BI Vendors Flourish Despite Downturn
Business intelligence software vendors weather slowdown better than makers of some other types of software.Business intelligence software vendors have weathered the economic slowdown better than most of the software industry as evidenced by the latest round of earnings news in the space. MicroStrategy Inc., Actuate Corp., Business Objects SA and Crystal Decisions Inc. all reported profits for the fourth quarter of 2002, with Business Objects and Crystal seeing sales rise year-to-year as well. MicroStrategy, once dogged by revenue restatements that turned profits into losses, turned in four straight profitable quarters in 2002, after reporting net income of $4.6 million in the fourth quarter, up from a $23.1 million net loss in the fourth quarter of 2001. The Vienna, Va.-based company turned a fourth quarter profit despite a slight drop off in quarterly revenues, which came in at just under $42 million after reporting $43.7 million in revenues in the fourth quarter of 2001. However, software license revenues were up at MicroStrategy, from $18.7 million in Q4 2001 to $20.5 million in the most recent quarter.
Other BI vendors also showed some positive signs in their most recent quarterly earnings reports.