Reuters hit by warning from Tibco
12 April 2012
SHARES in Reuters crashed 21 1/2p to 445p, a near four-year low, after its US associate Tibco issued a shock profit warning overnight. Tibco, which is 53%-owned by Reuters, said its second-quarter sales were $19m (£13m) lower than expected at between $63m and $65m.
It estimated it had lost between 18 cents and 23 cents a share for the year. The Tibco stock crashed 19% in after-hours trading to $4.35. That is a record low and compares with a 12-month peak of $16.90 and a secondary share offering in March 2000 at $106 a share.
Tibco said its head of worldwide sales Frank Begandi had resigned. Chairman and chief executive Vivek Ranadive said: 'The current environment for selling enterprise software has never been more difficult.'
