HYPERION REPORTS FISCAL FOURTH QUARTER AND YEAR-END RESULTS
…39% Year-Over Year Quarterly EPS Growth Driven by Operating Margin Expansion; Board Approves Stock Repurchase Plan…
SUNNYVALE, Calif., July 23, 2003 – Hyperion (Nasdaq: HYSL), the global leader in Business Performance Management software, today announced financial results for its fourth quarter and fiscal year ended June 30, 2003.
Total revenues for the quarter increased two percent to $138.0 million, compared to $135.8 million for the same quarter a year ago. Software license revenue was $55.6 million, compared to $61.1 million for the same period a year ago, while maintenance and services revenue totaled $82.4 million, compared to $74.7 million for the same period a year ago.
The company reported net income for the quarter of $9.2 million, or $0.25 per diluted share, compared to net income of $6.2 million, or $0.18 per diluted share, for the fourth quarter of fiscal 2002.
Hyperion continued to strengthen its balance sheet during the quarter, increasing cash and short-term investments to $416.6 million at June 30, 2003. This compares to $330.3 million in cash and short-term investments at June 30, 2002.
Total revenues for the fiscal year ended June 30, 2003 increased four percent to $510.5 million, compared to $492.0 million for fiscal year 2002. Net income for fiscal year 2003 more than doubled to $34.1 million, or $0.96 per diluted share, compared to net income of $15.0 million, or $0.45 per diluted share, for fiscal year 2002.
“In a global business environment that remains challenging and unpredictable, fourth-quarter results met our expectations,” said Jeff Rodek, Hyperion’s chairman and chief executive officer. “We continued to increase our profitability and expanded our annual operating margin to 10 percent.
“The June quarter was our strongest ever for sales of Hyperion Planning and revenues of our suite-based applications grew 16 percent over last year,” continued Mr. Rodek. “Additionally, we are very encouraged by the initial customer interest in Hyperion Strategic Finance, the product we recently acquired from The Alcar Group. Overall, we’re pleased with our progress and the goals we’ve attained as we strengthen our leadership position in the Business Performance Management category.”
Hyperion To Acquire Brio Software
In a separate press release, Hyperion announced today that it has signed a definitive agreement to acquire Brio Software (Nasdaq: BRIO) in a part stock, part cash transaction valued at approximately $142 million. The transaction is subject to customary closing conditions, including approval of Brio Software’s stockholders and regulatory approvals.
Stock Repurchase Program Approved
Hyperion also announced that its Board of Directors authorized the company to repurchase up to $125 million of its common stock. The company will determine the timing and amount of shares to be repurchased based upon market conditions and other factors, and will use existing cash and short-term investments to finance the transactions. The repurchased shares will be used for the company’s stock option plans, employee stock purchase and other stock benefit plans, and for general corporate purposes.
Other Recent Developments
Significant company fourth-quarter developments include:
· Major customer wins at Allied Irish Bank, Chanel, Grupo SONAE, Honeywell, Intuit, McDermott, Michelin, Petrobras, Symantec, The Interpublic Group of Companies, and Westcorp;
· Announced partner agreements with 1) Teradata, a division of NCR Corporation, to integrate their technologies, allowing businesses using Teradata's warehouse and analytical solutions to link to Hyperion's Essbase XTD platform and applications in order to gain greater insight into financial performance; and 2) American Management Systems to provide Business Performance Management solutions to the public sector, a relatively untapped area of growth for Hyperion;
· Helped launch the creation of the Business Performance Management Forum, the first industry-wide organization to focus on improving the measurement and management of business performance. The Forum currently has more than 175 members including Fujitsu, General Electric, Hewlett-Packard, JP Morgan Chase, and T. Rowe Price;
· Was recognized again by IDC as the market leader of the worldwide financial and Business Performance Management software market; and
· Erik Thomsen, online analytical processing (OLAP) pioneer and noted industry expert, joined Hyperion as a distinguished scientist to help extend the company’s technical vision and capabilities in the emerging market for Business Performance Management solutions.
Conference Call and Webcast
Hyperion’s executive management will host a conference call at 5:00 p.m. ET today to discuss these financial results. The conference call will be webcast live with access from the Investor Relations section of the Hyperion Web site at www.hyperion.com. A replay of the webcast will also be available from the company’s Web site.
Hyperion is the global leader in Business Performance Management software that enables companies to translate strategies into plans, monitor execution and provide insight to improve financial and operational performance. More than 6,000 customers worldwide use Hyperion’s Business Performance Management family of packaged and tailored applications, and its leading business intelligence platform. Hyperion has a network of more than 330 partners to provide innovative and specialized Business Performance Management solutions and services.
Headquartered in Sunnyvale, California, Hyperion generated annual revenues of $510 million in fiscal 2003. 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. For more information, please visit www.hyperion.com/uk, e-mail email@example.com or call 01784 228015
This press release contains forward-looking statements that involve risks and uncertainties concerning Hyperion’s proposed acquisition of Brio Software, Hyperion’s expected financial performance (including without limitation as described in the quotations from management in this press release), as well as Hyperion’s strategic and operational plans. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, the possibility that the transaction will not close, that the closing may be delayed; the reaction of customers of Hyperion and Brio Software to the transaction; Hyperion’s ability to successfully integrate Brio Software's operations and employees the introduction of new products by competitors or the entry of new competitors into the markets for Hyperion’s and Brio Software's products; and economic and political conditions in the U.S. and
abroad. More information about potential factors that could affect Hyperion’s business and financial results is included in Hyperion’s Annual Report on Form 10-K for the fiscal year ended June 30, 2002 and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. For more information and additional risk factors regarding Brio Software, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in Brio Software’s Annual Report on Form 10-K for the fiscal year ended March 31, 2003 and in other reports filed by Brio Software with the SEC. Neither Hyperion nor Brio Software undertak
e any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release.
Additional Information About the Proposed Merger and Where to Find It
Hyperion and Brio Software intend to file with the SEC a proxy statement/prospectus and other relevant materials in connection with the proposed acquisition (the “Merger”) of Brio Software by Hyperion, pursuant to the terms of an Agreement and Plan of Merger and Reorganization among Hyperion, T-Bird Acquisition, Inc., a wholly owned subsidiary of Hyperion, and Brio Software, Inc. The proxy statement/prospectus will be mailed to the stockholders of Brio Software. Investors and security holders of Brio Software are urged to read the proxy statement/prospectus and the other relevant materials when they become available because they will contain important information about Hyperion, Brio Software and the proposed Merger. The proxy statement/prospectus and other relevant materials (when they become available), and any other documents filed by Hyperion or Brio Software with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov. In addition, investors and secu
rity holders may obtain free copies of the documents filed with the SEC by Hyperion by contacting Hyperion Investor Relations, 1344 Crossman Avenue, Sunnyvale, CA, 94089, telephone (408) 220-8769. Investors and security holders may obtain free copies of the documents filed with the SEC by Brio Software by contacting Brio Software Investor Relations, 4980 Great America Parkway, Santa Clara, CA 95054 (408) 496-7400. Investors and security holders of Brio Software are urged to read the proxy statement/prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed Merger.
Hyperion, Jeff Rodek, Hyperion’s Chairman and Chief Executive Officer, and certain of Hyperion’s other executive officers and directors may be deemed to be participants in the solicitation of proxies of Brio Software’s stockholders in connection with the proposed merger. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Mr. Rodek and certain of Hyperion’s other executive officers and directors in the solicitation by reading the proxy statement/prospectus statement when it becomes available.
Brio Software, Craig Brennan, Brio Software's President and Chief Executive Officer, and certain of Brio Software's other executive officers and directors may be deemed to be participants in the solicitation of proxies of Brio Software’s stockholders in connection with the proposed merger. Such individuals may have interests in the proposed Merger, including as a result of holding options or shares of Brio Software common stock. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Mr. Brennan and Brio Software's other executive officers and directors in the solicitation by reading the proxy statement/prospectus when it becomes available.
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