Andy on Enterprise Software

All in the timing

October 24, 2007

Business Objects Q3 results were rather soft, showing license revenue (USD 139M) just 2% up year over year. There were eight deals over USD 1 million, broadly similar to recent quarters. The business line called “information discovery and delivery” i.e. the classic reporting tools, did least well, while enterprise performance management was somewhat healthier.

However overall this is rather feeble growth (by contrast Informatica had a fine quarter, so the excuses offered by management about weak markets seem pretty lame). Perhaps there have been too many acquisitions to digest, and of course now the swallower has itself been gulped up by the much bigger fish of SAP. The price tag SAP paid look like a fairly high premium to the underlying Business of Business Objects, as reflected in its share price dip on announcement, but these results suggest that Business Objects shareholders at least can be very satisfied indeed with the price they got.

2 comments so far

Andy – new to your blog. Good read.

Good point on the happy BO shareholders but think of how happy the lucky few behind Xensource are that they got $500m from Citrix!

I am very interested to hear your thoughts on the on-demand BI sector.

Andy–

Interesting comments (cross linked to our blog) about the weakness in the financial sector. I haven’t seen that mentioned in other vendors, although FS has been stated to be their biggest vertical, so maybe it did have an impact. A bigger issue to me is that if the deals had slipped but closed, we would have heard that (as you usually do)–so maybe the uncertainty of the SAP acquisition is really impacting the execution.



Leave a comment
Your e-mail address is for administration purposes and is never displayed.

(required)

(required but not displayed)