Revenues Up, Profit Flat at Business Objects

Led by a surge in consulting revenue, Business Objects enjoyed a revenue increase in the second quarter of 2003, though its profits were virtually flat year-to-year.

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.

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 in 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 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.
  • 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.
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