Business Objects Reports Record Revenue in Fourth Quarter; Total Revenues Increase 10 Percent.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)--Jan. 29, 2002 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. Sicovam code 12074), the world's leading provider of business intelligence (BI) solutions, today announced results for the fourth quarter and fiscal year ended December December: see month. 31, 2001. Fourth quarter revenues were a record $116.8 million, an increase of 10 percent over revenues of $105.8 million for the quarter ended December 31, 2000. Net income for the fourth quarter was $14.1 million, compared to net income of $16.1 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, 2001 was $0.22, compared to $0.25 in the fourth quarter of last year. Diluted net income per share and per ADS has been adjusted to reflect the three-for-two split of ordinary shares and ADSs in March of 2001. The results also represent a 31 percent sequential increase in license revenue over the third quarter of 2001. "We are very excited to report that Business Objects has completed another outstanding quarter and year. Our performance once again distinguishes Business Objects as the leader in the business intelligence sector," 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. "Over the last three months we continued to increase market share, strengthen relationships with customers, develop innovative products, and gain powerful momentum in new markets." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Liautaud, 682 new customers were added in the quarter. New customers include Honda honda a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required it is not necessary to slacken off the loop and pull it over the head—a very great advantage when working with wild cattle or unbroken horses. of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. Insurance, American Management Systems American Management Systems (previous NASDAQ symbol: AMSY) was founded in 1970 as a technology and management consulting firm. It was founded by a group of five former United States Department of Defense officials who worked under Robert McNamara in the Kennedy and Johnson , the State of Colorado, Belgian Post Group De Post / La Poste is the Belgian organization responsible for the delivery of mail, national and international. The Belgian Post Group is one of the largest civilian employers in Belgium. , and the Italian pension information system (INPS INPS Istituto Nazionale di Previdenza Sociale (Italy) INPS Idaho Native Plant Society INPS Instituno Nacional de Previdência Social ). "We continued to sign a significant number of large contracts in the quarter, including 4 over $1 million, and 60 between $200,000 and $1 million. While new customer growth remains very strong, a substantial portion of the large contracts this quarter reflected current customers expanding their relationship and making Business Objects their enterprise-wide standard." The company also reported that indirect channels contributed 54 percent of license revenue. "An indication of our leadership position is that resellers and systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. continue to feature Business Objects products even during a slow economy," said Liautaud. For the fourth quarter, revenue distribution by region was as follows: Europe 53%, the Americas 39%, and rest of world 8%. All regions reported growth over the same period in the prior year. Extranet license and service revenue in the fourth quarter reached $24.8 million, a 68 percent increase over the same period in the prior year. Eighty-three extranet customers were added during the quarter, bringing total extranet customers to 730. "Our success in the extranet market was a key growth driver throughout the year. Clearly, our strategy to develop an expertise in business-to-business extranets is being rewarded," said Liautaud. For the full year, extranet revenue reached $82.5 million, an increase of 97 percent over 2000. "We also continued to make progress in the 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. area, introducing several new modules, and releasing a new version of Application Foundation" said Liautaud. "There is tremendous growth potential in this market, and we have gained solid traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. throughout the year, with premier customers such as General Electric, Pfizer, Lands' End
Revenues for the year ended December 31, 2001 were $415.8 million, an increase of 19 percent over revenues of $348.9 million in 2000. Net income for the year was $44.9 million, or $0.70 per share and ADS, compared with net income for the prior year of $42.4 million, or $0.65 per share and ADS. As of December 31, 2001, the company had $249.7 million in cash, restricted cash and cash equivalents. Total assets were $421.5 million, compared with $369.0 million at December 31, 2000. "During the year, Business Objects made significant investments in sales and marketing resources, and in product development, including the acquisition of Blue Edge in the fourth quarter for approximately $6 million," said Liautaud. "In light of these investments, the improved cash position reflects our strong operational performance and financial controls." Business Outlook Management offers the following guidance for the quarter ending March 31, 2002: Revenue is expected to be in the range of $107 to $109 million. 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. is expected to be approximately 13 percent of revenue. 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 per ADS are expected to be in the range of $0.15 to $0.16. Management offers the following guidance for the full fiscal year ending December 31, 2002: Revenue is expected to be in the range of $455 million to $475 million. Operating profit is expected to be approximately 16 percent of revenue. Diluted earnings per share and per ADS are expected to be in the range of $0.76 to $0.80. Management also projected that revenue for the extranet business in 2002 would grow in excess of 30 percent over 2001. This press release contains forward looking statements, including statements regarding the company's revenue, operating profit, and earnings expectations for the quarter ending March 31, 2002 and the year ending December 31, 2002, and the revenue projection for the extranet business for the year ending December 31, 2002, the company's momentum in its new markets, its customer growth, and the growth potential of the analytic applications markets. These 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. 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, changes in customer order patterns, the importance of business intelligence in the intranet and extranet markets, unexpected expenses, the continued success in technological advances and the ability of the company to adapt to technological changes, in particular with respect to the greater technical stability and better performance required by larger enterprise-wide deployments of our products on Unix platforms, 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 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, 2000 and the company's Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended September 30, 2001 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 2:00 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 ), to discuss its Q4 results and outlook for Q1 and the full year 2002. Investors can call 800/399-7988 (from U.S. and Canada) or 706/634-5428 (from Europe). A replay will be available for 48 hours after the call at 800/642-1687 (from U.S. and Canada), or 706/645-9291 (from Europe), both with access code 2780964. Also, a live Webcast and replay can be accessed for 5 days after the call at the "Investor" section of the Business Objects web site, www.businessobjects.com. About Business Objects Business Objects is the world's leading provider of business intelligence (BI) solutions. Business intelligence lets organizations access, analyze, and share information internally with employees and externally with customers, suppliers, and partners. Business intelligence helps organizations improve operational efficiency, build profitable customer relationships, and develop differentiated product offerings. The company's products include BusinessObjects 2000, the industry's leading integrated business intelligence toolset and platform, and BusinessObjects Analytics, an integrated suite of enterprise analytic applications. Business Objects pioneered the modern BI industry in 1990 by inventing a patented "semantic layer Semantic Layer The semantic layer is a business representation of corporate data that helps end users access data autonomously using common business terms. Developed and patented by Business Objects, it maps complex data into familiar business terms such as product, " that insulates users from the complexity of databases. In 1995, the company was first to focus on enterprise-scale BI deployments and today supports customers with more than 20,000 users. The company moved aggressively to the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the in 1997 by pioneering the market for BI extranets, a market that it continues to lead today. In 2000, the company delivered the industry's first interactive wireless BI solution. Today, Business Objects continues to innovate in·no·vate v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new. , creating and delivering a unique vision for enterprise analytic applications. Business Objects has more than 15,000 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: code 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). France 12074, and 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 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. A full-text copy of this announcement may be downloaded from the web; access http://www.businesswire.com/cnn and search on "Business Objects." 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 share data)
Three Months Ended Year Ended
December 31 December 31
2001 2000 2001 2000
------- ------- ------- -------
(unaudited)
Revenues:
License fees $ 72,688 $ 69,210 $249,594 $220,845
Services 44,123 36,584 166,200 128,089
------- ------- ------- -------
Total revenues 116,811 105,794 415,794 348,934
Cost of revenues:
License fees 557 583 2,155 2,569
Services 16,629 14,563 63,497 53,101
------- ------- ------- -------
Total cost of revenues 17,186 15,146 65,652 55,670
------- ------- ------- -------
Gross margin 99,625 90,648 350,142 293,264
Operating expenses:
Sales and marketing 56,759 47,731 203,655 167,519
Research and development 15,232 10,925 55,246 40,725
General and administrative 6,357 7,193 24,256 21,741
Goodwill 1,123 1,097 4,492 4,254
------- ------- ------- -------
Total operating expenses 79,471 66,946 287,649 234,239
------- ------- ------- -------
Income from operations 20,154 23,702 62,493 59,025
Interest and other income, net 2,574 3,333 10,460 11,647
------- ------- ------- -------
Income before provision
for income taxes 22,728 27,035 72,953 70,672
Provision for income taxes (8,637) (10,982) (28,075) (28,269)
------- ------- ------- -------
Net income $ 14,091 $ 16,053 $ 44,878 $ 42,403
======= ======= ======= =======
Net income per
ADS and share - basic $ 0.23 $ 0.27 $ 0.74 $ 0.71
======= ======= ======= =======
ADS and shares used in
computing net income per
ADS & per share - basic 60,942 60,532 60,879 59,741
------- ------- ------- -------
Net income per
ADS and share - diluted $ 0.22 $ 0.25 $ 0.70 $ 0.65
======= ======= ======= =======
ADS and shares and common
share equivalents used in
computing net income per
ADS & per share diluted 63,988 65,103 64,361 65,292
BUSINESS OBJECTS S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
December 31, December 31,
2001 2000
----------- -----------
ASSETS
Current assets:
Cash, restricted cash
and cash equivalents $249,674 $211,934
Accounts receivable, net 87,523 88,737
Other current assets 22,731 20,892
----------- -----------
Total current assets 359,928 321,563
Goodwill and other
intangible assets, net 20,621 21,582
Property and equipment, net 36,046 21,641
Deposits and other assets 4,874 4,228
----------- -----------
Total assets $421,469 $369,014
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,972 $ 22,503
Accrued payroll and related expenses 37,417 30,680
Deferred revenue 59,741 49,490
Other current liabilities 48,499 51,118
----------- -----------
Total current liabilities 165,629 153,791
Long-term liabilities 3,174 4,288
Total shareholders' equity 252,666 210,935
----------- -----------
Total liabilities and
shareholders' equity $421,469 $369,014
=========== ===========
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