News Alert from BusinessWire via Quote.com
Topic: (NASDAQ:BOBJY) Business Objects ADS,
Quote.com News Item #8046150
Headline: Business Objects Reports Record Q3 1998 Results; Revenues Up 45
Percent Over Prior Year
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SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 29, 1998--Business
Objects (NASDAQ:BOBJY) today announced its results for the quarter
and nine months ended September 30, 1998.
Third quarter revenues were a record $41.3 million, an increase
of 45 percent compared to revenues of $28.5 million for the quarter
ended September 30, 1997. Net income for the third quarter was $2.3
million, compared to $196 thousand for the same period last year.
Diluted net income per share and per ADS for the quarter ended
September 30, 1998 were $0.13, compared to $0.01 in the third quarter
of last year.
Revenues for the nine months ended September 30, 1998 were $115.4
million, an increase of 48 percent compared to revenues of $78.2
million during the same period last year. Net income for the nine
months ended September 30, 1998 was $5.7 million, compared to $1.2
million for the same period last year.
Diluted income per share and per ADS for the nine months ended
September 30, 1998 were $0.32, compared to $0.07 for the third quarter
of last year.
"We are very pleased with our achievement of record results in
the third quarter," said Bernard Liautaud, president and chief
executive officer of Business Objects.
"This is our fifth consecutive quarter of more than 40% growth.
We believe that these excellent results reflect the strength of our
product line, especially our new internet offering, as well as the
robust demand for enterprise business solutions."
"Deploying information access and analysis capabilities
throughout the enterprise, also known as enterprise business
intelligence, continues to be increasingly important for businesses
worldwide," Liautaud continued. "As a recognized leader in enterprise
business intelligence, we remain focused on delivering quality
solutions to this market.
"We are also very excited about the emerging internet business
intelligence market. Our customers are starting to combine the power
of the internet with the benefits of business intelligence technology
in order to share information with their employees, customers,
partners, and suppliers."
Business Objects expanded its customer base in the third quarter,
adding over 85,000 new licenses for a total of 955,000 worldwide. Over
9,500 of the new licenses sold were with WEBINTELLIGENCE(tm). Key
customers in the third quarter included Alcoa, American Red Cross, BOC
Gases, Conoco, Kraft Foods, Navsea Shipyard, Owens-Illinois, Pfizer,
and Telecom Italia.
"During the third quarter, we announced production availability
of WEBINTELLIGENCE 2.0, the new release of our decision support
solution for the world wide web, " Liautaud added. "WEBINTELLIGENCE
2.0 sets new standards for architecture and functionality in an
internet business intelligence solution, and has been enthusiastically
received by our customer base."
In the third quarter, the Company announced BROADCAST SERVER, a
powerful report scheduling and distribution server. BROADCAST SERVER
can be set to automatically broadcast information to users either on a
regular schedule, or in response to business events. The information
can be broadcast to users via a variety of mechanisms, including
email, fax, and pager. BROADCAST SERVER is currently in beta testing.
The Company's balance sheet continued to be strong with $63.9
million in cash and short-term investments -- including positive cash
flow for the third quarter of $10.3 million -- and no long-term debt.
Total assets at September 30, 1998 were $118.7 million, compared to
$94.3 million at December 31, 1997.
Business Objects also authorized a stock repurchase plan, which
provides that up to one million shares of its common stock may be
purchased on the open market from time to time.
This press release contains forward looking statements with
respect to momentum in the marketplace and demand for the Company's
decision support software. Such forward looking statements are subject
to risks and uncertainties including, without limitation, historical
variability in the performance of the Company, changes in the
Company's market, and the ability of the Company to complete the
development and testing of and to gain acceptance of its 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, and the Form 10Q for the
quarterly period ended June 30, 1998.
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 955,000 licenses to
over 7,000 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.
Note to Editors: 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.
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BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars, except per share
and per ADS data; unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
-------------------------------------
Revenues:
License fees $ 26,232 $ 19,442 $ 74,811 $ 54,213
Services 15,025 9,060 40,563 24,006
-------------------------------------
Total revenues 41,257 28,502 115,374 78,219
Cost of revenues:
License fees 781 826 2,357 2,386
Services 6,253 3,505 16,602 8,729
-------------------------------------
Total cost of
revenues 7,034 4,331 18,959 11,115
-------------------------------------
Gross margin 34,223 24,171 96,415 67,104
Operating expenses:
Sales and marketing 22,214 17,095 63,778 48,372
Research and
development 4,956 3,503 13,787 9,917
General and
administrative 3,380 2,661 9,531 7,240
Goodwill 312 213 929 380
-------------------------------------
Total operating
expenses 30,862 23,472 88,025 65,909
-------------------------------------
Income from operations 3,361 699 8,390 1,195
Interest and other
income, net 618 178 1,403 1,478
-------------------------------------
Income before minority
interest and provision
for income taxes 3,979 877 9,793 2,673
Provision for income taxes (1,631) (716) (4,011) (1,471)
Minority interest (40) 35 (114) 33
-------------------------------------
Net income $ 2,308 $ 196 $ 5,668 $ 1,235
=====================================
Basic net income per
share & per ADS $ 0.14 $ 0.01 $ 0.34 0.07
=====================================
Shares and ADSs used
to compute basic net
income per share & per ADS 16,975 16,689 16,903 16,575
=====================================
Diluted net income per
share and per ADS $ 0.13 $ 0.01 $ 0.32 $ 0.07
=====================================
Shares and ADSs used to
compute diluted net
income per share and
per ADS 17,624 16,798 17,661 16,772
=====================================
BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sep. 30, 1998 Dec. 31, 1997
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 63,894 $ 39,013
Accounts receivable, net 32,910 35,113
Other current assets 6,085 5,894
----------- ------------
Total current assets 102,889 80,020
Property and equipment, net 13,275 12,020
Goodwill, net 1,694 1,626
Other assets 802 674
----------- ------------
Total assets $ 118,660 $ 94,340
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,521 $ 8,089
Accrued payroll and related expenses 12,820 9,944
Deferred revenue 18,818 16,825
Other current liabilities 15,321 8,683
----------- ------------
Total current liabilities 57,480 43,541
Shareholders' equity 61,180 50,799
----------- ------------
Total liabilities and
shareholders' equity $ 118,660 $ 94,340
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