Hyperion and Informatica Quarterly Earnings

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.

Business Objects Buys Armstrong Laing

BI software vendor Business Objects announced today that it is buying London-based Armstrong Laing for about $56 million in cash. Armstrong Laing’s Enterprise Performance Optimization Suite has strong collaborative planning and multidimensional modeling capabilities. For the latest fiscal year, Armstrong Laing reported revenue of $19 million. The official announcement can be viewed here.

Business Objects have been growing by acquisition, and this represents their entry into the budgeting and planning space, traditionally a stronghold of Hyperion. At the grand scale of things, this is not an acquisition that will dramatically change the BI space. At the same time, it is interesting to see how the finance niche in BI will play out with this acquisition.