Companies have spent billions on software to collect data. The problem? Well, according to a recent study by BusinessWeek Research Services and Business Objects
Of course, Business Objects develops software to help with the problem -- which is known as business intelligence (BI). In fact, many top-performing companies, such as Dell
Yesterday, Business Objects announced its earnings for the second quarter. The company posted a profit of $18.2 million, with revenues of $222.2 million. In the same period a year ago, the profits were $23.6 million on sales of $129 million.
The firm expects to generate earnings of $0.80 to $0.85 a share for 2004, with revenues of $905 million to $915 million.
The company is continuing to innovate its BI solutions with its BusinessObjects 6.5 release. The product also integrates the features of Crystal, which was the result of a major acquisition. The new product release, moreover, likely helped in the expansion of its partnerships with IBM
Earlier in the month, the stock price for Business Objects got whacked -- as did those of many other software companies when they warned. Even though Business Objects guided lower yesterday, the stock price surged 8%. In other words, investors probably believe that the current price has bottomed out for the time being.
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Fool contributor Tom Taulli is the author of The EDGAR Online Guide to Decoding Financial Statements. He does not own shares in any of the stocks mentioned.