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Executives

Vivek Ranadivé - Chairman and CEO

Murray Rode - EVP and CFO

Analysts

Alan Cooke - Merrill Lynch

Tim Klasell - Thomas Weisel

John Walsh - Citi

Bryan McGrath - Credit Suisse

Sterling Auty - J.P. Morgan

John DiFucci - Bear Stearns

Derek Bingham - Goldman Sachs

Brandon Chan - Piper Jaffray

Raghavan Sarathy - Ferris, Baker Watts

TIBCO Software, Inc. (TIBX) F4Q07 (Qtr End 11/30/07) Earnings Call December 20, 2007 4:30 PM ET

Operator

Welcome to TIBCO's fourth quarter 2007 conference call.

The following conference call includes forward-looking statements, which represent TIBCO Software's outlook and guidance only as of today, and which are subject to risks and uncertainties. These forward-looking statements include but are not limited to forecast of revenues, operating margins, operating expenses, outstanding shares and earnings per share for future periods.

Our actual results could differ materially from those projected in such forward-looking statements. Additional information regarding the factors that could cause actual results to differ materially are discussed in the Risks Factors section of TIBCO's most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. TIBCO assumes no obligation to update the forward-looking statements included in this call, whether as a result of new developments or otherwise.

This conference call also includes certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles as we believe that such information is useful for understanding our financial condition and results of operations. For a presentation of the most directly comparable financial measures calculated in accordance with GAAP and reconciliation of the differences between the non-GAAP and GAAP financial information, please see our website at www.tibco.com.

The participants on the call are Vivek Ranadivé, TIBCO's Chairman and CEO; and EVP and Chief Financial Officer, Murray Rode. I'd like to now turn the call over to Vivek. Please go ahead, sir.

Vivek Ranadivé

Thanks, Kim, and hello, everyone. We appreciate you joining us on our Q4 earnings call.

On today's call, I will make my comments into two parts: First, a brief review of our Q4 and full year 2007 results; and second, some talks on '07 and the year ahead.

Let's begin with our fourth quarter results. Total revenues came in at $186.1 million, up 16% year-over-year. License revenues were $99.6 million, up 89% sequentially and 13% year-over-year.

We closed a record 139 deals over $100,000 this quarter. We added 17 deals over $1 million. We saw strength in demand across all of our products and services in Q4 with particular interest in BPM ActiveMatrix, business events and Spotfire product areas.

From a geographic perspective, we saw strong double-digit year-over-year growth in both Europe and the Americas. In addition, we saw strong performance in vertical markets such as finance, telco, life sciences and retail.

We successfully increased our customer base and expanded our business with market leaders such as, Air France-KLM, BP, Live Nation, Delta, UBS, HBOS, and the Chicago Mercantile Exchange, to name a few.

For fiscal '07 overall, total revenues were $577.4 million, up 12% year-over-year. License revenues were $259.3 million, resulting in year-over-year growth of 8%. Operating cash flow was approximately $99 million.

Before I turn the call over to Murray, I'd like to leave you with a synopsis of our performance in '07, and some areas we will be focused on as we head into '08.

We started the year slowly, but had a strong finish. There were several major reasons for this slow start. First, the change to our sales organization made after Q1 had an impact on Q2 and, particularly, Q3 results. As Q4 shows, the changes have now taken hold, and we are back to executing at a high level.

Second, during the year, specifically in Q3, we experienced some turmoil in both the financial services and government market, which negatively impacted results. And third, we have had the same amount of quarter reps for a number of years and have hit capacity limitations.

There are also some very important indicators as we exit '07. First, we feel very strongly about our competitive position today. Our product set has never been stronger. Our smaller competitors have all gone away, and the larger ones seem distracted.

Second, despite all the concerns in the market about the economy, we believe demand for infrastructure software is growing and its importance higher than ever. In fact, despite all the negativity around financial services, we had our best quarter in the company's history. I believe this speaks for the importance of infrastructure within leading organizations that need to invest to gain competitive advantages in tough market environments.

And third, customers are increasingly gravitating to our neutral Switzerland-like platform. We represent a safe haven between the absolute with SAP and Oracle, the platforms such as J2EE and .NET and the systems management area with HP and VMC.

As we head into '08, we will be focused on several areas: first, increasing our field organization. We need to scale that in order to grow. Second, M&A will continue to be important. We will explore ways to drive growth and extend our capabilities. And finally, we will focus on growing our ecosystem of partners.

I'd also like to take a moment to thank all of TIBCO's employees for their hard work and dedication in 2007. I truly believe we have a fantastic group of people at TIBCO all around the world.

With that, I'll turn the call over to Murray for more details on the financials.

Murray Rode

Thanks Vivek, I'll begin my comments by giving some additional details on our financial performance in Q4 and fiscal 2007, and then I'll talk about our financial outlook for fiscal 2008. I'll review our financials on both a GAAP and non-GAAP basis, a full reconciliation of which was included with our press release, along with an explanation of our non-GAAP measures.

For Q4, total revenues were $186.1 million, up 16% year-over-year. License revenues were $99.6 million, up 13% year-over-year. On a GAAP basis, gross margins were 75% in Q4. Operating income was approximately $37.4 million; resulting in an operating margin of about 20%. GAAP net income was $27.6 million, or $0.14 for fully diluted share.

On a non-GAAP basis, gross margins were 78%. Operating income was $50.2 million, resulting in an operating margin of 27%. Net income on a non-GAAP basis was $34.1 million, or $0.18 per fully diluted share, which was ahead of our guidance range of $0.13-$0.16.

Results, overall, for fiscal 2007 were as follows: total revenues were $577.4 million, up 12% year-over-year. License revenues were $259.3 million, up 8% year-over-year. GAAP earnings per share were $0.25 for fully diluted share, while non-GAAP earnings per share were $0.38 for fully diluted share.

Turning to our balance sheet, together, short- and long-term deferred revenue totaled $141.5 million, up 33% year-over-year. DSOs came in at 78 days, down from 83 in Q4 year ago. We grew our cash position during the quarter by about $42 million, ending the quarter with approximately $266 million in cash and short-term investments.

We have $27.4 million in cash flow from operations for the quarter, giving a total for the year of $99.3 million. Given the amount of our buybacks year-to-date and the recent cash used to acquire a spot buyer, we did not buyback any additional stock in Q4. We still have, roughly, $115 million less than our buyback plan, and fully expect to resume our buyback activity in 2008. For fiscal 2007, in total, we did retire over 25 million shares.

From a geographic perspective, Americas was up in the quarter 10% on a year-over-year basis, and represented 47% of the total revenue. Europe had a very strong quarter, with year-over-year growth of 25%, resulting in 41% of total revenue. Asia-Pacific experienced 6% year-over-year growth, making a 12% of total revenue.

Total revenue by vertical for Q4 was as follows: financial services 33%; Telco 12%; energy 9%; retail 6%, life sciences 5%. No other industry represented more than 5% of revenue. Other key metrics for the quarter are as follows: we had 17 deals over $1 million. Our top 10 customers represented 30% of revenue. We had 139 deals over a $100,000, and for deals over $100,000, the average deal size was approximately $685,000, which compares to $540,000 last quarter, and about $760,000 in the year ago period.

From a product segmentation standpoint, SOA related products were roughly 60% of revenue; BPM was approximately 15%; and business optimization, which includes our business events and Spotfire products, was about 25%. Spotfire related sales exceeded our expectations, again, this quarter and represented stellar efforts on the part of the Spotfire team.

Lastly, I will address our financial outlook. It's worth reiterating that we believe our annual performance is our most relevant period of measurement, given our deal sizes and seasonal patterns, we can experience quite a lot of variability from quarter-to-quarter. We expect the seasonal patterns that we have seen over the past few years to continue, which means we expect Q1 to be down sequentially from Q4, Q2 to show modest growth over Q1, Q3 to be relatively flat with Q2 and, of course, the seasonally strong Q4. In addition, while we are confident about our long-term growth opportunity and the market position we hold, we believe it's also prudent to consider some general economic trends which suggest some uncertainty.

So, if we take all this background into account, we expect for the year total revenue to be in the range of $660 million-$670 million, representing 14%-16% growth over 2007. License revenue for the full year should be between $300 million-$310 million, representing growth of 16%-20% year-over-year.

Our non-GAAP operating margin should range between 19%-20%. Full-year non-GAAP earnings per share should be $0.43-$0.45, which represents year-over-year growth of 13%-18%.

GAAP earnings for fully diluted share should be in the range of $0.23-$0.25. Our outlook for EPS currently assumes our fully diluted share count to be in the range of 190 million-195 million shares.

But this, obviously, depends on the degree to which we execute our buyback program, and our actual share price over the course of 2008. Our assumed pro forma tax rate for 2008 is 35%.

And looking at our operating expenses more closely, we expect sales and marketing cost for the year to be up roughly inline with revenue growth. This will be driven by our investment in our field organization, as well as some additional market programs.

We plan to increase our quarter carrying reps to about 190, including Spotfire, by the end of fiscal 2008, which we believe will help the back half of 2008, and set a stage for continued growth into 2009.

We expect R&D expense to stay relatively flat as a percentage of revenue--that's 15%-16%. Major components of the R&D expense include a full year Spotfire and continued investment in key growth areas, such as SLA, complex of end processing, and analytics.

We expect G&A expense to grow more slowly, at about half our revenue growth rates. With this longer-term context in mind, we expect total revenues in Q1 to range from $142 million-$146 million, representing, year-over-year growth of about 13%-16%. License revenues for Q1 should range from $58 million-$62 million, resulting in year-over-year of 11%-19%.

This revenue range should produce non-GAAP operating margins for Q1 of between 11%-13%. Non-GAAP EPS will range between $0.06 to $0.07 and GAAP EPS should range from $0.01-$0.02.

And with that, Vivek and I will be happy to take your questions.

Question-and-Answer Session

Operator

(Operator Instructions)

Our first question today is from Alan Cooke from Merrill Lynch.

Alan Cooke - Merrill Lynch

Murray, thank you very much and congratulations on the quarter. Why do you think there is such a large change? Was it purely execution on your part or was there a macroeconomic element to it, as well?

Vivek Ranadivé

We think it was a couple of things, Alan. One is that the changes that we had put into play earlier in the year finally started taking hold. So, it was execution. And the other thing is, we have been holding firm, in terms of our pricing. And I cannot compare it to being in the detox program, where you suffer a few quarters--and you do that--but I think eventually it starts paying off.

And so, it was a combination of factors. And, of course, Q4 is seasonably always strong for us.

Alan Cooke - Merrill Lynch

Okay. And in terms of your outlook for next year, you mentioned that you remain confident about spending. What gives you that confidence that spending is going to be strong into Q1 and the rest of fiscal '08?

Vivek Ranadivé

From what we saw in Q4, as an example, we’ve actually had great strength in the fiscal services sector and even companies that were not doing so well. We closed a big deal with Citibank, as an example.

And so our feeling is that people are continuing to spend in this area almost independent of what their situation is. And the early indications from what we are seeing so far also give us that confidence.

Alan Cooke - Merrill Lynch

How does your pipeline coverage look at this point, versus the same point last year?

Vivek Ranadivé

Well, it looks positive. We feel very good about it.

Alan Cooke - Merrill Lynch

Okay. And then with respect to Spotfire, can you breakout the license revenues that you got from Spotfire?

Murray Rode

So, Alan, we're lumping Spotfire on a go-forward basis, really, with the business optimization category; I think we talked about that last quarter. Roughly though, it was about half of the business optimization number for license.

Alan Cooke - Merrill Lynch

Okay, all right. Thank you. And then last question, in terms of your M&A, you mentioned M&A for next year is a way to help out with growth. Are there any particular product areas that you are looking to beef up?

Vivek Ranadivé

We'd rather not say. We see some opportunities, but we'd rather not say anything at this point.

Alan Cooke - Merrill Lynch

All right. Thank you.

Vivek Ranadivé

Thanks.

Operator

And moving on, our next question will come from Tim Klasell from Thomas Weisel.

Tim Klasell - Thomas Weisel

Hi. Congratulations, guys, on the results.

Vivek Ranadivé

Thanks.

Tim Klasell - Thomas Weisel

First thing--just on your guidance--are you assuming any economic slowdown as part of this guidance, or as you've been talking to your customers, how big the consent their budgets are going to be growing at the same clip? Can you give us sort of an idea of what the economic backdrop that you are thinking of with this guidance?

Murray Rode

Tim, I think we are being relatively careful on what we are assuming, in terms of the environment next year. As Vivek said, we feel good about the demand, even in a macro environment that might calm down a bit. So, we are really only factoring in about something in the range of 6%-9% in the kind of traditional business by the way of growth.

And part of that is, is looking at the macro environment and just being a bit cautious. And part of that is the fact that as we say we are at kind of that capacity today, then some of the hiring we are going to be doing early in the year is really what will help drive more growth later in the year.

Tim Klasell - Thomas Weisel

Okay. So it would be fair to say that a lot of the growth is going to come from that business optimization part of the business?

Murray Rode

Yes, for next year, that’s right, if we are assuming 6%-9%. Now, again, we see opportunity beyond that. But based on what we are seeing about kind of capacity constraints and what not, we are only building that 6% to 9% into our guidance.

Tim Klasell - Thomas Weisel

Okay. Good. And then for your sales force ramp, where did you end the year at and how should we think about that ramp to the 190 people?

Vivek Ranadivé

Yes, go ahead, Murray. I am sorry.

Murray Rode

No. I was just to going to say, we ended Q4 with about 152 sales reps total across the whole company, including the Spotfire reps, and we have about a dozen additional hires that are in various stages of being completed.

Vivek Ranadivé

But just to put that in perspective, about 110 of them were in the --.

Murray Rode

About 115, yes.

Vivek Ranadivé

About 110 to 115 were in the core infrastructure business, and that number has been fairly constant over the last few years. So we feel we've hit capacity with those sales people in that business. And so we do need to add to that.

Tim Klasell - Thomas Weisel

And will the ramp be evenly spilt across the core and the business optimization or it will be more weighted one towards the other?

Murray Rode

I mean, in terms of raw numbers it's more awaited towards the infrastructure side of the sales force.

Tim Klasell - Thomas Weisel

Okay good. And then one last quick question. You mentioned active metrics. We haven't spoken much about that recently? How did that do during the quarter or did that bring any of the large deal?

Vivek Ranadivé

It did well in the quarter. It had its best quarter by far during the year. Which is, largely, what we expected, and it was instrumental in at least two of our larger deals.

Tim Klasell - Thomas Weisel

Okay, good enough. Thank you very much gentleman. I will head it off to the next person.

Vivek Ranadivé

Thank you.

Operator

And we will move on to John Walsh from Citi.

John Walsh - Citi

Good afternoon. Just thought maybe following up on that last question a little bit with the idea of, is the sales force going to sell across the board or we still have kind of the business optimization, what's traditionally been the Spotfire business basically separately?

Vivek Ranadivé

What we are going to do is we still going to keep the business optimization sales force separate. But we are going to provide more incentives for the rest of the sales force to start referencing and bringing in referral deals. So, we are kind of taking a small step in the direction of broader coverage.

John Walsh - Citi

Okay. And then, the Spotfire product itself, I believe, dealing with primarily in a trending I call historical data. But I think you talked about that moving towards handling the real time information? You know that you core business if you will can deliver to the messaging side?

What's the progress there and what do you see on expectations for that?

Murray Rode

That is, John, as we've said, fuller integration with, particularly, the BPM, and business events are complex at end processing products that we have, is a longer term initiative in something that will play out over the course of the next year. So, we're just in the early stages of that now. We are starting to see some joint opportunities where the products can be used together as they are but that's tighter fully integration will take place overtime.

John Walsh - Citi

Okay, and then just the final question. Even in the core business, is there certain geographies that you think, you're going to add or verticals that you want to focus on to add the additional quarter carrying reps where you see the existing ones strained?

Murray Rode

That's exactly what we're doing. I mean, it's worth kind of going across all of the region and where we see the opportunities we're adding headcounts. So, it's not focused on just one or two areas. It is spread around a bit but based on what the opportunity is in those regions.

John Walsh - Citi

Okay, great, thanks.

Operator

(Operator Instructions). We'll go next to Bryan McGrath from Credit Suisse.

Bryan McGrath - Credit Suisse

Yeah, guys, I want to put on my congratulations on a great quarter.

Vivek Ranadivé

Thank you, Bryan.

Bryan McGrath - Credit Suisse

Start off with a quick clarification. Do you see your goals end 2008 with $190 reps?

Murray Rode

Yes.

Bryan McGrath - Credit Suisse

I thought, I had in my notes, that in the last quarter, you wanted to do have a 200 at the end of '08, so maybe talk to us a bit about what changed there.

Murray Rode

I think, last quarter, we said 190-200 reps.

Bryan McGrath - Credit Suisse

Okay.

Murray Rode

So, quite frankly I am just being a bit conservative on the targets.

Vivek Ranadivé

We will be happy if we could end up with 200, Bryan. And we are actually moving quite aggressively, and have already made progress even in the weeks of this quarter.

Bryan McGrath - Credit Suisse

Sound like you had a good hiring this quarter. 952 reps, total, give an idea of how many of those guys are fully up and ramped in outlook full quarter, or versus the guys that are still kind of getting up to speed?

Murray Rode

Well, most of that ending the year, again that 952 is infrastructure sales people, plus the Spotfire sales people, so the vast majority of those are ramped up.

Bryan McGrath - Credit Suisse

I got it. And what was the impacted currency on the growth in the quarter?

Murray Rode

So, overall, it was in the range of kind of 2%-3%.

Bryan McGrath - Credit Suisse

Okay. And finally, one last question. Due you have any major or specialized on ELAs that are up for renewals in all these year's and particularly in the first half?

Murray Rode

Well, there is always, I mean in any given year there is always ELAs that are coming up for renewal.

Vivek Ranadivé

In both parts of the business both the Spotfire part, as well as TIBCO.

Murray Rode

So nothing in particular, Bryan that we can call out to you.

Bryan McGrath - Credit Suisse

Okay. Well thanks a lot.

Vivek Ranadivé

Thanks, Bryan.

Operator

Sterling Auty from JPMorgan has our next question.

Sterling Auty - JPMorgan

Thanks. A couple of questions. First, on the mix of revenue you mentioned SOA at 60% of revenue; you’ve already talked about a couple of the other areas. Can you just drill in for us on what you are seeing in terms of SOA, and was that highly responsible for financial services being such a big percentage of revenue this quarter?

Murray Rode

It was. Financial services tends to be a big buyer of that part of the product segment, so, yes, it was.

Sterling Auty - JPMorgan

Okay. And you mentioned FX was all in 2%-3% impact. Can you just remind us how you actually contract? Are you contracting in local currencies or dollars? I am surprised that it wasn't actually higher.

Murray Rode

Well, it sort of varies a little bit, Sterling. I think we are increasingly moving to more kind of local currency contracting, but we still have a lot of US dollar contracts.

Sterling Auty - JPMorgan

And for the hiring that you are doing, the 12 hires that are kind of in process, can you give us an idea what the type of background that you are looking for or that you are getting in some of these new hires?

Vivek Ranadivé

Yes, we are looking at all the usual places: Oracle, BEA, SAP companies. There is a company called Trilogy. So, we are looking at people from those sources, and we prefer our salespeople with some experience. And we are having quite a bit of success right now. We are actually getting a lot of resumes from all those companies.

Sterling Auty - JPMorgan

Okay. Two more questions, first on deferred revenue. The deferred revenue growth that you saw in the quarter, was it all maintenance, or was there any product in there that we could see and what should happen to that from a trend perspective going into the first quarter?

Murray Rode

Really, it was pretty consistent with all our past quarters where a vast majority of it is maintenance, Sterling.

Sterling Auty - JPMorgan

All right. And last question, you mentioned that one of the goals in '08 is to expand through partners. I think we've talked about this a couple of times in the past. But can you give us your latest thinking on what are the types of partners that we should be looking for, TIBCO's partner up within '08 and where do you see the revenue contribution from these partners going, over time?

Vivek Ranadivé

Yes, there is two types of partners, Sterling. One is just better looking with systems integrators; services companies like EDS partnership, which has been very successful, Infosys, and so on; Wipro. So, that's one kind of partnership, that more would be from that arrow.

The other one is that we are seeing that customers are increasingly gravitating towards us as a neutral safe haven of bridging the gap between different platforms, and so on. So, we think some guys that it might have been viewed as competitors could actually end up being partners, as they try to extend beyond one platform into the next platform, and we can be the mechanism for doing that. So, we see some fairly interesting opportunities along those lines.

Sterling Auty - JPMorgan

Sort of follow-up just on that, that makes me think of two companies--either HP or IBM. Is that what you are referring to?

Vivek Ranadivé

Well, it's those kinds of companies, but it's not just them. There are other software companies - and so on, that are trying to -- one company trying to get into the other, whether it's development platforms, management platforms, application platforms. And people view us as the lesser of two evils. Kind of the neutral party by which they can reach out into their competitors' environment.

Sterling Auty - JPMorgan

Yes. Thank you, guys.

Vivek Ranadivé

Thanks.

Operator

(Operator Instructions)

We will move on from John DiFucci from Bear Stearns.

John DiFucci - Bear Stearns

Hello. Just a couple of quick questions here. A really strong quarter here and strong guidance too. A follow-up to Tim's questions, though, specifically for Q1, in regard to the financial services vertical?

It sounds like you think things look pretty decent there, and we have heard similar things from other companies, but have you taken into account in your guidance a weakness into the first quarter that might be perhaps greater than the simple normal seasonal dip that you see? Or given your pipeline, given your visibility, do you think you're just going to see a normal season out there from there?

Vivek Ranadivé

Well, a couple of things. One, is we are being cautious in terms of the seasonality, plus there is all the clouds hanging over the economic landscape. So the answer to that is, yes, we'll be factoring that in.

The second thing, with regard to financial services, is we actually had a very strong quarter, arguably the strongest ever in financial services. And most of that, I think almost all of it was outside of the investment banking arena. So, it was with retail banks. It was with insurance companies, with exchanges. So, it fell outside of the traditional investment banking business.

John DiFucci - Bear Stearns

Okay. And just a follow-up to that on the next quarter guidance, you have margins actually down year-over-year in Q1, although it does look like things were pretty good out there for you. Just curious, because you said that the hiring was really going to be back half-loaded. Why margins, we should expect to be down year-over-year?

Murray Rode

Well, actually we said the effect of the hiring would be back half, right. So, we're hoping to higher the sales people early in the year, so we still get the benefit in 2008.

John DiFucci - Bear Stearns

Okay, got it. Thanks, guys.

Murray Rode

Thanks.

Operator

Our next question comes from Derek Bingham from Goldman Sachs.

Derek Bingham - Goldman Sachs

Hi, congratulations on the quarter again. Just two quick ones. One, we've talked about some of the other verticals. I wonder if I could just get a thought on the telco vertical, on your outlook there for 2008. What you think their spending prospects are next year?

Vivek Ranadivé

Yes, for '08, we are actually looking at a pretty diversified base of revenues. Telco will be one of the strongest verticals. We are seeing a lot of interest in that area but I don’t think more it will be any stronger than pervious years?

Murray Rode

No, pretty consistent with what we’ve been doing.

Derek Bingham - Goldman Sachs

Okay, great. And then I just, your guidance implies expanding margins you’re doing a lot hiring and it takes those folks time to get productive. Can you just get some color on kind of out side of G&A are there other areas I guess within sales and marketing where you’re going to be cutting back to try to show those margins?

Murray Rode

Well, Derek, it's not, I wouldn’t call it cutting back. I think that we have last year, or through the course of '07, we have done some hiring in other parts of the field organization and in marketing, and so the emphasis for new hiring is really just shifting to focus more on the quarter heads.

Derek Bingham - Goldman Sachs

Okay. Got it, thank you and congratulations.

Murray Rode

Thank you.

Operator

And moving on, we will hear from Ajay Kasargod from Piper Jaffray.

Brandon Chan - Piper Jaffray

Hi, this is [Brandon Chan] sitting in for Ajay Kasargod. Just a two quick questions. Have you made any changes to the comp plan?

Murray Rode

Yes. We have, we’ve tiered our comp plans a bit more going into '08 so we are ranging our…

Vivek Ranadivé

We are referring to the sales people here.

Murray Rode

Yeah. Referring to the sales. I think that's you are asking about.

Brandon Chan - Piper Jaffray

About comp plan.

Murray Rode

Yes, so they are being tiered to a greater extent than they have in past years.

Brandon Chan - Piper Jaffray

Okay, and what's the quarter?

Murray Rode

So it will range from roughly $2 million-$4 million.

Brandon Chan - Piper Jaffray

Okay. And on last question do you see any witness in the government sectors?

Murray Rode

In the US, yes, certainly.

Brandon Chan - Piper Jaffray

Okay. That’s all from me. Thank you.

Murray Rode

Thank you.

Operator

And our last question, today, will come from Raghavan Sarathy from Ferris, Baker Watts.

Raghavan Sarathy - Ferris, Baker Watts

Good afternoon, and thanks for taking my questions. In terms of the deal metrics, can you give us some sense for the Spotfire contribution and the deal for 100K and then were there any deals over $1 million from Spotfire?

Murray Rode

So, I think as I said earlier in the call, that Spotfire was contributing roughly half of the business optimization components, and there were 139 deals, in total, or greater than a $100,000--17 of which were greater than $1 million, and there were, I believe, two Spotfire deals that were over $1 million.

Raghavan Sarathy - Ferris, Baker Watts

And then, how many of the 139 were actually from Spotfire?

Murray Rode

I don’t have that number in front of me. I am sorry.

Raghavan Sarathy - Ferris, Baker Watts

And then, a second question. Last time, you talked about building a second tier sales force that’s around that million annual quota? Is that sales team, is that going to be across the board on the infrastructure side or is it more on the BPM business optimization? Can you give us some color on that?

Murray Rode

Yeah. So that’s shifted a bit in terms of how we have implemented it. I think someone else asked about changes in the comp plan, we said quarters are ranging from to $2 million-$4 million. And that's pretty much across the regions and in the lower quarters there will be some focusing in terms of which products or the range of products that are sold.

Raghavan Sarathy - Ferris, Baker Watts

That’s it. Thanks.

Vivek Ranadivé

Okay. Thank you. We will now conclude this call. I would like to close by thanking you all for joining us. Happy holidays. And we look forward to speaking with you in the New Year. Thanks and goodbye everyone.

Operator

Thank you for joining us. We will now conclude TIBCO's Q4 2007 Earnings Call.

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Source: TIBCO Software F4Q07 (Qtr End 11/30/07) Earnings Call Transcript
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