TIBCO Software Delivers Record Profits in Q4

Market Wire, December, 2008

TIBCO Software Inc. (NASDAQ: TIBX) today announced results for its fourth quarter, which ended on November 30, 2008.

Total revenue for the fourth quarter of fiscal 2008 was $185.5 million and net income was $32.3 million, or $0.18 per diluted share. This compares to total revenue of $186.1 million and net income of $27.6 million, or $0.14 per diluted share, as reported for the fourth quarter of fiscal 2007.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2008 was $39.9 million or $0.23 per diluted share, compared with $34.2 million or $0.18 per diluted share for the fourth quarter of fiscal 2007. Non-GAAP operating income for the fourth quarter of fiscal 2008 was $54.0 million, resulting in non-GAAP operating margins of 29%. This compares to non-GAAP operating income of $50.2 million, or 27% non-GAAP operating margins in the fourth quarter of fiscal 2007. Non-GAAP results exclude stock-based compensation expense, amortization of acquired intangible assets, restructuring charges and gains on sales of certain equity investments, and assume a non-GAAP effective tax rate of 30% for fiscal 2008 and 35% for fiscal 2007.

"In spite of a difficult environment, we delivered record operating profits and earnings per share this quarter," said Vivek Ranadivé, TIBCO's chairman and chief executive officer. "As we turn to 2009, I expect a continuing shift away from database oriented solutions to event-based solutions built on 'in-memory' data management systems, as businesses look to more proactively service and acquire customers. TIBCO, with its event-driven infrastructure platform, is well positioned to benefit from this trend."

Fourth Quarter Fiscal 2008 Highlights

--  Total revenue was $185.5 million;

--  License revenue was $90.4 million;

--  Repurchased 6.9 million shares;

--  Strong mix of business across major industries including Financial
    Services, Telecommunications, Energy, Life Sciences and Government;

--  TIBCO closed 135 deals over $100k and had 20 deals over $1 million;

--  TIBCO expanded its business with leading companies in Q4 such as BNP
    Paribas, CIBC World Markets, CareFirst BlueCross BlueShield, Grupo
    Santander, Harvard Pilgrim Healthcare, Merck, Microsoft, Northrop Grumman,
    Scripps Networks, Swisscom, UNUM and Vodafone Group.
    

Full Year Fiscal 2008 Highlights

--  Record total revenue of $644.5 million, an increase of 12% over fiscal
    2007;

--  Record cash flow from operations of $152.5 million, an increase of 49%
    over fiscal 2007;

--  Record non-GAAP EPS of $0.47, vs. $0.38 for fiscal 2007; and

--  Repurchased over 21 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 Thomson Financial and may be accessed over the Internet at www.tibco.com or via dial-in at (877) 856-1956 or (719) 325-4756. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until midnight on January 22, 2009 at www.tibco.com or via dial-in at (888) 203-1112 or (719) 457-0820. The pass code for both the call and the replay is 4604945.

About TIBCO

TIBCO's technology digitized Wall Street in the '80s with event-driven "Information Bus" software, which helped make real-time business a strategic differentiator in the '90s. Today, TIBCO's infrastructure software gives customers the ability to constantly innovate by connecting applications and data in a service-oriented architecture, streamlining activities through business process management, and giving people the information and intelligence tools they need to make faster and smarter decisions, what we call The Power of Now®. TIBCO serves more than 3,000 customers around the world with offices in more than 20 countries and an ecosystem of over 200 partners. Learn more at www.tibco.com .

TIBCO, The Power of Now 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 2008 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 the anticipated shift to event-based solutions built on 'in-memory' data management systems and away from old database technologies and TIBCO's ability to benefit from that shift 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 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, 2007 and Quarterly Report on Form 10-Q for the quarter ended August 30, 2008. TIBCO assumes no obligation to update the forward-looking statements included in this release.