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Tibco Software's 2Q profit and revenue drop

PALO ALTO, Calif. (AP) -- Tibco Software Inc. on Thursday reported sharply lower fiscal second-quarter profit and weaker revenue.

The company's Chairman and CEO Vivek Ranadive said improving sales remains Tibco's top priority.

Tibco earned $8.7 million, or 5 cents per share, for the quarter that ended June 2. That is down from $26.5 million, or 16 cents per share, earned in the second quarter last year. After adjusting for stock-based compensation, acquisition costs and other special items, the company earned 18 cents per share versus 26 cents per share.

Tibco's total revenue slipped slightly to $245.8 million from $247.4 million as improved service and maintenance revenue was not enough to offset a drop in license revenue.

Analysts polled by FactSet were anticipating adjusted earnings of 18 cents per share on revenue of $246.7 million.

The company, based in Palo Alto, Calif., provides software for companies to use on site or through cloud computing.

Tibco's stock initially tumbled in after-hours trading following the release of the earnings report but quickly erased those loses and were unchanged. The stock fell 37 cents to close regular trading at $21.01.