Hyperion's Profit Doubles On Small Sales GainHyperion's Profit Doubles On Small Sales Gain

A major restructuring in 2001 helped Hyperion Solutions Corp. cut its operating costs last year. As a result, the company reported Thursday that net income for the second quarter ending Dec. 31 was more than double what it reported a year ago, while sales of its business-performance management software increased only 6%.

Net income for the quarter was $7.6 million, or 21 cents per share, up 103% from the $3.7 million, or 11 cents per share, reported for the same period one year ago. Total revenue increased to $126.0 million from $118.9 million. Of that, revenue from software licenses--a key growth indicator--was up nearly 11% to $51.1 million. Revenue from maintenance and service operations was $74.9 million, up 3% from one year ago.

Hyperion, like competitors Business Objects, Cognos, and Comshare, has been expanding into the area of business-performance management that combines elements of business intelligence and financial planning. Eight of the company's 10 biggest sales during the quarter involved its BPM application suite, says Godfrey Sullivan, president and chief operating officer.

CEO Jeffrey Rodek attributed much of the boost in net income to Hyperion's lower operating costs, which came from a 2001 company restructuring. The results reported Tuesday included a one-time $596,000 charge carried forward from that restructuring.

The economic environment remains uncertain, CFO David Odell says, and he's cautious about projections for the current quarter. The company expects sales in the range of $118 million to $125 million with earnings of between 12 and 18 cents per share.