SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 5, 1999--Hyperion
Solutions Corporation (NASDAQ:HYSL) today announced that it expects
total revenue and earnings per share for its second quarter ended
December 31, 1998 to fall short of security analysts' expectations. In
addition, the company cautions investors that revenue and earnings per
share for the quarter ending March 31, 1999 also will likely fail to
meet analyst expectations. Based upon preliminary analysis of the
results of operations, management estimates that the company will
report total revenue of approximately $105 million and earnings
between $0.25 to $0.30 per share for the quarter ended December 31.
These statements regarding estimated results are preliminary and based
on partial information and management assumptions. The company plans
to complete its accounting close and report its final results on
January 20, 1999.
Excluding the $21.8 million nonrecurring charge reported in the
September quarter for merger costs, earnings per share for the first
half of fiscal 1999 are expected to be between $0.53 and $0.58.
Revenues for the six months ended December 31, 1998 are expected to
total approximately $210 million. Including the charge for merger
costs, the company estimates that its six-month results will reflect a
loss in the range of $(.02) to $(.08) per share.
"We underestimated the short term decline in sales productivity
that was caused by merger related activities, particularly in North
America," explained John Dillon, president and CEO of Hyperion
Solutions. "We integrated our sales forces on October 1, realigned
territories, announced product links, and took sales reps out of their
territories for cross training during the quarter. Also, for the first
time we saw customers shifting spending to concentrate on Y2K issues,
which affected some of our larger transactions. These factors and
others resulted in weakened sales pipelines and delayed sales cycles.
While we are taking actions to remedy the situation, the decrease in
sales productivity probably will continue into the next quarter."
"Unfortunately, the impact of our merger related actions and
customer concerns regarding Y2K became apparent to us only at the very
end of December due to the back ended nature of our quarters," added
Dillon. "We obviously are disappointed to miss analyst expectations,
but feel the decision to combine and cross train our sales force was
the right one to build a solid foundation for future growth."
The information in this release regarding expected revenues and
earnings per share is forward looking and preliminary. Actual final
results for the quarter could differ, depending on a number of
factors, including whether all orders included in estimated revenues
meet the company's revenue recognition requirements, the adequacy of
estimated expense accruals and reserves, and any adjustments arising
from review by management and the company's independent auditors. The
company's future results could vary significantly because of factors
such as product ship schedules, life cycles, terms and conditions,
product mix, the impact of competitive products and pricing, customer
demand, technological shifts, difficulties in implementing alliances,
whether the process of effecting the Arbor Software/Hyperion Software
business combination can be effectively managed to realize the
synergies anticipated to result therefrom, and whether the merger
itself causes uncertainty in the marketplace or customer hesitation.
For a more detailed discussion of factors that affect the company's
operating results and could cause actual results to differ materially
from those in forward looking statements, interested parties should
review the company's filings with the Securities and Exchange
Commission, including the Quarterly Report on Form 10-Q filed on
November 16, 1998, for the quarter ended September 30, 1998, the
Current Report on Form 8-K filed on October 13, 1998, the Registration
Statement on Form S-8 filed on August 26, 1998, as amended, the
Registration Statement on Form S-3 filed on August 18, 1998, as
amended, the Quarterly Report on Form 10-Q filed on August 13, 1998,
for the quarter ended June 30, 1998, the Current Report on Form 8-K
filed on August 10, 1998 and the definitive proxy statement included
in the Registration Statement on Form S-4 filed on June 18, 1998, as
amended.
About Hyperion Solutions
Hyperion Solutions Corporation (NASDAQ:HYSL) is the leading
provider of analytic application software for reporting, analysis,
modeling and planning. Hyperion's family of packaged analytic
applications, OLAP server, and reporting, presentation, analysis and
application development tools are in use by more than 4,400 customers
worldwide, including more than 60 of the Fortune 100 and more than 40
of the Financial Times European Top 100. Hyperion Solutions has
established partnerships with more than 300 leading data warehousing,
OLAP tools, services, ERP, packaged application, and platform vendors
to extend the value of the company's products and services and deliver
maximum flexibility and choice to customers. The company is
headquartered in Sunnyvale, California and has more than 1,800
employees in 26 countries. Information on Hyperion's products and
services is available at hyperion.com, info@hyperion.com,
or 1-800-286-8000.
CONTACT: Kevin McCarty
Hyperion Solutions
(408) 220-8405
kevin_mccarty@hyperion.com |
