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3% Revenue Growth Drives Continued Operating Margin Expansion
SUNNYVALE, Calif., October 21, 2003 – Hyperion (Nasdaq: HYSL), the global leader in Business Performance Management software, today announced financial results for its fiscal first quarter ended September 30, 2003.
Total revenues for the quarter increased three percent to 3.6 million, compared to 9.9 million for the same period a year ago. Software license revenue was .0 million, compared to .6 million for the same period a year ago, while maintenance and services revenue totaled .5 million, compared to .3 million in the year-ago period.
The company reported net income for the quarter of .7 million, or .26 per diluted share, compared to net income of .1 million, or .27 per diluted share, for the first quarter of fiscal 2003.
Hyperion’s balance sheet reflects cash and short-term investments totaling 8.5 million at September 30, 2003. This compares to 6.6 million in cash and short-term investments at June 30, 2003. Cash flow from operations for the quarter was .7 million. Stock repurchases totaled .0 million.
“We’ve completed a quarter with many accomplishments,” said Jeff Rodek, Hyperion’s chairman and chief executive officer. “We had another quarter of year-over-year revenue growth, driven this quarter primarily by growth in maintenance and services. Strong international license revenue growth was offset by weakness in North America. Sales of our suite-based applications grew 19% with a double-digit increase in sales of Hyperion Planning and the best quarter ever for sales of Hyperion Business Modeling, Hyperion Performance Scorecard, and Hyperion Strategic Finance. Our consulting revenues were up with improved profitability year-over-year for the second quarter in a row. Through continued diligent management of our expenses, we expanded our operating margin to 12%, the highest since I joined the company in October 1999. Having announced the Brio acquisition three weeks into the quarter, I’m pleased with these accomplishments, given our focus on integration planning under a
“We closed the Brio acquisition only 12 weeks after announcing it and are excited about our opportunities going forward,” continued Mr. Rodek. “Brio’s September quarter operating results, which are not part of our quarterly numbers, include 13% license revenue growth to .9 million and total revenues of .4 million. These numbers are very encouraging. They attest to the strength of Brio’s people and products and provide good momentum for our combined operations, which began after the close on October 16.”
Mr. Rodek concluded, “With Brio’s essential business intelligence (BI) technology, we now offer the most comprehensive set of interoperable Business Performance Management solutions and a one-stop shop for BI and Business Performance Management technologies. Brio integration efforts are well underway and we look forward to realizing the full strategic and financial potential of this business combination, with the goal of expanding our leadership in the Business Performance Management category.”
Other Recent Developments
Other significant company developments include:
* Won major customer contracts at District of Columbia, Ecolab, Hyatt Corporation, Invensys (UK), La Poste (France), LaSer (France), Mutuelles du Mans Assurances (France), QinetiQ (UK), Sealy Corporation, Southwest Bank of Texas, Tomkins plc (UK), and VNU N.V. (Netherlands);
* Tripled the number of live references for Hyperion Financial Management over one year ago;
* Advanced our leading position in the Visionary quadrant for Corporate Performance Management (which Hyperion calls Business Performance Management), according to a just-released report by industry analyst firm Gartner, Inc. Vendors were evaluated on completeness of vision and ability to execute;
* Introduced Hyperion Strategic Finance 3.0, which now enables finance executives to more effectively model and predict financing costs under alternative strategic scenarios. The company continues to see strong market acceptance of this product, as evidenced by its sequential revenue growth in what is traditionally a down quarter; and
* Launched major awareness-building marketing initiatives, including a Wall Street Journal print advertising campaign, which will feature 12 full-page ads and will reach more than four million readers around the world. Hyperion is also hosting joint seminars on corporate compliance in six U.S. cities with former SEC Chairman Arthur Levitt, drawing hundreds of attendees; and, along with Business Finance Magazine, co-sponsored the industry’s first BPM conference.
Hyperion is the global leader in Business Performance Management software. More than 9,000 customers rely on Hyperion software to translate strategies into plans, monitor execution and provide insight to improve financial and operational performance. Hyperion combines the most complete set of interoperable applications with the leading Business Intelligence platform to support and create Business Performance Management solutions. A network of more than 600 partners provides the company’s innovative and specialized solutions and services.
Headquartered in Sunnyvale, California, Hyperion employs approximately 2,600 people in 20 countries and is represented in 25 additional countries through distributor relationships. Hyperion, together with recently acquired Brio software, generated combined annual revenues of 2 million for the twelve months ending June 30, 2003. Hyperion is traded under the Nasdaq symbol HYSL. For more information, please visit www.hyperion.com/uk, e-mail firstname.lastname@example.org or call 01784 228015
This press release contains forward-looking statements that involve risks and uncertainties concerning Hyperion’s acquisition of Brio Software, Hyperion’s expected 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 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, 2003, including (without limitation) under the captions, "Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is 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, its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003, and in other reports filed by Brio Software with the SEC. Neither Hyperion nor Brio Software undertake any obligation to update these forward-looking statements to reflect events or c
ircumstances after the date of this press release.
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