Tibco Software Cuts Forecast

Certain deals fell out of the quarter.
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SAN FRANCISCO -- Tibco Software (TIBX) warned that second-quarter revenue would fall short of projections, as expected deals slipped out of its grasp.

The Palo Alto, Calif., maker of middleware -- component-connecting software -- said revenue would range between $147 million and $149 million, vs. $130.5 million for the same quarter of 2007. Analysts were expecting revenue of $154.1 million, according to Thomson Reuters. Tibco had previously projected revenue of $153 million to $156 million.

Excluding special items, EPS will be 5 cents or 6 cents. Analysts were looking for 8 cents.

Shares were down 69 cents, or 8.9%, to $7.03 in extended trading.

"We saw a mixed picture this quarter," with sales falling short in the Americas, Chairman and CEO Vivek Ranadive said in a statement.

"We completed significant, multi-million-dollar deals in vertical markets," Ranadive stated. "However, we did see deals slip out late in the quarter."

Tibco will release its full earnings report June 26.

In contrast, Tibco middleware competitor


(ORCL) - Get Report

surpassed its 52-week high of $23.31 Tuesday on anticipation that the company had a good quarter, which ended in May. The software conglomerate ended the day up 23 cents, or 1%, to $22.91.

"Our early checks indicate a positive tone to Oracle's overall North America business," JMP Securities analyst Patrick Walravens wrote in a note Tuesday. He expects Oracle's license revenue for the Americas to be up 17% year over year.

However, "a weak macroeconomic environment could easily derail Oracle in fiscal 2009, particularly given an extensive reorganization in the new fiscal year and the BEA acquisition," Walravens wrote.

Analysts are expecting Oracle to report revenue of $6.83 billion when it reports on its fourth fiscal quarter June 25. Much of the company's revenue comes from support contracts.