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TIBCO Software Grows Total Revenue by 20% Over Q4 2010

Full Year Non-GAAP EPS of $1.01 Increases by 33% Over 2010 (December 21, 2011)

PALO ALTO, CA -- (Marketwire) -- 12/21/11 -- TIBCO Software Inc. (NASDAQ: TIBX) today announced results for its fourth quarter and fiscal year, which ended on November 30, 2011.

Total revenue for the fourth quarter of fiscal 2011 was $289.5 million and net income was $51.9 million, or $0.30 per diluted share. This compares to total revenue of $241.2 million and net income of $37.5 million, or $0.22 per diluted share, as reported for the fourth quarter of fiscal 2010.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2011 was $72.2 million or $0.42 per diluted share, compared with $53.8 million or $0.31 per diluted share for the fourth quarter of fiscal 2010. Non-GAAP operating income for the fourth quarter of fiscal 2011 was $99.8 million, resulting in a non-GAAP operating margin of 34%. This compares to non-GAAP operating income of $76.2 million, or a 32% non-GAAP operating margin in the fourth quarter of fiscal 2010. Non-GAAP results exclude amortization of acquired intangible assets, stock-based compensation expense, acquisition related and other expenses and restructuring activities and assumes a non-GAAP effective tax rate of 28% for fiscal 2011 and 30% for fiscal 2010.

"TIBCO delivered another strong year of accelerating revenue growth and expanded profitability in 2011," said Vivek Ranadivé, TIBCO's chairman and chief executive officer. "As we turn to 2012, we will focus on expanding our sales coverage, extending our event-driven platform, and continuing to broaden the range of industries we serve. Our offerings and the demands of the 21st century enterprise have never been better aligned."


Fourth Quarter Fiscal 2011 Highlights

  • Record total revenue of $289.5 million;
  • License revenue of $134.7 million;
  • Non-GAAP operating margin of 34%;
  • Record non-GAAP EPS of $0.42;
  • Cash flow from operations of $63.9 million;
  • Repurchased 1.9 million shares;
  • Strong mix of business across major industries including Financial Services, Telecommunications, Energy, Government, Manufacturing, Life Sciences, and Transportation & Logistics;
  • TIBCO closed 181 deals over $100k and had 28 deals over $1 million; and
  • TIBCO expanded its business with leading companies and agencies in the fourth quarter such as Apache Corporation, Banco Sabadell, Candeal, M-Net Telekommunikations, Medecins Sans Frontieres, The Nielsen Company, Oklahoma Gas & Electric, Paul Hartmann AG, Southwest Airlines, University of Michigan School of Public Health, and Ziggo BV.

Full Year Fiscal 2011 Highlights

  • Record total revenue of $920.2 million;
  • License revenue of $377.6 million;
  • Non-GAAP operating margin of 27%;
  • Record non-GAAP EPS of $1.01, vs. $0.76 for fiscal 2010;
  • Cash flow from operations of $208.0 million; and
  • Repurchased 7.3 million shares.

Conference Call Details

TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT today to discuss its fourth quarter results. The conference call will be hosted by InterCall and may be accessed over the internet at www.tibco.com or via dial-in at 877-293-9114 or 706-758-2055. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until midnight PT on January 21, 2012 at www.tibco.com or via dial-in at 800-585-8367 or 404-537-3406. The pass code for both the call and the replay is 33209720.

About TIBCO

TIBCO Software Inc. (NASDAQ: TIBX) is a provider of infrastructure software for companies to use on-premise or as part of cloud computing environments. Whether it's efficient claims or trade processing, cross-selling products based on real-time customer behavior, or averting a crisis before it happens, TIBCO provides companies the two-second advantage™ -- the ability to capture the right information, at the right time and act on it preemptively for a competitive advantage. More than 4,000 customers worldwide rely on TIBCO to manage information, decisions, processes and applications in real-time. Learn more at www.tibco.com.

TIBCO, The Power of Now, the two-second advantage, and TIBCO Software are trademarks or registered trademarks of TIBCO Software Inc. in the United States and/or other countries. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.

About Non-GAAP Financial Information
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section entitled "About Non-GAAP Financial Measures" and the accompanying table entitled "Reconciliation of GAAP to Non-GAAP Measures."

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws. The final financial results for fourth quarter of fiscal year 2011 may differ materially from the preliminary results presented in this release due to factors that include, but are not limited to, risks associated with the final review of the results and preparation of financial statements. In addition, forward-looking statements such as statements regarding TIBCO's ability to expand its sales coverage, extend its event-driven platform, broaden the range of industries in its customer base, and capitalize on the alignment of its offerings with the demands of the 21st century enterprise are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks include but are not limited to: our ability to meet our hiring plans, adapt to new technologies and evolving industry trends; and competitive factors, including but not limited to competition from alternative business models, industry consolidation and new product introductions. Additional information regarding potential risks is provided in TIBCO's filings with the SEC, including its most recent Annual Report on Form 10-K for the year ended November 30, 2010 and Quarterly Report on Form 10-Q for the quarter ended August 28, 2011. TIBCO assumes no obligation to update the forward-looking statements included in this release.

TIBCO Software Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) November 30, --------------------------- 2011 2010 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 308,148 $ 243,989 Short-term investments 225 1,504 Accounts receivable, net 196,419 185,740 Prepaid expenses and other current assets 61,864 57,889 ------------- ------------- Total current assets 566,656 489,122 Property and equipment, net 89,871 88,523 Goodwill 451,821 409,545 Acquired intangible assets, net 97,258 104,818 Long-term deferred income tax assets 78,656 66,671 Other assets 48,676 46,320 ------------- ------------- Total assets $ 1,332,938 $ 1,204,999 ============= ============= LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 25,802 $ 23,815 Accrued liabilities 129,168 108,576 Deferred revenue 210,234 182,895 Current portion of long-term debt 2,397 2,269 Accrued restructuring costs 6,792 2,714 ------------- ------------- Total current liabilities 374,393 320,269 Long-term deferred revenue 14,876 15,212 Long-term deferred income tax liabilities 4,540 4,257 Long-term income tax liabilities 20,772 14,044 Long-term debt, less current portion 65,711 38,108 Accrued restructuring costs, less current portion 1,050 513 Other long-term liabilities 2,445 2,865 ------------- ------------- Total long-term liabilities 109,394 74,999 ------------- ------------- Total liabilities 483,787 395,268 ------------- ------------- Total equity 849,151 809,731 ------------- ------------- Total liabilities and equity $ 1,332,938 $ 1,204,999 ============= =============



TIBCO Software Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except net income per share) Three Months Ended Year Ended November 30, November 30, -------------------- -------------------- 2011 2010 2011 2010 --------- --------- --------- --------- Revenue: License $ 134,706 $ 114,695 $ 377,618 $ 301,532 Service and maintenance 154,805 126,522 542,628 452,475 --------- --------- --------- --------- Total revenue 289,511 241,217 920,246 754,007 --------- --------- --------- --------- Cost of revenue: License 9,743 10,738 35,309 35,325 Service and maintenance 59,604 47,079 212,066 162,468 --------- --------- --------- --------- Total cost of revenue 69,347 57,817 247,375 197,793 --------- --------- --------- --------- Gross profit 220,164 183,400 672,871 556,214 Operating expenses: Research and development 38,271 35,680 143,173 124,654 Sales and marketing 81,752 71,736 285,366 240,357 General and administrative 16,330 13,617 59,990 49,260 Amortization of acquired intangible assets 4,596 4,624 19,149 16,414 Acquisition related and other 154 881 1,840 3,421 Restructuring 8,816 121 8,926 6,953 --------- --------- --------- --------- Total operating expenses 149,919 126,659 518,444 441,059 --------- --------- --------- --------- Income from operations 70,245 56,741 154,427 115,155 Interest income 198 523 1,374 1,349 Interest expense (1,083) (1,020) (4,020) (4,123) Other income (expense), net 83 (543) (1,846) (1,509) --------- --------- --------- --------- Income before provision for income taxes and noncontrolling interest 69,443 55,701 149,935 110,872 Provision for income taxes 17,504 18,065 37,300 32,401 --------- --------- --------- --------- Net income 51,939 37,636 112,635 78,471 Less: Net income attributable to noncontrolling interest 61 142 229 383 --------- --------- --------- --------- Net income attributable to TIBCO Software Inc. $ 51,878 $ 37,494 $ 112,406 $ 78,088 ========= ========= ========= ========= Net income per share attributable to TIBCO Software Inc.: Basic $ 0.32 $ 0.23 $ 0.70 $ 0.49 ========= ========= ========= ========= Diluted $ 0.30 $ 0.22 $ 0.65 $ 0.46 ========= ========= ========= ========= Shares used to compute net income per share attributable to TIBCO Software Inc.: Basic 161,586 160,013 161,469 160,959 ========= ========= ========= ========= Diluted 171,978 172,899 173,272 170,953 ========= ========= ========= =========



TIBCO Software Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Year Ended November 30, -------------------------- 2011 2010 ------------ ------------ Cash flows from operating activities: Net income $ 112,635 $ 78,471 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 13,145 13,414 Amortization of acquired intangible assets 34,661 32,494 Stock-based compensation 48,867 32,248 Deferred income tax 1,266 (8,478) Tax benefits related to stock benefit plans 8,552 30,626 Excess tax benefits from stock-based compensation (41,950) (21,510) Other non-cash adjustments, net 476 225 Changes in assets and liabilities: Accounts receivable (3,312) (25,909) Prepaid expenses and other assets 5,631 14,518 Accounts payable 501 3,829 Accrued liabilities and restructuring costs 7,015 (12,553) Deferred revenue 20,563 11,382 ------------ ------------ Net cash provided by operating activities 208,050 148,757 ------------ ------------ Cash flows from investing activities: Purchases of short-term investments (76) (1,313) Maturities and sales of short-term investments 1,451 183 Acquisitions, net of cash acquired (63,610) (78,573) Proceeds from private equity investments - 485 Purchases of property and equipment (13,971) (6,399) Restricted cash pledged as security (3,234) (5,498) ------------ ------------ Net cash used in investing activities (79,440) (91,115) ------------ ------------ Cash flows from financing activities: Proceeds from issuance of common stock 80,610 86,940 Proceeds from revolving credit facility 30,000 - Repurchases of the Company's common stock (194,059) (204,280) Witholding taxes related to restricted stock net share settlement (17,922) (6,140) Excess tax benefits from stock-based compensation 41,950 21,510 Principal payments on long-term debt (2,269) (3,492) ------------ ------------ Net cash used in financing activities (61,690) (105,462) ------------ ------------ Effect of foreign exchange rate changes on cash and cash equivalents (2,761) (720) ------------ ------------ Net change in cash and cash equivalents 64,159 (48,540) Cash and cash equivalents at beginning of period 243,989 292,529 ------------ ------------ Cash and cash equivalents at end of period $ 308,148 $ 243,989 ============ ============

About Non-GAAP Financial Measures
TIBCO provides non-GAAP measures for operating income, net income and net income per share data as supplemental information regarding TIBCO's business performance. TIBCO believes that these non-GAAP financial measures are useful to investors because they exclude non-operating charges. TIBCO's management excludes these non-operating charges when it internally evaluates the performance of TIBCO's business and makes operating decisions, including internal budgeting, performance measurement and the calculation of bonuses and discretionary compensation, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes these non-GAAP measures reflect the essential revenue generation activities of TIBCO. Accordingly, management excludes stock-based compensation related to employee stock options, amortization of acquired intangible assets, costs related to formal restructuring activities, acquisition-related and other expenses, gains and losses on equity investments, and the income tax effects of the foregoing, as well as adjustments for the impact of changes in the valuation allowance recorded against TIBCO's deferred tax assets when making operational decisions.

TIBCO believes that providing the non-GAAP measures that management uses to its investors is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand TIBCO's financial performance on a trended basis across historical periods. In addition, it allows investors to evaluate TIBCO's performance using the same methodology and information as that used by TIBCO's management.

Non-GAAP measures are subject to material limitations as these measures are not in accordance with, or a substitute for, GAAP and thus TIBCO's definition may be different from similar non-GAAP measures used by other companies and/or analysts. However, TIBCO's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. In addition, some items such as restructuring charges that are excluded from non-GAAP net income and non-GAAP earnings per share can have a material impact on cash flows and stock compensation charges can have a significant impact on earnings. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. TIBCO has historically provided non-GAAP measures to the investment community as a supplement to its GAAP results, to enable investors to evaluate TIBCO's business performance
in the way that management does.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization of Intangible Assets

TIBCO has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions TIBCO has made. Management excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. TIBCO believes that eliminating this expense from its non-GAAP measures is useful to investors, because the amortization of intangible assets can be inconsistent in amount and frequency and is significantly impacted by the timing and magnitude of TIBCO's acquisition transactions, which also vary substantially in frequency from period to period.

Stock-based Compensation

TIBCO incurs stock-based compensation expense. TIBCO excludes this item for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share because it is a non-cash expense that TIBCO believes is not reflective of its business performance. The nature of the stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expenses may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Finally, TIBCO believes that non-GAAP measures of profitability that exclude stock-based compensation are widely used by analysts and investors in the software industry.

Acquisition-related and Other Expenses

TIBCO has incurred acquisition-related and other expenses which consist of costs incurred after the issuance of a definitive term sheet for a particular transaction (whether or not such transaction is ultimately completed, remains in process or is not completed) and include legal, banker, accounting and other advisory fees of third parties and severance costs for employees of the acquired company that are terminated within 90 days of the acquisition date. Management excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. TIBCO believes that eliminating these expenses from its non-GAAP measures is useful to investors, because it generally would not have otherwise incurred such expenses in the periods presented as part of its continuing operations. The acquisition-related and other expenses are not recurring with respect to past transactions, can be inconsistent in amount and frequency from period to period and are significantly impacted by the timing and magnitude of TIBCO's acquisitions. While these expenses are not recurring with respect to past transactions, TIBCO generally will incur these expenses in connection with any future acquisitions.

Restructuring Activities

TIBCO has incurred restructuring expenses, included in its GAAP presentation of operating expense, primarily due to workforce related charges such as payments for severance and benefits and estimated costs of exiting and terminating facility lease commitments related to a formal restructuring plan. TIBCO excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share, when it evaluates the continuing business performance of TIBCO. TIBCO believes that these items are not consistently recurring and do not necessarily reflect expected future operating expense, nor does TIBCO believe that they provide a meaningful evaluation of current versus past business results or the expense levels required to support TIBCO's operating plan.

TIBCO Software Inc. Reconciliation of GAAP to Non-GAAP Measures (unaudited) (in thousands, except net income per share) Three Months Ended November 30, 2011 2010 ---------------------- ---------------------- Net income Net income attributable attributable to TIBCO to TIBCO Operating Software Operating Software Income Inc. Income Inc. --------- ------------ --------- ----------- GAAP $ 70,245 $ 51,878 $ 56,741 $ 37,494 Amortization of intangible assets - cost of revenue 3,277 3,277 4,635 4,635 Amortization of intangible assets - operating expense 4,596 4,596 4,624 4,624 Stock-based compensation - cost of revenue 1,167 1,167 800 800 Stock-based compensation - R&D expense 2,856 2,856 2,239 2,239 Stock-based compensation - S&M expense 4,350 4,350 3,410 3,410 Stock-based compensation - G&A expense 4,308 4,308 2,706 2,706 Acquisition related and other 154 154 881 881 Restructuring 8,816 8,816 121 121 Income tax adjustment for non-GAAP - (9,217) - (3,067) --------- ------------ --------- ------------ Non-GAAP $ 99,769 $ 72,185 $ 76,157 $ 53,843 ========= ============ ========= ============ Diluted net income per share attributable to TIBCO Software Inc.: GAAP $ 0.30 $ 0.22 ============ ============ Non-GAAP $ 0.42 $ 0.31 ============ ============ Shares used to compute diluted net income per share attributable to TIBCO Software Inc.: 171,978 172,899 ============ ============ TIBCO Software Inc. Reconciliation of GAAP to Non-GAAP Measures (unaudited) (in thousands, except net income per share) Year Ended November 30, 2011 2010 ---------------------- ---------------------- Net income Net income attributable attributable to TIBCO to TIBCO Operating Software Operating Software Income Inc. Income Inc. --------- ------------ --------- ------------ GAAP $ 154,427 $ 112,406 $ 115,155 $ 78,088 Amortization of intangible assets - cost of revenue 15,512 15,512 16,080 16,080 Amortization of intangible assets - operating expense 19,149 19,149 16,414 16,414 Stock-based compensation - cost of revenue 4,715 4,715 2,909 2,909 Stock-based compensation - R&D expense 11,441 11,441 8,065 8,065 Stock-based compensation - S&M expense 17,206 17,206 11,390 11,390 Stock-based compensation - G&A expense 15,505 15,505 9,884 9,884 Acquisition related and other 1,840 1,840 3,421 3,421 Restructuring 8,926 8,926 6,953 6,953 Income tax adjustment for non-GAAP - (31,431) - (23,395) --------- ------------ --------- ------------ Non-GAAP $ 248,721 $ 175,269 $ 190,271 $ 129,809 ========= ============ ========= ============ Diluted net income per share attributable to TIBCO Software Inc.: GAAP $ 0.65 $ 0.46 ============ ============ Non-GAAP $ 1.01 $ 0.76 ============ ============ Shares used to compute diluted net income per share attributable to TIBCO Software Inc.: 173,272 170,953 ============ ============

Media Relations Contact:
Holly Gilthorpe
TIBCO Software Inc.
(650) 846-5624
Email Contact

Investor Relations Contact:
Matthew Langdon
TIBCO Software Inc.
(650) 846-5747
Email Contact


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