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Andrew Smith

Object Marketing

Tel: (020) 8762 9292



…proposed EU transparency directive supports earlier IBM survey highlighting need for faster financial “close”…

EGHAM, UK, January 28th, 2002 – Mandatory quarterly reporting, one of a wide range of new proposals aimed at creating a single set of rules on disclosure for listed companies across the 15 member states of the European Union, need not be the burden many large UK companies believe it may be, claims Hyperion (Nasdaq: HYSL), a global leader in business performance management software.

The new rules, known as the transparency directive, could mean EU companies making radical changes to the way they deal with investors in some of Europe's largest markets, including the UK, Germany and France.

According to Hyperion UK and Ireland Managing Director Mike Shelton: “The proposals for quarterly reporting, part of the EU's efforts to build a single financial market by 2005, will be welcomed by shareholders across Europe. However, we are aware that many companies believe the EU's proposals for quarterly reporting will pose a considerable burden. We feel quarterly reporting will increase transparency and allow investors to be better informed about a company's performance. By bringing the EU in line with the US, it would also attract foreign investors to European markets. Investment in appropriate technology can go a long way to alleviating these pressures. Companies which have already made the move towards a ‘fast close’ through the deployment of reporting technology such as that provided by Hyperion, will be much better placed to deal with any additional reporting demands. Software such as Hyperion Financial Management allows the seamless integration of management and statutory reporting which minimises the burden of quarterly reporting.”

Hyperion’s views are supported by a survey conducted by IBM earlier in 2002* which was intended to provide a detailed assessment of how European organisations are approaching the increased demands for faster and more detailed financial reporting.

According to David JH Jones, Associate Partner responsible for Group Reporting Services at IBM: “Our findings show that many European multi-nationals are struggling to meet existing demands for fuller and faster reporting let alone being prepared for quarterly reporting. There is hope, however. Our findings support the theory that a major business benefit of closing books fast is that it cuts out paper-chasing and allows more time for analysis, reporting and forecasting. Therefore, companies who have already made the move towards a ‘fast close’ will be much better placed to deal with any additional reporting demands.”

Despite the benefits, the survey showed that European multi-nationals feel that the complexities of their diverse, multi-country businesses makes closing and consolidating their books in hours rather than days a near impossibility. It is the ability to establish global automated, integrated and standardised reporting processes and systems, such as those used by their US counterparts, that will enable European companies to close and consolidate their books much quicker.

Concludes Jones: “There are more internet- and web-based environments in companies today and that will have a major impact on how internal processes are structured. Web enabled consolidation tools are now reaching a stage of maturity to allow them to deliver many of the benefits required in the demand for more timely and transparent financial reporting. Today’s business environment demands financial accountability. This requires a level of financial transparency and visibility that can only be achieved if companies maintain a true sense of the financial impact of their business activities. In terms of the technology to support these demands, we can see that vendors such as Hyperion are moving towards supplying complete solutions that bridge the gap between financial performance and business activity performance. In Europe, our survey indicates that current management and statutory reporting is being met in the majority of cases by specialist packages – some 60 per cent of companies surveyed. The most popular vendor in this space is Hyperion, with 43 per cent of those companies using specialist financial consolidation packages in Europe opting for a Hyperion solution.”

* Survey title: Consolidation and Reporting Functions in European Multinational Enterprises. The research was carried out by telephone, interview and the Internet amongst a sample of 162 financial executives responsible for financial reporting and consolidating in their organisations. 51% of the participants report consolidated revenues in excess of 4 Billion Euros and 88% consolidate multinational operations.

About Hyperion

Hyperion, the global leader in business performance management software, creates solutions that help companies measure performance and drive profitability. Hyperion's Business Performance Management Suite of packaged and tailored applications and its open, integrating business performance management platform, Hyperion Essbase XTD, enable companies to set goals, model and plan performance, monitor and report key results, analyze underlying business drivers and anticipate future performance of core business activities. Hyperion products are used by more than 6,000 customers around the world to enable financial, organizational, customer relationship, supply chain and channel performance management. Hyperion has a network of over 330 partners to provide innovative and specialized business performance management solutions and services.

Headquartered in Sunnyvale, California, Hyperion generated annual revenues
of $492 million in fiscal 2002. The company employs more than 2,200 people
in 20 countries and is represented in 16 additional countries through
distributor relationships. Hyperion is traded under the Nasdaq symbol HYSL.

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Safe Harbor Statement

Statements in this press release other than statements of historical fact are forward-looking statements, including, but not limited to, statements concerning the company's expected increase in selling opportunities, future financial performance and results of operations. Such statements constitute anticipated outcomes and do not assure results. Actual results may differ materially from those anticipated by the forward-looking statements due to a variety of factors including, but not limited to, changes in general economic conditions, competition and uncertain market acceptance of new products. For a more detailed discussion of factors that could affect the company's performance and cause actual results to differ materially from those anticipated in the forward-looking statements, interested parties should review the company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K filed on September 25, 2002, and the Quarterly Report o!
n Form 10-Q filed on November 12, 2002. The company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

Hyperion and Essbase are registered trademarks and Hyperion Solutions is a trademark of Hyperion Solutions Corporation. All other trademarks and company names mentioned are the property of their respective owners.

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