Skip navigation
Skip navigation
You are using an outdated browser. Please upgrade your browser.

FOR IMMEDIATE RELEASE

Hyperion Reports Record Fiscal Fourth Quarter and Fiscal Year Results

Business Performance Management Expansion Drives 30% License Revenue Growth

Contacts:
Andrew Smith
Object Marketing
Tel: (020) 8762 9292
E-mail: andrews@objectmarketing.com

Hyperion Reports Record Fiscal Fourth Quarter and Fiscal Year Results

Business Performance Management Expansion Drives 30% License Revenue Growth

SUNNYVALE, Calif., July 21 -- Hyperion Solutions (Nasdaq: HYSL), the leading provider of Business Performance Management software, today announced record financial results for its fiscal fourth quarter and fiscal year ended June 30, 2004.

Total revenues for the quarter increased 28% to $176.4 million, compared
to $138.0 million for the same period a year ago. Software license revenue
increased 30% to $72.2 million, compared to $55.6 million for the same period a year ago, while maintenance and services revenue grew 26% to $104.1 million, compared to $82.4 million in the year-ago period.

The company's fourth-quarter net income, as reported in accordance with
U.S. generally accepted accounting principles (GAAP), increased 61% to $14.7
million, or $0.36 per diluted share, compared to net income of $9.2 million,
or $0.25 per diluted share, for the fourth quarter of fiscal 2003.

Fourth quarter non-GAAP pro forma net income was $17.8 million, or $0.44
per diluted share, excluding the impact of charges, net of related tax, for
deferred revenue write-downs, the amortization of purchased intangible assets,
the amortization of deferred stock-based compensation, and restructuring
costs.

Hyperion's balance sheet reflects cash and short-term investments totaling $368.2 million at June 30, 2004. This compares to $338.7 million in cash and short-term investments at March 31, 2004. Cash flow from operations for the quarter was $27.8 million. The company used cash of $6.1 million to repurchase stock during the quarter, as part of a $75 million stock repurchase program announced in May 2004.

Total revenues for the fiscal year ended June 30, 2004 increased 22% to
$622.2 million, compared to $510.5 million for fiscal year 2003. GAAP net
income for fiscal year 2004 increased 28% to $43.8 million, or $1.10 per
diluted share, compared to net income of $34.1 million, or $0.96 per diluted
share, for fiscal year 2003. Non-GAAP pro forma net income for fiscal year
2004 was $56.6 million, or $1.42 per diluted share, compared to $35.7 million, or $1.00 per diluted share, for fiscal 2003. The non-GAAP pro forma results exclude the impact of charges, net of related tax, associated with Hyperion's acquisition of Brio Software, deferred revenue write-downs, the amortization of purchased intangible assets, the amortization of deferred stock-based compensation, restructuring costs, and the one-time charge for the redemption of its outstanding convertible debt.

"Our team executed on all fronts and we generated record revenues and
operating margins in both the fourth quarter and fiscal year," said Jeffrey R. Rodek, Hyperion's executive chairman. "I'm very pleased with our performance. Not only did we execute financially, but we also announced the on-schedule general availability of Hyperion Essbase 7.1 in June, a major milestone in our product innovation."

"Customers are deploying our solutions much more broadly and deeply within their companies, as they recognize the need to build performance accountable organizations," added Godfrey R. Sullivan, Hyperion's president and chief
executive officer. "We're very excited about the increasing momentum of the
Business Performance Management category and are well positioned to expand our market leadership."

Non-GAAP Financial Measures

In analyzing its financial results, Hyperion has used non-GAAP pro forma
financial measures (excluding adjustments, such as those relating to purchase
accounting and restructuring costs) because they provide meaningful
information regarding the company's operational performance that excludes
certain non-cash and non-recurring expenses. They also facilitate
management's internal comparisons to the company's historical operating
results and to competitors' operating results. Wherever non-GAAP disclosures
have been included in this press release, the company has reconciled them to
the appropriate GAAP disclosures.

The non-GAAP financial measures are not prepared in accordance with
generally accepted accounting principles and may be different from non-GAAP
financial measures used by other companies. Non-GAAP results should not be
considered in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.


Reconciliation of GAAP to Pro Forma Q4 FY04 and Q4 FY03 Earnings Per Share


Q4 FY04 Q4 FY03

GAAP Earnings Per Share $0.36 $0.25

Plus:
Deferred maintenance revenue adjustment 0.01 --
Amortization of purchased intangible assets 0.05 0.01
Amortization of deferred stock-based
compensation 0.05 0.01
Restructuring costs 0.01 --
Less: Income tax effect of pro forma
adjustments (0.04) (0.01)

Non-GAAP Pro Forma Earnings Per Share $0.44 $0.26


Reconciliation of GAAP to Pro Forma FY04 and FY03 Earnings Per Share


FY04 FY03

GAAP Earnings Per Share $1.10 $0.96

Plus:
Deferred maintenance revenue adjustment 0.04 --
Amortization of purchased intangible assets 0.14 0.05
Amortization of deferred stock-based
compensation 0.11 0.01
Restructuring costs 0.11 0.02
Write-off of in-process research and
development 0.06 --
Loss (gain) on redemption of debt 0.02 (0.01)
Less: Income tax effect of pro forma
adjustments (0.16) (0.03)

Non-GAAP Pro Forma Earnings Per Share $1.42 $1.00


Business Outlook

Hyperion also reported today its outlook for the first quarter of fiscal
2005. On a GAAP basis, the company currently expects total revenues in the
range of $155 million to $160 million and diluted earnings per share in the
range of $0.17 to $0.22. This outlook assumes an effective tax rate of 35%
and diluted shares outstanding of 41.1 million.

Excluding the impact of the amortization of purchased intangible assets,
amortization of deferred stock-based compensation, and restructuring costs,
the company expects diluted earnings per share on a non-GAAP pro forma basis
for the first quarter in the range of $0.27 to $0.32.

Reconciliation of GAAP to Pro Forma Earnings Per Share for Business Outlook

Projected Q1 FY05 GAAP Earnings Per Share $0.17 - $0.22

Plus:
Amortization of purchased intangible assets 0.05
Amortization of deferred stock-based compensation 0.02
Restructuring costs 0.08
Less: Income tax effect of pro forma adjustments (0.05)

Projected Q1 FY05 Non-GAAP Pro Forma Earnings
Per Share $0.27 - $0.32


Hyperion Names Rodek Executive Chairman, Sullivan President and CEO

In a separate news release today, the company announced that it has named
Rodek executive chairman of Hyperion's board of directors and promoted
Sullivan to president and CEO, effective immediately.

Other Recent Developments

Other recent company developments include:

* Won major customer contracts at Best Agrifund (Netherlands), BT
(UK), Fifth Third Bank, Hogeschool INHOLLAND (Netherlands), Johnson
Controls, Lockheed Martin Tactical Systems, Mutuelles du Mans
Assurances (France), Peabody Energy, PPG Industries, State
University of New York, Telenor (Norway), and Yorkshire Water
Services (UK).
* Announced the general availability of Hyperion Essbase 7.1, the most
significant advancement in its analytical technology since the
introduction of Hyperion Essbase in 1994.
* Announced that SAP has certified integration between Hyperion
Performance Suite and mySAP(TM) Business Suite and SAP(R) Business
Information Warehouse (SAP BW), a core component of SAP
NetWeaver(TM). Hyperion Essbase 7.1 also offers enhanced
integration with SAP BW through Essbase Integration Services Data
Connector.
* Elevated to Strategic Partner by BearingPoint, Inc., a global
systems integrator and Hyperion partner. This is BearingPoint's
highest-level alliance status and Hyperion is one of only seven
companies to achieve this status.
* Published On the Up and Up: Achieving Breakthrough Performance
Through Insight, the first-ever book on Business Performance
Management. The book offers the insight and inspiration companies
need to take their Business Performance Management efforts to the
next level.
* Announced plans to relocate to a larger, more modern global
headquarters located in Santa Clara, California, combining the
software development, research, executive, marketing, sales and
administrative functions currently housed in three buildings in
Sunnyvale, Santa Clara, and San Francisco, California.


About Hyperion

Hyperion is the global leader in Business Performance Management software.
More than 9,000 customers -- including 91 of the Fortune 100 -- 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.

Named one of the FORTUNE 100 Best Companies to Work For 2004, Hyperion
employs approximately 2,500 people in 20 countries. Distributors represent
Hyperion in an additional 25 countries. Headquartered in Sunnyvale,
California, Hyperion generated annual revenues of $622 million for the 12
months that ended June 30, 2004. Hyperion is traded under the Nasdaq symbol
HYSL. For more information, please visit http://www.hyperion.com,
http://www.hyperion.com/contactus or call 800-286-8000 (U.S. only).

Forward-Looking Statements

Statements in this press release other than statements of historical fact
are forward-looking statements, including, but not limited to, statements
concerning expected future financial results, the potential success of
anticipated product offerings, and the potential market opportunities for
business performance management software. 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 the company's failure to
continue successful integration of the Brio business, failure to successfully
drive increases in software license revenue (by both increasing sales of newer
products, and limiting falloff of older product revenue), significant product
quality problems, failure to successfully drive partner revenue, significant
strengthening of the dollar against key European currencies, the impact of
competitive products and pricing, a decline in customer demand, and
technological shifts. 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 August 13, 2003
and the Quarterly Report on Form 10-Q filed on May 10, 2004. The company does
not undertake an obligation to update its forward-looking statements to
reflect future events or circumstances.

NOTE: "Hyperion," the Hyperion "H" logo and Hyperion's product names are
trademarks of Hyperion. References to other companies and their products use
trademarks owned by the respective companies and are for reference purpose
only.

This press release was distributed by ResponseSource Press Release Wire on behalf of Object Marketing in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.