YESSS!!! I knew they would pull through!
From Briefing:
Business Objects (BOBJY) 14 7/8 -1/32: provider of integrated enterprise decision support tools reports Q1 net of $0.08 a share, which is double the $0.04 expected by analysts. BOBJY made $0.06 in the yr-ago. Revenues improved 48% to $34.6 million...
From Yahoo:
Business Objects Reports Q1 1998 Results -- 132 Percent Gain in Operating Income on 48 Percent Revenue Increase
Worldwide Demand for Company's Decision Support Software Drives First Quarter License Sales
SAN JOSE, Calif.--(BUSINESS WIRE)--April 23, 1998-- Business Objects (NASDAQ:BOBJY - news) today announced its results for the first quarter ended March 31, 1998, which included a 132 percent improvement in operating income.
First quarter revenues were $34.6 million, an increase of 48 percent compared to revenues of $23.4 million for the quarter ended March 31, 1997. Income from operations increased 132 percent to $1.9 million, compared to $0.8 million for the same period last year. Net income was $1.4 million, compared to $1.0 million for the same period last year. Diluted earnings per share and per ADS for the quarter ended March 31, 1998 were $0.08, compared to diluted earnings per share and per ADS of $0.06 in the first quarter of last year.
Bernard Liautaud, president and chief executive officer of the Company stated, ''This was a successful quarter for Business Objects on a number of fronts. We are pleased with the first quarter revenue growth, where our license growth was 40 percent and growth in services was 67 percent. Demand was strong worldwide as the Americas, Europe, and Asia Pacific grew 39 percent, 60 percent, and 86 percent, respectively. We had good contribution from indirect channels, which contributed 37 percent of total revenues. Overall growth exceeded our expectations, reflecting increased acceptance of our products and the Company's position as a leader in enterprise decision support.''
Liautaud continued, ''We achieved a substantial improvement in operating margin through higher revenues and slower expense growth. First quarter operating income was 6 percent of revenue, compared to 4 percent of revenue in the same period last year. This gain reflects our heightened focus on resource allocation and improved sales productivity. We still have more work to do to reach our desired profitability, but are making solid progress towards this goal.''
Business Objects expanded its customer base in the first quarter, adding 80,000 new licenses for a total of 780,000 worldwide. Major sales included British American Tobacco, British Petroleum, France Telecom [NYSE:FTE - news], The Gap, Perkin Elmer, Telecom Italia, Ikea, and Volvo.
Last quarter the Company began shipments of WebIntelligence(TM), its new, thin client decision support platform for the web. The Company said that WebIntelligence, which shares a single infrastructure with the Company's flagship BusinessObjects(TM) product, has further strengthened its success in enterprisewide deployments.
For example, the Company signed a significant first quarter contract with Volvo, where Volvo is planning to deploy WebIntelligence to more than 1,000 users in Volvo Truck for worldwide use with a new spare parts system.
The Company's desktop-to-internet approach is also creating new opportunities in corporate decision support extranets, that allow companies to share information with their customers or suppliers over the internet. Several Business Objects customers -- Zurich Insurance Company and Owens & Minor -- are planning to deploy WebIntelligence in extranet environments.
The Company's balance sheet remained strong with $44.9 million in cash and short-term investments -- including positive cash flow for the quarter of $5.9 million -- and no long-term debt. Total assets at March 31, 1998 were $95.7 million, compared to $94.3 million at December 31, 1997.
The Company also announced today the appointment of Bernard Charles, president of Dassault Systemes, to its Board of Directors, subject to approval of shareholders of the Company at the shareholders meeting in June 1998. Dassault Systemes, with revenue of more than $320 million and 1,600 employees, is a leading software developer for the CAD/CAM/CAE/PDM market. Mr. Charles has more than 20 years of experience, and has been president of Dassault Systemes since 1995. Prior to that he was the president of the strategy and research department of Dassault Systemes where he supervised the development of CATIA-CADAM, the company's flagship product.
In addition, the Company announced that co-founder Denis Payre has resigned from the board. Mr. Payre was chief operating officer of the Company from inception until April 1997, when he left his operational responsibilities to pursue personal interests. Mr. Payre is the president of Growth Plus, an association aimed at promoting high growth companies in France, and is also an investor and advisor to various technology start up companies in Europe.
This press release contains forward looking statements with respect to improved operating performance, renewed earnings growth, and the potential growth of the decision support market. Such forward looking statements are subject to risks and uncertainties including, without limitation, historical variability in the performance of the Company's market and the ability of the Company to gain acceptance of its new products, which could cause actual results to differ materially from those anticipated. For a more complete discussion of risk factors that 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 Company's Form 10-K for the fiscal year ended December 31, 1997.
About Business Objects
Business Objects is the world's leading provider of integrated enterprise decision support tools. Business Objects products provide non-technical business users with access to information stored in data warehouses, data marts, and packaged business applications. Business Objects provides a complete suite of decision support tools including query, reporting, online analytical processing, data mining, and DSS administration for both client/server and internet environments. Business Objects has sold more than 780,000 licenses to over 6,200 organizations in more than 60 countries worldwide. Business Objects may be reached by phone at 408-953-6000 or on the worldwide web at businessobjects.com. The Company's stock is publicly traded under the ticker symbol BOBJY.
BusinessObjects and WebIntelligence are trademarks 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 ''two.'' The announcement may also 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars, except per share and per ADS data)
(unaudited)
Three Months Ended
March 31,
1998 1997
Revenues:
License fees $ 23,422 $ 16,739
Services 11,143 6,650
-------- --------
Total revenues 34,565 23,389
Cost of revenues:
License fees 687 820
Services 4,787 2,366
-------- --------
Total cost of revenues 5,474 3,186
-------- --------
Gross margin 29,091 20,203
Operating expenses:
Sales and marketing 19,796 14,141
Research and development 4,134 3,136
General and administrative 2,906 2,086
Goodwill 310 --
-------- --------
Total operating expenses 27,146 19,363
-------- --------
Income from operations 1,945 840
Interest and other income, net 387 912
-------- --------
Income before minority interest
and provision
for income taxes 2,332 1,752
Provision for income
taxes (952) (736)
Minority interest -- --
-------- --------
Net income $ 1,380 $ 1,016
======== ========
Basic income per
share & per ADS $ 0.08 $ 0.06
======== ========
Shares and ADSs used to compute basic
income per share
& per ADS 16,782 16,417
======== ========
Diluted income per
share and per ADS $ 0.08 $ 0.06
======== ========
Shares and ADSs used to compute diluted
net income per
share and per ADS 17,439 16,672
======== ========
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Mar. 31, Dec. 31,
1998 1997
-----------------------
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $44,877 $39,013
Accounts receivable, net 30,941 35,113
Other current assets 5,789 5,894
------- -------
Total current assets 81,607 80,020
Goodwill, net 1,228 1,626
Property and equipment, net 12,127 12,020
Other assets 780 674
------- -------
Total assets $95,742 $94,340
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,710 $ 8,089
Accrued payroll and related expenses 10,609 9,944
Deferred revenue 16,329 16,825
Other current liabilities 10,486 8,683
------- -------
Total current liabilities 44,134 43,541
Shareholders' equity 51,608 50,799
------- -------
Total liabilities and
shareholders' equity $95,742 $94,340
======= =======
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Contact:
Business Objects
Thomas Weatherford, CFO, 408/953-6000
or
Herbst Consulting
Lisa Herbst, 510/461-7040
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