These are pretty good days to be a small software company. With Oracle (Nasdaq:ORCL), SAP (NYSE:SAP) and Hewlett-Packard (NYSE:HPQ) showing a seemingly indefinite willingness to open their wallets to round out their product verticals, valuations for stand-alones has been on the upward march. With an attractive middleware business in service-oriented architecture, TIBCO (Nasdaq:TIBX) has certainly been buoyed by a favorable one-two of an improving IT market and a nice and toasty M&A environment.
The Quarter That Was
That aforementioned improving IT environment certainly helped TIBCO's fiscal third quarter. Revenue was up 23% (license revenue up 23% and service revenue up 22%), and the company lifted its guidance more than 5% above Wall Street's prior bogey. Although TIBCO beat the revenue guess for this quarter by about 5%, it was not a totally spotless quarter - bears can nitpick that the company did a smaller number of large deals (13 vs. 17 last year) and added fewer new license customers. Still, a beat is a beat, especially when combined with a hike in expectations.
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