Business Objects Reports First Quarter 2004 Results.Business Editors/High-Tech Writers 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. & PARIS--(BUSINESS WIRE)--April 29, 2004 104 Percent License Revenue Growth and 83 Percent Total Revenue Growth Driven by Crystal Decisions Acquisition Business Objects (Nasdaq:BOBJ BOBJ Business Objects SA ; Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the London Stock Exchange. ISIN Isin (ĭs`ĭn), capital of an ancient Semitic kingdom of N Babylonia. The city became important after the third dynasty of Ur fell to the Elamites and the Amorites (c.2025 B.C.). The phase from c.2025–c.1763 B.C. code FR0004026250 - BOB), the world's leading provider of business intelligence (BI) solutions, today announced results for the first quarter ended March 31, 2004. The results for the first quarter of 2004 include the first full quarter of the former Crystal Decisions operations following the close of the acquisition on December December: see month. 11, 2003. First quarter revenues were $217.2 million, an increase of 83 percent over the first quarter of 2003. First quarter license revenue of $114.5 million represented a 104 percent increase over the first quarter of the prior year. "I am pleased with our results in the first quarter, especially given the inherent challenge of integrating two large, successful BI companies," 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. , chairman and chief executive officer. "Our employees have done an outstanding job in bringing these two companies together. Our growth primarily reflects the ongoing integration of Crystal operations, and a positive customer response to our combined product portfolio." "These results clearly establish Business Objects as the number one vendor in Business Intelligence. We believe that our market leadership combined with our world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. , proven products in query To interrogate a collection of data such as records in a database. The term may also be used to search a single file or collection of files such as HTML files on the Web. However, in addition to obtaining lists of records that match the search criteria, queries to a database allow for , reporting and analysis, performance management, and data integration make Business Objects the clear choice in the BI market, particularly for organizations making enterprise BI standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting decisions." Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. based on US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). was $9.3 million, an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 4 percent. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating income in the quarter was $19.2 million, an operating margin of 9%. Pro forma results differ from US GAAP as they exclude certain purchase accounting adjustments and other costs associated with the acquisition of Crystal Decisions. A reconciliation of US GAAP to pro forma results is included at the of this release. Net income based on US GAAP was $3.3 million, or $0.04 per 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. ordinary share and ADS. Pro forma net income was $9.4 million, or $0.10 per diluted ordinary share and ADS. US GAAP and pro forma results exclude $12.6 million of maintenance revenue due to purchase accounting entries eliminating certain purchased deferred revenue. Net income was adversely impacted by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.8 million of non-operating currency exchange losses included in other income and expense, which represents an adverse impact of $0.05 per diluted ordinary share and ADS. These losses were primarily caused by the effect of a stronger US dollar on euro-denominated intercompany loans Intercompany loan Loan made by one unit of a corporation to another unit of the same corporation. , which occurred as part of the integration process. Business Objects does not expect such losses to be recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. . First Quarter Highlights -- 7 transactions over $1 million of license revenue. -- $102 million in revenues from query, analysis and reporting solutions, a 114 percent increase compared with the first quarter of 2003. -- $8.1 million in revenue from performance management and analytic applications Analytic Applications are a type of business application software, used to measure and improve the performance of business operations. More specifically, Analytic Applications are a type of Business Intelligence solution. products, a 14 percent increase compared with the first quarter of 2003. -- $4.3 million in revenue from data integration products, a 176 percent increase compared to the first quarter of 2003. -- 38 percent of license revenue from Business Objects channel partners. -- Successful launch of its product integration plans through an 80-city roadshow attended by over 11,000 customers and partners. -- Renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partnership agreements with Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. and SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. . -- Signed alliance agreement with Cap Gemini Gemini (jĕm`ənī, –nē) [Lat.,=the twins], northern constellation lying on the ecliptic (the sun's apparent path through the heavens) between Taurus and Cancer, N of Canis Minor; it is one of the constellations of the zodiac. Ernst & Young. -- Achieved Oracle Certified See certification. Partner status. -- Introduced Crystal Version 10 and Data Integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. 6.5 -- Crystal Version 10 given PC Magazine's 5-Star Award and Visual Studio Magazine's Reader's Choice Award -- Major customer transactions with Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. , British Nuclear Fuels, ENI, Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. , Ingram Micro Ingram Micro, Inc. NYSE: IM a Fortune 100 company founded in 1979 and based in Santa Ana, California. It is the world’s largest technology distributor and a leading technology sales, marketing and logistics company. , Internal Revenue Service, Land O' Lakes, Total, and the Treasury Board of Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. Region Performance Year-over-year revenue performance for the first quarter of 2004, in US dollars, for each region is as follows: Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). up 68 percent (up
43 percent in euro), Americas A·mer·i·cas , theSee America. up 99 percent, Japan up 20 percent (up 10 percent in yen), and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). up 203 percent. Balance Sheet As of March 31, 2004, the company had $245.9 million in cash and cash equivalents. Total assets were $1.8 billion. Business Outlook Management offers the following guidance for the quarter ending June June: see month. 30, 2004: -- Revenue is expected to be in the range of $220 million to $225 million -- US GAAP diluted earnings per ordinary share and ADS are expected to be in the range of $0.07 to $0.10 -- Pro forma diluted earnings per ordinary share and ADS are expected to be in the range of $0.16 to $0.19. Both the US GAAP and pro forma guidance for the quarter ended June 30, 2004 exclude eliminated deferred maintenance revenue of approximately $8.7 million, which is approximately a $0.06 per ordinary share and per ADS reduction reflected in both estimates. The pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per ordinary share and ADS for the quarter ended June 30, 2004 also excludes amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of approximately $9 million, which is an increase of approximately a $0.06 per ordinary share and ADS, and planned restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $3 to $4 million, which is an increase of approximately $0.03 per ordinary share and ADS. Management offers the following guidance for the year ending December 31, 2004: Revenue is expected to be approximately $935 million on a GAAP basis. The above information concerning our forecast for the second quarter and full year quarter represents our outlook only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and we undertake no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise. Normalized results for year-over-year comparisons US GAAP results presented above compare Business Objects and Crystal Decisions on a combined basis in the first quarter of 2004 to Business Objects on a standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. basis in the first quarter of 2003. The pro forma results presented above eliminate approximately $9.9 million of amortization of intangible assets due to purchase accounting requirements. These results for the first quarter of 2004 do not include approximately $12.6 million of deferred maintenance revenue. If this deferred maintenance revenue is added back, and the combined entities are then compared on a pro forma basis, the results are: -- Total revenue of $229.8 million, an increase of 20 percent over the first quarter of 2003. -- License revenue of $114.5 million, an increase of 12 percent over the first quarter of 2003. -- Operating income of $31.8 million, representing an operating margin of 14 percent -- Net income of $17.2 million, or $0.19 per diluted ordinary share and ADS. Accounting principles Business Objects prepares its financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("US GAAP"). As the Company is listed on both the Premier Marche Marche, region, Italy Marche (mär`kā) or the Marches, region (1991 pop. 1,429,205), 3,742 sq mi (9,692 sq km), E central Italy, extending from the eastern slopes of the Apennines to the Adriatic Sea. Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] in France and the Nasdaq National Market in the United
States, it is required to separately report consolidated financial
statements Consolidated Financial StatementsThe combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge prepared in accordance with accounting principles generally accepted in France ("French GAAP") and in accordance with accounting principles generally accepted in the United States ("US GAAP"). There are significant differences in results of operations and financial position between the two reporting standards. These differences are primarily related to the amortization of goodwill, stock-based compensation, financial instrument derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , the accounting for treasury shares related to the acquisition of Crystal Decisions and their presentation in the balance sheet. The reconciliation of the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for 2003 and of the consolidated shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. as of December 31, 2003 in accordance with French GAAP and with US GAAP is available in the Company's annual report filed as a "Document de Reference" under reference R. 04-066 with the French Securities Exchange Commission ("Autorite des Marches Financiers). Use of Non-GAAP Financial Measures This press release includes financial measures for net income and earnings per share that exclude certain non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and that have not been calculated in accordance with US GAAP. These measures differ from US GAAP in that they exclude the amortization of intangible assets and of deferred stock-based compensation associated with the Crystal Decisions acquisition, and the elimination of maintenance revenue due to the impact of purchase accounting entries on deferred revenue. Business Objects has provided these measurements in addition to GAAP financial results because it believes they provide a consistent basis for comparison between quarters that is not influenced by certain non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to the acquisition of Crystal Decisions and therefore is helpful to understanding Business Objects' underlying operational results. Further, these non-GAAP measures are some of the primary measures Business Objects' management uses for planning and forecasting. These measures are not in accordance with, or an alternative to US GAAP, and these non-GAAP measures may not be comparable to information provided by other companies. A reconciliation of US GAAP to pro forma results is presented at the end of this press release. Conference Call Business Objects will hold a conference call today to discuss its financial results for the first quarter of 2004. The call will begin at 1:30 p.m. PT (4:30 p.m. ET). The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. access numbers are 800.399.7988 for the U.S. and Canada; and 706.634.5428 (Europe and Asia). The conference call also will be webcast live, and can be accessed on the company's website - www.businessobjects A query, reporting and analysis suite of tools from Business Objects that runs under all versions of Windows and various Unix clients. It is the leading decision support tool in the business intelligence market, providing access to a wide variety of databases, including Oracle, INFORMIX .com. A replay of the webcast will be available on the site approximately two hours after the end of the live call. About Business Objects Business Objects is the world's leading business intelligence (BI) software company. Business Objects enables organizations to track, understand, and manage enterprise performance. The company's solutions leverage the information that is stored in an array of corporate databases, enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ), and customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) systems. Popular uses of BI include enterprise reporting With the dramatic expansion of information technology, and the desire for increased competitiveness in corporations, there has been an increase in the use of computing power to produce unified reports which join different views of the enterprise in one place. , management dashboards and scorecards, customer intelligence applications, financial reporting, and both customer and partner extranets. These solutions enable companies to gain visibility into their business, acquire and retain profitable customers, reduce costs, optimize optimize - optimisation the supply chain, increase productivity, and improve financial performance. In December 2003, Business Objects completed the acquisition of Crystal Decisions, the leader in enterprise reporting. The combined product line includes software for reporting, query and analysis, performance management, analytic applications, and data integration. In addition, Business Objects offers consulting and education services to help customers effectively deploy their business intelligence projects. Business Objects has more than 24,000 customers in over 80 countries. The company's stock is traded under the ticker symbols 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 NASDAQ: BOBJ and Euronext Paris (ISIN: FR0004026250 - BOB). It is included in the SBF SBF Studium Biblicum Franciscanum (Franciscan School of Biblical Investigations; Jerusalem, Israel) SBF Small Block Ford (automotive engine) SBF Single Black Female SBF Société des Bourses Francaises 120 and IT CAC See Consumer Advisory Council. 50 French stock market indexes. Business Objects can be reached at 408-953-6000 and www.businessobjects.com Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This document contains forward-looking statements that involve risks and uncertainties concerning Business Objects' including Business Objects' expected financial performance. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, Business Objects' ability to successfully integrate Crystal Decisions' operations, employees, and products; Business Objects' ability to transition Crystal Decisions' customers; the introduction of new products by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. or the entry of new competitors into the markets for Business Objects' products; and economic and political conditions in the U.S. and abroad. More information about potential factors that could affect Business Objects' business and financial results is included in Business Objects' Annual Report on 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, 2003, Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarterly period ended March 31, 2003, Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003, Quarterly Report on Form 10-Q for the quarterly period ended September September: see month. 30, 2003 and Business Objects' Registration Statement on Form S-4 (Registration No. 333-108400) including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Business Objects is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to undertake any obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this document. BusinessObjects is a trademark of Business Objects S.A. Other company and product names may be trademarks of the respective companies with which they are associated.
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US dollars, except per ordinary share and ADS data)
Three Months Ended
March 31,
--------------------
2004 2003
----------- --------
Revenues: (unaudited)
Net license fees $114,493 $56,243
Services 102,742 62,280
----------- --------
Total revenues 217,235 118,523
Cost of revenues:
Net license fees 7,682 894
Services 41,630 19,993
----------- --------
Total cost of revenues 49,312 20,887
----------- --------
Gross margin 167,923 97,636
Operating expenses:
Sales and marketing 97,181 56,433
Research and development 39,703 22,579
General and administrative 21,402 8,158
Amortization of other intangible assets 310 -
----------- --------
Total operating expenses 158,596 87,170
----------- --------
Income from operations 9,327 10,466
Interest and other income (expense), net (4,068) 3,747
----------- --------
Income before provision for income taxes 5,259 14,213
Provision for income taxes (1,999) (5,401)
----------- --------
Net income $3,260 $8,812
=========== ========
Basic net income per ordinary share and ADS $0.04 $0.14
=========== ========
Diluted net income per ordinary share and ADS $0.04 $0.14
=========== ========
Ordinary shares and ADS used in computing basic
net income per ordinary share and ADS 88,632 62,476
=========== ========
Ordinary shares and ADS and equivalents used in
computing diluted net income per ordinary share
and ADS 92,305 63,731
=========== ========
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
March 31, December 31,
2004 2003
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $245,870 $235,380
Restricted cash 19,239 19,243
Accounts receivable, net 181,038 187,885
Deferred tax assets 5,491 261
Prepaid and other current assets 44,622 33,797
----------- -----------
Total current assets 496,260 476,566
Goodwill 1,051,466 1,051,111
Other intangible assets, net 138,966 149,143
Property and equipment, net 60,630 61,187
Long-term deferred tax assets 28,699 17,963
Deposits and other assets 35,407 19,092
----------- -----------
Total assets $1,811,428 $1,775,062
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $42,831 $47,790
Accrued payroll and related expenses 62,172 84,686
Income taxes payable 91,255 75,727
Deferred revenues 165,074 135,977
Restructuring liability 12,539 21,331
Other current liabilities 53,584 51,814
Notes payable 9,728 9,728
----------- -----------
Total current liabilities 437,183 427,053
Long-term accrued rent 5,245 4,950
Total shareholders' equity 1,369,000 1,343,059
----------- -----------
Total liabilities and shareholders'
equity $1,811,428 $1,775,062
=========== ===========
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
Three Months Ended
March 31,
---------------------
2004 2003
----------- ---------
(unaudited)
Operating activities:
Net income $3,260 $8,812
Adjustment to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization of property
and equipment 8,349 3,978
Amortization of other intangible assets 7,789 737
Stock-based compensation expense 2,077 -
Deferred income taxes (37,286) 617
Tax benefit from employee stock plans 2,517 -
Changes in operating assets and liabilities:
Accounts receivable, net 5,218 29,751
Prepaid and other current assets (4,322) (3,686)
Deposits and other assets (2,236) -
Accounts payable (4,401) 1,275
Accrued payroll and related expenses (24,367) (11,589)
Income taxes payable 16,021 (2,412)
Deferred revenues 29,709 18,032
Restructuring liability and other current
liabilities (4,745) (6,216)
----------- ---------
Net cash provided by (used in)
operating activities (2,417) 39,299
----------- ---------
Investing activities:
Purchases of property and equipment, net (7,666) (1,625)
Sales of short-term investments - 9,404
----------- ---------
Net cash provided by (used in)
investing activities (7,666) 7,779
----------- ---------
Financing activities:
Issuance of shares 13,882 3,852
Change in restricted cash 5 -
----------- ---------
Net cash provided by financing
activities 13,887 3,852
----------- ---------
Effect of foreign exchange rate changes on cash
and cash equivalents 6,686 5,677
Net increase in cash and cash equivalents 10,490 56,607
Cash and cash equivalents, beginning of period 235,380 233,941
----------- ---------
Cash and cash equivalents, end of period $245,870 $290,548
Short-term investments, end of period - 37,999
----------- ---------
Cash and cash equivalents and short term
investments, end of period $245,870 $328,547
=========== =========
Business Objects S.A.
Statement of Income - Reconciliation of Pro forma to U.S. GAAP
Information
For the Quarter Ended March 31, 2004
(In millions of US dollars, except for EPS data)
U.S. Add back: Add back:
GAAP Amortization Amortization
of of Stock
Intangible Based
Assets compensation
-------------------- -------------
Net license fees $114.5 $- $-
Services revenues 102.7 - -
-------------------- -------------
Total revenues 217.2 - -
Total cost of revenues 49.3 (7.5) (0.3)
-------------------- -------------
Gross margin 167.9 7.5 0.3
Gross margin % 77%
Sales and marketing 97.2 - (0.7)
Research and development 39.7 - (0.6)
General and administrative 21.4 - (0.5)
Amortization of other intangible
assets 0.3 (0.3) -
-------------------- -------------
Total operating
expenses 158.6 (0.3) (1.8)
Income from operations 9.3 7.8 2.1
Operating profit % 4%
Interest and other income (expense),
net (4.0) - -
-------------------- -------------
Income before provision for income
taxes 5.3 7.8 2.1
Provision for income taxes (2.0) (3.0) (0.8)
-------------------- -------------
Net income $3.3 $4.8 $1.3
==================== =============
EPS - Basic $0.04
EPS - Diluted $0.04
Pro forma Add back: Normalized
(excluding Deferred (including
Deferred Maintenance Deferred
Maintenance Revenue Maintenance
Revenue) Eliminated Revenue)
------------ ------------ ------------
Net license fees $114.5 $- $114.5
Services revenues 102.7 12.6 115.3
------------ ------------ ------------
Total revenues 217.2 12.6 229.8
Total cost of revenues 41.5 - 41.5
------------ ------------ ------------
Gross margin 175.7 12.6 188.3
Gross margin % 81% 82%
Sales and marketing 96.5 - 96.5
Research and development 39.1 - 39.1
General and administrative 20.9 - 20.9
Amortization of other
intangible assets - - -
------------ ------------ ------------
Total operating
expenses 156.5 - 156.5
Income from operations 19.2 12.6 31.8
Operating profit % 9% 14%
Interest and other income
(expense), net (4.0) - (4.0)
------------ ------------ ------------
Income before provision for
income taxes 15.2 12.6 27.8
Provision for income taxes (5.8) (4.8) (10.6)
------------ ------------ ------------
Net income $9.4 $7.8 $17.2
============ ============ ============
EPS - Basic $0.11 $0.19
EPS - Diluted $0.10 $0.19
Business Objects S.A.
Supplemental U.S. GAAP Information
(In millions of US dollars)
(Unaudited)
------- ------- ------- ------- -------
2002
------- ------- ------- ------- -------
Q1 Q2 Q3 Q4 Total
Revenue By Product Line
Net license fees $63.3 $60.9 $53.7 $66.1 $244.0
Services 44.3 50.3 56.1 60.1 210.8
------- ------- ------- ------- -------
Total $107.6 $111.2 $109.8 $126.2 $454.8
======= ======= ======= ======= =======
Revenue By Geography
Americas $51.2 $57.3 $50.4 $54.0 $212.9
Europe 49.1 47.0 51.9 64.4 212.4
Japan 4.1 4.2 4.9 4.7 17.9
Asia Pacific 3.2 2.7 2.6 3.1 11.6
------- ------- ------- ------- -------
Total $107.6 $111.2 $109.8 $126.2 $454.8
======= ======= ======= ======= =======
Direct/Indirect - License Only
Direct 51% 52% 54% 60% 54%
Indirect 49% 48% 46% 40% 46%
------- ------- ------- ------- -------
Total 100% 100% 100% 100% 100%
======= ======= ======= ======= =======
Gross Margin % 84% 84% 83% 84% 84%
Operating Profit % 15% 9% 4% 13% 10%
Net Income % 10% 11% 4% 10% 9%
Diluted EPS $0.17 $0.18 $0.08 $0.20 $0.63
Ending Number of Employees 2,231 2,194 2,186 2,162
DSO 68 65 62 70
------- ------- ------- ------- -------
2003
------- ------- ------- ------- -------
Q1 Q2 Q3 Q4 Total
Revenue By Product Line
Net license fees $56.2 $62.7 $58.0 $98.3 $275.2
Services 62.3 66.3 71.1 85.9 285.6
------- ------- ------- ------- -------
Total $118.5 $129.0 $129.1 $184.2 $560.8
======= ======= ======= ======= =======
Revenue By Geography
Americas $51.9 $56.6 $55.3 $78.1 $241.9
Europe 57.8 63.0 63.3 89.6 273.7
Japan 5.5 4.8 5.5 6.4 22.2
Asia Pacific 3.3 4.6 5.0 10.1 23.0
------- ------- ------- ------- -------
Total $118.5 $129.0 $129.1 $184.2 $560.8
======= ======= ======= ======= =======
Direct/Indirect - License Only
Direct 59% 60% 57% 59% 59%
Indirect 41% 40% 43% 41% 41%
------- ------- ------- ------- -------
Total 100% 100% 100% 100% 100%
======= ======= ======= ======= =======
Gross Margin % 82% 83% 82% 84% 83%
Operating Profit % 9% 12% 10% 0% 7%
Net Income % 7% 9% 8% N/A 4%
Diluted EPS $0.14 $0.18 $0.17 $(0.12) $0.34
Ending Number of Employees 2,145 2,148 2,111 3,924
DSO 53 57 62 66
-------
2004
-------
Q1
Revenue By Product Line
Net license fees $114.5
Services 102.7
-------
Total $217.2
=======
Revenue By Geography
Americas $104.1
Europe 96.4
Japan 6.6
Asia Pacific 10.1
-------
Total $217.2
=======
Direct/Indirect - License Only
Direct 62%
Indirect 38%
-------
Total 100%
=======
Gross Margin % 77%
Operating Profit % 4%
Net Income % 2%
Diluted EPS $0.04
Ending Number of Employees 3,756
DSO 75
Fiscal 2003, Q4 includes 20 days of Crystal Decisions' activity
subsequent to the acquisition of Crystal Decisions on December 11,
2003.
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