Earnings: RIMM Jumps; Corel Beats; ESIO Dives; Tibco Inline

by: Eric Savitz

There’s been a flurry of post-close earnings reports today, some of which are meaningfully moving stock prices around. Here’s a round-up:

  • Research In Motion (RIMM) is sharply higher, after the company reported solid results for the fiscal second quarter ended Sept. 2, and guidance for the third quarter that is sharply above Street expectations. For the second quarter, revenue totalled $658.5 million, about $10 million above the consensus view. The company reported 74 cents a share on a GAAP basis, and 77 cents excluding stock options expense; the Street was looking for 71 cents. For the third quarter, the company sees revenue of $780 million to $820 million; the Street had been at $699 million. RIM sees profits of 88-95 cents a share on a GAAP basis, or 90-97 cents excluding options expense; the Street has been looking for 78 cents. The company also said that it was starting a voluntary look at past options granting practices; and in fact has already found some violations.

    The Audit Committee has made a preliminary determination that GAAP accounting errors were made around the administration of certain historical stock options granted from fiscal 1998 to present, and has made a preliminary determination that a restatement of RIM’s historical financial statements will be required to reflect this. Although the review is ongoing, it is currently expected that the potential effect of such restatement will be to increase the amount of non-cash charges associated with past option grants and thereby reduce the amount of the Company’s previously reported GAAP earnings by an aggregate amount of approximately $25-45 million over the period since the Company’s IPO in 1997. The Company has voluntarily informed the SEC and the OSC [the Ontario Securities Commission] about its internal review of its stock option grants. The Company does not at present anticipate a material adjustment to current or future fiscal years’ operating results, including the preliminary Q2 operating results reported today in its separate earnings press release, and RIM has defined enhanced procedures and controls to address issues of this nature.

    In after hours trading, RIM shares have jumped $14.69, to $100.75.

  • Corel (CREL) shares are on the rise. The company reported revenue for its fiscal third quarter ended August 31 of $41.3 million, with non-GAAP earnings of 36 cents a share, about a nickel ahead of consensus. Corel forecasts fourth quarter non-GAAP earnings of 46-48 cents a share, versus the Street’s consensus of 43 cents. For the full year fiscal 2006, the company sees non-GAAP earnings at $1.48 to $1.52 a share, which is above the Street’s view of $1.44. In after hours trading, Corel shares are up $1.39 to $12.74.
  • Electro Scientific Industries (NASDAQ:ESIO) shares are falling sharply. The company reported revenue for the first quarter of $60.2 million, which is above the Street forecast of $58.9 million. But the company said second quarter revenue would be $50 million to $60 million, compared to the $57,8 million Street estimate. The company noted that “we expect to continue to experience fluctuations in order timing that may affect the level of orders in the second quarter.” Electro Scientific shares are down $1.34 in after hours trading, at $21.
  • Tibco (NASDAQ:TIBX) reported revenue for the fiscal third quarter ended Sept. 3 of $120 million, a bit shy of the Street forecast of $121.1 million. According to Reuters, the company told analysts on a conference call to expet fourth quarter revenue of $140 million to $144 million, versus the Street consensus of $142 million. On the news, Tibco shares have dropped 44 cents after hours, to $8.45.