Business Objects Reports Q3 Fiscal 2007 Results.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. & 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 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 third quarter of fiscal 2007. Total revenues for the third quarter of fiscal 2007 were $369 million, up 19 percent year-over-year. License revenues were $139 million, up 6 percent year-over-year. Services revenues, including product maintenance, consulting and training, were $230 million, up 29 percent year-over-year. Business Objects completed the acquisitions of Cartesis S.A. on June 1, 2007 and Inxight Software, Inc. on July 3, 2007, which together added approximately $21 million in total revenues in the third quarter of 2007. 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 for the third quarter of fiscal 2007 were $0.07 (which included a charge of approximately $7 million, or $0.05 per share, for the final settlement of the previously disclosed litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Decision Warehouse), as compared to $0.21 per share for the third quarter of fiscal 2006. Non-GAAP diluted earnings per share for the third quarter of fiscal 2007 were $0.39, as compared to $0.41 per share for the third quarter of fiscal 2006. The year-over-year decline in both GAAP and non-GAAP earnings per share for the third quarter of 2007 was due in part to a shortfall in license revenues and in part to the short-term dilutive impact from recent acquisitions, including net restructuring costs of approximately $1 million. The results for the third quarter of fiscal 2007 were consistent with the preliminary results released by the company on October 7, 2007. "While we continued to generate double-digit year-over-year total revenue growth in all geographies, the third quarter license revenues were below our expectations, primarily due to deal deferrals in certain sectors and to distractions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc M&A activity," said John Schwarz —John F. Schwarz is the name of:
In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. end-to-end BI solutions." All figures referred to herein are stated in US dollars unless otherwise indicated. On a constant currencies basis for the third quarter of fiscal 2007, total revenues were up 15 percent year-over-year, license revenues were up 2 percent year-over-year, and services revenues were up 24 percent year-over-year. The non-GAAP results for the third quarter of fiscal 2007, as defined below in the section "Use of Non-GAAP Financial Measures", 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. , write-off of in-process R&D from acquisitions, stock-based compensation expense, restructuring costs and other non-recurring or 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. . A reconciliation of US GAAP to non-GAAP results is included at the end of this press release. Q3 Fiscal 2007 Highlights Double-Digit Revenue Growth in All Geographies * Total revenues in the Americas for the third quarter of fiscal 2007 were $198 million, up 13 percent year-over-year. The Americas closed 6 transactions over $1 million in license revenues in the third quarter. * Total revenues in Europe, Middle-East and Africa (or 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. ) for the third quarter of fiscal 2007 were $145 million, up 29 percent year-over-year (up 21 percent in constant currencies). EMEA closed 1 transaction over $1 million in license revenues in the third quarter. The majority of the revenues from Cartesis were generated and recorded in EMEA. * Total revenues in Asia-Pacific and Japan (or APJ APJ Astrophysical Journal APJ Asia Pacific Japan APJ Aerospace Power Journal (USAF Air University) APJ Administrative Patent Judge APJ Australian Police Journal APJ Assistant Presiding Judge ) for the third quarter of fiscal 2007 were $26 million, up 16 percent year-over-year. APJ closed 1 transaction over $1 million in license revenues in the third quarter. * During the quarter, the company added over 1,100 new customers worldwide. All Business Lines Contributed to Revenue Growth * License revenues for the third quarter of fiscal 2007 were $139 million, up 6 percent year-over-year (up 2 percent in constant currencies). All product lines contributed to reported license growth. * Maintenance revenues for the third quarter of fiscal 2007 were $163 million, up 27 percent year-over-year (up 22 percent in constant currencies). Continued high customer renewal rates and the up-selling of premium support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services contributed to the growth in maintenance revenues. * Global services revenues for the third quarter of fiscal 2007, including consulting and training, were $67 million, up 34 percent year-over-year (up 31 percent in constant currencies). Global services benefited from continued high demand for consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" across the BI industry, a solid performance in Europe and Asia, and the addition of Cartesis compared to a year ago. Profitability Impacted by Shortfall in License Revenues and Short-term Dilution from Recent Acquisitions * Income from operations on a US GAAP basis for the third quarter of fiscal 2007 was at $11 million (after a $7 million legal contingency reserve for the final settlement of the previously disclosed litigation with Decision Warehouse), or 3 percent of total revenues, as compared to $29 million, or 10 percent of total revenues, for the third quarter of fiscal 2006. * Income from operations on a non-GAAP basis for the third quarter of fiscal 2007 was at $54 million, or 15 percent of total revenues, as compared to $53 million, or 17 percent of total revenues, for the third quarter of fiscal 2006. New Products and Alliances Add Breadth and Scope to Extend Competitive Lead * Recently announced product introductions include: [TABLE OMITTED] * Strategic alliances recently signed and announced include: [TABLE OMITTED] Strong Balance Sheet and Cash Flow * Total cash, cash equivalents and short-term investments (excluding restricted cash) were $931 million at September 30, 2007, up $418 million from December 31, 2006. * Total deferred revenues were $339 million at September 30, 2007, up $46 million from December 31, 2006. * Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , on a days-sales-outstanding basis, were 82 days for the third quarter of fiscal 2007, as compared to 73 days for the third quarter of fiscal 2006, and down from 88 days in the previous quarter. * Net cash provided by operating activities for the nine months ended September 30, 2007 was $213 million. Business Outlook Due to potential changes in customer buying behavior resulting from the pending transaction with SAP, the anticipated impact of the transaction on Business Objects' expenses, and uncertainty regarding the timing of the closing of the tender, Business Objects anticipates less fourth quarter predictability than usual and is thus suspending its forward-looking financial guidance. Due to the combination of the actual third quarter results being less than previous guidance and the potential impact of the pending transaction on the fourth quarter results, investors should no longer rely upon the guidance statements made in Business Objects' press release issued on July 25, 2007. Tender Offer Agreement Signed with SAP On October 7, 2007, Business Objects issued a release announcing that it had signed a tender offer agreement with SAP, and that SAP intends to launch a direct cash tender offer for all outstanding shares, convertible bonds and warrants of Business Objects at EU42 per share. Additionally, on October 22, 2007, Business Objects issued a press release announcing the filing of a draft prospectus ("Projet de Note d'Information en Reponse") with the Autorite des marches financiers (or AMF AMF ACE (Allied Command, Europe) Mobile Force AMF Autorité des Marchés Financiers (French) AMF Action Message Format AMF Arab Monetary Fund AMF Asian Monetary Fund AMF Autocrine Motility Factor ) in response to the tender offer initiated by SAP France S.A. for Business Objects' shares, convertible bonds and warrants. These press releases and Business Objects' draft prospectus are available on Business Objects' web site (www.businessobjects.com) as well as the AMF (Autorite des marches financiers) website (www.amf-france.org). Conference Call Business Objects will hold a conference call to discuss its financial results for the third quarter of 2007 on October 24, 2007. The call will begin at 5:00 a.m. PT (8:00 a.m. ET, 1:00 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 , 2:00 p.m. CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr ). The dial-in numbers are +1 (800) 399-7988 for North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and +1 (706) 634-5428 for Europe and Asia, with ID #20490160. The conference call also will be webcast live, and can be accessed on the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's website at www.businessobjects.com/company/investors. A replay of the webcast will be available on the site approximately two hours after the end of the live call. Accounting Principles Business Objects prepares its financial statements in accordance with US GAAP. Because Business Objects is listed on both the Eurolist by Euronext[TM] in France and the Nasdaq Global Select 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 Statements The 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 both 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 for Business Objects relate to the treatment of stock-based compensation expense, the accounting for deferred tax assets on certain intercompany transactions Intercompany transaction Transaction carried out between two units of the same corporation. , the accounting for business combinations and the accounting for the convertible bonds that the company issued in May 2007. In accordance with French regulations and IFRS, Business Objects filed with the AMF in France its Document de Reference 2006 on April 6, 2007 under the registration number D.07-0285, which included its consolidated financial statements for the year ended on December 31, 2006, presented in accordance with International Financial Reporting Standards. The Document de Reference 2006 includes the consolidated information that Business Objects published on April 18, 2007 to the Bulletin des Annonces Legales Obligatoires ("BALO BALO Bulletin des Annonces Légales et Obligatoires (French) BALO Bdellovibrio and Like Organisms BALO Brigade Air Liaison Officer ") in France. Use of Non-GAAP Financial Measures The non-GAAP financial measures such as 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. , net income and earnings per share information for the third quarter of 2007 included in this press release are different from those otherwise presented under US GAAP as these non-GAAP measures exclude certain charges. These charges include the write-off of in-process research and development, amortization of intangible assets, stock-based compensation expense, restructuring costs and other non-recurring or non-cash charges. The non-GAAP tax rate differs from the US GAAP tax rate due to the elimination of the tax rate effect of the US GAAP expenses that are being eliminated to arrive at the non-GAAP expenses. Business Objects has provided these measures in addition to US GAAP financial results because management believes these non-GAAP 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 or impacts of prior period acquisitions, and therefore are helpful in understanding Business Objects' underlying operating results. 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 non-GAAP results are presented at the end of this press release. 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 release contains forward-looking statements that involve risks and uncertainties, including statements regarding the expansion of Business Objects' solution offerings through numerous new product launches and extended and new alliances, potential changes in customer buying behavior resulting from the pending transaction with SAP, the anticipated impact of the transaction on our expenses and the uncertainty regarding the timing of the closing of the tender offer. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. These potential risks and uncertainties include, among others: the impact of the proposed acquisition on Business Objects' financial results, including expenses; SAP's and Business Objects' ability to complete the proposed transaction, including the outcome of regulatory reviews of the proposed transaction; the failure to retain key Business Objects employees; customer and partner uncertainty regarding the anticipated benefits of the proposed transaction; the failure of SAP and Business Objects to achieve the anticipated synergies of the proposed transaction; Business Objects' ability to attract and retain customers for its end-to-end BI solutions; market acceptance of new products; Business Objects' and Adobe's ability to fulfill the joint initiatives established under their new strategic alliance arrangement, and other risks detailed in Business Objects' SEC filings, including its 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 year ended December 31, 2006 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2007, which are on file with the SEC and available at the SEC's website at www.sec.gov. 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 after the date of this document. Additional Information The tender offer for the outstanding ordinary shares, the convertible bonds and the warrants of Business Objects has not yet commenced. This press release is for informational purposes only and is not an offer to buy or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to sell any Business Objects securities. The solicitation and the offer to buy ordinary shares of Business Objects, the convertible bonds and the warrants will be made only pursuant to an offer to purchase and related materials that SAP and its subsidiary intend to file with the SEC on Schedule TO. Business Objects also intends to file a solicitation/recommendation statement on Schedule 14D-9 with respect to the tender offer. Business Objects stockholders and other investors should read the draft Note d'Information and the draft Note en Reponse filed by SAP and by Business Objects, respectively, with the AMF on October 22, 2007, and any updates thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. carefully because these documents contain important information, including the terms and conditions of the tender offer. In addition, Business Objects stockholders and other investors should read the Tender Offer Statement on Schedule TO and the Schedule 14D-9 to be filed by SAP and Business Objects, respectively, carefully because these documents will contain important information, including the terms and conditions of the tender offer. Business Objects stockholders and other investors will be able to obtain copies of the draft Note d'Information and the draft Note en Reponse and any other documents filed with the AMF from the AMF's website (amf-france.org) , and any other tender offer documents subsequently filed with the AMF or the SEC from their respective websites (SEC website at www.sec.gov), in both cases without charge. Materials filed by SAP may be obtained for free at SAP's web site, www.sap.com. Materials filed by Business Objects may be obtained for free at Business Objects' web site, www.businessobjects.com. Stockholders and other investors are urged to read carefully all tender offer materials prior to making any decisions with respect to the tender offer. About Business Objects Business Objects has been a pioneer in business intelligence (BI) since the dawn of the category. Today, as the world's leading BI software company, Business Objects transforms the way the world works through intelligent information. The company helps illuminate il·lu·mi·nate v. il·lu·mi·nat·ed, il·lu·mi·nat·ing, il·lu·mi·nates v.tr. 1. To provide or brighten with light. 2. To decorate or hang with lights. 3. understanding and decision-making at more than 45,000 organizations around the globe. Through a combination of innovative technology, global consulting and education services, and the industry's strongest and most diverse partner network, Business Objects enables companies of all sizes to make transformative business decisions based on intelligent, accurate, and timely information. Business Objects has dual 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. Business Objects and the Business Objects logo, BusinessObjects and Crystal Reports are trademarks or registered trademarks of Business Objects in the United States and/or other countries. All other names mentioned herein may be trademarks of their respective owners. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion