actual results could differ materially from those projected in such forward-looking statements. Additional information regarding the factors that could cause actual results to differ materially are discussed in the Risk Factors section of TIBCO's most recent reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission. TIBCO assumes no obligation to update the forward-looking statements included in this call whether as a result of new developments or otherwise.

This conference call also includes certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles, as we believe that such information is useful for understanding our financial conditions and results of operations. For a presentation of the most directly comparable financial measures calculated in accordance with GAAP and a reconciliation of the differences between the non-GAAP and GAAP financial information, please see our website at www.tibco.com.

The participants on the call are Vivek Ranadive, TIBCO's Chairman and CEO; Murray Rode, Chief Operating Officer; and Sydney Carey, Chief Financial Officer.

I would now like to turn the call over to Vivek.

Vivek Ranadive - Chairman and CEO: Hello, everyone and thank you for joining us. On today’s call, I will provide some opening remarks on our Q4 and full year performance before turning it over to Murray and Sydney to discuss details and outlook.

As we reported earlier this month, we fell short of expectations this quarter. Total revenue grew 2% over Q4 of 2011 and came in at $296 million. License revenue grew 1% and came in at $136 million. Non-GAAP operating margins were 33%. Non-GAAP EPS came in at $0.42, ahead of our preannouncement range.

For the full year 2012, total revenue grew 11% to $1.025 billion, license revenue grew 9% to $410 million, non-GAAP operating profit grew 11% to $276 million for an operating margin of 27%, and non-GAAP EPS for the year came in at $1.15. In reviewing the quarter’s performance, I’ll share a few summary remarks.

First, as we highlighted on our Q3 call, we had strong pipelines coming into the quarter. Clearly, close rates did not materialize as we expected. Second, the weak performance was concentrated primarily in the Americas infrastructure business. Third, there were 10 to 20 deals that we were expecting that slipped or didn't close for a variety of reasons. I am not going to make excuses. The fact is, we simply did not execute this quarter and I am disappointed in the result.

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