(Reuters) - Business software maker Tibco Software <TIBX.O> reported lower-than-expected revenue and forecast fourth-quarter results below estimates on expected lower revenue from its services segment.
The company forecast fourth-quarter adjusted earnings of 42 to 44 cents per share on revenue of $310 million to $318 million.
Analysts on average were expecting 47 cents per share on revenue of $326.7 million, according to Thomson Reuters I/B/E/S.
The company expects services revenue, which accounted for about 59 percent of its total last year, to be hit by currency headwinds.
The company's revenue from time-based maintenance and services will also be affected by five fewer days in the quarter this year, it said.
"We are looking at services (currency) headwind of about 5 percent, and the number of days change is about another 5 percent on services," CFO Sydney Carey said on a conference call.
Third-quarter net income rose to $26.1 million, or 15 cents per share, from $23.5 million, or 14 cents per share, a year earlier.
Excluding one-time items, the company earned 27 cents per share. Third-quarter revenue rose 11 percent to $255 million.
Analysts on average had expected the company to earn 27 cents per share on revenue of $259.8 million, according to Thomson Reuters I/B/E/S.
Revenue came in at the lower end of the company's expectations as part of it got deferred, Ranadivé said.
Tibco makes software to coordinate business processes and manage workflow and competes with companies like Progress Software Corp <PRGS.O> and bigger vendors like Oracle <ORCL.O>.
It removed its U.S. head of sales in June as it restructured its business in its biggest market.
"We really are focusing our attention on the Americas because I wasn't satisfied with the way we executed," the CEO said.
He said it could be three to six months before the company hires a new regional sales head for the United States.
Last month, a German magazine reported that SAP <SAPG.DE>, world's biggest maker of business software, failed to reach its internal profit target in the first half of the year and told staff to rein in costs to meet the full-year goal.
Shares of Palo Alto, California-based Tibco, which have gained 16 percent since the company announced its business reorganization plans on June 28, closed at $29.86 on the Nasdaq on Thursday.
(Reporting by Sruthi Ramakrishnan; Editing by Sreejiraj Eluvangal)