Tibco Performs Well and Axes Sales Exec
July 11, 2012
Infrastructure software outfit Tibco has had a busy time recently. Presumably, the company is happily celebrating its strong quarter; the Wall St. Cheat Sheet informs us, “TIBCO Software Earnings: Beats Analysists’ Estimates.” Meanwhile, we learn they have reshuffled some staff in Reuters’ “Tibco Removes Americas Sales Head.”
Tibco’s second quarter net income rose by 26% over the first quarter, from $21 million to $26.6 million. Their adjusted net income came to 26 cents per share, smashing the expectations of only 17 cents per share. This is the fourth quarter in a row Tibco has exceeded forecasts. Will they surprise the prognosticators again next quarter? Perhaps; the Wall St. Cheat Sheet write up reports that “analysts appear increasingly negative about the company’s results for the next quarter.” You’d think they’d learn.
The Reuters’ piece illustrates one potential reason for Tibco’s success—they fix things that aren’t working for them. The performance of their former US head of sales did not meet with expectations, so they have simply removed him. Regional sales vice presidents in this hemisphere will now report directly to the executive VP of global sales. The article reports:
“‘I was not happy with the way we were executing for the last three or four quarters,’ Chief Executive Vivek Ranadivé said on a conference call with analysts. ‘We felt that execution in other geographies like Europe and Asia was very strong. I felt we were leaving too much money on the table.’
“Sales at Tibco’s Americas business grew 13 percent in the second quarter, compared with a 22 percent growth in Europe and 27 percent in Asia. The Americas accounted for more than half of the company’s overall sales in 2011.”
Tibco‘s infrastructure platform focuses on real-time event processing and on easy-to-understand analytics. The company’s headquarters are in Palo Alto, CA, but it has offices around the world. Launched in 1997, Tibco workers prides themselves on “flawless” execution and delivery, and seem to enjoy helping clients navigate today’s shifting business landscape.
Cynthia Murrell, July 11, 2012
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