RealTime IT News

Hyperion Makes QIQ Buy

Hyperion agreed to acquire QIQ Solutions Pty Limited for an undisclosed sum, as the number of acquisitions in the business intelligence (BI) software space continues to mount.

The Sunnyvale, Calif., applications maker also promoted President and COO Godfrey Sullivan to CEO and announced second-quarter earnings Wednesday.

Based in Sydney, Australia, QIQ makes analytics applications that allow business users to build interactive dashboards through a point-and-click interface in the time it takes to build reports. According to a Hyperion statement, the applications make it easier for users to create and send reports about business performance.

QIQ's customers, numbering roughly 200 worldwide, will continue to be supported by Hyperion. QIQ's products are already part of the Hyperion Performance Suite through its previous partnership with Brio, which Hyperion acquired last July.

Hyperion said the purchase, slated to close July 31, should improve the company's competitiveness in what market research firm IDC has said could be a $4.5 billion market by 2007. Hyperion competes with Business Objects, Actuate and Cognos .

Just as in 2003, the BI space has been steadily consolidating in 2004. Last week, IBM bought BI software maker Alphablox. Earlier this year, Microsoft acquired BI start-up Active Views.

New chief Sullivan, who will also be named to the Hyperion board of directors, called the purchase "consistent with our investment priorities and product strategy, which includes helping customers deploy personalized, easy-to-use dashboards to more users across the enterprise."

Sullivan, who joined Hyperion in 2001 as president and COO, was credited with reinvigorating the company's development, marketing, operations and sales groups, leading to increasing margins and revenues. He took the helm from Jeffrey R. Rodek, who assumed the role of executive chairman of the board of directors.

Rodek joined Hyperion as chairman and CEO in 1999. In his new role as executive chairman, he will be responsible for the performance of the board and will continue to work closely with Sullivan, collaborating with him on corporate strategy and direction. The executives' common goal is to steer Hyperion toward its goal of $1 billion in revenues.

In related financial news, Hyperion recorded second-quarter income of $17.8 million, or 44 cents per diluted share, which was 4 cents greater than the consensus from Reuters Estimates. Hyperion said its revenues were $176.4 million compared to $138 million for the same quarter in 2003, an improvement of 28 percent.

Hyperion's new software license revenue ballooned 30 percent to $72.2 million, compared to $55.6 million for the same period last year. Maintenance and services revenue grew 26 percent to $104.1 million, compared to $82.4 million in the year-ago period.

The increases are a bit of an anomaly at a time when several software vendors have warned of lower than expected guidance.

"Our team executed on all fronts and we generated record revenues and operating margins in both the fourth quarter and fiscal year," said Rodek.