Business Objects Reports First Quarter 2005 Results; Total Revenue up 15 percent Year-over-Year; Q1 Pro forma Operating Income Up 60 percent Year-over-Year; Full Year Guidance Raised; Strong First Quarter for BusinessObjects XI.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 Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- 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, 2005. For the first quarter of 2005, the company reported total revenues of $248.8 million, an increase of 15 percent year-over-year. US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.16 and 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 diluted earnings per share were $0.24 in the first quarter of 2005. The US GAAP and pro forma diluted earnings per share came in at or above the high end of the company's guidance for the quarter of US GAAP $0.13 to $0.16 per share and pro forma $0.19 to $0.22 per share. Pro forma or Non-GAAP results as defined in the section "Use of Non-GAAP Financial Measures" below differ from results measured under US GAAP as they exclude 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. , deferred stock-based compensation expense and 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. , all primarily associated with the acquisition of Crystal Decisions. Reconciliations of US GAAP to pro forma results are included at the end of this press release. "First quarter results mark an excellent start to the year with solid top-line growth and strength in every major geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. ," 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 customer wins underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the competitive strength of our offering and our ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution . In particular, 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 XI(TM) exceeded our expectations in its first full quarter on the market, contributing more than $15 million in license revenues." Large Wins Continue --There were 9 transactions over $1 million in license revenues in the first quarter, up from 7 transactions over $1 million in the year ago quarter. --Notable customer wins include Banner Health Banner Health is a non profit health system based in Phoenix, Arizona. The health system is one of the largest employer’s in the state - employing over 27,000 employees. , British Nuclear Fuels plc, CNA (Certified NetWare Administrator) See Novell certification. Insurance, National Health Service and US Foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. , among many others. Strength Across All Major Geographies --Revenues in the Americas A·mer·i·cas , the See America. reached $118.1 million, up 13 percent year-over-year with 3 transactions over $1 million in license revenue. --Revenues in EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. (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). , Middle East, and Africa) totaled $111.2
million, up 15 percent year-over-year (up 9 percent at 83.6 million in
Euros), with 6 transactions over $1 million in license revenues.
--Revenues in Asia Pacific, including Japan, rose to $19.5 million, up 17 percent year-over-year. Software License Revenues Up Year-over-Year --Software license revenues totaled $115.2 million in the first quarter, up 1 percent year-over-year. --Core business intelligence products: 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 reached $101.0 million in license revenues, representing 88 percent of total license revenues. --Enterprise Performance Management Applications reached $8.2 million in license revenues, representing 7 percent of total license revenues. --Data Integration products reached $6.0 million in license revenues, representing 5 percent of total license revenues. --Services revenues totaled $133.6 million in the first quarter, up 30 percent year-over-year, primarily on the strength of maintenance revenues. Earnings Per Share Up Year-over-Year --On a US GAAP basis, 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. was $21.4 million in the first quarter, up 130 percent year-over-year, representing a US GAAP operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 9 percent. In the first quarter, US GAAP net income was $15.0 million and US GAAP diluted earnings per share were $0.16 per share. --On a pro forma basis, operating income was $30.6 million, up 60 percent year-over-year, in the first quarter, representing a pro forma operating margin of 12 percent. In the first quarter, pro forma net income was $22.1 million and pro forma diluted earnings per share were $0.24 per share. Balance Sheet Strengthened --Total cash and investments (cash, cash equivalents, restricted 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) grew by $81.0 million, or 26 percent, from $311.4 million at December December: see month. 31, 2004 to $392.3 million at March 31, 2005. --Deferred revenues grew to $210.1 million, the highest level in the company's history. --DSOs improved to 66 days as of March 31, 2005, down from 84 days as of December 31, 2004. BusinessObjects XI Has Strong First Quarter --Customer response to BusinessObjects XI has been unprecedented. --Attendance at worldwide product launches has been high around the globe, with over 9,000 customers, prospects and partners in attendance. --Many partners are accelerating plans to support XI within their offerings. --BusinessObjects XI license revenue totaled more than $15 million in its first quarter of general availability. Business Outlook Business Objects offers the following guidance for the quarter ending June June: see month. 30, 2005: --Total revenues are expected to range from $250 million to $255 million. --US GAAP diluted earnings per share are expected to range from $0.20 to $0.22. --Pro forma forma, adj/n minor elements between the members of a botanical species. diluted earnings per share are expected to range from $0.26 to $0.28. The pro forma diluted earnings per share guidance for the quarter ending June 30, 2005 excludes amortization of intangible assets and deferred stock-based compensation expense of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9.0 million, which is an increase of approximately $0.06 per share. Business Objects offers the following updated guidance for the year ending December 31, 2005: --Total revenues are expected to range from $1.010 billion to $1.035 billion. --US GAAP diluted earnings per share are expected to range from $0.82 to $0.92. --Pro forma diluted earnings per share are expected to range from $1.07 to $1.17. The pro forma diluted earnings per share guidance for the year ending December 31, 2005 excludes amortization of intangible assets and deferred stock-based compensation expense of approximately $37.0 million, which is an increase of approximately $0.25 per share. The outlook for both the second quarter and full year 2005 assumes a U.S. Dollar to Euro exchange rate of $1.30 per EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.00 and an effective GAAP tax rate of 36 percent for the second quarter and 38 percent for the full year 2005. The above information concerning our forecast for the second quarter and full year 2005 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. 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 US GAAP. Because the company is listed on both the Eurolist by Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] (TM) in France and the Nasdaq National Market 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. , 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 US GAAP and International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ("IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System "). The most significant differences between the two reporting standards relate to the treatment of stock-based compensation expense and the accounting for treasury shares related to a prior acquisition. In accordance with French regulations, Business Objects will report its consolidated financial statements for the first half and full year 2005 in accordance with IFRS with comparative 2004 figures. Business Objects recently filed with the Autorite des Marches Financiers in France its 2004 Document de Reference which included the opening balance sheet of the Company as of January January: see month. 1, 2004 prepared in accordance with IFRS. In addition, the Company will publish net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for its first quarter in accordance with IFRS in the Bulletin des Annouces Legales Obligatoires in France by May 15, 2005. Use of Non-GAAP Financial Measures The pro forma financial measures such as revenues, operating income, net income and earnings per share information included in this press release are different from those otherwise presented under US GAAP as these pro forma measures excluded certain charges. These charges represent amortization of intangible assets, deferred stock-based compensation expense and restructuring charges, all primarily associated with the acquisition of Crystal Decisions. Business Objects has provided these measures in addition to US GAAP financial results because management believes these pro forma measures provide a consistent basis for comparison between quarters and of growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. year-over-year that are not influenced by 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. or impacts of prior period acquisitions, and therefore is helpful in understanding Business Objects' underlying operating results. In addition, this press release also includes non-GAAP measures that use a constant currency to separate the impact of conversion from other foreign currencies to US dollars from other changes in our business. 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. Reconciliations of US GAAP to pro forma results are presented at the end of this press release. Conference Call Business Objects will hold a conference call to discuss its financial results for the first quarter of 2005. The call will begin at 5:00 a.m. PT (8:00 a.m. ET, 2:00 p.m. Paris, 1:00 p.m. London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. ). 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 US and 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 ; and 706.634.5428 for Europe and Asia with ID # 5328116. The conference call also will be webcast live, and can be accessed on the company's website -- www.businessobjects.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. With over 30,000 customers worldwide, including over 80 percent of the Fortune 500, Business Objects helps organizations gain better insight into their business, improve decision making, and optimize optimize - optimisation enterprise performance. The company's business intelligence platform, BusinessObjects XI, offers the BI industry's most complete and trusted platform for reporting, query and analysis, performance management, and data integration. BusinessObjects XI includes Crystal Reports(R), the industry standard for 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. . Business Objects has also built the industry's strongest and most diverse partner community, with more than 3,000 partners worldwide. In addition, the company offers consulting and education services to help customers effectively deploy their business intelligence projects. Business Objects has headquarters in San Jose, Calif., and Paris, France. The company's stock is traded on both the Nasdaq (BOBJ) and Euronext Paris (ISIN: FR0004026250 -- BOB) stock exchanges. More information about Business Objects can be found at 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 the company, including the company's expected financial performance and the breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is and acceptance of the company's BusinessObjects XI product offering. 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, the company's ability to attract and retain customers for BusinessObjects XI; the company's ability to issue releases of BusinessObjects XI on other platforms; the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of revenues from 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 and reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreements; 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; the impact of the pricing of competing technologies; and economic and political conditions in the US 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, 2004, which is 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 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, except per ordinary share and ADS data)
Three Months Ended
March 31,
-------------------
2005 2004
--------- ---------
(unaudited)
Revenues:
Net license fees $115,151 $114,493
Services 133,624 102,742
--------- ---------
Total revenues 248,775 217,235
Cost of revenues:
Net license fees 7,168 7,682
Services 51,381 41,630
--------- ---------
Total cost of revenues 58,549 49,312
--------- ---------
Gross profit 190,226 167,923
Operating expenses:
Sales and marketing 103,722 97,181
Research and development 40,274 39,703
General and administrative 24,813 21,712
--------- ---------
Total operating expenses 168,809 158,596
--------- ---------
Income from operations 21,417 9,327
Interest and other income (expense), net 4,400 (4,068)
--------- ---------
Income before provision for income taxes 25,817 5,259
Provision for income taxes (10,811) (1,999)
--------- ---------
Net income $ 15,006 $ 3,260
========= =========
Basic net income per ordinary share and ADS $ 0.17 $ 0.04
========= =========
Diluted net income per ordinary share and ADS $ 0.16 $ 0.04
========= =========
Ordinary shares and ADSs used in computing
basic net income per ordinary share and ADS 89,424 88,632
========= =========
Ordinary shares and ADSs and equivalents
used in computing diluted net income per ordinary
share and ADS 91,184 92,305
========= =========
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except nominal value per ordinary share)
March December
31, 2005 31, 2004
----------- -----------
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 374,530 $ 293,485
Restricted cash 14,049 14,043
Short-term investments 3,765 3,831
Accounts receivable, net 183,464 248,957
Deferred tax assets 7,187 8,328
Prepaid and other current assets 49,002 46,575
----------- -----------
Total current assets 631,997 615,219
Goodwill 1,067,690 1,067,694
Other intangible assets, net 113,133 124,599
Property and equipment, net 62,647 64,053
Deposits and other assets 45,441 49,296
Long-term deferred tax assets 2,505 2,067
----------- -----------
Total assets $1,923,413 $1,922,928
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 44,558 $ 40,939
Accrued payroll and related expenses 62,563 84,918
Income taxes payable 78,351 85,000
Deferred revenues 210,088 200,682
Other current liabilities 73,702 83,544
Escrows payable 6,687 6,654
----------- -----------
Total current liabilities 475,949 501,737
Other long-term liabilities 6,411 6,448
Long-term deferred tax liabilities 5,189 7,599
----------- -----------
Total liabilities 487,549 515,784
Shareholders' equity
Ordinary shares, EUR 0.10 nominal value 10,409 10,312
Additional paid-in capital 1,179,290 1,167,336
Treasury and Business Objects Option LLC
shares (53,335) (53,335)
Retained earnings 264,726 249,720
Unearned compensation (6,637) (8,079)
Accumulated other comprehensive income 41,411 41,190
----------- -----------
Total shareholders' equity 1,435,864 1,407,144
----------- -----------
Total liabilities and shareholders'
equity $1,923,413 $1,922,928
=========== ===========
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
-------------------
2005 2004
--------- ---------
(unaudited)
Operating activities:
Net income $ 15,006 $ 3,260
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization of property and
equipment 8,830 8,349
Amortization of other intangible assets 8,133 7,789
Stock-based compensation expense 1,217 2,077
Deferred income taxes 10 (16,280)
Tax benefit from employee stock plans - 2,517
Changes in operating assets and liabilities:
Accounts receivable, net 61,048 5,218
Prepaid and other current assets (3,286) (11,053)
Deposits and other assets 3,736 (16,243)
Accounts payable 4,583 (4,401)
Accrued payroll and related expenses (20,560) (24,367)
Income taxes payable (6,140) 16,021
Deferred revenues 12,513 29,709
Other liabilities (9,777) (4,745)
Short-term investments classified as trading 66 (268)
--------- ---------
Net cash provided by (used in) operating
activities 75,379 (2,417)
--------- ---------
Investing activities:
Purchases of property and equipment (7,480) (7,666)
--------- ---------
Net cash used in investing activities (7,480) (7,666)
--------- ---------
Financing activities:
Issuance of shares 12,277 13,882
Other activities 27 5
--------- ---------
Net cash provided by financing activities 12,304 13,887
--------- ---------
Effect of foreign exchange rate changes on cash
and cash equivalents 842 6,686
Net increase in cash and cash equivalents 81,045 10,490
Cash and cash equivalents, beginning of the period 293,485 235,380
--------- ---------
Cash and cash equivalents, end of the period $374,530 $245,870
========= =========
BUSINESS OBJECTS S.A.
STATEMENT OF INCOME -- Reconciliation of US GAAP to Pro forma Results
Three Months Ended March 31, 2005
(In millions, except per ordinary share and ADS data)
(Unaudited)
Add back:
Amortization Add back:
of intangible Amortization
assets and of stock-
restructuring based Pro forma
US GAAP costs compensation Results
--------- -------------- -------------- ---------
Net license fees $ 115.2 $ - $ - $ 115.2
Services revenues 133.6 - - 133.6
--------- -------------- -------------- ---------
Total revenues 248.8 - - 248.8
Cost of net license
fees 7.2 (5.5) - 1.7
Cost of services
revenues 51.4 (2.3) (0.2) 48.9
--------- -------------- -------------- ---------
Total cost of
revenues 58.6 (7.8) (0.2) 50.6
--------- -------------- -------------- ---------
Gross margin 190.2 7.8 0.2 198.2
--------- -------------- -------------- ---------
Gross margin % 76% 80%
Operating expenses:
Sales and
marketing 103.7 - (0.5) 103.2
Research and
development 40.3 - (0.3) 40.0
General and
administrative 24.9 (0.3) (0.2) 24.4
Restructuring
costs (0.1) 0.1 - -
--------- -------------- -------------- ---------
Total operating
expenses 168.8 (0.2) (1.0) 167.6
Income from
operations 21.4 8.0 1.2 30.6
Operating
margin % 9% 12%
Interest and other
income (expense),
net 4.4 - - 4.4
--------- -------------- -------------- ---------
Income before
provision for
income taxes 25.8 8.0 1.2 35.0
--------- -------------- -------------- ---------
Provision for income
taxes (10.8) (1.7) (0.4) (12.9)
--------- -------------- -------------- ---------
Net income $ 15.0 $ 6.3 $ 0.8 $ 22.1
========= ============== ============== =========
Net income per
ordinary share and
ADS
Basic $ 0.17 $ 0.25
Diluted $ 0.16 $ 0.24
BUSINESS OBJECTS S.A.
Q1 FISCAL 2005 SUPPLEMENTAL INFORMATION
(in millions except per ordinary share and ADS data)
(Unaudited)
Fiscal
Fiscal 2004 2005
--------------------------------------- -------
Q1 Q2 Q3 Q4 Total Q1
------- ------- ------- ------- ------- -------
SUPPLEMENTAL INCOME
STATEMENT INFORMATION
Revenues
Net license fees $114.5 $117.2 $105.7 $136.0 $473.4 $115.2
Maintenance 73.8 75.6 84.4 97.0 330.8 100.1
Consulting and
training 28.9 29.4 29.4 33.7 121.4 33.5
------- ------- ------- ------- ------- -------
Total revenues 217.2 222.2 219.5 266.7 925.6 248.8
------- ------- ------- ------- ------- -------
Total expenses
Cost of net license
fees 2.5 1.0 2.1 2.4 8.0 1.7
Cost of services
revenues 39.0 38.8 39.9 44.1 161.8 48.9
Sales and marketing 96.5 98.6 95.9 113.2 404.2 103.2
Research and
development 39.1 36.1 34.9 38.7 148.8 40.0
General and
administrative 20.9 18.6 20.9 21.1 81.5 24.4
Amortization of
intangible assets 7.8 7.6 7.6 7.7 30.7 8.1
Stock-based
compensation (1) 2.1 1.7 1.5 1.4 6.7 1.2
Restructuring costs - 1.5 - 0.7 2.2 (0.1)
------- ------- ------- ------- ------- -------
Total expenses 207.9 203.9 202.8 229.3 843.9 227.4
------- ------- ------- ------- ------- -------
Income from operations 9.3 18.3 16.7 37.4 81.7 21.4
------- ------- ------- ------- ------- -------
Interest and other
income (expense),
net (4.0) 0.3 1.1 (1.6) (4.2) 4.4
Income before
provision for
income taxes 5.3 18.6 17.8 35.8 77.5 25.8
Provision for income
taxes (2.0) (7.1) (6.8) (14.5) (30.4) (10.8)
Effective tax rate 38% 38% 38% 41% 39% 42%
------- ------- ------- ------- ------- -------
Net income 3.3 11.5 11.0 21.3 47.1 15.0
======= ======= ======= ======= ======= =======
Net income per
ordinary share and
ADS
Basic 0.04 0.13 0.12 0.24 0.53 0.17
Diluted 0.04 0.13 0.12 0.24 0.52 0.16
Ordinary shares and
ADSs used in
computing net income
per share (000's)
Basic 88,632 89,095 88,495 88,769 88,748 89,424
Diluted 92,305 91,061 89,792 90,390 91,077 91,184
------- ------- ------- ------- ------- -------
Amortization of
intangible assets
Cost of net license
fees 5.2 5.0 5.0 5.1 20.3 5.5
Cost of services
revenues 2.3 2.3 2.3 2.3 9.2 2.3
General and
administrative 0.3 0.3 0.3 0.3 1.2 0.3
------- ------- ------- ------- ------- -------
Total 7.8 7.6 7.6 7.7 30.7 8.1
======= ======= ======= ======= ======= =======
Stock-based
compensation (1)
Cost of services
revenues 0.3 0.3 0.3 0.2 1.1 0.2
Sales and marketing 0.7 0.7 0.6 0.6 2.6 0.5
Research and
development 0.6 0.4 0.4 0.4 1.8 0.3
General and
administrative 0.5 0.3 0.2 0.2 1.2 0.2
------- ------- ------- ------- ------- -------
Total 2.1 1.7 1.5 1.4 6.7 1.2
======= ======= ======= ======= ======= =======
----------------------------------------------------------------------
Pro forma income from
operations (2) 19.2 29.1 25.8 47.2 121.3 30.6
------- ------- ------- ------- ------- -------
% of total revenues 9% 13% 12% 18% 13% 12%
Interest and other
income (expense),
net (4.0) 0.3 1.1 (1.6) (4.2) 4.4
Income before
provision for
income taxes 15.2 29.4 26.9 45.6 117.1 35.0
Provision for income
taxes (5.8) (11.2) (10.2) (18.3) (45.5) (12.9)
Effective tax rate 38% 38% 38% 40% 39% 37%
------- ------- ------- ------- ------- -------
Pro forma net income 9.4 18.2 16.7 27.3 71.6 22.1
======= ======= ======= ======= ======= =======
% of total revenues 4% 8% 8% 10% 8% 9%
Pro forma net income
per ordinary share
and ADS
Basic 0.11 0.20 0.19 0.31 0.81 0.25
Diluted 0.10 0.20 0.19 0.30 0.79 0.24
----------------------------------------------------------------------
(1) Represents stock-based compensation expense charged to expense as
result of assumption of unvested options in Crystal Decisions
acquisition.
(2) Pro forma or Non-GAAP measures are reconciled from US GAAP
figures. Pro forma or Non- GAAP measures exclude amortization of
intangible assets, non-cash stock-based compensation expense, and
restructuring costs. Certain information on constant currency to
separate out the impact of conversion from other foreign
currencies to US dollars from other changes in our business is
also presented.
BUSINESS OBJECTS S.A.
Q1 FISCAL 2005 SUPPLEMENTAL INFORMATION
(in millions except for number of transactions,
DSO and headcount information)
(Unaudited)
----------------------------------------------------------------------
Fiscal
Fiscal 2004 2005
--------------------------------------- -------
Q1 Q2 Q3 Q4 Total Q1
------- ------- ------- ------- ------- -------
REVENUE ANALYSIS
Total revenues by
geography
Americas $104.1 $104.3 $113.8 $131.0 $453.3 $118.1
EMEA 96.4 99.6 87.6 114.2 397.7 111.2
Asia Pacific,
including Japan 16.7 18.3 18.1 21.5 74.6 19.5
------- ------- ------- ------- ------- -------
Total $217.2 $222.2 $219.5 $266.7 $925.6 $248.8
----------------------------------------------------------------------
Analysis of currency
impact (year-over-
year) (3)
Reported revenue
growth rate 13% 7% 4% 13% 9% 15%
Constant currency
growth rate 5% 3% -1% 7% 4% 11%
------- ------- ------- ------- ------- -------
Impact of foreign
currency on growth
rate 9% 4% 4% 6% 6% 3%
----------------------------------------------------------------------
----------------------------------------------------------------------
Fiscal
Fiscal 2004 2005
--------------------------------------- -------
Q1 Q2 Q3 Q4 Total Q1
------- ------- ------- ------- ------- -------
LICENSE REVENUE
ANALYSIS
License revenues by
channel
Direct 53% 55% 49% 50% 52% 47%
Indirect 47% 45% 51% 50% 48% 53%
------- ------- ------- ------- ------- -------
Total 100% 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Number of
transactions by size
Over $1 million 7 8 4 14 33 9
Over $200k 104 91 78 103 376 101
----------------------------------------------------------------------
----------------------------------------------------------------------
Fiscal
Fiscal 2004 2005
--------------------------------------- -------
Q1 Q2 Q3 Q4 Total Q1
------- ------- ------- ------- ------- -------
SELECTED BALANCE
SHEET ITEMS
Cash, investments and
restricted cash $269 $256 $263 $311 $392
DSO (Days sales
outstanding) 75 81 75 84 66
----------------------------------------------------------------------
HEADCOUNT
Total headcount 3,756 3,707 3,815 3,834 3,944
----------------------------------------------------------------------
(3) For 2004, reported revenue growth rates are calculated on a pro
forma basis including the impact of inclusion of Crystal
Decisions' operations for fiscal 2003. The impact of foreign
currency on growth rate is calculated from absolute amounts and
thus this presentation in full percentages does not always add.
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