Business Objects Reports Third Quarter 2001 Results; Total Revenues Increase 15 Percent.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.--(BUSINESS WIRE)--Oct. 18, 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 third quarter and nine months ended September September: see month. 30, 2001. Third quarter revenues were $99.2 million, an increase of 15 percent compared to revenues of $86.0 million for the quarter ended September 30, 2000. Net income for the third quarter was $9.3 million, compared to net income of $10.2 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 September 30, 2001 was $0.15, compared to $0.15 in the third 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. "We are very pleased to have continued our pattern of revenue growth, profitability and expanded market share in the third quarter," 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. "This performance indicates that Business Objects has widened its leadership position in business intelligence. Our business was strong along all fronts, a remarkable achievement in the current operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . In particular, our revenue growth of 32 percent in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. highlights how we are gaining share in this market." 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, 604 new customers were added in the quarter. New customers include Fujitsu Siemens Computers Fujitsu Siemens Computers is a Japanese and German IT vendor, selling consumer and business computing products in the markets of Europe, the Middle East and Africa (products marketed elsewhere are sold under the Fujitsu brand). , Veritas Ver´i`tas n. 1. The Bureau Veritas. See under Bureau. , Onix Networking, the Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control , Peregrine Systems  This article about a company does not make it clear whether the subject meets the Wikipedia criteria for . ,
Heineken USA, and Ralston Ralston (Baile Raghnaill in Scottish Gaelic) is a small, suburban settlement in Renfrewshire, Scotland, bordering onto the eastern edge of the town of Paisley. The district straddles the A761 (formerly the A737), the main dual-carriageway between Renfrewshire and the City Purina. "We continued to sign a
significant number of large contracts in the quarter, including 4 over
$1 million, and 54 between $200,000 and $1 million. This clearly
indicates that enterprises recognize the value of widely deploying
business intelligence tools throughout their organization."
The company also reported that indirect channels contributed 55 percent of license revenue. "The strong support from our channel partners demonstrates the importance of a robust BI tool to the success of their offering," said Liautaud. Extranet license and service revenue reached $19.1 million, a 76 percent increase over the same period in the prior year. Seventy-four extranet customers were added during the quarter, bringing total extranet customers to over 640. "Continued success in the extranet market reflects our expertise and capability to deploy business intelligence throughout an extended enterprise that includes partners, suppliers and customers. Going forward, we are leveraging that expertise to build a next generation of BI networks that will deliver even greater return to our customers," said Liautaud. For the third quarter, revenue distribution by region was as follows: 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). 49%, North America 43%, and rest of world 8%.
Revenues for the nine months ended September 30, 2001 were $299.0 million, compared with revenues in the same period of the prior year of $243.1 million. Net income for the nine months ended September 30, 2001 was $30.8 million, or $0.48 per share and ADS, compared with net income for the same period of the prior year of $26.4 million, or $0.40 per share and ADS. As of September 30, 2001, the company had $230 million in cash, restricted cash and cash equivalents. Total assets were $389.5 million, compared with $366.0 million at June June: see month. 30, 2001. "Our strong cash position is a significant competitive advantage in this market, assuring our ability to provide long term support to customers and to maintain the product quality leadership that has been a key to our success," said Liautaud. Business Outlook Management offers the following guidance for the quarter ending December 31, 2001: Revenue is expected to be in the range of $108 to $111 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 16 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 $0.18 to $0.20. Management offers the following guidance for the full fiscal year ending December 31, 2002: Revenue is expected to be in the range of $450 million to $470 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 $0.75 to $0.79. This press release contains forward looking statements, including statements regarding the company's revenue, operating profit, extranet revenues, and earnings expectations for the quarter ending December 31, 2001 and the year ending December 31, 2002, the company's ability to provide long term customer support, and to maintain product quality leadership and the performance of its next generation of BI networks. 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 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 June 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 Q3 results and outlook for Q4 and 2002. Investors can call (415) 908-6234. A replay will be available for 48 hours after the call at (800) 633-8284, or for international (858) 812-6440, both with access code 19790763. Also, a live Webcast and replay can be accessed for 5 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 14,000 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 (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. 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 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
(In thousands of US dollars, except per ADS and per share data)
Three Months Ended Nine Months Ending
September 30 September 30
2001 2000 2001 2000
--------- --------- --------- ---------
Revenues: (unaudited) (unaudited)
License fees $ 55,293 $ 53,427 $ 176,906 $ 151,635
Services 43,907 32,578 122,077 91,505
--------- --------- --------- ---------
Total revenues 99,200 86,005 298,983 243,140
Cost of revenues:
License fees 532 524 1,598 1,986
Services 15,712 13,097 46,868 38,538
--------- --------- --------- ---------
Total cost of
revenues 16,244 13,621 48,466 40,524
--------- --------- --------- ---------
Gross margin 82,956 72,384 250,517 202,616
Operating expenses:
Sales and marketing 50,419 41,091 146,896 119,787
Research and
development 13,447 11,507 40,014 29,801
General and
administrative 5,073 5,270 17,899 14,548
Goodwill 1,122 1,051 3,369 3,157
--------- --------- --------- ---------
Total operating
expenses 70,061 58,919 208,178 167,293
--------- --------- --------- ---------
Income from operations 12,895 13,465 42,339 35,323
Interest and other
income, net 2,093 3,173 7,886 8,314
--------- --------- --------- ---------
Income before
provision for income
taxes 14,988 16,638 50,225 43,637
Provision for
income taxes (5,696) (6,487) (19,438) (17,287)
--------- --------- --------- ---------
Net income $ 9,292 $ 10,151 $ 30,787 $ 26,350
========= ========= ========= =========
Net income per
ADS and share-
basic $ 0.15 $ 0.17 $ 0.51 $ 0.44
========= ========= ========= =========
ADS and shares
used in computing
net income per ADS
& per share- basic 60,823 60,180 60,919 59,541
--------- --------- --------- ---------
Net income per ADS
and share- diluted $ 0.15 $ 0.15 $ 0.48 $ 0.40
========= ========= ========= =========
ADS and shares
and common share
equivalents used
in computing net
income per ADS &
per share- diluted 63,762 65,699 64,510 65,568
BUSINESS OBJECTS S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
September December
30, 31,
2001 2000
-------- --------
(unaudited)
ASSETS
Current assets:
Cash, restricted cash and cash equivalents $229,151 $208,601
Accounts receivable, net 78,602 88,737
Other current assets 22,989 20,892
-------- --------
Total current assets 330,742 318,230
Goodwill and other intangible assets, net 15,155 21,582
Property and equipment, net 37,222 21,641
Restricted cash- long term 833 3,333
Deposits and other assets 5,521 4,228
-------- --------
Total assets $389,473 $369,014
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,287 $ 22,503
Accrued payroll and related expenses 31,652 30,680
Deferred revenue 52,547 49,490
Other current liabilities 44,672 51,118
-------- --------
Total current liabilities 144,158 153,791
Notes payable- long term 2,755 4,288
Total shareholders' equity 242,560 210,935
-------- --------
Total liabilities and shareholders' equity $389,473 $369,014
======== ========
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