Global leader: Vivek Ranadive, founder, CEO, chairman
Local leader: Mark Fahmy, regional VP, Australia and New Zealand
Core activity: Business process management and integration software
Revenue: US$594 million (FY08 ended August)
Key customers: Delta Airlines, FedEx, Merrill Lynch, Telecom Italia, BMC Software, Agilent Technologies, Energy Australia, Toshiba, BP, Logica
For a business earning a fifth of revenues from the financial services sector, the current global financial crisis could be devastating.
In September Tibco announced quarterly earnings of US$162.3 million, better than expected and 20 per cent up on last year.
In a conference call on the results, reported by the Seeking Alpha website, Tibco executives saw the current turmoil as presenting new opportunities for their business, as banks seek to cut costs or merge.
Tibco makes business process management (BPM) and business integration software, which includes applications to integrate, manage and monitor enterprise applications. They also co-ordinate business process and activities and securely exchange information with trading partners.
The company, created in 1985, is credited with playing a role in the growth of the enterprise portal space, through its MarketSheet product of the 1990s, which was used mainly in the finance industry and in trading rooms.
The company’s best known products include Tibco Business Works, Tibco Rendezvous and Tibco Enterprise Message Server (messaging) and the Tibco iProcess Suite.
Its competitors include IBM, Oracle and SAP, but the Motley Fool website sees Tibco as ripe for a takeover. IDC lists Tibco as a leader in complex events processing, above IBM and other rivals.
Software for SOA provides 52 per cent of its revenue, business optimisation 35 per cent and BPM 13 per cent. By industry sector 21 per cent of the company’s revenue is from financial services, telcos 15 per cent, energy 10 per cent, government 9 per cent and manufacturing 5 per cent. Government, telcos and BPM are its fastest growing sectors.
Tibco claims “little exposure” to the hardest-hit investment banking sector, saying it has focused on retail banking. Looking ahead, the company says it is optimistic about the future, but will proceed cautiously. Darren Greenwood