Business Objects Reports First Quarter 1999 Results; Revenues Up 43 Percent Over Prior Year; Net Income Up 133 Percent.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 26, 1999-- Business Objects (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BOBJ BOBJ Business Objects SA ) today announced its results for the first quarter ended March 31, 1999. First quarter revenues were $49.5 million, an increase of 43 percent compared to revenues of $34.6 million for the quarter ended March 31, 1998. Net income for the first quarter was $3.2 million, compared to $1.4 million for the same period last year. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share and per ADS for the quarter ended March 31, 1999 were $0.17, compared to $0.08 in the first quarter of last year. "We are very pleased with our results in the first quarter," said Bernard Liautaud Bernard Liautaud is chairman and chief strategy officer of Business Objects. Liautaud cofounded Business Objects in 1990 and was chief executive officer until September 2005. , president and chief executive officer of Business Objects. "This is our seventh consecutive quarter of more than 40% revenue growth. We believe our strong results reflect the increasing worldwide demand for our decision support solutions for the enterprise, and the momentum of our internet offering in e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. applications. In the first quarter, the Americas A·mer·i·cas , the See America. demonstrated our increasing domestic strength, with license growth of 58 percent. We also had solid contribution from our indirect channels, which contributed 44 percent of total revenues." Business Objects expanded its customer base in the first quarter, adding over 100,000 new licenses for a total of 1,180,000 worldwide. Key customers in the first quarter included China Telecom, Citgo Citgo Petroleum Corporation or Citgo, a subsidiary of Petróleos de Venezuela S.A., the Venezuelan state-owned petroleum company, is a United States-incorporated firm refiner and marketer of gasoline, lubricants, petrochemicals and other petroleum products. Petroleum Corp., Deutsche Bahn Deutsche Bahn AG (abbr. DB AG, DBAG or simply DB) is the successor of the former state railways of Germany: the Deutsche Bundesbahn of West Germany, the Deutsche Reichsbahn of the German Democratic Republic and the West Berlin VdeR. , Kraft Foods Kraft Foods Inc. (NYSE: KFT) is the largest food and beverage company headquartered in North America and the second largest in the world after Nestlé SA. The Philip Morris Company (now known as Altria Group), a company that produces tobacco products, acquired Kraft for , Pfizer Pfizer Incorporated (NYSE: PFE) is a major research-based pharmaceutical company, which ranks number two in sales The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal Ltd., Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Marketing (Japan), Total Exploration Production, US Department of Energy, and US Naval Academy. "During the first quarter, we announced BUSINESSOBJECTS(TM) SET ANALYZER analyzer /ana·ly·zer/ (an´ah-li?zer) 1. a Nicol prism attached to a polarizing apparatus which extinguishes the ray of light polarized by the polarizer. 2. (TM), a high-performance set-based analysis tool for very large databases," Liautaud continued. "Our new product enables non-technical users to perform highly complex queries and analyze very large, and often quite complex, data stores. SET ANALYZER is integrated with and extends the functionality of BUSINESSOBJECTS and WEBINTELLIGENCE(TM), our full- and thin-client decision support (DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S ) tools." The Company's balance sheet continued to be strong with $80.9 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Total assets at March 31, 1999 were $140.1 million, compared to $138.0 million at December 31, 1998. This press release may contain forward looking statements with respect to demand for the Company's decision support software. Such forward looking statements are subject to risks and uncertainties including, without limitation, historical variability in the performance of the Company, changes in the Company's market, and the ability of the Company to gain acceptance of its products, which could cause actual results to differ materially from those anticipated. For a more complete discussion of risk factors that could affect the Company's current and future operating results, see the discussions in the Company's reports filed with the SEC from time to time, including but not limited to the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1998. About Business Objects Business Objects is the world's leading provider of integrated enterprise decision support tools. Business Objects products provide non-technical business users with access to information stored in data warehouses, data marts A subset of a data warehouse for a single department or function. A data mart may have tens of gigabytes of data rather than hundreds of gigabytes for the entire enterprise. See data warehouse. , and packaged business applications. Business Objects provides a complete suite of decision support tools including query, reporting, online analytical processing Online Analytical Processing, or OLAP (IPA: /ˈoʊlæp/), is an approach to quickly provide answers to analytical queries that are multidimensional in nature. , data mining, and DSS administration for both client/server and internet environments. Business Objects has sold more than 1,180,000 licenses to over 8,100 organizations in more than 60 countries worldwide. Business Objects may be reached by phone at 408-953-6000 or on the worldwide web at http://www.businessobjects.com. The Company's stock is publicly traded under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors BOBJ. BusinessObjects, WebIntelligence, and Set Analyzer are trademarks of Business Objects SA. Other company and product names may be trademarks of the respective companies with which they are associated. A full-text copy of this announcement may be obtained by calling the Company's fax retrieval line at 800-414-2114 and selecting option "two." The announcement may also be downloaded from the Web; access "http://www.businesswire.com/cnn" and search on "Business Objects." Business Objects product inquiries should contact 800-527-0580. -0-
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars, except per share
and per ADS data; unaudited)
Three Months Ended
March 31,
1999 1998
Revenues:
License fees $ 31,534 $ 23,422
Services 17,973 11,143
-------- --------
Total revenues 49,508 34,565
Cost of revenues:
License fees 815 687
Services 8,276 4,787
-------- --------
Total cost of revenues 9,091 5,474
-------- --------
Gross margin 40,417 29,091
Operating expenses:
Sales and marketing 25,348 19,796
Research and development 5,996 4,134
General and administrative 3,715 2,906
Goodwill 483 310
-------- --------
Total operating expenses 35,542 27,146
-------- --------
Income from operations 4,875 1,945
Interest and other income, net 571 387
Income before provision
for income taxes 5,446 2,332
Provision for income taxes (2,233) (952)
-------- --------
Net income $ 3,213 $ 1,380
Basic net income per share &
per ADS $ 0.18 $ 0.08
Shares and ADSs used to compute
basic net income per
share & per ADS 17,427 16,782
Diluted net income per share
and per ADS $ 0.17 $ 0.08
Shares and ADSs used to compute
diluted net income per
share and per ADS 19,070 17,439
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
1999 1998
(unaudited)
ASSETS
Current assets:
Cash and short-term
investments $ 80,898 $ 71,713
Accounts receivable, net 31,258 42,236
Other current assets
10,909 7,993
-------- --------
Total current assets 123,065 121,942
Property and equipment, net 13,629 13,804
Goodwill, net 1,845 1,460
Other assets 1,594 879
-------- --------
Total assets $140,133 $138,085
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 10,946 $ 10,439
Accrued payroll and
related expenses 15,166 16,597
Deferred revenue 23,276 21,684
Other current liabilities 19,121 22,118
-------- --------
Total current liabilities 68,509 70,838
Shareholders' equity 71,624 67,247
-------- --------
Total liabilities and
shareholders' equity $140,133 $138,085
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