Brio Technology Reports Record Second-QuarterEarnings

  • Written By: M. Reed
  • Published On: October 27 1999



Event Summary

M2 Presswire - October 22, 1999 - Brio Technology, Inc., (NASDAQ: BRYO) today reported revenues of $30.7 million for its second fiscal 2000 quarter ending September 30, 1999. This represents a 53% increase from $20.1 million in the comparable fiscal quarter of 1999. Net income for the quarter was $2.8 million, excluding non-recurring operating expenses of $20.2 million associated with the acquisition of Sqribe Technologies Corp. and the settlement of the Business Objects, S.A. litigation. (See TEC News Analysis Article: "Business Objects Outguns Brio Technology in Patent Dispute", September 14, 1999 for further information). This is compared to net income of $387,000 for the first quarter of fiscal 1999. Including the effect of the merger and the litigation settlement, the net loss for the first quarter of fiscal 2000 was $17.5 million, or 66 cents per share. Brio president and CEO Yorgen Edholm stated "The introduction of Brio ONE combines the offerings from both companies and provides us the ability to further address the needs of our customers and extend our solutions for the e-business and e-enterprise markets. As a result, Brio has seen an upswing in attracting new e-business companies, such as priceline.com and webvan.com".

Brio ONE is designed to be an integrated business intelligence platform for e-enterprise. During the quarter Brio added a number of new customers, including AT&T, Bell South, IBM, MCI WorldCom, and Yale University. In addition, during the quarter PeopleSoft announced that Brio.Report would be its standard enterprise reporting solution. Brio Enterprise 6.0 also became certified for SAP Business Information Warehouse.

Market Impact

Brio Technology describes their Brio ONE product as the "combination of the strengths of Brio and SQRIBE in business intelligence, enterprise reporting, and enterprise information portal software". Following on announcements by competitors such as Sagent Technology, Microstrategy, and Cognos, Brio has continued to develop their products for the highly competitive e-business marketplace. Brio states that "Brio ONE enables customers to derive higher business value from all of their enterprise information sources, including e-commerce applications, enterprise resource planning (ERP), sales force automation (SFA), and customer relationship management (CRM) applications, as well as data marts, data warehouses, and legacy data sources". In order to be successful in this market Brio will have to continue to improve their products and develop new ones quickly, as the average cycle time between new releases by vendors in this space continues to shrink.

User Recommendations

Brio Technology should be considered as a candidate on a long list for business intelligence tools. The SQRIBE acquisition increases Brio's strength in query and reporting tools, and the settlement of the Business Objects litigation allows Brio to re-focus their energies on product enhancements. Customers attempting to design e-business solutions and enterprise information portals should also consider Brio's products.

 
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