Revenues Up, Profit Flat at Business Objects

The earnings picture for enterprise software companies earnings was mixed for the quarter. Business Objects saw revenues rise, although its profits were flat.

Led by a surge in consulting revenue, Business Objects SA enjoyed a revenue increase in the second quarter of 2003, though its profits were virtually flat year-to-year. Other software companies reported varying degrees of success for the quarter.

The Paris-based business intelligence software company, with North American headquarters in San Jose, Calif., reported total revenues of $129 million during the quarter, up from $111.2 million in last years second quarter. License revenue was up slightly, from $60.9 million to $62.7 million, but services revenue led the advance, climbing from $50.3 million to $66.3 million.

Company officials credited the services revenue increase to a 38 percent growth in consulting revenue, driven largely by an increase in large engagements tied to analytic applications revenue.

Profits dropped slightly from $11.9 million in last years second quarter to $11.5 million in this years.

Business Objects added 438 new customers during the quarter and signed seven contracts worth more than $1 million. Indirect channels accounted for 40 percent of revenue. Geographically, Europe accounted for 49 percent, the Americas, 44 percent.

The company introduced its Enterprise 6 platform during the quarter, which generated $2.7 million of revenue from 73 customers in 10 countries in its first two months, company officials said.

In other earnings news this week:

  • Revenues at SPSS Inc. dropped slightly year-to-year, from $53 million to $51.3 million. The Chicago-based analytics software developer did report a $2.2 million profit though after losing $300,000 in last years second quarter.
  • Another analytics software company, Insightful Corp., saw revenues increase slightly from $3.9 million in last years second quarter to $4.3 million in this years. License revenue increased from $1.2 million to $1.9 million. The Seattle-based company lost $437,000 after a $693,000 loss in last years second quarter.
  • However, revenues jumped at interactive-selling software developer Selectica Inc., which closed the 2004 fiscal first quarter with $11.8 million in total revenues, up from $9.6 million in the same period a year ago. License revenue led the way, climbing from $2.4 million to $4.7 million year-to-year. That helped the company cut its net loss from $15.5 million in last years fiscal first quarter to $1.8 million this year.
  • Jena, Germany-based e-commerce software company Intershop Communications AG reported revenues of 5.6 million Euros ($6.3 million) in its second quarter, down from 12.1 million Euros ($13.6 million) in the same period a year ago. License revenues were hardest hit, dropping from 6.3 million ($7.1 million) to 1.5 million ($1.7 million) euros. That helped send the companys net loss up from 5.8 million ($6.5 million) to 6.6 million ($7.4 million) euros.