Hyperion Solutions has announced results for its fiscal second quarter ended December 31, 2006, which include records for second quarter license and total revenue, net income, earnings per share, and number of new customers.
Total revenues for the quarter increased 20% to $222.9 million, compared to $185.5 million for the same period a year ago. Software license revenue increased 14% to $84.9 million, compared to $74.4 million for the same period a year ago, while maintenance and services revenue grew 24% to $138.0 million, compared to $111.0 million in the year-ago period.
The company's second quarter net income increased 39% to $21.5 million, or $0.36 per diluted share, compared to net income of $15.5 million, or $0.25 per diluted share, for the second quarter of fiscal 2006.
Second quarter non-GAAP net income increased 34% year-over-year to a record $29.9 million, or $0.50 per diluted share, excluding the impact of charges, net of related tax, for the deferred maintenance revenue adjustments and the amortization of purchased intangible assets; and SFAS 123R equity-based compensation. These results compare to non-GAAP net income of $22.3 million, or $0.37 per diluted share, for the second quarter of fiscal 2006.
Hyperion’s balance sheet reflects cash and short-term investments totalling $486.4 million at December 31, 2006, compared to $436.2 million at September 30, 2006. Cash flow from operations for the quarter was $47.4 million. The company used cash of $7.5 million to repurchase stock during the quarter, as part of a $100 million stock repurchase program announced in April 2006. Days sales outstanding (DSO) for the quarter improved six days sequentially to 58 days.
“We’re pleased to report the best second fiscal quarter in Hyperion’s history,” said Godfrey R. Sullivan, Hyperion’s president and chief executive officer. “License revenue grew 14%, as customers increasingly recognize Hyperion as the management system for the global enterprise. This is our third consecutive quarter of double-digit license revenue growth, fueled by increasing demand for Hyperion System 9. We set new company records for number of transactions with new customers, net income, and earnings per share and are increasingly winning in stand-alone business intelligence transactions.”
Business Outlook for Q3 FY07
Hyperion also reported today its outlook for the third quarter of fiscal year 2007. On a GAAP basis, the company currently expects total revenues in the range of $215 million to $220 million and diluted earnings per share in the range of $0.24 to $0.29. This outlook assumes an effective tax rate of 39.4%, and diluted shares outstanding of 59.9 million.
Excluding the impact, net of the related tax expense, of the amortization of purchased intangible assets, equity-based compensation expense, and deferred maintenance revenue adjustments, the company expects diluted earnings per share on a non-GAAP basis for the second quarter in the range of $0.40 to $0.45, and a non-GAAP effective tax rate of 37.4%.
Business Outlook for FY07
Hyperion also reported its updated outlook for fiscal year 2007. On a GAAP basis, the company currently expects total revenues in the range of $885 million to $895 million and diluted earnings per share in the range of $1.20 to $1.25. This outlook assumes an effective tax rate for Q3 and Q4 of 39.4% and diluted shares outstanding of 59.8 million.
Excluding the impact, net of the related tax expense, of the amortization of purchased intangible assets, equity-based compensation expense, and deferred maintenance revenue adjustments, the company expects diluted earnings per share on a non-GAAP basis for the fiscal year in the range of $1.80 to $1.85, and a non-GAAP effective tax rate for Q3 and Q4 of 37.4%.
Other Recent Developments
-Won major customer contracts at: AIB Group (UK), AmBev (Brazil), BT Group plc (UK), Consorzio Operativo Gruppo MPS (Italy), EagleBurgmann Group (Germany), H.C. Starck GmbH & Co. KG (Germany), International Flavors & Fragrances, New York University, RadioShack, Sensata Technologies, Stora Enso (Finland), Sunrise Senior Living Services, and ThyssenKrupp AG (Germany).
-Placed in the leaders quadrant in the “Magic Quadrant for CPM Suites, 2006” by industry analyst firm Gartner. Gartner weighed Hyperion’s completeness of vision and ability to execute in determining its position in the Magic Quadrant.
Introduced Hyperion System 9 Smart Space with “always-on” business intelligence, featuring gadgets that leverage the latest innovations in Microsoft Windows XP and Vista operating systems.
-Unveiled powerful new features and functionality in Hyperion System 9 Release 9.3. Major new enhancements give organizations more tools for improving business performance and include a Capital Expense Planning module, BPM Architect, and Data Integration Management module.
-Hyperion’s Global Partner organization announced SolutionsNet, a new program that enhances support for partners who offer targeted BPM solutions built on Hyperion System 9 software.
-Announced that it signed a merger agreement to acquire Decisioneering, a privately held decision analysis software company headquartered in Denver, CO.
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