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Hyperion Solutions' Top Line Underwhelms

The company misses analysts' revenue estimates.
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Hyperion Solutions


squeezed out a one-cent earnings beat in the second quarter, but sales -- and the software maker's guidance for sales in the third quarter -- were below expectations.

The company posted a profit of $15.5 million, or 25 cents a share, compared with $15.6 million, or 26 cents a share, a year ago.

Excluding items such as restructuring and the cost of equity-based compensation, the company earned $22.3 million, or 37 cents a share in the latest quarter. Wall Street was looking for 36 cents a share on the same basis.

Revenue increased by 5% to $185.5 million; analysts polled by Thomson First Call were projecting $187.49 million.

License revenue, a key indicator of new business for software makers, increased by 9% to $74.4 million.

"License revenue growth was driven by the success and momentum of System 9

the new version of Hyperion's flagship product, which generated more than 50% of our license revenue and accounted for the majority of our large transactions," said CEO Godfrey R. Sullivan.

In recent after-hours trading, shares were off $1.23, or 3.5% to $34.40.

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Looking forward to the third quarter, the company expects to earn a non-GAAP profit of 32 cents to 36 cents on sales ranging from $183 million to $188 million. Analysts had forecast a profit of 36 cents on sales of $189.1 million.

Hyperion develops business intelligence software that allows users to extract key findings from corporate databases without help from programmers. It competes with

Business Objects





, as well as much larger software vendors, such

as Oracle

(ORCL) - Get Oracle Corporation Report

which offer solutions across a number of categories