Business Objects Reports Record 2003 Fourth Quarter and Year-End Results; Business Objects Standalone Revenue Increases 25 Percent; Operating Margin Reaches 21 Percent.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)--Feb. 5, 2004 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 fourth quarter and year ended December December: see month. 31, 2003. Fourth Quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Results The results for the fourth quarter 2003 include 20 days of revenue contribution and expenses from Crystal Decisions following the close of the acquisition on December 11, 2003; and a number of purchase accounting adjustments and transaction-related expenses which are described in more detail below. Fourth quarter revenues were $184.2 million, an increase of 46 percent over revenues of $126.2 million for the quarter ended December 31, 2002. The net loss for the fourth quarter was $8.6 million, compared to net income of $12.8 million, in the fourth quarter of the prior year. Purchase Accounting Adjustments and Other Transaction-Associated Costs The fourth quarter 2003 GAAP results include certain purchase accounting adjustments and other costs associated with the acquisition of Crystal Decisions, including the following expenses: the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of acquired in-process technology of $28.0 million, the amortization of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. research and development of $1.0 million, the amortization of deferred stock-based compensation of $0.6 million, and the amortization of other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. of $0.6 million. The results also reflect 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 $7.8 million and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. integration charges associated with the acquisition of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.5 million. In addition, the results reflect the elimination of approximately $3.4 million in maintenance revenue during the 20-day period, due to purchase accounting entries eliminating certain purchased deferred revenue. "The business intelligence industry now has an unquestioned leader, and that leader is Business Objects," 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. "From the standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the of license revenue, number of customers, 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 of distribution channels, or product line strength, Business Objects is unsurpassed. Our performance in the fourth quarter reflects this leadership, with strong revenue and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. growth from both Crystal Decisions and Business Objects. In a period when the possibility of distraction Distraction Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] or customer hesitancy hes·i·tan·cy n. An involuntary delay or inability in starting the urinary stream. were at their peak, our execution was outstanding." "Also, we are very pleased with the progress of the integration of Business Objects and Crystal Decisions," said Liautaud. "Just after the close of the quarter, we presented a product integration roadmap A roadmap may refer to:
Noun 1. mid-January - the middle part of January period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" we held our combined worldwide sales force kickoff, and the BI industry's largest sales organization is very enthusiastic about the value proposition it can now offer to clients." Business Objects Standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. 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 Results Had Business Objects and Crystal Decisions operated independently for the entire fourth quarter, the company estimates that the unaudited pro forma operating results for Business Objects would have been as follows (see also Supplemental Schedules below): -- Total revenues of approximately $158 million, up 25 percent from the same period of the prior year -- License revenues of approximately $76 million, up 16 percent from the same period of the prior year -- Maintenance and support revenues of approximately $60 million, up 38 percent from the same period of the prior year -- Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenue of approximately $21 million, up 32 percent from the same period of the prior year -- Gross profit of approximately $133 million, up 26 percent from the same period of the prior year. This represents a gross margin of 84 percent -- 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. of approximately $33 million, up 94 percent from the same period of the prior year. This represents an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 21 percent. A reconciliation of GAAP to pro forma revenue and operating income is included with this press release. Product Line Performance: The performance of key Business Objects product lines during the quarter was as follows: -- 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 Enterprise 6 license revenues were $33 million, a sequential One after the other in some consecutive order such as by name or number. increase of 177 percent from the third quarter of 2003 -- BusinessObjects Enterprise 6 was included in 649 customer transactions, including 87 transactions over $100,000 -- 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. license revenues were $7.5 million, compared with $9.1 million the fourth quarter of 2002. For the full year, analytic applications license revenue was $25.7 million, up 23 percent over the prior year. The license revenues reported for analytic applications includes only revenue from the analytic an·a·lyt·ic or an·a·lyt·i·cal adj. 1. Of or relating to analysis or analytics. 2. Expert in or using analysis, especially one who thinks in a logical manner. 3. Psychoanalytic. products, and do not include data integration or business intelligence license revenue that may be associated with the same contracts -- Data Integration products contributed $5.4 million in license revenues, a 97 percent increase compared to the fourth quarter of 2002. A total of 85 customers purchased Data Integration products, including 14 contracts over $100,000. For the full year, Data Integration license revenue was $14.0 million. For Business Objects on a standalone pro forma basis, year-over-year revenue performance for the fourth quarter in dollars for each region would have been: 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 36 percent (up 15 percent in
Euros), Americas A·mer·i·cas , theSee America. up 7 percent, Japan up 19 percent (up 7 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 202 percent. For the full year, Business Objects standalone pro forma revenue would have been approximately $535 million, up 17 percent over the prior year; pro forma operating income would have been approximately $70.5 million, up 31 percent over the prior year; and pro forma operating margin would have been 13.2 percent, compared to 11.8 percent in the prior year. Crystal Decisions Standalone Pro forma Operating Results Had Business Objects and Crystal Decisions operated separately for the entire quarter, the company estimates that the unaudited pro forma operating results for Crystal Decisions would have been as follows (see also Supplemental Schedules below): -- Total revenue of approximately $82 million, up 15 percent from the same period of the prior year -- License revenue of approximately $51 million, up 9 percent from the same period of the prior year -- Gross profit of approximately $65 million, up 15% from the same period of the prior year -- Operating income of approximately $13 million, up approximately 13% from the same period of the prior year Combined Company Pro Forma Results The mathematical sum of the two pro forma results would yield the following combined pro forma results for the fourth quarter: -- Total revenue of approximately $240 million -- License revenue of approximately $127 million -- Operating income of approximately $46 million; an operating margin of 19 percent Balance Sheet As of December 31, 2003, the company had $235 million in cash and cash equivalents. Total assets were $1.8 billion. Business Outlook Management offers the following guidance for the quarter ending March 31, 2004: -- Revenue is expected to be in the range of $208 million to $218 million -- 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 and ADS are expected to be in the range of $0.03 to $0.09 -- Non-GAAP pro forma diluted earnings per share and ADS are expected to be in the range of $0.10 to $0.16. Both the GAAP and non-GAAP guidance exclude eliminated deferred maintenance revenue of approximately $12.6 million, as detailed on the below supplemental schedules, which is approximately a $0.08 per share and per ADS reduction reflected in both estimates. The non-GAAP earnings per share and ADS also excludes purchase accounting adjustments and other transaction-associated or restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of approximately $10 million, as detailed on the below supplemental schedules, which is approximately a $0.07 per share increase reflected in this estimate. The above information concerning our forecast for the first 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. Use of Non-GAAP Financial Measures This press release includes financial measures for net income (loss) and earnings (loss) 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 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 GAAP. These measures differ from GAAP in that they exclude the write off of in-process technology associated with the acquisition of Crystal Decisions, the amortization of capitalized research and technology, the amortization of deferred stock-based compensation, the amortization of other intangibles, restructuring charges, other one-time integration charges associated with the Crystal Decisions acquisition and elimination of maintenance revenue due to the impact of purchase accounting entries on deferred revenue. In addition, this press release includes pro forma statement Pro forma statement A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows. of operations line items and balance sheet items for Business Objects and Crystal Decisions as if the acquisition had not occurred in the fourth quarter of 2003. 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 should not be considered an alternative to GAAP, and these non-GAAP measures may not be comparable to information provided by other companies. 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 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 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, as well as Business Objects' strategic and operational plans. 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 and employees; 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, 2002, 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 June: see month. 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.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US dollars, except per share and ADS data)
Three Months Ended Year Ended
December 31 December 31
2003 2002 2003 2002
---------------------------------------
Revenues: (unaudited) (unaudited)
Net license fees $98,279 $66,129 $275,261 $243,955
Services 85,923 60,054 285,564 210,844
---------------------------------------
Total revenues 184,202 126,183 560,825 454,799
Cost of revenues:
Net license fees 3,106 1,298 5,951 3,102
Services 26,708 18,766 89,005 71,489
---------------------------------------
Total cost of
revenues 29,814 20,064 94,956 74,591
---------------------------------------
Gross margin 154,388 106,119 465,869 380,208
Operating expenses:
Sales and marketing 76,186 59,346 250,870 222,243
Research and development 26,428 21,736 95,399 74,991
General and administrative 15,697 7,898 44,655 29,387
Acquired in-process
technology 27,966 - 27,966 2,000
Restructuring 7,782 115 7,782 3,871
---------------------------------------
Total operating
expenses 154,059 89,095 426,672 332,492
---------------------------------------
Income from operations 329 17,024 39,197 47,716
Interest and other income, net 2,920 3,641 14,334 18,959
---------------------------------------
Income before provision for
income taxes 3,249 20,665 53,531 66,675
Provision for income taxes (11,854) (7,852) (30,969) (26,095)
---------------------------------------
Net income (loss) $(8,605)$12,813 $22,562 $40,580
=======================================
Net income (loss) per share and
ADS - basic $(0.12) $0.21 $0.35 $0.66
=======================================
Net income (loss) per share and
ADS - diluted $(0.12) $0.20 $0.34 $0.63
=======================================
Shares and ADS used in
computing
net income (loss) per share
and
ADS - basic 69,377 62,456 64,584 61,888
=======================================
Shares, ADSs and common share
equivalents used in computing
net
income (Ioss) per share and
ADS -
diluted 69,377 63,743 66,168 63,933
=======================================
BUSINESS OBJECTS S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
Dec. 31, Dec. 31
2003 2002
---------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $235,380 $233,941
Short-term investments - 46,678
Restricted cash 19,243 8,654
Accounts receivable, net 187,885 98,623
Deferred taxes, net 261 12,920
Other current assets 33,797 14,131
----------- ---------
Total current assets 476,566 414,947
Goodwill 1,051,111 75,416
Other intangible assets, net 149,143 10,810
Property and equipment, net 61,187 37,341
Restricted cash - long term - 10,254
Deposits and other assets 19,092 3,040
Long term deferred asset 17,963 -
----------- ---------
Total assets $1,775,062 $551,808
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $47,790 $20,105
Accrued payroll and related expenses 84,686 48,537
Deferred revenue 135,977 75,490
Income taxes payable 75,727 7,187
Other current liabilities 73,145 36,398
Notes payable - current portion 9,728 1,717
----------- ---------
Total current liabilities 427,053 189,434
Notes and escrow payable - 9,728
Long-term accrued rent 4,950 7,713
Total shareholders' equity 1,343,059 344,933
----------- ---------
Total liabilities and shareholders'
equity $1,775,062 $551,808
=========== =========
BUSINESS OBJECTS S.A.
CONSOLIDATED CASH FLOW STATEMENT
(In thousands of US dollars)
Year Ended
December 31
2003 2002
--------------------
(unaudited)
Cash flows from operating activities:
Net income $22,562 $40,580
Adjustment to reconcile net income to net
cash provided by
operating activities:
Depreciation and amortization 18,269 14,746
Amortization of intangible assets 4,344 3,363
Stock based compensation expense 1,638 -
Acquired in-process technology 27,966 2,000
Deferred income taxes (1,664) (2,882)
Tax benefit on stock option exercises 17,974 3,649
Changes in operating assets and liabilities:
Decrease (increase) in accounts
receivable, net (36,973) 784
Decrease (increase) in other current
assets (16,489) 3,319
Increase (decrease) in accounts payable 8,118 (2,216)
Increase in accrued payroll and related
expenses 13,383 6,754
Increase (decrease) in income taxes
payable 14,539 (6,294)
Increase in deferred revenue 35,657 7,947
Decrease in other current liabilities (10,825) (4,559)
--------------------
Net cash provided by operating activities 98,499 67,191
--------------------
Cash flows from investing activities:
Purchases of property and equipment (12,453) (10,405)
Change in estimate in restructuring accrual for
Acta acquisition 2,741 -
Business acquisitions and other investments (178,327) (62,454)
Sales (purchases) of short-term investments 53,662 (45,240)
--------------------
Net cash used for investing activities (134,377)(118,099)
--------------------
Cash flows from financing activities:
Purchase of treasury shares - (4,055)
Issuance of shares 29,677 15,542
Changes in restricted cash 1,150 (9,106)
Increase in escrow payable - 9,728
Notes payable reductions (1,717) (2,656)
--------------------
Net cash provided by financing activities 29,110 9,453
--------------------
Effect of foreign exchange rate changes on cash
--------------------
and cash equivalents 8,207 34,975
--------------------
Net increase (decrease) in cash and cash
equivalents 1,439 (6,480)
Cash and cash equivalents, beginning of period 233,941 240,421
--------------------
Cash and cash equivalents, end of period 235,380 233,941
Short-term investments, end of period - 46,678
--------------------
Cash and cash equivalents and short term
investments, end of period $235,380 $280,619
====================
Business Objects S.A.
Supplemental Schedule of Purchase Accounting Adjustments
(Unaudited)
(In millions of U.S. dollars)
Allocation of Purchase Price
----------------------------
2003
---------
Q4
---------
In-process R&D $28.0 $28.0
Developed technology 92.6 1.0
Stock-based compensation 19.8 0.6
Other intangibles 50.1 0.6
Goodwill (Note 1) 978.0
Fair value of net tangible assets
(Note 2) 60.8
----------
Total purchase price $1,229.3
==========
Other Supplemental Information
-------------------------------------------
Elimination of deferred revenue $33.2 $3.4
Restructuring charges (Note 3) $7.8
Note 1: Under International Accounting Standards, goodwill will
amortize at approximately $48.9 million per quarter over a 5 year
life, and under US GAAP will be subject to periodic review for
impairment.
Note 2: Includes a $13.5 million liability for Crystal Decisions'
accrued restructuring charges.
Note 3: The Company currently estimates it will incur approximately
$5.5 million of additional restructuring charges as it moves out of
redundant facilities, primarily during the second and third quarters
of 2004.
Business Objects S.A.
Supplemental Schedule of Purchase Accounting Adjustments
(Unaudited)
(In millions of U.S. dollars)
Amortization of Purchase
Accounting Adjustments
--------------------------------
2004
--------------------
Q1 Q2 Q3 Q4 Thereafter
-------------------- ----------
In-process R&D $--- $--- $--- $--- $---
Developed technology 4.7 4.7 4.7 4.7 72.8
Stock-based compensation 1.9 1.9 1.9 1.8 11.7
Other intangibles 2.5 2.5 2.5 2.5 39.5
Other Supplemental Information
---------------------------------
Elimination of deferred revenue 12.6 8.7 5.1 1.6 1.8
Note 1: Under International Accounting Standards, goodwill will
amortize at approximately $48.9 million per quarter over a 5 year
life, and under US GAAP will be subject to periodic review for
impairment.
Note 2: Includes a $13.5 million liability for Crystal Decisions'
accrued restructuring charges.
Note 3: The Company currently estimates it will incur approximately
$5.5 million of additional restructuring charges as it moves out of
redundant facilities, primarily during the second and third quarters
of 2004.
Business Objects S.A.
Supplemental Schedule of GAAP to Unaudited Stand-Alone Pro-Forma
Reconciliation
For the Quarter ended December 31, 2003
(In millions of U.S. dollars)
Pro Forma
----------------------------------------------------
Stand-Alone
----------------------------------------------------
BOBJ CD Combined Less
Transaction
Adjustments
----------------------------------------------------
License Revenue $76 $51 $127 ($1)
Total Revenue 158 82 240 (3)
Gross Margin 133 65 198 (5)
Gross Margin % 84% 80% 83%
Sales and
marketing 66 33 99 1
Research and
development 24 12 36
General and
administrative 10 6 17
Write-off
IPR&D,
restructuring 28
Operating
Expenses 100 52 152 29
=======================================================
Operating
Income $33 $13 $46 ($34)
Operating
Profit % 21% 16% 19%
Differences in totals are due to
rounding
Business Objects S.A.
Supplemental Schedule of GAAP to Unaudited Stand-Alone Pro-Forma
Reconciliation
For the Quarter ended December 31, 2003
(In millions of U.S. dollars)
Less Less Crystal
Restructuring Decisions
and one-time prior to GAAP
expenses transaction
--------------------------------
License Revenue ($29) $98
Total Revenue (52) 184
Gross Margin (1) (39) 154
Gross Margin % 84%
Sales and marketing 1 (25) 75
Research and development 4 (14) 27
General and
administrative 32 (33) 16
Write-off IPR&D,
restructuring 8 36
Operating Expenses 45 (72) 154
============= =========== =====
Operating Income ($45) $33 $0.3
Operating Profit % 0.2%
Differences in totals are due to
rounding
Note 1: Under International Accounting Standards, goodwill will
amortize at approximately $48.9 million per quarter over a 5 year
life, and under US GAAP will be subject to periodic review for
impairment.
Note 2: Includes a $13.5 million liability for Crystal Decisions'
accrued restructuring charges.
Note 3: The Company currently estimates it will incur approximately
$5.5 million of additional restructuring charges as it moves out of
redundant facilities, primarily during the second and third quarters
of 2004.
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