On Sunday, German software powerhouse SAP announced that it is buying Business Intelligence software provider Business Objects for $6.8 billion in cash. The news release can be found on SAP’s website.
On Wednesday, Business Objects reported Q3 earnings of 41 cents per share after adjustment of one-time charges, beating the consensus estimate of 34 cents. Revenue was $310.4 M, ahead of the consensus estimate of $295 M. License revenue was $132 M (up 9% YoY), while service revenue was $179 M (up 27% YoY).
Yesterday, MicroStrategy reported Q3 earnings of $1.32 per share, beating the consensus estimate of $1.19. Revenue was $77.7 M, also beating the consensus estimate of $74.1 M. Product license revenue was $24.5 M (up 8% YoY), and support/services revenue was $53.2 M (up 23% YoY).
Wall Street cheered the results of both companies, sending Business Objects share up 9% on Thursday MicroStrategy shares up 4% today.
These are good reports for the data warehousing in general, as both companies are important players in the space. Their reports also show that the big software companies, Microsoft, Oracle and SAP, do not yet have their business intelligence products quite up to the level of the specialist players yet. Given that this is still a growth area, it remains to be seen if any of these 3 big companies will make a big move (either releasing a next-generation product or acquiring an existing company) in the near future.
Two key players in the data warehousing world, Hyperion and Informatica, both posted quarterly earning yesterday. The market gave the two companies very different receptions.
Hyperion posted revenue of $198.5M during the quarter, higher than the consensus estimate of $191M. Both licensing revenue and services revenue were strong. Earnings excluding items were 34 cents, two pennies below the estimate. Despite the earnings shortfall, the stock is trading up today (currently up $0.93 at $37.25). This is most likely because the revenue outlook for next quarter of $210 M to $215 M is higher than the analyst estimate of $204 M.
Informatica posted revenue of $78.9 M, lower than the consensus of $80.3 M. Earnings excluding items were 16 cents per share, higher than the consensus amount of 14 cents a share. Q4 outlook for revenue (87 M to 90 M) was lower than the consensus of 91.1 M, while the Q4 earnings outlook of 16 to 18 cents a share is in line with the consensus of 17 cents a share. Informatica shares are being punished today, down $1.78 to $11.88.
Let’s say I am looking for a hands-on position in a data warehousing team (this is very different from looking for a project management, which requires a very different set of skills). How do I screen for resumes?
First, I scan for the Technical Skills section to see if the candidate has the relevant experience with the proper tools. Depending on the specific position we have in mind, this could be ETL tools, OLAP tools, data modeling tools, etc. Let’s use ETL as an example. I would looke for someone who has used Informatica, DataStage, Ab Initio, or something else. A big bonus is if the candidate states on the resume he or she has done ETL without using a third-party tool. I always believe that a person who has had to done something in the data warehousing world without a third-party tool would no question have the deepest understanding of all the possible complexities that may come with the job (and this is especially true with ETL).
Then, I look at the type of work done in this person’s previous two jobs. At least one of the positions need to be very related to what we are looking for. In the data warehousing world, because of the speed of the technological change, being out of the industry for 2-3 years would essentially mean you are out of the loop.
Finally, I look for signs of attention to detail. Are there any spelling mistakes in the resume? Does the candidate spell the product/company names correctly?
That’s it! This simple process, though, weeds out about 2/3 of all the resumes I receive. If you are sending out a resume for a DW position, please make sure you cover these three points.