Hyperion Reports Third Quarter Results

Apr 23, 2001, 01:00 ET from Hyperion Solutions Corporation

    SUNNYVALE, Calif., April 23 /PRNewswire Interactive News Release/ --
 Hyperion, (Nasdaq:   HYSL), a leader in business analysis software, today
 announced financial results for its fiscal 2001 third quarter ended
 March 31, 2001.
     Total revenues in the quarter were $130.2 million, a four percent increase
 compared to $125.8 million reported in the same quarter a year ago.  Software
 license revenue totaled $55.1 million compared to $62.2 million for the same
 period a year ago, while maintenance and services revenue totaled
 $75.1 million compared to $63.6 million in the same period a year ago.  The
 company reported a net loss of $1.3 million or $0.04 per fully diluted share,
 compared with net income of $6.6 million, or $0.19 per fully diluted share, in
 the third quarter a year ago.
     "We are disappointed in our results for the quarter," said Jeff Rodek,
 Hyperion's chairman and chief executive officer.  "As we said when we released
 preliminary results on April 5, we were impacted by the sudden slowdown in the
 U.S. economy and the subsequent decline in spending on information technology.
 Many potential customers were reluctant to execute contracts even though they
 had selected our solutions.  Consequently, we believe that over the short
 term, we must be conservative in our business planning and vigilant in
 managing our operating expenses.
     "Accordingly, we are actively assessing our business model, product mix,
 distribution strategies, and productivity levels," continued Mr. Rodek.  "We
 want to position our company not only to succeed in today's difficult economic
 climate but to be even stronger when the business cycle turns up."
 
     Third Quarter Highlights
     Key customer wins in the quarter included:  Burlington Northern, Cingular
 Wireless, CVS Pharmacy, and Dana Corporation.  Additionally, Hyperion expanded
 its existing agreement with IBM to integrate Hyperion's suite of eCRM
 (customer relationship management) analysis applications with the IBM
 WebSphere(R) Commerce Suite to provide business analysis capabilities for the
 e-commerce market.
 
     Other highlights of the quarter included:
 
     -- The appointment of John Pierson as Vice President, Worldwide Channel
        Sales, to drive Hyperion's sales strategy through its indirect
        channels;
     -- The announcement of upgrades to our e-CRM analysis applications.  The
        enhanced products enable businesses to optimize their investments in
        CRM and eCRM applications by integrating and analyzing customer
        behaviors across all customer touch points;
     -- The availability of Hyperion Application Builder, a Java 2 Enterprise
        Edition (J2EE) compliant application development tool that enables the
        rapid creation, management, and deployment of Web-centric, custom
        business analysis applications.
 
     Conference Call and Webcast
     Hyperion executive management will host a conference call at 5:00 p.m. EDT
 on Monday, April 23, 2001 to discuss its third quarter fiscal year
 2001 financial results.  The conference call will be webcast live with access
 through the Hyperion Web site at www.hyperion.com.  A replay of the webcast
 will also be available from the company's Web site until 8:00 p.m. EDT on
 Tuesday, May 1, 2001.
 
     About Hyperion
     Hyperion is a global leader in business analysis software.  Hyperion helps
 business leaders plan, manage and execute on strategies by analyzing
 information on e-business initiatives, supply chain execution, customers,
 operations and finance.  The company's market-leading Hyperion Essbase
 technology, packaged business analysis applications and tools are used by more
 than 6,000 organizations worldwide, including more than 60 of the
 Fortune 100, 63 of the Nikkei Top 100 and more than 40 of the Financial Times
 European Top 100.  In addition, more than 400 Hyperion alliance partners
 deliver technology, applications and services to increase the flexibility and
 choice for customers.  Headquartered in Sunnyvale, California, the company has
 offices in 22 countries.  More information is available at
 http://www.hyperion.com, info@hyperion.com, or 800-286-8000.
 
     Safe Harbor Statement
     Statements in this press release other than statements of historical fact
 are forward-looking statements, including, but not limited to, statements
 concerning the company's financial performance and results of operations.
 Such statements constitute anticipated outcomes and do not assure results.
 Actual results may differ materially from those anticipated by the
 forward-looking statements due to a variety of factors including, but not
 limited to, changes in general economic conditions, competition and uncertain
 market acceptance of new products.  For a more detailed discussion of factors
 that could affect the company's performance and cause actual results to differ
 materially from those anticipated in the forward-looking statements,
 interested parties should review the company's filings with the Securities and
 Exchange Commission, including the Report on Form 10-K filed on
 September 28, 2000 and the Reports on Form 10-Q filed on November 14, 2000 and
 on February 14, 2001.  The company does not undertake an obligation to update
 its forward-looking statements to reflect future events or circumstances.
 
     NOTE:  Hyperion and Essbase are registered trademarks of Hyperion
 Solutions Corporation.  All other trademarks are the property of their
 respective owners.
 
                           Hyperion Solutions Corporation
                        Condensed Consolidated Balance Sheet
                                   (in thousands)
                                                     March 31,       June 30,
                                                       2001            2000
     ASSETS                                         (Unaudited)       (Note)
     Current assets:
      Cash and cash equivalents                      $222,322      $ 262,408
      Short-term investments                           23,940         32,751
      Accounts receivable - net of
       allowances of $18,998 and $16,250              155,363        161,883
      Prepaid expenses and other current assets        18,427          8,349
      Deferred income taxes                            11,650          9,866
     TOTAL CURRENT ASSETS                             431,702        475,257
 
     Property and equipment - at cost,
      less accumulated depreciation and
      amortization of $96,677 and $78,694              87,521         71,669
     Acquired technologies, goodwill and other
      intangible assets - at cost, less accumulated
      amortization of $31,796 and $24,434              21,663         25,942
     Other assets                                      16,211         17,023
     TOTAL ASSETS                                    $557,097      $ 589,891
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable and accrued expenses           $52,912        $49,933
      Accrued employee compensation and benefits       28,068         32,572
      Income taxes payable                                589          6,179
      Deferred revenue                                 94,373         88,828
     TOTAL CURRENT LIABILITIES                        175,942        177,512
 
     LONG-TERM DEBT                                    91,116        102,518
 
     Stockholders' equity:
      Preferred stock - $.001 par value;
       5,000 shares authorized; none issued                --             --
      Common stock - $.001 par value; 300,000
       shares authorized; 32,677 and 32,616
       shares issued and outstanding                       33             33
      Additional paid-in capital                      207,224        197,376
      Less treasury stock, at cost:
       1,389 and 0 common shares                     (23,764)             --
      Retained earnings                               116,592        119,736
      Currency translation adjustments                (10,046)       (7,284)
     TOTAL STOCKHOLDERS' EQUITY                       290,039        309,861
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $557,097       $589,891
 
     Note: the balance sheet at June 30, 2000 has been derived from the audited
     financial statements at that date.
 
 
                         Hyperion Solutions Corporation
                   Condensed Consolidated Statement of Income
                                  (Unaudited)
                     (in thousands, except per share data)
 
                                    Three Months Ended     Nine Months Ended
                                         March 31,             March 31,
                                      2001       2000       2001        2000
 
     REVENUES
      Software licenses             $55,092    $62,192    $164,445   $164,333
      Maintenance and services       75,135     63,606     215,294    184,508
     TOTAL REVENUES                 130,227    125,798     379,739    348,841
 
     COSTS AND EXPENSES
     Cost of Revenues:
      Software licenses               4,441      1,760      13,410      4,761
      Maintenance and services       39,845     34,772     110,426     96,896
     Sales and marketing             52,855     49,851     154,158    136,768
     Research and development        18,907     17,912      61,198     50,874
     General and administrative      17,837     10,959      54,415     31,719
     Merger costs (credits)              --         --          --       (305)
     Restructuring charge                        2,066                  2,066
     TOTAL COSTS AND EXPENSES       133,885    117,320     393,607    322,779
 
     OPERATING INCOME (LOSS)         (3,658)     8,478     (13,868)    26,062
 
     Interest income                  2,915      3,365      10,478      9,346
     Interest expense                (1,387)    (1,430)     (4,043)    (4,097)
 
     INCOME (LOSS)
      BEFORE INCOME TAXES            (2,130)    10,413      (7,433)    31,311
 
     Provision for (benefit
      from) income taxes               (809)     3,800      (2,825)    11,600
 
     Income (loss) before
      extraordinary item             (1,321)     6,613      (4,608)    19,711
 
     Extraordinary item
      - gain on redemption
      of debt, net of
      income tax of $898                 --         --       1,464         --
 
     NET INCOME (LOSS)              $(1,321)    $6,613     $(3,144)   $19,711
 
     EARNINGS (LOSS) PER SHARE
      Basic
       Earnings (loss) from continuing
        operations before
        extraordinary item          $ (0.04)    $ 0.21     $ (0.14)    $ 0.63
       Extraordinary gain                --         --       0.04          --
       Basic earnings (loss)
        per share                    $ (0.04)   $ 0.21     $ (0.10)    $ 0.63
 
      Diluted
       Earnings (loss) from continuing
        operations before
        extraordinary item           $ (0.04)   $ 0.19     $ (0.14)    $ 0.62
       Extraordinary gain                --         --       0.04          --
       Diluted earnings (loss)
        per share                   $ (0.04)    $ 0.19     $ (0.10)    $ 0.62
 
     AVERAGE NUMBER OF SHARES OUTSTANDING
     Basic                           32,154     32,042     32,695      31,384
     Diluted                         32,154     34,558     32,695      32,016
 
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2000
                                                   Q1               Q2
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        46,401    43%    55,740    48%
     Maintenance and Services Revenue
            Maintenance revenue              36,632    34%    37,411    32%
            Consulting and training
             service revenue                 24,217    23%    22,642    20%
     Total Maintenance and Services
      Revenue                                60,849    57%    60,053    52%
 
     Total Revenue                          107,250   100%   115,793   100%
 
          Total Revenue by Geography
     North America                           70,303    66%    74,334    64%
     International                           36,947    34%    41,459    36%
     Total Revenue                          107,250   100%   115,793   100%
 
         Software License Revenue by
                  Geography
     North America                           29,884    64%    36,104    65%
     International                           16,517    36%    19,636    35%
     Total Software License Revenue          46,401   100%    55,740   100%
 
     Software License Revenue by Channel
     Direct                                  34,821    75%    43,547    78%
     Indirect                                11,580    25%    12,193    22%
     Total Software License Revenue          46,401   100%    55,740   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        23,238    50%    26,672    48%
     Applications Licenses
             Core Market Applications (B)    22,955    49%    28,112    50%
             Emerging Market
               Applications (C)                 208     0%       956     2%
     Total Applications Licenses             23,163    50%    29,068    52%
 
     Total Software License Revenue          46,401   100%    55,740   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        280,913          283,620
     Cash Flow from Operations               10,736            2,821
     Repurchases of shares and bonds            --                --
     DSO                                         90               88
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            9               11
     No. of New Customers                       219              225
 
               Total Headcount
     North America                            1,553    72%     1,602    72%
     International                              612    28%       626    28%
     Total Company                            2,165   100%     2,228   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C)  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2000
                                                    Q3               Q4
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        62,192    49%    75,993    51%
     Maintenance and Services Revenue
            Maintenance revenue              40,420    32%    39,989    27%
            Consulting and training
             service revenue                 23,186    18%    32,082    22%
     Total Maintenance and Services
      Revenue                                63,606    51%    72,071    49%
 
     Total Revenue                          125,798   100%   148,064   100%
 
          Total Revenue by Geography
     North America                           80,561    64%   100,956    68%
     International                           45,237    36%    47,458    32%
     Total Revenue                          125,798   100%   148,414   100%
 
         Software License Revenue by
                  Geography
     North America                           38,222    61%    51,675    68%
     International                           23,970    39%    24,318    32%
     Total Software License Revenue          62,192   100%    75,993   100%
 
     Software License Revenue by Channel
     Direct                                  38,569    62%    59,117    78%
     Indirect                                23,623    38%    16,876    22%
     Total Software License Revenue          62,192   100%    75,993   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        35,674    57%    35,852    47%
     Applications Licenses
             Core Market Applications (B)    26,162    42%    38,963    51%
             Emerging Market Applications
              (C)                               356     1%     1,178     2%
     Total Applications Licenses             26,518    43%    40,141    53%
 
     Total Software License Revenue          62,192   100%    75,993   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        287,991          295,159
     Cash Flow from Operations               (4,675)          18,892
     Repurchases of shares and bonds            --                --
     DSO                                         99               98
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            8               15
     No. of New Customers                       275              309
 
               Total Headcount
     North America                            1,670    72%     1,780    73%
     International                              634    28%       642    27%
     Total Company                            2,304   100%     2,422   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2001
                                                    Q1               Q2
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        45,023    39%    64,330    48%
     Maintenance and Services Revenue
            Maintenance revenue              40,058    35%    39,276    29%
            Consulting and training
             service revenue                 29,973    26%    30,852    23%
     Total Maintenance and Services
      Revenue                                70,031    61%    70,128    52%
 
     Total Revenue                          115,054   100%   134,458   100%
 
          Total Revenue by Geography
     North America                           74,968    65%    94,255    70%
     International                           40,086    35%    40,203    30%
     Total Revenue                          115,054   100%   134,458   100%
 
         Software License Revenue by
                  Geography
     North America                           26,216    58%    42,239    66%
     International                           18,807    42%    22,091    34%
     Total Software License Revenue          45,023   100%    64,330   100%
 
     Software License Revenue by Channel
     Direct                                  31,722    70%    52,108    81%
     Indirect                                13,301    30%    12,222    19%
     Total Software License Revenue          45,023   100%    64,330   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        25,626    57%    35,043    54%
     Applications Licenses
             Core Market Applications (B)    18,674    41%    27,965    43%
             Emerging Market Applications
              (C)                               723     2%     1,322     2%
     Total Applications Licenses             19,397    43%    29,287    46%
 
     Total Software License Revenue          45,023   100%    64,330   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        294,167          269,542
     Cash Flow from Operations               16,567            1,416
     Repurchases of shares and bonds            --             17,283
     DSO                                        108              103
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            5               10
     No. of New Customers                       231              229
 
               Total Headcount
     North America                            1,753    73%     1,813    73%
     International                              655    27%       680    27%
     Total Company                            2,408   100%     2,493   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                             Fiscal 2001
                                                                  Q3
           Total Revenue Analysis                         $          % of total
 
     Software Revenue                                  55,092              42%
     Maintenance and Services Revenue
            Maintenance revenue                        45,443              35%
            Consulting and training
             service revenue                           29,692              23%
     Total Maintenance and Services
      Revenue                                          75,135              58%
 
     Total Revenue                                    130,227             100%
 
         Total Revenue by Geography
     North America                                     84,916              65%
     International                                     45,311              35%
     Total Revenue                                    130,227             100%
 
         Software License Revenue by
                  Geography
     North America                                     31,329              57%
     International                                     23,763              43%
     Total Software License Revenue                    55,092             100%
 
     Software License Revenue by Channel
     Direct                                            44,553              81%
     Indirect                                          10,539              19%
     Total Software License Revenue                    55,092             100%
 
     Software License Revenue by Market
     Technology Software Licenses (A)                  29,359              53%
     Applications Licenses
             Core Market Applications (B)              24,021              44%
             Emerging Market Applications
              (C)                                       1,712               3%
     Total Applications Licenses                       25,733              47%
 
     Total Software License Revenue                    55,092             100%
 
       Selected Balance Sheet and Cash
              Flow Information
     Cash and Short term Investments                  246,462
     Cash Flow from Operations                          3,347
     Repurchases of shares and bonds                   15,133
     DSO                                                  107
 
     Current Quarter Deals and Customers
     number of  software deals > $500K                     12
     No. of New Customers                                 215
 
               Total Headcount
     North America                                      1,907              72%
     International                                        744              28%
     Total Company                                      2,651             100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
 
                                             % Change over Q2  % Change over Q3
                                                     01                00
           Total Revenue Analysis
 
     Software Revenue                               -14%              -11%
     Maintenance and Services Revenue
            Maintenance revenue                      16%               12%
            Consulting and training
             service revenue                         -4%               28%
     Total Maintenance and Services
      Revenue                                         7%               18%
 
     Total Revenue                                   -3%                4%
 
         Total Revenue by Geography
     North America                                  -10%                5%
     International                                   13%                0%
     Total Revenue                                   -3%                4%
 
         Software License Revenue by
                  Geography
     North America                                  -26%              -18%
     International                                    8%               -1%
     Total Software License Revenue                 -14%              -11%
 
     Software License Revenue by Channel
     Direct                                         -14%               16%
     Indirect                                       -14%              -55%
     Total Software License Revenue                 -14%              -11%
 
     Software License Revenue by Market
     Technology Software Licenses (A)               -16%              -18%
     Applications Licenses
             Core Market Applications (B)           -14%               -8%
             Emerging Market Applications (C)        30%              381%
     Total Applications Licenses                    -12%               -3%
 
     Total Software License Revenue                 -14%              -11%
 
       Selected Balance Sheet and Cash
              Flow Information
     Cash and Short term Investments                 -9%              -14%
     Cash Flow from Operations                      136%                n/a
     Repurchases of shares and bonds                -12%                n/a
     DSO                                              4%                8%
 
     Current Quarter Deals and Customers
     number of  software deals > $500K               20%               50%
     No. of New Customers                            -6%              -22%
 
               Total Headcount
     North America                                    5%               14%
     International                                    9%               17%
     Total Company                                    6%               15%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
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SOURCE Hyperion Solutions Corporation
    SUNNYVALE, Calif., April 23 /PRNewswire Interactive News Release/ --
 Hyperion, (Nasdaq:   HYSL), a leader in business analysis software, today
 announced financial results for its fiscal 2001 third quarter ended
 March 31, 2001.
     Total revenues in the quarter were $130.2 million, a four percent increase
 compared to $125.8 million reported in the same quarter a year ago.  Software
 license revenue totaled $55.1 million compared to $62.2 million for the same
 period a year ago, while maintenance and services revenue totaled
 $75.1 million compared to $63.6 million in the same period a year ago.  The
 company reported a net loss of $1.3 million or $0.04 per fully diluted share,
 compared with net income of $6.6 million, or $0.19 per fully diluted share, in
 the third quarter a year ago.
     "We are disappointed in our results for the quarter," said Jeff Rodek,
 Hyperion's chairman and chief executive officer.  "As we said when we released
 preliminary results on April 5, we were impacted by the sudden slowdown in the
 U.S. economy and the subsequent decline in spending on information technology.
 Many potential customers were reluctant to execute contracts even though they
 had selected our solutions.  Consequently, we believe that over the short
 term, we must be conservative in our business planning and vigilant in
 managing our operating expenses.
     "Accordingly, we are actively assessing our business model, product mix,
 distribution strategies, and productivity levels," continued Mr. Rodek.  "We
 want to position our company not only to succeed in today's difficult economic
 climate but to be even stronger when the business cycle turns up."
 
     Third Quarter Highlights
     Key customer wins in the quarter included:  Burlington Northern, Cingular
 Wireless, CVS Pharmacy, and Dana Corporation.  Additionally, Hyperion expanded
 its existing agreement with IBM to integrate Hyperion's suite of eCRM
 (customer relationship management) analysis applications with the IBM
 WebSphere(R) Commerce Suite to provide business analysis capabilities for the
 e-commerce market.
 
     Other highlights of the quarter included:
 
     -- The appointment of John Pierson as Vice President, Worldwide Channel
        Sales, to drive Hyperion's sales strategy through its indirect
        channels;
     -- The announcement of upgrades to our e-CRM analysis applications.  The
        enhanced products enable businesses to optimize their investments in
        CRM and eCRM applications by integrating and analyzing customer
        behaviors across all customer touch points;
     -- The availability of Hyperion Application Builder, a Java 2 Enterprise
        Edition (J2EE) compliant application development tool that enables the
        rapid creation, management, and deployment of Web-centric, custom
        business analysis applications.
 
     Conference Call and Webcast
     Hyperion executive management will host a conference call at 5:00 p.m. EDT
 on Monday, April 23, 2001 to discuss its third quarter fiscal year
 2001 financial results.  The conference call will be webcast live with access
 through the Hyperion Web site at www.hyperion.com.  A replay of the webcast
 will also be available from the company's Web site until 8:00 p.m. EDT on
 Tuesday, May 1, 2001.
 
     About Hyperion
     Hyperion is a global leader in business analysis software.  Hyperion helps
 business leaders plan, manage and execute on strategies by analyzing
 information on e-business initiatives, supply chain execution, customers,
 operations and finance.  The company's market-leading Hyperion Essbase
 technology, packaged business analysis applications and tools are used by more
 than 6,000 organizations worldwide, including more than 60 of the
 Fortune 100, 63 of the Nikkei Top 100 and more than 40 of the Financial Times
 European Top 100.  In addition, more than 400 Hyperion alliance partners
 deliver technology, applications and services to increase the flexibility and
 choice for customers.  Headquartered in Sunnyvale, California, the company has
 offices in 22 countries.  More information is available at
 http://www.hyperion.com, info@hyperion.com, or 800-286-8000.
 
     Safe Harbor Statement
     Statements in this press release other than statements of historical fact
 are forward-looking statements, including, but not limited to, statements
 concerning the company's financial performance and results of operations.
 Such statements constitute anticipated outcomes and do not assure results.
 Actual results may differ materially from those anticipated by the
 forward-looking statements due to a variety of factors including, but not
 limited to, changes in general economic conditions, competition and uncertain
 market acceptance of new products.  For a more detailed discussion of factors
 that could affect the company's performance and cause actual results to differ
 materially from those anticipated in the forward-looking statements,
 interested parties should review the company's filings with the Securities and
 Exchange Commission, including the Report on Form 10-K filed on
 September 28, 2000 and the Reports on Form 10-Q filed on November 14, 2000 and
 on February 14, 2001.  The company does not undertake an obligation to update
 its forward-looking statements to reflect future events or circumstances.
 
     NOTE:  Hyperion and Essbase are registered trademarks of Hyperion
 Solutions Corporation.  All other trademarks are the property of their
 respective owners.
 
                           Hyperion Solutions Corporation
                        Condensed Consolidated Balance Sheet
                                   (in thousands)
                                                     March 31,       June 30,
                                                       2001            2000
     ASSETS                                         (Unaudited)       (Note)
     Current assets:
      Cash and cash equivalents                      $222,322      $ 262,408
      Short-term investments                           23,940         32,751
      Accounts receivable - net of
       allowances of $18,998 and $16,250              155,363        161,883
      Prepaid expenses and other current assets        18,427          8,349
      Deferred income taxes                            11,650          9,866
     TOTAL CURRENT ASSETS                             431,702        475,257
 
     Property and equipment - at cost,
      less accumulated depreciation and
      amortization of $96,677 and $78,694              87,521         71,669
     Acquired technologies, goodwill and other
      intangible assets - at cost, less accumulated
      amortization of $31,796 and $24,434              21,663         25,942
     Other assets                                      16,211         17,023
     TOTAL ASSETS                                    $557,097      $ 589,891
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable and accrued expenses           $52,912        $49,933
      Accrued employee compensation and benefits       28,068         32,572
      Income taxes payable                                589          6,179
      Deferred revenue                                 94,373         88,828
     TOTAL CURRENT LIABILITIES                        175,942        177,512
 
     LONG-TERM DEBT                                    91,116        102,518
 
     Stockholders' equity:
      Preferred stock - $.001 par value;
       5,000 shares authorized; none issued                --             --
      Common stock - $.001 par value; 300,000
       shares authorized; 32,677 and 32,616
       shares issued and outstanding                       33             33
      Additional paid-in capital                      207,224        197,376
      Less treasury stock, at cost:
       1,389 and 0 common shares                     (23,764)             --
      Retained earnings                               116,592        119,736
      Currency translation adjustments                (10,046)       (7,284)
     TOTAL STOCKHOLDERS' EQUITY                       290,039        309,861
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $557,097       $589,891
 
     Note: the balance sheet at June 30, 2000 has been derived from the audited
     financial statements at that date.
 
 
                         Hyperion Solutions Corporation
                   Condensed Consolidated Statement of Income
                                  (Unaudited)
                     (in thousands, except per share data)
 
                                    Three Months Ended     Nine Months Ended
                                         March 31,             March 31,
                                      2001       2000       2001        2000
 
     REVENUES
      Software licenses             $55,092    $62,192    $164,445   $164,333
      Maintenance and services       75,135     63,606     215,294    184,508
     TOTAL REVENUES                 130,227    125,798     379,739    348,841
 
     COSTS AND EXPENSES
     Cost of Revenues:
      Software licenses               4,441      1,760      13,410      4,761
      Maintenance and services       39,845     34,772     110,426     96,896
     Sales and marketing             52,855     49,851     154,158    136,768
     Research and development        18,907     17,912      61,198     50,874
     General and administrative      17,837     10,959      54,415     31,719
     Merger costs (credits)              --         --          --       (305)
     Restructuring charge                        2,066                  2,066
     TOTAL COSTS AND EXPENSES       133,885    117,320     393,607    322,779
 
     OPERATING INCOME (LOSS)         (3,658)     8,478     (13,868)    26,062
 
     Interest income                  2,915      3,365      10,478      9,346
     Interest expense                (1,387)    (1,430)     (4,043)    (4,097)
 
     INCOME (LOSS)
      BEFORE INCOME TAXES            (2,130)    10,413      (7,433)    31,311
 
     Provision for (benefit
      from) income taxes               (809)     3,800      (2,825)    11,600
 
     Income (loss) before
      extraordinary item             (1,321)     6,613      (4,608)    19,711
 
     Extraordinary item
      - gain on redemption
      of debt, net of
      income tax of $898                 --         --       1,464         --
 
     NET INCOME (LOSS)              $(1,321)    $6,613     $(3,144)   $19,711
 
     EARNINGS (LOSS) PER SHARE
      Basic
       Earnings (loss) from continuing
        operations before
        extraordinary item          $ (0.04)    $ 0.21     $ (0.14)    $ 0.63
       Extraordinary gain                --         --       0.04          --
       Basic earnings (loss)
        per share                    $ (0.04)   $ 0.21     $ (0.10)    $ 0.63
 
      Diluted
       Earnings (loss) from continuing
        operations before
        extraordinary item           $ (0.04)   $ 0.19     $ (0.14)    $ 0.62
       Extraordinary gain                --         --       0.04          --
       Diluted earnings (loss)
        per share                   $ (0.04)    $ 0.19     $ (0.10)    $ 0.62
 
     AVERAGE NUMBER OF SHARES OUTSTANDING
     Basic                           32,154     32,042     32,695      31,384
     Diluted                         32,154     34,558     32,695      32,016
 
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2000
                                                   Q1               Q2
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        46,401    43%    55,740    48%
     Maintenance and Services Revenue
            Maintenance revenue              36,632    34%    37,411    32%
            Consulting and training
             service revenue                 24,217    23%    22,642    20%
     Total Maintenance and Services
      Revenue                                60,849    57%    60,053    52%
 
     Total Revenue                          107,250   100%   115,793   100%
 
          Total Revenue by Geography
     North America                           70,303    66%    74,334    64%
     International                           36,947    34%    41,459    36%
     Total Revenue                          107,250   100%   115,793   100%
 
         Software License Revenue by
                  Geography
     North America                           29,884    64%    36,104    65%
     International                           16,517    36%    19,636    35%
     Total Software License Revenue          46,401   100%    55,740   100%
 
     Software License Revenue by Channel
     Direct                                  34,821    75%    43,547    78%
     Indirect                                11,580    25%    12,193    22%
     Total Software License Revenue          46,401   100%    55,740   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        23,238    50%    26,672    48%
     Applications Licenses
             Core Market Applications (B)    22,955    49%    28,112    50%
             Emerging Market
               Applications (C)                 208     0%       956     2%
     Total Applications Licenses             23,163    50%    29,068    52%
 
     Total Software License Revenue          46,401   100%    55,740   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        280,913          283,620
     Cash Flow from Operations               10,736            2,821
     Repurchases of shares and bonds            --                --
     DSO                                         90               88
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            9               11
     No. of New Customers                       219              225
 
               Total Headcount
     North America                            1,553    72%     1,602    72%
     International                              612    28%       626    28%
     Total Company                            2,165   100%     2,228   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C)  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2000
                                                    Q3               Q4
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        62,192    49%    75,993    51%
     Maintenance and Services Revenue
            Maintenance revenue              40,420    32%    39,989    27%
            Consulting and training
             service revenue                 23,186    18%    32,082    22%
     Total Maintenance and Services
      Revenue                                63,606    51%    72,071    49%
 
     Total Revenue                          125,798   100%   148,064   100%
 
          Total Revenue by Geography
     North America                           80,561    64%   100,956    68%
     International                           45,237    36%    47,458    32%
     Total Revenue                          125,798   100%   148,414   100%
 
         Software License Revenue by
                  Geography
     North America                           38,222    61%    51,675    68%
     International                           23,970    39%    24,318    32%
     Total Software License Revenue          62,192   100%    75,993   100%
 
     Software License Revenue by Channel
     Direct                                  38,569    62%    59,117    78%
     Indirect                                23,623    38%    16,876    22%
     Total Software License Revenue          62,192   100%    75,993   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        35,674    57%    35,852    47%
     Applications Licenses
             Core Market Applications (B)    26,162    42%    38,963    51%
             Emerging Market Applications
              (C)                               356     1%     1,178     2%
     Total Applications Licenses             26,518    43%    40,141    53%
 
     Total Software License Revenue          62,192   100%    75,993   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        287,991          295,159
     Cash Flow from Operations               (4,675)          18,892
     Repurchases of shares and bonds            --                --
     DSO                                         99               98
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            8               15
     No. of New Customers                       275              309
 
               Total Headcount
     North America                            1,670    72%     1,780    73%
     International                              634    28%       642    27%
     Total Company                            2,304   100%     2,422   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                        Fiscal 2001
                                                    Q1               Q2
            Total Revenue Analysis            $  % of total    $  % of total
 
     Software Revenue                        45,023    39%    64,330    48%
     Maintenance and Services Revenue
            Maintenance revenue              40,058    35%    39,276    29%
            Consulting and training
             service revenue                 29,973    26%    30,852    23%
     Total Maintenance and Services
      Revenue                                70,031    61%    70,128    52%
 
     Total Revenue                          115,054   100%   134,458   100%
 
          Total Revenue by Geography
     North America                           74,968    65%    94,255    70%
     International                           40,086    35%    40,203    30%
     Total Revenue                          115,054   100%   134,458   100%
 
         Software License Revenue by
                  Geography
     North America                           26,216    58%    42,239    66%
     International                           18,807    42%    22,091    34%
     Total Software License Revenue          45,023   100%    64,330   100%
 
     Software License Revenue by Channel
     Direct                                  31,722    70%    52,108    81%
     Indirect                                13,301    30%    12,222    19%
     Total Software License Revenue          45,023   100%    64,330   100%
 
      Software License Revenue by Market
     Technology Software Licenses (A)        25,626    57%    35,043    54%
     Applications Licenses
             Core Market Applications (B)    18,674    41%    27,965    43%
             Emerging Market Applications
              (C)                               723     2%     1,322     2%
     Total Applications Licenses             19,397    43%    29,287    46%
 
     Total Software License Revenue          45,023   100%    64,330   100%
 
     Selected Balance Sheet and Cash Flow
                 Information
     Cash and Short term Investments        294,167          269,542
     Cash Flow from Operations               16,567            1,416
     Repurchases of shares and bonds            --             17,283
     DSO                                        108              103
 
     Current Quarter Deals and Customers
     number of  software deals > $500K            5               10
     No. of New Customers                       231              229
 
               Total Headcount
     North America                            1,753    73%     1,813    73%
     International                              655    27%       680    27%
     Total Company                            2,408   100%     2,493   100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
                                                             Fiscal 2001
                                                                  Q3
           Total Revenue Analysis                         $          % of total
 
     Software Revenue                                  55,092              42%
     Maintenance and Services Revenue
            Maintenance revenue                        45,443              35%
            Consulting and training
             service revenue                           29,692              23%
     Total Maintenance and Services
      Revenue                                          75,135              58%
 
     Total Revenue                                    130,227             100%
 
         Total Revenue by Geography
     North America                                     84,916              65%
     International                                     45,311              35%
     Total Revenue                                    130,227             100%
 
         Software License Revenue by
                  Geography
     North America                                     31,329              57%
     International                                     23,763              43%
     Total Software License Revenue                    55,092             100%
 
     Software License Revenue by Channel
     Direct                                            44,553              81%
     Indirect                                          10,539              19%
     Total Software License Revenue                    55,092             100%
 
     Software License Revenue by Market
     Technology Software Licenses (A)                  29,359              53%
     Applications Licenses
             Core Market Applications (B)              24,021              44%
             Emerging Market Applications
              (C)                                       1,712               3%
     Total Applications Licenses                       25,733              47%
 
     Total Software License Revenue                    55,092             100%
 
       Selected Balance Sheet and Cash
              Flow Information
     Cash and Short term Investments                  246,462
     Cash Flow from Operations                          3,347
     Repurchases of shares and bonds                   15,133
     DSO                                                  107
 
     Current Quarter Deals and Customers
     number of  software deals > $500K                     12
     No. of New Customers                                 215
 
               Total Headcount
     North America                                      1,907              72%
     International                                        744              28%
     Total Company                                      2,651             100%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
                          Hyperion Solutions Corporation
                              Q3 Fiscal 2001 Results
       Supplemental Analysis of Revenue, Geography, Cash Flow and Headcount
           (unaudited, $ in thousands, except share and headcount data)
 
 
                                             % Change over Q2  % Change over Q3
                                                     01                00
           Total Revenue Analysis
 
     Software Revenue                               -14%              -11%
     Maintenance and Services Revenue
            Maintenance revenue                      16%               12%
            Consulting and training
             service revenue                         -4%               28%
     Total Maintenance and Services
      Revenue                                         7%               18%
 
     Total Revenue                                   -3%                4%
 
         Total Revenue by Geography
     North America                                  -10%                5%
     International                                   13%                0%
     Total Revenue                                   -3%                4%
 
         Software License Revenue by
                  Geography
     North America                                  -26%              -18%
     International                                    8%               -1%
     Total Software License Revenue                 -14%              -11%
 
     Software License Revenue by Channel
     Direct                                         -14%               16%
     Indirect                                       -14%              -55%
     Total Software License Revenue                 -14%              -11%
 
     Software License Revenue by Market
     Technology Software Licenses (A)               -16%              -18%
     Applications Licenses
             Core Market Applications (B)           -14%               -8%
             Emerging Market Applications (C)        30%              381%
     Total Applications Licenses                    -12%               -3%
 
     Total Software License Revenue                 -14%              -11%
 
       Selected Balance Sheet and Cash
              Flow Information
     Cash and Short term Investments                 -9%              -14%
     Cash Flow from Operations                      136%                n/a
     Repurchases of shares and bonds                -12%                n/a
     DSO                                              4%                8%
 
     Current Quarter Deals and Customers
     number of  software deals > $500K               20%               50%
     No. of New Customers                            -6%              -22%
 
               Total Headcount
     North America                                    5%               14%
     International                                    9%               17%
     Total Company                                    6%               15%
 
 
     Notes:
     [A]  Includes Hyperion Essbase, Hyperion Analyzer, Hyperion Integration
     Server, Hyperion Application Builder products and associated third-party
     license revenue and allocated tools revenue.
     [B]  Includes Hyperion Financial Management products and associated
     third-party license revenue and allocated tools license revenue.
     [C]  Includes Hyperion eCRM/PRM analysis, Hyperion Performance Management
     and associated third-party license revenue and allocated tools license
     revenue.
 
 
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 SOURCE  Hyperion Solutions Corporation