Hyperion breaks records with Q4 and 2006 results

Date: 30 August 2006	Issue: Two hundred and one (28/8/06 - 1/9/06) (ICT World)
Category: Global News

Hyperion Solutions, represented locally by Intellient, has announced record financial results for its fourth quarter and fiscal year ended June 30, 2006. Total revenues for the quarter increased by 18% to $223,9m; software licence revenue increased by 22% to $95,8m; and maintenance and services revenue grew by 16% to $128,1m.

Hyperion delivered the best quarter and fiscal year in its history, says Marc Scheepbouwer, MD of Intellient. Strong growth in all geographies and across all product areas is partly responsible for the record results. Also, Hyperion System 9 is a tremendous success, with widespread customer adoption generating more than 75% of the companys Q4 licence revenue, driving 22% year-over-year licence revenue growth and accounting for the majority of the record 43 transactions greater than $500 000 closed during the quarter.

The company's Q4 net income, as reported in accordance with US generally accepted accounting principles (GAAP), was $18,3m, or $0,31 per diluted share.

Fourth quarter non-GAAP net income increased by 27% year-over-year to $28,9m, or $0,48 per diluted share. Hyperions balance sheet reflects cash and short-term investments totalling $437,3m at June 30, 2006. Cash flow from operations for the quarter was $60,1m. The company used cash of $35,4m to repurchase stock during the quarter as part of a $100m stock repurchase programme announced in April 2006.

Hyperions success for the period can also be attributed to the level of customer interest in Hyperion Financial Data Quality Management, the product acquired from Upstream Software, Scheepbouwer says. Given the strength of the results, Hyperion plans to continue investing in sales, marketing and engineering capacity to take advantage of its momentum.

Total revenues for the fiscal year ended June 30, 2006 increased by 9% to a record $765,2m. Licence revenues increased by 8% to $295,1m for the fiscal year and GAAP net income was $63,1m, or $1,04 per diluted share. Non-GAAP net income for the fiscal year increased by 20% to $93,8m, or $1,55 per diluted share.

Hyperion has also reported its outlook for the first quarter of fiscal year 2007. On a GAAP basis, the company expects total revenues in the range of $188m to $193m and diluted earnings per share in the range of $0,20 to $0,25. This outlook assumes an effective tax rate of 39,8%, and diluted shares outstanding of 58,9m.

The companys outlook for fiscal year 2007 includes, on a GAAP basis, expected total revenues of $825m, operating margins of 12% and diluted earnings per share in the range of $1,09 to $1,17.