TIBCO Software Reports Second Quarter Results

PALO ALTO, CA--(Marketwired - Jun 20, 2013) - TIBCO Software Inc. ( NASDAQ : TIBX ) today announced results for its fiscal second quarter which ended on June 2, 2013.

Total revenue for the second quarter of fiscal 2013 was $245.8 million and net income was $8.7 million, or $0.05 per diluted share. This compares to total revenue of $247.4 million and net income of $26.5 million, or $0.16 per diluted share, as reported for the second quarter of fiscal 2012.

On a non-GAAP basis, net income for the second quarter of fiscal 2013 was $29.7 million or $0.18 per diluted share, compared with $43.6 million or $0.26 per diluted share for the second quarter of fiscal 2012. Non-GAAP operating income for the second quarter of fiscal 2013 was $45.3 million, resulting in a non-GAAP operating margin of 18.4%. This compares to non-GAAP operating income of $61.8 million, or a 25.0% non-GAAP operating margin in the second quarter of fiscal 2012. Non-GAAP results exclude amortization of acquired intangible assets, stock-based compensation expense, acquisition related and other expenses, restructuring activities and non-cash interest expense related to convertible debt and assumes non-GAAP effective tax rates of 26% and 27% for the second quarter of fiscal 2013 and 2012, respectively.

"Improving sales execution remains our top priority. While work remains to be done, we saw signs of improvement and a healthier base of activity this quarter," said Vivek Ranadivé, TIBCO's chairman and chief executive officer. "Given the opportunity we see, we continue to invest for growth and innovation. Our ability to extract insights from static and real-time data and then operationalize those insights to help customers achieve the Two Second Advantage is a powerful driver and well-aligned with market needs in this era of big data."

Second Quarter Fiscal 2013 Highlights

  • Total revenue of $245.8 million;
  • License revenue of $82.3 million;
  • Non-GAAP operating margin of 18.4%;
  • Non-GAAP EPS of $0.18;
  • Cash flow from operations of $24.9 million;
  • Broad mix of business across major industries including Financial Services, Communications, Energy, Retail, Manufacturing, Transportation & Logistics, Government, Life Sciences;
  • TIBCO closed 147 deals over $100k and had 12 deals over $1 million.

Conference Call Details

TIBCO has scheduled a conference call for 4:30 pm ET / 1:30 pm PT today to discuss its second quarter results. The conference call will be hosted by InterCall and may be accessed over the internet at www.tibco.com or via dial-in at 877-293-9114 or 706-679-0841. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until midnight ET on July 20, 2013 at www.tibco.com or via dial-in at 800-585-8367 or 404-537-3406. The pass code for both the call and the replay is 91499868.


TIBCO Software Inc. ( NASDAQ : TIBX ) is a provider of infrastructure software for companies to use on-premise or as part of cloud computing environments. Whether it's optimizing claims, processing trades, cross-selling products based on real-time customer behavior, or averting a crisis before it happens, TIBCO provides companies the two-second advantage® -- the ability to capture the right information at the right time and act on it preemptively for a competitive advantage. More than 4,000 customers worldwide rely on TIBCO to manage information, decisions, processes and applications in real time. Learn more at www.tibco.com.

TIBCO, two-second advantage and TIBCO Software are trademarks or registered trademarks of TIBCO Software Inc. in the United States and/or other countries. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.

About Non-GAAP Financial Information

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section entitled "About Non-GAAP Financial Measures" and the accompanying table entitled "Reconciliation of GAAP to Non-GAAP Measures." 

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws. The final financial results for second quarter of fiscal year 2013 may differ materially from the preliminary results presented in this release due to factors that include, but are not limited to, risks associated with the final review of the results and preparation of financial statements. In addition, forward-looking statements such as statements regarding TIBCO's ability to improve its sales execution, TIBCO's ability to deliver growth, and TIBCO's ability to benefit from current IT trends, are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks include but are not limited to: risks arising from adverse changes and uncertainty in domestic and global economies, TIBCO's ability to implement successfully the changes designed to improve performance and drive growth, the impact of competition from alternative business models and new product introductions, TIBCO's ability to offer differentiated products that capitalize on current technology trends, and the impact of competition from companies that are larger or have greater resources than TIBCO. Additional information regarding potential risks is provided in TIBCO's filings with the SEC, including its most recent Annual Report on Form 10-K for the year ended November 30, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 3, 2013. TIBCO assumes no obligation to update the forward-looking statements included in this release.

TIBCO Software Inc.
Condensed Consolidated Balance Sheets
(in thousands)
    June 2,
  November 30,
Current assets:            
  Cash and cash equivalents   $ 662,769   $ 727,309
  Short-term investments     63,785     34,411
  Accounts receivable, net     187,703     234,100
  Prepaid expenses and other current assets     64,408     61,174
    Total current assets     978,665     1,056,994
Property and equipment, net     95,959     98,474
Goodwill     529,016     532,290
Acquired intangible assets, net     110,342     123,261
Long-term deferred income tax assets     80,920     64,549
Other assets     64,463     71,340
    Total assets   $ 1,859,365   $ 1,946,908
Current liabilities:            
  Accounts payable   $ 32,672   $ 22,809
  Accrued liabilities     109,562     133,596
  Accrued restructuring costs     658     893
  Deferred revenue     248,456     263,476
  Current portion of long-term debt     -     35,711
    Total current liabilities     391,348     456,485
Accrued restructuring costs, less current portion     334     643
Long-term deferred revenue     25,667     25,543
Long-term deferred income tax liabilities     2,545     3,208
Long-term income tax liabilities     31,656     26,263
Other long-term liabilities     4,690     4,015
Convertible debt     532,139     524,466
    Total long-term liabilities     597,031     584,138
    Total liabilities     988,379     1,040,623
Total equity     870,986     906,285
    Total liabilities and equity   $ 1,859,365   $ 1,946,908
TIBCO Software Inc.  
Condensed Consolidated Statements of Operations  
(in thousands, except net income per share)  
    Three Months Ended     Six Months Ended  
    June 2,
    June 3,
    June 2,
    June 3,
  License   $ 82,266     $ 92,581     $ 160,529     $ 174,896  
  Service and maintenance     163,580       154,782       323,107       298,169  
      Total revenue     245,846       247,363       483,636       473,065  
Cost of revenue:                                
  License     11,108       9,401       22,369       18,441  
  Service and maintenance     62,863       59,486       125,239       116,536  
      Total cost of revenue     73,971       68,887       147,608       134,977  
Gross profit     171,875       178,476       336,028       338,088  
Operating expenses:                                
  Research and development     42,575       38,605       84,200       75,926  
  Sales and marketing     85,224       78,923       165,313       154,641  
  General and administrative     17,924       17,407       36,849       35,002  
  Amortization of acquired intangible assets     4,713       5,653       9,034       10,201  
  Acquisition related and other     568       929       895       1,325  
  Restructuring adjustment     (22 )     (400 )     (15 )     (519 )
      Total operating expenses     150,982       141,117       296,276       276,576  
Income from operations     20,893       37,359       39,752       61,512  
  Interest income     225       221       423       476  
  Interest expense     (8,663 )     (4,395 )     (17,445 )     (5,860 )
  Other income (expense), net     (569 )     572       (1,411 )     1,548  
Income before provision for income taxes and noncontrolling interest     11,886       33,757       21,319       57,676  
Provision for income taxes     3,100       7,200       3,000       10,500  
Net income     8,786       26,557       18,319       47,176  
Less: Net income attributable to noncontrolling interest     71       65       99       43  
Net income attributable to TIBCO Software Inc.   $ 8,715     $ 26,492     $ 18,220     $ 47,133  
Net income per share attributable to TIBCO Software Inc.:                                
  Basic   $ 0.05     $ 0.17     $ 0.11     $ 0.29  
  Diluted   $ 0.05     $ 0.16     $ 0.11     $ 0.28  
Shares used to compute net income per share attributable to TIBCO Software Inc.:                                
  Basic     160,877       160,437       161,199       160,949  
  Diluted     167,507       169,477       168,320       170,173  
TIBCO Software Inc.  
Condensed Consolidated Statements of Cash Flows  
(in thousands)  
    Six Months Ended  
    June 2,
    June 3,
Cash flows from operating activities:                
  Net income   $ 18,319     $ 47,176  
  Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation of property and equipment     7,839       7,050  
    Amortization of acquired intangible assets     17,377       17,365  
    Amortization of debt discount and transaction costs     9,460       2,210  
    Stock-based compensation     31,335       29,718  
    Deferred income tax     (15,007 )     (9,281 )
    Tax benefits related to stock benefit plans     5,278       9,406  
    Excess tax benefits from stock-based compensation     (7,139 )     (16,484 )
    Other non-cash adjustments, net     506       531  
  Changes in assets and liabilities:                
    Accounts receivable     43,573       16,751  
    Prepaid expenses and other assets     (2,633 )     4,290  
    Accounts payable     10,698       (981 )
    Accrued liabilities and restructuring costs     (17,264 )     (20,373 )
    Deferred revenue     (14,264 )     29,563  
      Net cash provided by operating activities     88,078       116,941  
Cash flows from investing activities:                
  Purchases of short-term investments     (38,261 )     -  
  Maturities and sales of short-term investments     8,829       -  
  Acquisitions, net of cash acquired     (4,261 )     (131,611 )
  Purchases of property and equipment     (5,768 )     (11,224 )
  Restricted cash pledged as security     (668 )     (1,149 )
  Other investing activities, net     288       414  
      Net cash used in investing activities     (39,841 )     (143,570 )
Cash flows from financing activities:                
  Proceeds from issuance of convertible debt, net     -       584,450  
  Proceeds from revolving credit facility, net     -       116,648  
  Principal payments on debt     (35,711 )     (151,182 )
  Proceeds from issuance of common stock     9,255       17,298  
  Repurchases of the Company's common stock     (81,208 )     (188,508 )
  Withholding taxes related to restricted stock net share settlement     (9,899 )     (15,116 )
  Excess tax benefits from stock-based compensation     7,139       16,484  
      Net cash provided by (used in) financing activities     (110,424 )     380,074  
Effect of foreign exchange rate changes on cash and cash equivalents     (2,353 )     (14,489 )
Net change in cash and cash equivalents     (64,540 )     338,956  
Cash and cash equivalents at beginning of period     727,309       308,148  
Cash and cash equivalents at end of period   $ 662,769     $ 647,104  

About Non-GAAP Financial Measures

TIBCO provides non-GAAP measures for operating income, net income and net income per share data as supplemental information regarding TIBCO's business performance. TIBCO believes that these non-GAAP financial measures are useful to investors because they exclude non-operating charges. TIBCO's management excludes these non-operating charges when it internally evaluates the performance of TIBCO's business and makes operating decisions, including internal budgeting, performance measurement and the calculation of bonuses and discretionary compensation, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes these non-GAAP measures reflect the essential revenue generation activities of TIBCO. Accordingly, management excludes stock-based compensation related to employee stock options, amortization of acquired intangible assets, costs related to formal restructuring activities, acquisition-related and other expenses, non-cash interest expense related to convertible debt, gains and losses on equity investments, and the income tax effects of the foregoing, as well as adjustments for the impact of changes in the valuation allowance recorded against TIBCO's deferred tax assets when making operational decisions.

TIBCO believes that providing the non-GAAP measures that management uses to its investors is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand TIBCO's financial performance on a trended basis across historical periods. In addition, it allows investors to evaluate TIBCO's performance using the same methodology and information as that used by TIBCO's management.

Non-GAAP measures are subject to material limitations as these measures are not in accordance with, or a substitute for, GAAP and thus TIBCO's definition may be different from similar non-GAAP measures used by other companies and/or analysts. However, TIBCO's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. In addition, some items such as restructuring charges that are excluded from non-GAAP net income and non-GAAP earnings per share can have a material impact on cash flows and stock compensation charges can have a significant impact on earnings. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. TIBCO has historically provided non-GAAP measures to the investment community as a supplement to its GAAP results, to enable investors to evaluate TIBCO's business performance in the way that management does.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization of Intangible Assets

TIBCO has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions TIBCO has made. Management excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. TIBCO believes that eliminating this expense from its non-GAAP measures is useful to investors, because the amortization of intangible assets can be inconsistent in amount and frequency and is significantly impacted by the timing and magnitude of TIBCO's acquisition transactions, which also vary substantially in frequency from period to period.

Stock-based Compensation

TIBCO incurs stock-based compensation expense. TIBCO excludes this item for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share because it is a non-cash expense that TIBCO believes is not reflective of its business performance. The nature of the stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expenses may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Finally, TIBCO believes that non-GAAP measures of profitability that exclude stock-based compensation are widely used by analysts and investors in the software industry.

Acquisition-related and Other Expenses

TIBCO incurs acquisition-related and other expenses which consist of costs incurred after the issuance of a definitive term sheet for a particular transaction (whether or not such transaction is ultimately completed, remains in process or is not completed) and include legal, banker, accounting and other advisory fees of third parties and severance costs for employees of the acquired company that are terminated within 90 days of the acquisition date. Management excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. TIBCO believes that eliminating these expenses from its non-GAAP measures is useful to investors, because it generally would not have otherwise incurred such expenses in the periods presented as part of its continuing operations. The acquisition-related and other expenses are not recurring with respect to past transactions, can be inconsistent in amount and frequency from period to period and are significantly impacted by the timing and magnitude of TIBCO's acquisitions. While these expenses are not recurring with respect to past transactions, TIBCO generally will incur these expenses in connection with any future acquisitions.

Restructuring Activities

TIBCO incurs restructuring expenses, included in its GAAP presentation of operating expense, primarily due to workforce related charges such as payments for severance and benefits and estimated costs of exiting and terminating facility lease commitments related to a formal restructuring plan. TIBCO excludes these items, for the purposes of calculating non-GAAP operating income, non-GAAP net income and non-GAAP net income per share, when it evaluates the continuing business performance of TIBCO. TIBCO believes that these items are not consistently recurring and do not necessarily reflect expected future operating expense, nor does TIBCO believe that they provide a meaningful evaluation of current versus past business results or the expense levels required to support TIBCO's operating plan.

Non-Cash Interest Expense Related to Convertible Debt

TIBCO is required to recognize non-cash interest expense related to its 2.25% convertible senior notes issued in April 2012 as an imputed interest expense. Management excludes this incremental non-cash interest expense for purposes of calculating non-GAAP net income and non-GAAP net income per share. Under the relevant accounting guidance, TIBCO is required to separate the conversion option as an equity component from the debt and account for the debt in a manner that reflects TIBCO's non-convertible debt borrowing rate. This results in the debt component of the convertible notes being treated as though it was issued at a discount, with the debt discount being accreted as additional non-cash interest expense over the term of the notes using the effective interest method. TIBCO believes that excluding this expense from its non-GAAP measures is useful to investors because this incremental interest expense does not represent a cash outflow for the company and is not meaningful in evaluating current versus past business results. Finally, TIBCO believes that non-GAAP measures of profitability that exclude non-cash interest accretion expense are widely used by analysts and investors.

TIBCO Software Inc.  
Reconciliation of GAAP to Non-GAAP Measures  
(in thousands, except net income per share)  
    Three Months Ended     Six Months Ended  
    June 2,
    June 3,
    June 2,
    June 3,
    Operating Income     Net income attributable to TIBCO Software Inc.     Operating Income     Net income attributable to TIBCO Software Inc.     Operating Income     Net income attributable to TIBCO Software Inc.     Operating Income     Net income attributable to TIBCO Software Inc.  
GAAP   $ 20,893     $ 8,715     $ 37,359     $ 26,492     $ 39,752     $ 18,220     $ 61,512     $ 47,133  
  Amortization of intangible assets - cost of revenue     4,246       4,246       3,899       3,899       8,343       8,343       7,164       7,164  
  Amortization of intangible assets - operating expense     4,713       4,713       5,653       5,653       9,034       9,034       10,201       10,201  
  Stock-based compensation - cost of revenue     1,869       1,869       1,116       1,116       3,472       3,472       2,398       2,398  
  Stock-based compensation - R&D expense     4,122       4,122       3,354       3,354       8,118       8,118       7,359       7,359  
  Stock-based compensation - S&M expense     4,422       4,422       4,694       4,694       9,661       9,661       9,987       9,987  
  Stock-based compensation - G&A expense     4,530       4,530       5,231       5,231       10,084       10,084       9,976       9,976  
  Acquisition related and other     568       568       929       929       895       895       1,325       1,325  
  Non-cash interest expense related to convertible debt     -       3,854       -       1,564       -       7,673       -       1,564  
  Restructuring adjustment     (22 )     (22 )     (400 )     (400 )     (15 )     (15 )     (519 )     (519 )
  Income tax adjustment for non-GAAP     -       (7,349 )     -       (8,945 )     -       (14,743 )     -       (18,425 )
Non-GAAP   $ 45,341     $ 29,668     $ 61,835     $ 43,587     $ 89,344     $ 60,742     $ 109,403     $ 78,163  
Diluted net income per share attributable to TIBCO Software Inc.:                                                                
  GAAP           $ 0.05             $ 0.16             $ 0.11             $ 0.28  
  Non-GAAP           $ 0.18             $ 0.26             $ 0.36             $ 0.46  
Shares used to compute diluted net income per share attributable to TIBCO Software Inc.:             167,507               169,477               168,320               170,173  
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    By Alan Baldwin AUSTIN, Texas (Reuters) - Triple Formula One world champion Lewis Hamilton won a qualifying battle with Mercedes team mate and title rival Nico Rosberg on Saturday to secure pole position for the U.S. Grand Prix. Hamilton, 33 points behind the German with four rounds remaining, has won three of the past four races in Austin but had never before managed to seize top slot on the starting grid in Texas. The Briton's fastest lap of one minute 34.999 seconds was 0.216 quicker than Rosberg, who starts alongside him on the front row, and also the quickest yet at the Circuit of the Americas.

  • GM

    GM to add SUV production line at China JV in 2017: Xinhua

    General Motors Co plans to launch a new SUV production line at its joint venture factory in the Chinese central city of Wuhan during the first half of 2017, the official Xinhua News Agency reported on Sunday, citing company sources. SAIC General Motors (SGM), a joint venture between China's SAIC and General Motors, started operations at the Wuhan plant last year. The new production line will be able to produce 360,000 vehicles a year, bringing the combined capacity to 600,000, Xinhua said.

  • News
    Yahoo Finance Video

    There's a big problem with Clinton's plan to raise taxes on corporations

    When it comes to their economic plans—and particularly their tax plans—the differences between Donald Trump and Hillary Clinton are stark.

  • Business
    Money Talks News

    9 Tips to Ensure You’ll Have Enough to Retire

    Life expectancy for women and men in 1970 was just short of 71 years, for example, so retirement funds did not have to see most people to age 90 or 100. Today, those of us approaching retirement are playing a very new game. Will Social Security be your primary source of income in retirement?

  • Business

    Aussie Bank's 7000-Mile Blockchain Experiment Could Change Trade

    When the Marie Schulte rounds the breakwater off the Chinese port of Qingdao in early November, bankers on two continents will be watching anxiously. In particular, they’ll be focused on 88 bales of cotton worth approximately $35,000 that the container vessel is carrying -- not because of the value of the goods, but because of the technology attached to the shipment. Unloading the goods at the end of their 7,000-mile journey from Houston will mark the final stage of an experiment by Commonwealth Bank of Australia, Wells Fargo & Co. and the trading firm Brighann Cotton to prove for the first time that the combination of much-hyped technologies -- blockchain and smart contracts -- can deliver real-world benefits.

  • Insider Q&A: Global X Funds Research Director Jay Jacobs
    Associated Press

    Insider Q&A: Global X Funds Research Director Jay Jacobs

    Millennials have eclipsed baby boomers as the largest living generation, and that represents an opportunity for investors who can identify companies offering the goods and services they want. "What we see is that millennials behave differently from other generations," said Jay Jacobs, director of research at Global X, a $3.8 billion ETF issuer based in New York. Jacobs spoke recently to The Associated Press about how investors can profit from forecast growth in millennials' spending power in the years ahead.

  • Salesforce boss: CEOs are afraid to know how much their female employees make
    Yahoo Finance

    Salesforce boss: CEOs are afraid to know how much their female employees make

    Salesforce CEO Marc Benioff discussed diversity in the workplace on Friday at The Grace Hopper Celebration of Women in Computing, held this year in Houston, Tex. When it comes to the sensitive topic of diversity in tech, Salesforce (CRM) CEO Marc Benioff has some choice words for his counterparts at other companies: Don’t be afraid. At the Grace Hopper Celebration for Women in Computing, an annual conference held this year in Houston, Texas, the 52-year-old chief executive contended one of the largest reasons the gender pay gap remains at many businesses is that their CEOs are in fact too afraid to “push the button” and discover what women employees make compared to their male colleagues.

  • Business

    Italy's front line in fight to save banks: a storage room

    Storage rooms crammed with loan documents have emerged as a hidden front line in Italy's battle to save its banks from the threat of financial crisis. Dozens of analysts have been toiling in back offices of the nation's third-largest lender, Monte dei Paschi di Siena, in the first stage of a campaign to sell or recover much of Italy's 360 billion euros ($395 billion) worth of problem loans. "Ours is a painstaking job," said Luca Mazzoni, chief executive of Protos, which has been hired by Monte dei Paschi.

  • Former Walmart.com CEO explains how to nurture star employees
    Yahoo Finance

    Former Walmart.com CEO explains how to nurture star employees

    High-potential performers (or Hi-Pos) stand out due to their associative thinking skills—which help solve problems and drive innovation—their strong emotional awareness, and their incredible perseverance, according to Carter Cast, a clinical professor of innovation and entrepreneurship at the Kellogg School and former CEO of Walmart.com, a division of Walmart (WMT). Putting a mirror up in front of people can help them recognize weaknesses, triggers, and gaps that may be impeding self-regulation and performance.

  • News

    Cameroon train crash death toll tops 70

    By Sylvain Andzongo DOUALA, Cameroon (Reuters) - More than 70 people were killed and over 600 injured when a packed passenger train crashed in Cameroon on Friday, the president announced on Saturday, declaring a national day of mourning to commemorate the dead. The packed Camrail train had been traveling from the capital Yaounde to the port city of Douala. Over 70 passengers died and 600 wounded in the accident," President Paul Biya, who is traveling abroad, wrote on his official Facebook page.

  • Chesapeake Energy Analysts Change Their Tune

    Chesapeake Energy Analysts Change Their Tune

    On Wednesday evening, Chesapeake Energy Corp. (NYSE: CHK) stock closed at $6.72. Shares dropped by more than 5% to $6.36 early Thursday morning as the company kicked off its first investor day presentation in two years. The downturn was very likely the result of the company’s forecast for 2016 and 2017. Production growth is estimated at flat to up 3% for 2016 and at down 5% to flat for 2017. And that comes at the cost of higher capital spending. We looked at Chesapeake’s presentation in some detail on Thursday. By the end of the day Thursday, Chesapeake stock had regained all its lost ground and added 2.8% besides to close at $6.91. But by the early afternoon Friday, shares traded down about

  • Is Gold's Real Value $2,000 an ounce?
    The Street

    Is Gold's Real Value $2,000 an ounce?

    KITCO NEWS - Gold steadies and is set to end the week higher, on track for its first weekly gain in four weeks and one expert sees the cards stacked in the metal's favor. Ken Hoffman of Bloomberg Intelligence released a report this month, which shows the current pressure in gold prices is namely driven by the looming rate hike - but those Fed concerns are just masking long-term positives for the metal. Gold was on track Friday to post its first positive weekly close in three weeks, many analysts suspect that the correction --which started with a 5% drop at the start of the month -- has run its course. December gold futures settled the day at $1,267.70 an ounce, up nearly 1.2% since Monday's open.

  • America's biggest banks are closing hundreds of branches
    Business Insider

    America's biggest banks are closing hundreds of branches

    According to the 3Q earnings report, the bank has 21 million mobile banking active users and 18% of deposit transactions are completed through mobile devices. "That’s better for customers, it’s also better for our shareholders," said Donofrio.

  • News

    AT&T-Time Warner may signal start of new media industry consolidation

    WASHINGTON/NEW YORK (Reuters) - The tie-up of AT&T Inc (T.N) and Time Warner Inc (TWX.N), bringing together one of the country's largest wireless and pay TV providers and cable networks like HBO, CNN and TBS, could kick off a new round of industry consolidation amid massive changes in how people watch TV. Discovery Communications Inc (DISCA.O) gained 3.6 percent, AMC Networks Inc (AMCX.O) rose 3.9 percent and Scripps Networks Interactive Inc (SNI.O) jumped 5.6 percent. Media content companies are having an increasingly difficult time as standalone entities, creating an opportunity for telecom, satellite and cable providers to make acquisitions, analysts say.