Business Objects Reports Record Q4 1999 Results; Revenue Grows 45%; e-Business Momentum Continues.Business Editors 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 WIRE)--Feb. 2, 2000 Business Objects (Nasdaq:BOBJ BOBJ Business Objects SA )(PARIS BOURSE Paris Bourse National stock market of France. : code SICOVAM SICOVAM Société Interprofessionelle pour la Compensation des Valeurs Mobilières 12074) today announced its results for the fourth quarter and year ended December December: see month. 31, 1999, with revenue increases of 45 percent over the comparable three- and twelve-month periods in fiscal 1998. Fourth quarter revenues were a record $74.8 million, an increase of 45 percent compared to revenues of $51.5 million for the quarter ended December 31, 1998. Net income for the fourth quarter was $9.5 million, an increase of 106 percent compared to $4.6 million for the same period last year. 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. net income per share and per ADS for the quarter ended December 31, 1999 was $0.23, compared to $0.13 in the fourth quarter of last year. Diluted net income per share and per ADS have been adjusted to reflect the two-for-one split of ordinary shares and ADS in January January: see month. of 2000. Revenues for the year ended December 31, 1999 were $241.6 million, an increase of 45 percent compared to revenues of $166.9 million during 1998. Net income for the year ended December 31, 1999 was $23.8 million, an increase of 131 percent compared to $10.3 million for 1998. Diluted net income per share and per ADS for the year ended December 31, 1999 was $0.60, compared to $0.29 for 1998. &uot;With these fourth quarter results, we have now had ten consecutive quarters of year-over-year 40%+ revenue growth&uot; 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. , president and chief executive officer of Business Objects. &uot;We are especially pleased with our strong quarterly and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results, reflecting the growing demand from leading e-businesses and global corporations for our e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. intelligence solutions. &uot;Our success in the e-business market reflects the increasing number of companies that are combining the internet with business intelligence, to leverage their business information and create new relationships with and services for their customers and business partners,&uot; Liautaud continued. &uot;For example, e-businesses use our e-BI solutions to examine e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. transaction data to understand sales and marketing results, as well as to analyze clickstream The trail of mouse clicks made by a user performing a particular operation on the computer. It often refers to linking from one page to another on the Web. data and identify opportunities for merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. . Several leading e-businesses have chosen Business Objects as their e-BI intelligence platform, including: AllAmerica.com, GoNetwork, KBKids.com, Stamps.com (Stamps.com, Los Angeles, CA, www.stamps.com) A PC Postage service that lets you print U.S. postage stamps on your own printer. It was one of the first such services approved by the U.S. , Trading Dynamics, and WebMD WebMD is a medical and wellness information service, primarily known for its public internet site, which provides health information, a symptom checklist, pharmacy information, a place to store personal medical information, and an online community with over 140 moderated expert-led .com. &uot;During the past year, we have partnered with a number of innovative companies as they built their extranet platforms for the future,&uot; Liautaud said. &uot;In the fourth quarter, we passed the 100th extranet customer milestone, with companies using WEBINTELLIGENCE(R) for supply-chain management, customer relationship, and information brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. extranets. Reaching the 100th customer milestone demonstrates that e-BI extranets are not just for pioneering companies; any business can benefit from this type of application. &uot;We also recently announced the release of WEBINTELLIGENCE Extranet Edition, which is dedicated specifically to extranet environments,&uot; Liautaud added. &uot;Our WEBINTELLIGENCE Extranet Edition is built for customers who want to add self-service access to information as part of their extranets.&uot; Business Objects expanded its customer base in the fourth quarter, adding over 241,000 new licenses for a total of 1,680,000 worldwide. Key customers in the fourth quarter included: ADC Telecommunications ADC Telecommunications (NASDAQ: ADCT) is a communications company located in Eden Prairie, Minnesota, a southwest suburb of Minneapolis. History In 1935, Ralph Allison founded ADC Telecommunications in the basement of his south Minneapolis home, inventing ADC's very , Black &Decker, Cap Gemini Gemini (jĕm`ənī, –nē) [Lat.,=the twins], northern constellation lying on the ecliptic (the sun's apparent path through the heavens) between Taurus and Cancer, N of Canis Minor; it is one of the constellations of the zodiac. France, Glaxo Research, Principal Mutual Life, and Unisys. Business Objects was recently named one of the most influential companies shaping the &uot;intelligent enterprise&uot;, as part of Intelligent Enterprise's 2000 information technology (IT) Dozen. The company is ranked as the leading independent business intelligence vendor on the list. The award marks the fourth consecutive year that Business Objects has been recognized by the magazine's editors as one of the leaders in shaping how companies use technology to transform their business. The Company's balance sheet continued to be strong with $176.2 million in cash and cash equivalents. Total assets at December 31, 1999 were $272.5 million, compared to $138.1 million at December 31, 1998. About Business Objects Business Objects is the world's leading provider of e-business intelligence (e-BI) solutions. Using e-business intelligence, organizations can access, analyze, and share information in intranet, extranet, and e-business environments. In intranets, the company's products provide employees with information to make better business decisions, and are used in environments ranging from workgroups See workgroup, workgroup-based network and Windows for Workgroups. of 20 users to enterprise deployments exceeding 20,000. In the extranet environment, the company is pioneering the use of e-BI in applications that allow organizations to build stronger relationships by linking customers, partners, and suppliers via the internet. In addition, the company's products can improve the performance of an e-business by providing reporting and analysis against the ever-expanding amount of transaction and profile data that is collected each day throughout the world wide web. Founded in 1990, Business Objects pioneered the modern business intelligence industry by inventing and patenting a &uot;semantic See semantics. See also Symantec. layer&uot; that insulates users from the technical complexity of database systems. Today, the company has sold more than 1,680,000 licenses to over 9,700 organizations in more than 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 PARIS BOURSE: code SICOVAM 12074. Business Objects can be reached at 408-953-6000 and www.businessobjects A query, reporting and analysis suite of tools from Business Objects that runs under all versions of Windows and various Unix clients. It is the leading decision support tool in the business intelligence market, providing access to a wide variety of databases, including Oracle, INFORMIX .com. This press release contains forward looking statements with respect to momentum in the marketplace and demand for the Company's e-business intelligence solutions. Such forward looking statements are subject to risks and uncertainties including, without limitation, historical variability in the performance of the Company, changes in the Company's market, the ability of the Company to gain acceptance of its products, and increased competition, which could cause actual results to differ materially from those anticipated. For a more complete discussion of risk factors that could affect the Company's current and future operating results, see the discussions in the Company's reports filed with the SEC, including but not limited to 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, 1998, and the Form 10-Q Form 10-Q See 10-Q. for the quarterly period ended September September: see month. 30, 1999. Note to Editors: WebIntelligence is a registered trademark of Business Objects SA. Other company and product names may be trademarks of the respective companies with which they are associated. A full-text copy of this announcement may be obtained by calling the Company's fax retrieval line at 800-414-2114 and selecting option &uot;two.&uot; The announcement may also be downloaded from the Web; access &uot;http://www.businesswire.com/cnn&uot; and search on &uot;Business Objects.&uot; Business Objects product inquiries should contact 800-527-0580.
BUSINESS OBJECTS S.A.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US dollars, except per
ADS and per ordinary share data)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
(unaudited)
Revenues:
License fees $ 49,378 $ 33,950 $ 153,747 $ 108,761
Services 25,448 17,570 87,896 58,133
Total revenues 74,826 51,520 241,643 166,894
Cost of revenues:
License fees 1,109 915 4,297 3,272
Services 9,345 7,297 35,467 23,899
Total cost
of revenues 10,454 8,212 39,764 27,171
Gross margin 64,372 43,308 201,879 139,723
Operating expenses:
Sales and
marketing 35,838 25,340 117,960 89,118
Research and
development 7,824 5,647 26,746 19,434
General and
administrative 4,531 4,610 16,538 14,141
Goodwill 1,083 324 3,143 1,253
Total operating
expenses 49,276 35,921 164,387 123,946
Income from
operations 15,096 7,387 37,492 15,777
Interest
and other
income, net 1,352 675 3,101 2,078
Income before
provision for
income taxes
and minority
interest 16,448 8,062 40,593 17,855
Provision for
income taxes (6,913) (3,305) (16,813) (7,316)
Minority
interest -- (138) -- (252)
Net income $ 9,535 $ 4,619 $ 23,780 $ 10,287
Net income
per ADS and
share- basic $ 0.25 $ 0.13 $ 0.66 $ 0.30
ADS and shares
used in
computing net
income per
ADS &per
share- basic 38,057 34,306 36,105 33,931
Net income per
ADS and
share- diluted $ 0.23 $ 0.13 $ 0.60 $ 0.29
ADS and
shares and
common share
equivalents
used in
computing net
income per ADS
&per share-
diluted 42,044 36,061 39,478 35,482
Business Objects S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $176,233 $ 71,713
Accounts receivable, net 53,993 42,236
Other current assets 13,947 7,993
Total current assets 244,173 121,942
Property and equipment, net 13,831 13,804
Goodwill, net 12,556 1,460
Other assets 1,986 879
Total assets $272,546 $138,085
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,780 $ 10,439
Accrued payroll and related expenses 23,994 16,597
Deferred revenue 31,849 21,684
Other current liabilities 37,946 22,118
Total current liabilities 105,569 70,838
Notes payable- long term 2,924 --
Shareholders' equity 164,053 67,247
Total liabilities and shareholders' equity $272,546 $138,085
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