Business Objects Reports Second Quarter Results; Restates First Quarter.PARIS--(BUSINESS WIRE)--July 30, 1996--Business Objects (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BOBJY) today announced its results for the quarter ended June June: see month. 30, 1996. Second quarter revenues of $22.0 million increased 61% compared to revenues of $13.6 million for the quarter ended June 30, 1995. Net income for the second quarter was $1.9 million compared to $1.5 million for the same period last year, an increase of 30%. Earnings per ADS for the quarter ended June 30, 1996 were $0.11, compared to $0.09 in the second quarter of last year. Earnings per ADS reflect the recent adjustment of the conversion ratio between Ordinary Shares and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. Shares (ADS) from two-to-one Two´-to-one´ a. 1. (Mach.) Designating, or pert. to, a gear for reducing or increasing a velocity ratio two to one. to one-to-one one-to-one adj. 1. Allowing the pairing of each member of a class uniquely with a member of another class. 2. Mathematics , producing the same results as a two-for-one stock split. Business Objects also reported that it was restating results for its first quarter ended March 31, 1996. Restated first quarter revenues were $18.8 million compared to the $20.2 million previously reported. Restated net income was $1.8 million and restated earnings per ADS were $0.10, compared to previously reported first quarter net income of $2.5 million and earnings per ADS of $0.15. All per ADS amounts have been updated to reflect the ratio adjustment mentioned above. The Company said the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. was required to reverse a first quarter contract in 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). which was subsequently found
to not meet its strict revenue recognition policies.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 CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Business Objects, stated, "Second quarter revenues of $22.0 million met our previously announced expectations. We were pleased with these results, though revenue was slightly below our original plan for the quarter. The transition from our existing product, 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 3.1, to our new product, BusinessObjects 4.0, progressed well. "However, BusinessObjects 4.0 was not delivered on Windows 3.1 until the end of the quarter. This did not give our customers enough time to complete their evaluations prior to the close of our second quarter on June 30th." Liautaud also commented on the first quarter financial restatement. "It has been necessary to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state our first quarter numbers to reflect the reversal of a $1.4 million contract which the Company subsequently found to not meet our strict revenue recognition policy. In essence, an employee violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. Company policies and circumvented standard financial control procedures. "We believe this was an isolated incident and the Company has taken appropriate actions. This situation has been carefully reviewed by our independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. and our Board of Directors." Liautaud continued, "Overall, we continue to feel positive about the market's response to our products. During the second quarter we won several large worldwide contracts where we were the number one choice over several other vendors." "Company activities continued at a rapid pace throughout the quarter. We announced major initiatives in the following areas: -- Data mining. We launched an Open Data Mining Initiative, becoming the first decision support tools vendor to integrate a wide range of data mining solutions with our product offering. Partners in the initiative include ANGOSS Software, DataMind, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , ISoft iSOFT is an international supplier of software applications for the healthcare sector. Its products are used by more than 8,000 organisations in 27 countries for managing patient information and healthcare services. , RIS RIS rabies inhibiting substance. , SGI (SGI, Sunnyvale, CA, www.sgi.com) A manufacturer of workstations and servers, founded in 1982 by Jim Clark. The company was founded as Silicon Graphics, Inc., but changed to its acronym in 1999. , and SPSS A statistical package from SPSS, Inc., Chicago (www.spss.com) that runs on PCs, most mainframes and minis and is used extensively in marketing research. It provides over 50 statistical processes, including regression analysis, correlation and analysis of variance. . -- 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 . BusinessObjects 4.0 will be enabled for the Internet, allowing customers to perform database and data warehousing See data warehouse. data warehousing - data warehouse publishing via the World Wide Web. -- Starter kit for SAP R/3. Business Objects will provide a starter kit for SAP customers to deploy BusinessObjects 4.0 integrated query, reporting, and OLAP (OnLine Analytical Processing) Decision support software that allows the user to quickly analyze information that has been summarized into multidimensional views and hierarchies. OLAP tools are used to perform trend analysis on sales and financial information. on SAP R/3 Information Systems. -- Data warehouse. We expanded our data warehousing partnership with Prism, and announced a new partnership with Carleton Corp. Also, several customers, including Simon & Schuster Simon & Schuster U.S. publishing company. It was founded in 1924 by Richard L. Simon (1899–1960) and M. Lincoln Schuster (1897–1970), whose initial project, the original crossword-puzzle book, was a best-seller. , Baxter Healthcare, and Silicon Graphics, have completed their deployments of BusinessObjects 3.1 on their corporate data warehouses. "We have had excellent third-party endorsements for our new product. The July 15th issue of Information Week reviews BusinessObjects 4.0 and says, `Business Objects has made the easiest-to-use query tool even easier.' Key competitive differentiators noted were overall ease of use, internet-ready reporting, and complete OLAP capabilities. "In addition, Computergram, a UK-based newsletter, recently reported positive user and partner feedback detailed in the article, `Business Objects Users Queue Pronounced "Q." A temporary holding place for data. See queuing, message queue and print queue. (programming) queue - A first-in first-out data structure used to sequence objects. Objects are added to the tail of the queue ("enqueued") and taken off the head ("dequeued"). to Praise Latest Release'. This recognition demonstrates the strength of our product offering," Liautaud concluded. This document and announcements referenced above contain forward looking statements. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to: the early stage of development of the client/server decision support tools market, variability of the company's sales cycle, the size and timing of individual license transactions, the timing of the introduction of products or product enhancements, competition and pricing in the computer software industry, customer order deferrals in anticipation of new products and customers' budget changes. For a more complete discussion of risk factors which could affect the company's current and future operating results, see the discussions in the company's reports filed with the SEC from time to time, including but not limited to the Annual Report on Form 20-F for the year ended Dec. 31, 1995 and the Form 6-K for the quarterly period ended March 31, 1996. Business Objects is the world's leading supplier of integrated query, reporting, and OLAP software tools. The company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , BusinessObjects, provides mainstream business users with access to information stored in corporate databases, data warehouses, and packaged applications. The company pioneered the market for business-intelligent decision support tools in 1990 by introducing the first product to use a "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, " to map complex database schemas The definition of a database. It defines the structure and content in each data element within the structure. Schemas are often designed with visual modeling tools that automatically create the SQL code necessary to define the table structures. See subschema and XML schema. to a business representation understandable by non-technical end users. Business Objects generated over $60M in revenue in 1995, concluding its fifth consecutive year of more than 100% revenue growth. BusinessObjects has been licensed in more than 50 countries to over 3,200 customer sites and 185,000 users worldwide. Business Objects partners with more than 350 leading third-party vendors including Arbor Software See Hyperion. , Hewlett-Packard, IBM, Informix, Microsoft, Oracle, PeopleSoft, Prism, Red Brick, SAP, Sun, and Sybase. Strategic resellers include Bull, Digital, Fujitsu, NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , Price Waterhouse, Sequent (Sequent Computer Systems, Inc., Beaverton, OR, www.sequent.com) A computer company founded in 1983 by 17 ex-employees of Intel that specialized in multiprocessing systems for the client/server environment. , SHL SHL Shift Logical Left SHL Schweizerische Hochschule für Landwirtschaft (German: Swiss College of Agriculture) SHL Southern Hockey League SHL Silver Haired Legislature SHL Single Hidden Layer (neural networks) , Siemens Nixdorf See Fujitsu Siemens. , Toshiba, and Unisys. More information on Business Objects can be found on the World Wide Web at http://www.businessobjects.com. -0-
Business Objects S.A.
Condensed Consolidated Statements Of Operations
(In thousands, except per share and ADS data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues:
License fees $17,230 $10,853 $31,835 $20,376
Services 4,761 2,772 8,991 5,174
Total revenues 21,991 13,625 40,826 25,550
Cost of revenues:
License fees 733 538 1,376 880
Services 1,704 998 3,023 1,998
Total cost of revenues 2,437 1,536 4,399 2,878
Gross margin 19,554 12,089 36,427 22,672
Operating expenses:
Sales and marketing 12,664 7,156 23,437 13,336
Research and development 2,525 2,044 4,985 3,623
General and administrative 1,950 1,327 3,433 2,602
Total operating expenses 17,139 10,527 31,855 19,561
Income from operations 2,415 1,562 4,572 3,111
Net interest income and other 629 635 1,262 916
Income before provision
for income taxes 3,044 2,197 5,834 4,027
Provision for income taxes (1,126) (725) (2,164) (1,330)
Net income $ 1,918 $ 1,472 $ 3,670 $ 2,697
Net income per share & ADS $ 0.11 $ 0.09 $ 0.21 $ 0.16 Shares & ADS's used in calculation of net income per share & ADS 17,271 16,698 17,081 16,696
Business Objects S.A.
Condensed Consolidated Balance Sheets
(Thousands)
June 30, Dec. 31,
1996 1995
Unaudited (a)
Assets
Current assets:
Cash and short-term investments $40,803 $46,702
Accounts receivable, net 21,341 17,174
Other current assets 3,006 2,793
Total current assets 65,150 66,669
Property and equipment, net 8,070 3,961 Deposits and other 581 383 Total assets $73,801 $71,013 Liabilities and shareholders' equity Current liabilities: Accounts payable $4,878 $3,443 Accrued wages and expenses 5,946 6,660 Deferred revenue 7,323 6,002 Income taxes payable 1,373 3,754 Other current liabilities 4,692 4,572 Total current liabilities 24,212 24,431 Long term debt 56 121 Shareholders' equity: 49,533 46,461 Total liabilities and shareholders' equity $73,801 $71,013 (a) Derived from audited figures
Business Objects S.A.
Condensed Consolidated Statements of Operations
(In thousands, except per share and ADS data)
(Unaudited)
Three Months Ended
March 31,
1996 1996 1995
Restated Previously
Reported
Revenues:
License fees $14,605 $15,936 $9,523
Services 4,230 4,230 2,401
Total revenues 18,835 20,166 11,924
Cost of revenues:
License fees 643 643 341
Services 1,319 1,319 1,001
Total cost of revenues 1,962 1,962 1,342
Gross margin 16,873 18,204 10,582
Operating expenses:
Sales and marketing 10,773 10,875 6,180
Research and development 2,460 2,460 1,579
General and administrative 1,482 1,550 1,275
Total operating expenses 14,715 14,885 9,034
Income from operations 2,158 3,319 1,548
Net interest income and other 632 632 282
Income before provision for
income taxes 2,790 3,951 1,830
Provision for income taxes (1,038) (1,468) (605)
Net income 1,752 2,483 1,225
Net income per share and ADS $0.10 $0.15 $0.07 Shares & ADS's used in calculation of net income per share & ADS 17,012 17,012 16,698
Business Objects S.A.
Condensed Consolidated Balance Sheets
(Thousands)
March 31, March 31, Dec 31,
1996 1996 1995
Unaudited Unaudited (a)
Restated Previously
Reported
Assets
Current assets:
Cash and short-term investments $51,389 $51,389 $46,702
Accounts receivable, net 13,578 15,202 17,174
Other current assets 3,089 3,089 2,793
Total current assets 68,056 69,680 66,669
Property and equipment, net 5,096 5,096 3,961 Deposits and other 561 561 383 Total assets $73,713 $75,337 $71,013 Liabilities and Shareholder's equity Current liabilities: Accounts payable $3,751 $3,751 $3,443 Accrued wages and expenses 5,237 5,339 6,660 Deferred revenue 6,775 6,915 6,002 Income taxes payable 4,590 5,019 3,754 Other current liabilities 4,886 5,107 4,572 Total current liabilities 25,239 26,131 24,431 Long-term debt 88 88 121 Shareholders' equity: 48,386 49,118 46,461 Total liabilities and shareholders' equity $73,713 $75,337 $71,013 (a) Derived from audited figures-0- 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. CONTACT: Business Objects, Paris Robert P. Verheecke 33 1 41 25 21 21 or Herbst Consulting Lisa Herbst, 408/739-0252 |
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