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Tibco removes Americas sales head
Fri, Jun 29 15:25 PM EDT

(Reuters) - Tibco Software Inc (TIBX.O) has removed its U.S. head of sales, Robin Gilthorpe, as the software maker reorganizes its business in its biggest market.

"I was not happy with the way we were executing for the last three or four quarters," Chief Executive Vivek Ranadivé said on a conference call with analysts.

"We felt that execution in other geographies like Europe and Asia was very strong. I felt we were leaving too much money on the table."

Sales at Tibco's Americas business grew 13 percent in the second quarter, compared with a 22 percent growth in Europe and 27 percent in Asia. The Americas accounted for more than half of the company's overall sales in 2011.

The company, which makes software that helps manage data flow, said its regional sales vice presidents in the Americas would now report directly to Murat Sonmez, Tibco's Executive VP of Global Sales.

Tibco was not immediately available to confirm Gilthorpe's removal.

MIXED RESULTS

The company's quarterly results beat analysts' estimates, as revenue from new licenses jumped, but it forecast third-quarter earnings mostly below expectations.

Tibco, a former unit of Reuters that was taken public in 1999, expects adjusted earnings of 25 cents to 27 cents per share, and revenue of $255 million to $265 million for the third quarter.

Analysts on average were expecting earnings of 27 cents per share on revenue of $260.63 million, according to Thomson Reuters I/B/E/S.

Second-quarter net income rose to $26.5 million, or 16 cents per share, from $21 million, or 12 cents per share, a year earlier.

Excluding items, it earned 26 cents per share.

Tibco, which competes with Progress Software Corp (PRGS.O) and bigger vendor Oracle ORCL.O, said revenue rose 14 percent to $247.4 million.

Revenue from licenses grew 13 percent to $92.6 million.

In 2011, licenses fess contributed 41 percent to Tibco's net revenue.

Analysts were expecting earnings of 23 cents per share on revenue of $244.9 million.

Oracle set the tone for business software makers last week when it reported a stronger-than-expected quarterly profit, releasing the results three days ahead of schedule after news of the pending departure of a senior sales executive fueled concerns that business was stagnating.

Tibco shares were down marginally at $26.50 in after-market trading. They closed at $26.83 on Thursday on the Nasdaq.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Saumyadeb Chakrabarty)

(This story corrected in paragraph 8 to remove reference to the company being spun off from Reuters)


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