Business Objects Reports Record First Quarter Revenue; First Quarter Revenue up 10% over Prior Year.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 23, 2003 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. Euroclear Euroclear One of two principal clearing houses for securities traded in the Euromarkets. Notes: The other principal clearing house is Clearstream, formerly the Centrale de Livraison de Valuers Mobilieres (CEDEL). code 12074), the world's leading provider of business intelligence (BI) solutions, today announced results for the first quarter ended March 31, 2003. First quarter revenues were $118.5 million, an increase of 10 percent over revenues of $107.5 million for the quarter ended March 31, 2002. Net income for the first quarter was $8.8 million, or $0.14 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. share and ADS, compared to net income of $11.0 million, or $0.17 per diluted share and ADS, in the first quarter of the prior year. "Business Objects' year-over-year revenue growth and our profitability in the first quarter represent a great achievement, particularly in light of the difficult economic and political environment," 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. "We posted strong performances in service revenue, and in 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. , where license revenue growth exceeded 100 percent year-over-year." Software license revenues in the quarter were $56.2 million, a decline of 11 percent from the same period in the prior year. Software license updates and support revenues reached $46.0 million, a 48 percent increase over the same period a year ago, primarily due to high levels of customer maintenance renewal. Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues were $16.3 million, a 22 percent increase over the prior year, primarily due to strong growth in consulting revenue. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the quarter was 9 percent, compared with an operating margin of 15 percent in the first quarter of the prior year. The decrease in operating margin primarily reflects the company's increased investment in research and development. Geographic Region Results For the first quarter, revenue distribution by region was as follows: the Americas A·mer·i·cas , the See America. 44 percent, 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). 48 percent, Japan 5 percent 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). 3 percent. Year-over-year revenue growth in dollars for
each region was Americas up 1 percent, Europe up 18 percent (down 6
percent in Euros), Japan up 34 percent (up 19 percent in yen), and
Asia-Pacific up 3 percent.
Products: Momentum in Analytic Applications License revenues for analytic applications were $7.1 million, up 103 percent from the first quarter of 2002. During the quarter, 57 customers purchased analytic applications, including Somerfield Somerfield could mean:
Robert J. McNulty and George Handgis founded the chain as a warehouse club called the HomeClub Ltd., Neiman Marcus Neiman Marcus U.S. department-store chain. It was founded in Dallas, Texas, in 1907 by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband, A.L. Neiman. , Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy. Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. , and Qwest Communications
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 does not include data integration or business intelligence tools revenue that may be linked to the same contracts. "Contributing to the success this quarter in analytic applications was customer acceptance of our new Dashboard (1) See Mac Dashboard. (2) A software-based control panel for one or more applications, network devices or industrial machines. Dashboards display simulated gauges and dials that look somewhat like an automobile dashboard. Manager product, whose capabilities are key to their enterprise performance management initiatives," said Liautaud. Data Integration products contributed $1.6 million in license revenue in the first quarter. Data Integration added 33 new customers in the first quarter, including Carat Crystal, Federal Home Loan Bank of Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , Genesys Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Laboratories, Inc., Sonoma Sonoma may refer to
Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. . Customer and Contract Highlights The company also reported the following key data for the first quarter: -- 470 new customers were added; total customer count now exceeds 17,500; -- 5 contracts over $1 million, and 58 between $200,000 and $1 million; this total of 63 license contracts over $200,000 compares to 56 license contracts over $200,000 in the same quarter a year ago; -- Major customers included Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of South Carolina Carolina (kärōlē`nä), city (1990 pop. 177,806), Puerto Rico. Located 7 mi (11 km) SE of San Juan, it is a residential suburb of the capital, as well as a commercial and industrial center. , ENI, HCA HCA, n.pr See acid, hydroxycitric. , Peugeot For the bicycle manufacturer, see . Peugeot is a major French car brand, part of PSA Peugeot Citroën. It is the second largest automaker in Europe, behind Volkswagen. Peugeot's roots go back to bicycle manufacturing at the end of the 19th century. , Telecom Italia, The Toro Toro may refer to:
and Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Home Mortgage; -- Indirect channels contributed 41 percent of license revenue; -- At the close of the quarter, the number of quota-carrying sales representatives was 312. Balance Sheet As of March 31, 2003, the company had $329 million in cash, cash equivalents, 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. Total assets were $573 million, compared with $552 million at December December: see month. 31, 2002. Foreign Exchange Rate Effects Business Objects first quarter 2003 reported revenues and expenses were approximately $4 million greater than using average exchange rates in effect in the fourth quarter of 2002, and approximately $10 million greater than using average exchange rates in effect in the first quarter of 2002. Because non-U.S. denominated revenues and expenses were approximately equal, the exchange rate effect was immaterial Not essential or necessary; not important or pertinent; not decisive; of no substantial consequence; without weight; of no material significance. immaterial adj. at the 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. level. On the Balance Sheet, cash increased by approximately $6 million from exchange rate gains during the first quarter of 2003. Launch of Enterprise 6 Today, the company announced the release of Business Objects Enterprise 6, a new version of the company's industry-leading BI suite. Enterprise 6 provides Business Objects four key competitive advantages: the industry's best web query, reporting and analysis; the most advanced and complete suite of analytic applications; the best connectivity to packaged applications; and the most integrated BI suite. "Enterprise 6 is the new benchmark in business intelligence. We have received very positive customer feedback, as this new suite supports the requirements of customers who want one standard for their entire enterprise," said Liautaud. "We believe Enterprise 6 will provide new revenue opportunities, both in new business wins, and with existing customers expanding their deployments." Important New Partnerships for Enterprise Performance Management Business Objects and PeopleSoft today announced that PeopleSoft will now resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. WebIntelligence(R), the web-based query, reporting, and analysis solution from Business Objects, as part of PeopleSoft Enterprise Performance Management (EPM EPM equine protozoal myeloencephalitis. ), a suite of applications that provide organizations with real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. visibility into critical business processes. "This important agreement further strengthens our position in the EPM space. Our alliance with PeopleSoft confirms the importance of having business intelligence solutions that are complementary, not competitive, to the leading planning and operations applications," said Liautaud. Business Objects also recently announced a new Open Financial Applications Initiative with several partners, including ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there Software, Cartesis, Closedloop Solutions, Comshare, Hyperion, Longview Solutions Longview is a Canadian software company with products for performance management including planning, consolidation, forecasting, budgeting, reporting and tax provisioning. In September of 2006 Longview acquired UK based Runservicenet in an effort to move towards an SOA architecture. , OutlookSoft, PeopleSoft, and SRC (SouRCe) Contrast with DST, which is an abbreviation of "destination." Software. "Our open solution strategy clearly differentiates Business Objects from the competition, by allowing our customers to choose whichever budgeting, consolidation and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against applications best suits their needs," said Liautaud. "With our partners, we can now address a much larger segment of the market than any other BI company." Business Outlook Management offers the following guidance for the quarter ending June 30, 2003: Revenue is expected to be in the range of $119 to $123 million. 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 $0.14 to $0.18. While the company is not providing detailed 2003 full year revenue or earnings guidance at this time, management plans are to continue to grow overall revenue by approximately 10 percent, but with a greater than 10 percent full year growth in earnings per share. This press release contains 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. , including forward-looking statements regarding the company's revenue and earnings expectations for the quarter ending June 30, 2003, and the year ending December 31, 2003, the company's expectation as to the revenue opportunities provided by Enterprise 6, and the company's relative competitive position in the Enterprise Performance Management market. The forward-looking statements are based on the company's current expectations, and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. The factors that could cause actual results to differ materially include, but are not limited to, the level of demand for the company's business intelligence solutions, particularly its Enterprise 6 BI suite, changes in customer order patterns, the importance of business intelligence in the business intelligence tools, data integration, and analytic applications markets, unexpected expenses, continued success in technological advances and the ability of the company to adapt to technological changes, the ability of the company to gain acceptance of its products, the company's reliance on partners and other third party distribution channels to market and distribute its products, the impact of events outside 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. such as fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. currency rates, in particular fluctuations of the euro and yen, worldwide economic and political conditions, the ability of the company to protect its intellectual property, 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. involving intellectual property and other issues, and increased competition. For a more complete discussion of these factors and additional risk factors that could materially affect the company's current and future operating results, see the discussions in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2002 filed with the Securities and Exchange Commission. The company undertakes no obligation to update these forward-looking statements at any time or for any reason. Business Objects will hold a conference call today, hosted by management, at 1:30 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (10:30 p.m. in Paris), to discuss its Q1 2003 results, and the outlook for Q2 and the full year 2003. Investors can call 800.399.7988 (from U.S. and Canada) or 706.634.5428 (from Europe). A replay will be available through April 25, at 800.642.1687 (from U.S. and Canada), or 706.645.9291 (from Europe), both with access code "9624301." The live Webcast can be accessed at the "Investor" section of the Business Objects web site, www.businessobjects.com -- and a replay will be available from the site for 10 days after the call. About Business Objects Business Objects is the world's leading provider of enterprise business intelligence (BI) solutions. 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 management dashboards and scorecards, enterprise performance management applications, customer intelligence applications, 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. , 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. Business Objects provides the industry's most integrated business intelligence suite, called BusinessObjects Enterprise 6. This suite includes the industry's best web query, reporting, and analysis; the most advanced and complete suite of analytic applications; and the best connectivity to packaged applications. Business Objects has more than 17,500 customers in over 80 countries. The company's stock is publicly 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 (Euroclear code 12074). 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. Note to Editors: 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 ADS and per share data)
Three Months Ended
March 31
2003 2002
-------- --------
Revenues: (unaudited)
Software license fees $56,243 $63,151
Software license updates and support 46,023 31,044
Professional services and other 16,257 13,343
-------- --------
Total revenues 118,523 107,538
Cost of revenues:
License fees 894 543
Services 19,993 17,055
-------- --------
Total cost of revenues 20,887 17,598
-------- --------
Gross margin 97,636 89,940
Operating expenses:
Sales and marketing 56,433 52,183
Research and development 22,579 15,499
General and administrative 8,158 6,162
Goodwill - 332
-------- --------
Total operating expenses 87,170 74,176
-------- --------
Income from operations 10,466 15,764
Interest and other income, net 3,747 2,012
-------- --------
Income before provision for income taxes 14,213 17,776
Provision for income taxes (5,401) (6,755)
-------- --------
Net income $8,812 $11,021
======== ========
Net income per ADS and share- basic $0.14 $0.18
======== ========
ADS and shares used in computing net income per ADS
& per share- basic 62,476 61,473
-------- --------
Net income per ADS and share- diluted $0.14 $0.17
======== ========
ADS and shares and common share equivalents used in
computing net income per ADS & per share- diluted 63,731 65,390
BUSINESS OBJECTS S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
March 31, December 31,
2003 2002
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $290,548 $233,941
Short-term investments 37,999 46,678
Restricted cash, current 18,947 8,654
Accounts receivable, net 70,477 98,623
Deferred taxes, net 12,304 12,920
Other current assets 18,061 14,131
------------ ------------
Total current assets 448,336 414,947
Goodwill 75,524 75,416
Other intangible assets, net 10,073 10,810
Property and equipment, net 35,506 37,341
Restricted cash- long term - 10,254
Deposits and other assets 3,386 3,040
------------ ------------
Total assets $572,825 $551,808
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $21,851 $20,105
Accrued payroll and related expenses 38,043 48,537
Deferred revenue 94,446 75,490
Income taxes payable 4,718 7,187
Other current liabilities 30,696 36,398
Notes payable- current portion 11,485 1,717
------------ ------------
Total current liabilities 201,239 189,434
Notes and escrow payable - 9,728
Long-term accrued rent 7,496 7,713
Total shareholders' equity 364,090 344,933
------------ ------------
Total liabilities and shareholders'
equity $572,825 $551,808
============ ============
BUSINESS OBJECTS S.A.
CONSOLIDATED CASH FLOW STATEMENT
(In thousands of US dollars)
Three Months Ended
March 31
2003 2002
----------- ----------
(unaudited)
Net Cash provided (used in) operating
activities
Net income (loss) $8,812 $11,021
Depreciation and amortization 4,715 4,462
Deferred income taxes 617 71
Changes in operating assets and liabilities
Decrease in accounts receivable 29,751 5,181
Decrease (increase) in current and other
assets (3,686) (5,159)
Increase (decrease) in accounts payable 1,275 (1,492)
Increase (decrease) in accrued payroll
and related expenses (11,589) (2,522)
Increase (decrease) in income taxes
payable (2,412) (5,396)
Increase (decrease) in deferred revenue 18,032 10,226
Increase (decrease) in other current
liabilities (6,216) (68)
----------- ----------
Net cash provided by operating activities 39,299 16,324
----------- ----------
Cash flows from investing activities
Purchase of property and equipment (1,625) (4,017)
Sales (purchase) of short-term investments 9,404 -
----------- ----------
Net cash used for investing activities 7,779 (4,017)
----------- ----------
Cash flows from financing activities
Issuance of shares 3,853 10,892
----------- ----------
Net cash provided by (used for) financing
activities 3,853 10,892
----------- ----------
Effect of foreign exchange rate changes ----------- ----------
on cash and cash equivalents 5,676 (2,184)
----------- ----------
----------------------
Net increase (decrease) in cash and cash
equivalents 56,607 21,015
Cash and cash equivalents at the beginning of
the period 233,941 240,421
----------------------
----------------------
Cash and cash equivalents, end of the period 290,548 261,436
Short-term investments, end of period 37,999 -
----------------------
Cash and cash equivalents and short term
investments, end of the period $328,547 $261,436
======================
BUSINESS OBJECTS S.A.
Supplemental Information
($ in millions, except where indicated)
(Unaudited)
2001
---------------------------------------
Q1 Q2 Q3 Q4 Total
Revenue By Product Line
Software license fees $60.6 $61.0 $55.3 $72.7 $249.6
Software license updates and
support 21.7 25.4 27.9 29.8 104.8
Professional services and
other 16.0 15.1 16.0 14.3 61.4
---------------------------------------
Total $98.3 $101.5 $99.2 $116.8 $415.8
=======================================
Revenue By Geography
Americas $34.5 $41.0 $43.1 $45.7 $164.3
Europe 55.1 54.9 49.0 63.2 222.2
Japan 5.6 3.2 4.8 5.3 18.9
Asia Pacific 3.1 2.4 2.3 2.6 10.4
---------------------------------------
Total $98.3 $101.5 $99.2 $116.8 $415.8
=======================================
Direct/Indirect - License Only
Direct 45% 44% 45% 46% 45%
Indirect 55% 56% 55% 54% 55%
---------------------------------------
Total 100% 100% 100% 100% 100%
=======================================
Gross Margin % 84% 84% 84% 85% 84%
Operating Profit % 15% 15% 13% 17% 15%
Net Income % 11% 11% 9% 12% 11%
Diluted EPS $0.16 $0.17 $0.15 $0.22 $0.70
Ending Number of Employees 2,038 2,172 2,211 2,226
Days Sales Outstanding 64 66 71 67
2002 2003
---------------------------------------- -------
Q1 Q2 Q3 Q4 Total Q1
Revenue By Product
Line
Software license
fees $63.3 $60.9 $53.7 $66.1 $244.0 $56.2
Software license
updates and
support 31.0 35.4 40.2 43.8 150.4 46.0
Professional
services and other 13.3 14.9 15.9 16.3 60.4 16.3
---------------------------------------- -------
Total $107.6 $111.2 $109.8 $126.2 $454.8 $118.5
======================================== =======
Revenue By Geography
Americas $51.2 $57.3 $49.6 $54.8 $212.9 51.9
Europe 49.1 47.0 52.7 63.6 212.4 57.8
Japan 4.1 4.2 4.9 4.7 17.9 5.5
Asia Pacific 3.2 2.7 2.6 3.1 11.6 3.3
---------------------------------------- -------
Total $107.6 $111.2 $109.8 $126.2 $454.8 118.5
======================================== =======
Direct/Indirect -
License Only
Direct 51% 52% 54% 60% 54% 59%
Indirect 49% 48% 46% 40% 46% 41%
---------------------------------------- -------
Total 100% 100% 100% 100% 100% 100%
======================================== =======
Gross Margin % 84% 84% 83% 84% 84% 82%
Operating Profit % 15% 9% 4% 13% 10% 9%
Net Income % 10% 11% 4% 10% 9% 7%
Diluted EPS $0.17 $0.18 $0.08 $0.20 $0.63 $0.14
Ending Number of
Employees 2,231 2,194 2,186 2,162 2,145
Days Sales
Outstanding 68 65 62 70 53
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