Business Objects SA, the French-American decision support tools company, has reported second-quarter net income up 160% at $5.1m on revenue up 45.5% at $57.5m. Earnings per share for the quarter rose 145.5% to $0.27, beating the First Call consensus by $0.07. Revenue beat most expectations and the strong growth – the company’s eighth consecutive quarter of 40%+ year-over-year growth – came in spite of weak euro that shaved $3m off the top line.
License revenues grew 41.2% for the quarter to $35.5m, representing the highest rate of growth for the past six quarters. Services revenue, meanwhile, jumped 52.9% to $22m. Operating margin was 14% for the quarter, two full points ahead of the expectations of analysts at First Albany Corp, who now feel that the company’s stated goal of eventual 15% OM may have to be upwardly revised.
In another key metric for the company, North American revenue grew 53%. First Albany says the company is clicking on all cylinders and appears to be growing faster than the overall market and gaining market share as its growth accelerates. Six- month net income rose 149% to $8.4m on revenue up 44.4% at $107.1m, while EPS jumped 132% to $0.44.
Separately, Business Objects said it intends to carry out a secondary offering of one million shares on the Paris Bourse, all of which will be offered by the company. The primary purposes of the offering are to enhance access for European investors and to increase the company’s profile in the European business community. The offering is expected to be completed this fall.
