Business Objects Reports Second Quarter 2001 Results; Total Revenues Increase 20 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)--July 19, 2001 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 second quarter and six months ended June 30, 2001. Second quarter revenues were $101.5 million, an increase of 20 percent compared to revenues of $84.6 million for the quarter ended June 30, 2000. Net income for the second quarter was $11.0 million, an increase of 19 percent compared to net income of $9.2 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 June 30, 2001 was $0.17, compared to $0.14 in the second 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. "I am extremely pleased with our performance this quarter. Considering the challenging worldwide economic environment, Business Objects achieved strong results demonstrating continued revenue growth, profitability, and increased market share," 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 of Business Objects." I believe that during this past quarter we established Business Objects as the number one company in the business intelligence market. Whereas most of our direct competitors have experienced declining results, we have continued to extend our lead in the extranet market, grown our customer base, increased our license revenue and closed large customer transactions." 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, revenue from business-to-business extranet licenses and service reached $21.7 million in the second quarter, up 90 percent over the same period in 2000. There were 97 new extranet customers added in the second quarter, bringing total extranet customers to over 570. "Our success in gaining new extranet business, along with our recently announced initiatives in analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. applications, indicate that we have just begun to exploit these new market opportunities," he said. Overall, 681 new customers selected Business Objects as their BI provider in the quarter, including: Aegon, AT&T Ltd., Boeing, Cablevision, Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , Hays Hays, city (1990 pop. 17,767), seat of Ellis co., W central Kans.; inc. 1885. It is a rail, trade, and medical center in a grain, cattle, and oil area. Manufactures include electronic equipment, plastics, feeds, medical supplies, aircraft, and motorcycles. Redfern Ltd., Poste Italiane Poste Italiane S.p.A. is the government-owned postal service of Italy, headquartered in Rome. Besides providing core postal services, Poste Italiane Group offers integrated products, as well as communication, logistics and financial services all over Italy. , Union Bank of California Union Bank of California is one of the 30 largest commercial banks in the United States. It has 327 branches, the majority of which are in San Diego, Los Angeles and Orange Counties. , Vanderbilt University Vanderbilt University, at Nashville, Tenn.; coeducational; chartered 1872 as Central Univ. of Methodist Episcopal Church, founded and renamed 1873, opened 1875 through a gift from Cornelius Vanderbilt. Until 1914 it operated under the auspices of the Methodist Church. , and Worldcom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. . "Importantly, we signed a record number of contracts at the $500,000 level and above, and our indirect channels contributed 56 percent of total revenue, also a new high," said Liautaud. "These metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. reflect an enhancement of our market leadership position. Obtaining major new customers and large contracts through a variety of channels provides a foundation for future growth and further establishes our business intelligence solutions as the industry standard." Revenues for the six months ended June 30, 2001 were $199.8 million, compared with revenues in the same period of the prior year of $157.1 million. Net income for the six months ended June 30, 2001 was $21.5 million, or $0.33 per share and ADS, compared with net income for the same period of the prior year of $16.2 million, or $0.25 per share and ADS. As of June 30, 2001, the company had $212.5 million in cash, long and short term restricted cash and cash equivalents. Total assets were $366.0 million, compared with $373.2 million at March 30, 2001. "These resources allow Business Objects to continue operating from a position of strength, and to invest in opportunities for growth," said Liautaud. Business Outlook Management offers the following guidance for the quarter ending September 30, 2001: Revenue is expected to be in the range of $98 to $100 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 are expected to be in the range of $0.13 to $0.15. Management offers the following guidance for the full fiscal year ending December 31, 2001: Revenue is expected to be in the range of $405 million to $415 million. Operating profit is expected to be approximately 15 percent of revenue. Diluted earnings per share are expected to be in the range of $0.68 to $0.70. "In this past quarter, we achieved a strong financial performance in the face of a very uncertain business environment," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Weatherford, chief financial officer of Business Objects. "However, the continued worldwide economic conditions and the upcoming seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. marketplace support our being prudent in our projections for the third quarter and the balance of this year. The projection for our extranet business, which is in excess of $65 million for the year, is unchanged from our previous forecast." This press release contains forward looking statements, including statements regarding the company's revenue, operating profit, extranet revenues, new marketing opportunities and earnings expectations for the quarter ending September 30, 2001, and the year ending December 31, 2001. 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 which 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, worldwide economic 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 March 31,2001 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 Q2 results and outlook for Q3 and the remainder of 2001. Investors can call 415/537-1928. A replay will be available for 48 hours after the call at 800/633-8284, or for international 858/587-5842, both with access code 19155046. Also, a live Webcast and replay can be accessed for 5 after days after the call at the investor relations Investor relations The process by which the corporation communicates with its investors. 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. It 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 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. . 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 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 mobile 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 13,500 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 (Sicovam 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 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 1-800-414-2114 and selecting option "one." The announcement may also be downloaded from the Web; access http://www.businesswire.com/cnn.
BUSINESS OBJECTS S.A.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands of US dollars,
except per ADS and per share data)
Three Months Ended Six Months Ending
June 30, June 30,
2001 2000 2001 2000
--------- --------- --------- ---------
Revenues:
License fees $ 61,012 $ 53,162 $ 121,613 $ 98,208
Services 40,493 31,391 78,170 58,927
--------- --------- --------- ---------
Total revenues 101,505 84,553 199,783 157,135
Cost of revenues:
License fees 464 1,013 1,066 1,462
Services 15,728 13,643 31,156 25,441
--------- --------- --------- ---------
Total cost of
revenues 16,192 14,656 32,222 26,903
--------- --------- --------- ---------
Gross margin 85,313 69,897 167,561 130,232
Operating expenses:
Sales and marketing 48,490 41,312 96,477 78,696
Research and
development 13,574 10,115 26,567 18,294
General and
administrative 7,053 4,676 12,826 9,278
Goodwill 1,115 1,117 2,247 2,106
--------- --------- --------- ---------
Total operating
expenses 70,232 57,220 138,117 108,374
--------- --------- --------- ---------
Income from operations 15,081 12,677 29,444 21,858
Interest and other
income, net 2,950 2,680 5,793 5,141
--------- --------- --------- ---------
Income before provision
for income taxes 18,031 15,357 35,237 26,999
Provision for
income taxes (7,032) (6,143) (13,742) (10,800)
--------- --------- --------- ---------
Net income $ 10,999 $ 9,214 $ 21,495 $ 16,199
========= ========= ========= =========
Net income per ADS
and share- basic $ 0.18 $ 0.15 $ 0.35 $ 0.27
========= ========= ========= =========
ADS and shares used in
computing net income
per ADS & per
share - basic 61,216 59,769 60,984 59,296
--------- --------- --------- ---------
Net income per ADS
and share - diluted $ 0.17 $ 0.14 $ 0.33 $ 0.25
========= ========= ========= =========
ADS and shares and
common share equivalents
used in computing net
income per ADS & per
share - diluted 64,686 65,503 64,802 65,619
--------- --------- --------- ---------
BUSINESS OBJECTS S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
June 30, December 31,
2001 2000
-------- --------
(unaudited)
ASSETS
Current assets:
Cash, restricted cash and cash equivalents $210,880 $208,601
Accounts receivable, net 74,431 88,737
Other current assets 20,149 20,892
-------- --------
Total current assets 305,460 318,230
Goodwill and other intangible assets, net 17,584 21,582
Property and equipment, net 36,083 21,641
Restricted cash- long term 1,666 3,333
Deposits and other assets 5,179 4,228
-------- --------
Total assets $365,972 $369,014
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,627 $ 22,503
Accrued payroll and related expenses 26,203 30,680
Deferred revenue 52,773 49,490
Other current liabilities 44,088 51,118
-------- --------
Total current liabilities 138,691 153,791
Notes payable- long term 3,132 4,288
Total shareholders' equity 224,149 210,935
-------- --------
Total liabilities and
shareholders' equity $365,972 $369,014
======== ========
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