Shares in California-based Tibco Software fell 15% in after hours trading yesterday after the vendor warned that its first quarter results will be below market expectations due to a weak performance in Europe and contract delays at the end of the period.
In a statement issued after market close, Tibco says it expects revenue to be in a range of $100m to $102m for the first quarter. License revenues are expected to be between $47 and $49m.
But analysts expected the company to post sales of $118.6 million for the first quarter.
Tibco shares had already taken a battering yesterday falling 8.81%, or 86 cents to $8.90 on Nasdaq. Following the announcement, the shares slipped a further 15% in after hours trading on Inet to $7.59.
Vivek Ranadive, chairman and CEO, Tibco, says: "Given the strength we were seeing in our business and pipeline coming into Q1, and as late as the first part of last week, I did not expect us to produce such disappointing results."
Tibco says the results are primarily due to "lack of execution in certain geographic areas, particularly in Europe". The vendor promised a shake-up at its European operations to implement sales process and procedural changes along with 'leadership changes'.
Says Ranadive: "I believe the issues that led to the shortfall can be corrected and I plan to move swiftly to do just that."