Informatica, Business Objects Report Rising Sales

 
 
By Dennis Callaghan  |  Posted 2001-10-19 Print this article Print
 
 
 
 
 
 
 

Business Objects SA and Informatica Corp. both came through the third quarter with modest revenue increases from the same period a year ago, despite the deteriorating economic conditions.

Business Objects SA and Informatica Corp. both came through the third quarter with modest revenue increases from the same period a year ago, despite the deteriorating economic conditions, the companies announced Thursday. Business Objects reported revenues of $99.2 million, a 15 percent increase from the same period a year ago. The company added 604 new customers in the quarter and saw its North American revenue jump 34 percent, officials said. North America accounted for 43 percent of the French companys revenue in the quarter.
Most of the revenue increase was from services, though license revenues were up slightly, from $53.4 million to $55.3 million. Licenses still constitute the majority of Business Objects revenues.
Despite the revenue increase, net income for the quarter ended Sept. 30 fell slightly to $9.3 million from $10.2 million. Separately, Informatica recorded third quarter revenues of $46.5 million, up from $42.8 million in the third quarter of 2000. The company signed 76 new customers in the quarter and added repeat business from 61 existing customers. But Informatica, of Redwood City, Calif., took a hit farther down on its balance sheet, posting a net loss of nearly $27 million. Its net loss in the same period last year was $7.5 million. Much of this years third quarter losses were amortization and restructuring charges, yet still the company turned in an operating loss of nearly $10 million after recording a $2.9 million operating profit in the same period a year ago. Informatica will actually be looking to take some sales away from Business Objects when it launches its own analytics delivery platform Monday at its Informatica World show in San Francisco. The new product ends software licensing relationships it had with Business Objects and Microstrategy Inc. in that area. Business Objects and Informatica will continue to partner in other areas though, such as data integration. And Informatica will still allow customers to use the Business Objects front end if they so choose, through a partnership program. Business Objects will announce new products of its own Monday designed to provide better intelligence of customer relationship management applications. Product and Service Intelligence comprises two integrated modules – Contact Center Analytics and Product Analytics – designed to optimize customer service and product marketing, respectively. Product Analytics will ship by the end of the month. Contact Center analytics will be available in late November. Pricing will be $5,000 per module per four processors on NT, $142,000 per module on Unix. The company plans future analytic applications for finance, human resources and supply chain applications, which it expects to deliver in the December-January time frame, officials said. Informatica provides the data integration layer between the operational and analytic applications.
 
 
 
 
 
 
 
 
 
 
 

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