California-based business integration systems firm Tibco Software is warning that second quarter earnings will be below market expectations due to delays in closing several large deals which impacted results for the North American region and financial services sector.
Tibco stock fell 2.84%, or 18 cents, to $6.15 after the vendor issued a statement saying that it expects to report quarterly earnings of two cents to three cents a share on revenue of $100m to $102m for the period ending May 27th 2005. The company expects its licence revenues for the quarter to be approximately $40m to $42m.
Analysts had expected the company to post profits of six cents per share on revenue of $108m.
In a statement, Tibco says the shortfall "occurred primarily due to the slippage in closing several large deals around the world, which particularly impacted the results for the North American region and the financial services sector".
The vendor also reported a shortfall in profit in the first quarter which it said was due to a weak performance in Europe and contract delays.