TIBCO's Third-Quarter Jubilation

California-based enterprise software provider TIBCO (NAS: TIBX) posted better-than-expected third-quarter results, beating Street estimates. Revenue and earnings both experienced double-digit growth. So will investors benefit from the company?

Impressive figures
TIBCO posted a 24% increase in revenue and 35% increase in its earnings. The solid growth was backed by its license revenue, which grew by a whopping 29% to $91 million. The company is doing a good job leveraging upon its event-driven software platform, which provides information to help enterprises make real-time business decisions.

TIBCO's services revenue, which is mainly composed of professional services, training, and maintenance, was up 21% to $138.1 million when compared to the same quarter last year.

TIBCO is a worldwide player that caters to different industrial sectors across regions. The company provides tools to help companies make decisions in an uncertain economic climate.

Points of concern
TIBCO has products that cater to the financial services sector, an area of the economy that's had a big bull's-eye on it since the financial crisis. Revenues generated from this sector contracted by about 4%.

The company can do better if it focuses on the emerging markets since they are currently driving the top line across industries. Yet the company's biggest market is North America with a 54% contribution to sales. Asia-Pacific and Japan contribute the least with 10%.

TIBCO has created a space for itself in the market and is now competing against players such as IBM (NYS: IBM) , Oracle (NAS: ORCL) , and SAP (NYS: SAP) . I think the company can capitalize on its current market position and add potential customers from the regions that are more economically stable, like the Asia-Pacific region.

The launch of tibbr, an enterprise social networking tool, may help boost TIBCO's riches. TIBCO already has 4,000 enterprises in its network and might tap on these members by providing more customized products and services.

The acquisition of Nimbus Partners, a U.K.-based provider of business process solutions, should also help the company serve the European region better.

Foolish takeaway
TIBCO has shown good top-line and bottom-line growth. The company is in the growing phase and can prove worthy to its investors should it continue to execute. I believe the company is worth watching.

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At the time thisarticle was published Abantika Chatterjee doesn't own any shares of the companies mentioned above. The Motley Fool owns shares of International Business Machines and Oracle. Motley Fool newsletter services have recommended buying shares of TIBCO Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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