Updated from 5:06 p.m. EDT
Integration software maker
warned Tuesday that second-quarter financial results will fall short of Wall Street estimates and company guidance.
In a press release issued after the markets closed, Palo Alto-based Tibco also announced the resignation of a top sales executive.
Shares of Tibco rose 2 cents, or 0.4%, to close at $5.38. In after-hours trading, shares fell to $4.50.
Tibco said it expects to report a net loss of between 18 cents to 23 cents a share on revenue ranging from $63 million to $65 million in the second quarter, which ended May 31. On a pro forma basis, earnings should range from break even to a net loss of 2 cents a share.
That falls short of the consensus estimate calling for Tibco to report pro forma income of 4 cents a share on $80.3 million in revenue.
In the second quarter last year, Tibco registered a net loss of $17.8 million, or 9 cents a share, on $83.7 million in revenue. Excluding charges, Tibco reported pro forma net income of 4 cents a share in the year-ago quarter.
Second-quarter revenue also fell sequentially from $74 million in the first quarter.
"This was a little bit more of a miss than we had expected," said Brian Salerno, a portfolio manager with Birmingham, Mich.-based Munder Capital, which manages about $1.25 billion in its tech funds. Expecting some miss, Munder had cut its position in Tibco in half a month ago, Salerno said.
"To put it in perspective, we'll have to see what the other software companies say as well," Salerno said. "If it's in line with everybody, we're just all in a really, really bad sea right now with waves crashing all around us."
"I think bad things are going to be widespread this quarter," he added. "I don't think a lot of it managers are buying enterprise software."
Investors have been bracing for a warning from another software maker --
-- whose quarter also ended Friday. Oracle, however, has yet to disappoint.
In Tibco's case, though, several analysts also have feared the company's guidance for the quarter had been overly bullish. Last quarter, Tibco slightly missed Wall Street revenue estimates but did not lower second-quarter or full-year guidance, in contrast to other software makers. In the company's earnings call in March, Chief Financial Officer Chris O'Meara said the company was comfortable with second-quarter Wall Street estimates of $82 million in revenue and 4 cents in pro forma earnings.
But the quarter apparently proved more difficult than the company expected. "The current environment for selling enterprise software has never been more difficult," Chairman and CEO Vivek Ranadive said in a prepared statement Tuesday. On the company's earnings call in March, Ranadive told investors the company believes the market has bottomed.
On Tuesday, Tibco also said Frank Bergandi, executive vice president of worldwide sales and field operations, has resigned. No replacement has been named.
The company will provide more detailed second-quarter financial guidance on a conference call June 20.