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TIBCO Software, Inc. F3Q07 (Qtr End 9/2/07) Earnings Call Transcript

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2007-09-27 13:06:00.0

Tags: TIBCO Software Inc.

Question-and-Answer Session

Operator

[Operator Instructions]. We'll go first to John Walsh with Citi.

John Walsh - Citigroup

Good afternoon. Have a... first, a margin question and the operating expenses that you just mentioned that went down on the core business by I think about $6.5 million. What was that related to?

Murray Rode - Chief Financial Officer and Executive Vice President, Strategic Operations

That was in a variety of areas John, but mostly sales and marketing.

John Walsh - Citigroup

So was it mostly in the marketing end, or were there sales programs that were pulled back on or just commissions to I assume would flow through, because of the slightly lower revenue?

Murray Rode - Chief Financial Officer and Executive Vice President, Strategic Operations

That's right. It was programs. It was... there was some decrease in non-quota headcount in sales as well as reduction in commissions. And then there was about a net decrease in G&A expense... sorry on the non-Spotfire side there was about $500,000 decrease in G&A expense.

John Walsh - Citigroup

Okay. And then given your hiring plans on the sales and marketing side that you talked about earlier in the call to add those quota-carrying reps. How should we think about margins for next year up, down, flat?

Murray Rode - Chief Financial Officer and Executive Vice President, Strategic Operations

Well, I think we will give specific guidance on margins as we exit the year John because I think we'll also have a much better sense of how fast we are hiring those people as we finish Q4.

John Walsh - Citigroup

Okay. And then just a question on the Active Metrics side. Just I guess an update beta customers rollouts just any color that you can share with us on how that product is progressing and what milestones maybe we should look for going forward.

Murray Rode - Chief Financial Officer and Executive Vice President, Strategic Operations

Well I think the... so far we're fairly pleased with the way the early customer rollout has gone. I think as we have been saying all along we see the real opportunity being in '08 for the product once the version 2 releases out. So I think we continue to remain on track but there will be a pretty big push on our part to accelerate Active Metrics as we go into '08.

John Walsh - Citigroup

Okay, great. Thanks.

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