The Palo Alto, California-based company expects to earn profit of 3 to 4 cents per share with revenue in the range of $100 to $102m. In December last year the company forecast profits of 8 cents against sales of between $116m to $120m.
Tibco’s stock took a dive immediately following after the announcement on Tuesday and continued its free-fall yesterday.
During regular trading on Nasdaq yesterday shares fell a further 21% to $7.04. The stock fell 14% during Tuesday’s evening session.
Rumors that Tibco would miss its quarter estimates have been circulating for several weeks.
Tibco said the gloomy outlook is mainly due to lack of execution in key geographic markets like Europe. The company hinted that changes to its sales process and its top senior management in Europe are likely.
Officials also blamed the shortfall on a failure to close several large deals its was banking on to make up its quarterly numbers.
For the last fiscal year, Tibco reported revenue of $387.2m, up 47%, and net profits of $11.4m.
