Business Objects Finishes 2005 With Sales Over $1 Billion

Driven by demand for new releases of its BusinessObjects XI business intelligence software, Business Objects Wednesday reported that sales grew 14% in its fourth quarter, putting it over $1 billion in sales for all of 2005.

For the quarter ended Dec. 31 Business Objects reported net income of $34.9 million on revenue of $304.6 million. License revenue for the quarter was up 14% from the same period one year earlier to more than $155 million. The company said there were 14 license revenue deals valued at more than $1 million during the period, the same as one year before.

The quarter was the first full quarter to include financial results from SRC Software, a developer of financial planning and performance management applications, which Business Objects acquired in August for $100 million.

For all of 2005 the company reported revenue of $1.08 billion, up 16% from 2004, and earnings of $92.6 million.

License revenue for 2005 was $234 million and CEO John Schwarz said demand for the company's flagship BusinessObjects XI software, which was upgraded in January and again in November, fueled that growth. "That alone was the cornerstone of our success," he said in a phone interview. He said the company's efforts to build up its service capabilities to help customers implement Business Objects software also boosted sales.

Schwarz also noted that customers continue to consolidate on business intelligence tools from fewer vendors. In 2005 license revenue from contracts valued at more than $1 million grew 50% from 2004.

Business Objects expects revenue in the range of $278 million to $283 million in the current quarter and in the range of $1.21 billion to $1.23 billion for all of 2006.