Core Software Sales Boost Business ObjectsCore Software Sales Boost Business Objects

Business Objects SA, citing increased demand for its flagship business-intelligence software, reported Thursday that revenue grew 18% to $129.1 million in its third quarter ended Sept. 30. That fueled a 122% gain in net income to $10.8 million, or 17 cents per share.

Software license revenue, a key growth metric, was up 8% to $58.0 million compared with the same quarter last year. Twenty percent of that revenue was from sales of BusinessObjects Enterprise 6, a release of the vendor's core business-intelligence software that debuted in the second quarter. Business Objects signed contracts with 275 customers for the product during the third quarter. "That is what is driving the growth," CEO Bernard Liautaud says. Sales of Business Objects' analytical applications grew 50% to $5.7 million, while sales of data-integration products reached $3.9 million.

Business Objects' gain in net income included $1.5 million of general and administrative expenses related to its acquisition of reporting software vendor Crystal Decisions Inc., which is expected to close this quarter. Crystal Decisions reported 27% sales growth for its recently completed third quarter.

For the current quarter, Business Objects expects revenue of between $144 million and $147 million, with earnings of 25 to 28 cents per share.