8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

April 25, 2007

Date of Report (Date of Earliest Event Reported)

BUSINESS OBJECTS S.A.

(Exact name of Registrant as specified in its charter)

Republic of France	0-24720	98-0355777
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation)		Identification Number)

157-159 rue Anatole France, 92300 Levallois-Perret,
France

(Address of principal executive offices)

(408) 953-6000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

EXHIBIT 99.2

Item 2.02 Results of Operations and Financial Condition.

     On April 25, 2007, Business Objects S.A., the (“Company”) issued a press release and will hold a conference call at 5:00 am Pacific on April 25, 2007, announcing its financial results for the quarter ended March 31, 2007. A copy of this press release and conference call slides are furnished as Exhibits 99.1 and 99.2 to this Form 8-K.

     The Company is making reference to non-GAAP financial information in both the press release and on the conference call. A reconciliation of non-GAAP financial measures contained in the press release to the comparable US GAAP financial measures is contained in the attached press release, and a reconciliation of this and other non-GAAP financial information provided on the conference call is contained on the Company’s Investor Relations web page at www.businessobjects.com.

     The information provided under Item 2.02 in this Form 8-K and the Exhibits attached hereto is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number	Description
99.1	Press Release issued by Business Objects S.A. dated April 25, 2007.
99.2	Presentation slides for conference call on April 25, 2007.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 24, 2007

BUSINESS OBJECTS S.A.
By:	/s/ James R. Tolonen
	James R. Tolonen
	Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued by Business Objects S.A. dated April 25, 2007.
99.2	Presentation slides for conference call on April 25, 2007.

EX-99.1

Exhibit 99.1

BUSINESS OBJECTS REPORTS RECORD Q1 FISCAL 2007 RESULTS

Total Revenues Up 20 Percent
Double-Digit Revenue Growth in All Geographies
Announces $100 Million Share Repurchase Program

PARIS and SAN JOSE, Calif. – April 25, 2007 – Business Objects (Nasdaq: BOBJ; Euronext Paris ISIN code FR0004026250 – BOB), the world’s leading provider of business intelligence (BI) solutions, today announced results for the first quarter of fiscal 2007. In a separate press release, the company also announced that its board of directors has authorized a stock repurchase program of up to $100 million.

Total revenues for the first quarter of 2007 were $334 million, up 20 percent year-over-year. License revenues for the first quarter of 2007 were $137 million, up 9 percent year-over-year. Services revenues, including maintenance and global professional services, for the first quarter of 2007 were $197 million, up 29 percent year-over-year.

US GAAP diluted earnings per share for the first quarter of 2007 were $0.06 (after including a legal contingency reserve of $26 million, an impact of $0.15 per share). US GAAP diluted earnings per share for the first quarter of 2006 were $0.13. Non-GAAP diluted earnings per share for the first quarter of 2007 were $0.41, up 24 percent year-over-year, as compared to $0.33 per share for the first quarter of 2006.

“The first quarter was a strong confirmation of our strategy and ability to execute in the market, with total revenues up 20 percent and non-GAAP operating income up 37 percent,” stated John Schwarz, chief executive officer of Business Objects. “More importantly, we continue to strengthen our competitive position in both the enterprise market and the mid-market with new products and technologies. We are enhancing our strong partnership with CIOs, and opening a new growth path by delivering a complete suite of fully integrated EPM and BI solutions for CFOs and line-of-business executives.”

All figures referred to herein are stated in US dollars unless otherwise indicated. On a constant currency basis for the first quarter of 2007, total revenues were up 14 percent year-over-year, license revenues were up 3 percent year-over-year, and services revenues were up 23 percent year-over-year. The non-GAAP results for the first quarter of fiscal 2007, as defined below in the section “Use of Non-GAAP Financial Measures,” differ from results measured under US GAAP as they exclude amortization of intangible assets, write-off of in-process R&D, stock-based compensation expense, and other non-recurring or non-cash charges. A reconciliation of US GAAP to non-GAAP results is included at the end of this press release.

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Q1 Fiscal 2007 Highlights

Continued Customer Success

• During the quarter, the company added more than 1,200 new customers, bringing the total to over 43,000 worldwide.

• Notable wins included: Alitalia Services; AstraZeneca; BNP Paribas; China Mobile; Delta Dental; Department of the Navy Criminal Investigative Information System; Dollar Tree Stores, Inc.; FEMA National Flood Insurance Program; FinanzIT GmbH; ICI Paints; National Australia Bank; Samsung Electronics Co. Ltd; Simplot Australia Pty Ltd; The Administrative Office of the US Courts; and Zions Bancorporation.

Double-Digit Revenue Growth in All Geographies

• Total revenues in the Americas for the first quarter of 2007 were $173 million, up 17 percent year-over-year. The Americas closed 4 transactions over $1 million in license revenues in the first quarter.

• Total revenues in Europe, Middle-East and Africa (or EMEA) for the first quarter of 2007 were $137 million, up 23 percent year-over-year (up 11 percent in constant currencies). EMEA closed 6 transactions over $1 million in license revenues in the first quarter.

• Total revenues in Asia-Pacific and Japan (or APJ) for the first quarter of 2007 were $24 million, up 27 percent year-over-year. APJ closed 2 transactions over $1 million in license revenues in the first quarter.

New Products Drive License Revenues

• License revenues continue to be driven by very rapid growth in Enterprise Performance Management and Enterprise Information Management.

• License revenues in Information Discovery and Delivery continue to show a consistently improving trend, as strong growth in BusinessObjects XI has now balanced the decline of older product lines.

• Continued product innovation, including the recent releases of BusinessObjects XI Release 2 Productivity Suite for the enterprise market and Business Objects Crystal Decisions for the mid-market, is expected to drive future license revenue growth.

Continued Strength in Maintenance and Consulting Drive Services Revenues

• Maintenance revenues for the first quarter of 2007 were $144 million, up 32 percent year-over-year (up 26 percent in constant currencies). The strong customer renewal rate on maintenance contracts and the drive for higher-value support relationships produced great results. This is further underscored by increased customer satisfaction with our support services, which improved in all geographies.

• Global services revenues for the first quarter of 2007 were $53 million, up 21 percent year-over-year (up 16 percent in constant currencies).

Higher Gross Margin and Operating Efficiencies Producing Stronger Profits

• Gross margin improved by approximately one percentage point on both a US GAAP as well as a non-GAAP basis, based on the strength of maintenance revenues and improved global services margins.

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• Income from operations on a US GAAP basis for the first quarter of 2007 was $6 million, after including a non-cash accrual of $26 million relating to the previously announced jury decision. Income from operations on a US GAAP basis for the first quarter of 2006 was $18 million.

• Income from operations on a non-GAAP basis for the first quarter of 2007 grew by 37 percent to $55 million, or 16 percent of total revenues, as compared to $40 million, or 14 percent of total revenues, for the first quarter of 2006.

Strong Balance Sheet and Cash Flow

• Total cash, cash equivalents and short-term investments were $637 million at March 31, 2007, up $125 million from December 31, 2006.

• Total deferred revenues were $341 million at March 31, 2007, up $47 million from December 31, 2006.

• Accounts receivable, on a days-sales-outstanding (DSO) basis, were 83 days for the first quarter of 2007, as compared to 80 days for the first quarter of 2006.

Pending Acquisition of Cartesis

The company recently announced its intent to acquire Cartesis, a leading specialist in enterprise performance management (EPM) software with more than 1,300 customers worldwide. Cartesis provides financial reporting, consolidations, and planning capabilities, as well as a new governance, risk, and compliance portfolio. We expect this acquisition to add significant functionality to Business Objects’ EPM suite, and enhance the company’s ability to provide fully-integrated EPM and BI solutions to the office of the CFO and other line-of-business executives.

Under the terms of the agreement with Cartesis, Business Objects will pay an enterprise value of €225 million (approximately $300 million) in cash. The acquisition is expected to close within the next 90 days, subject to regulatory approval, Cartesis shareholder approval, and other customary closing conditions. Due to purchase accounting adjustments, the transaction is expected to be neutral to slightly accretive to earnings for the first year post closing and accretive thereafter, as revenue synergies and economies of scale are realized.

Business Outlook

“Our strong cash generation demonstrates the overall strength of our business,” said Jim Tolonen, chief financial officer of Business Objects. “Our guidance for fiscal 2007 reflects continued double-digit revenue growth, increased revenue benefit from currency exchange rates, and non-GAAP margin expansion. More specifically, we are raising our annual guidance for non-GAAP earnings per share to reflect the strong first quarter results. Our full year guidance for US GAAP earnings per share reflects the legal contingency reserve taken in the first quarter.”

Business Objects expects to derive revenue growth from solid execution in all geographies, with particular investment focus in Asia-Pacific and Japan; license and maintenance revenue growth at or above industry rates, driven by our market-leading end-to-end BI solution; and continued strength in services revenues. The pending acquisition of Cartesis is not included in the guidance for the second quarter or full year 2007, as this transaction has not yet closed.

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Business Objects offers the following guidance for the fiscal year ending December 31, 2007:

• Total revenues are expected to range from $1.426 billion to $1.446 billion;

• US GAAP diluted earnings per share are expected to range from $0.91 to $1.01;

• Non-GAAP diluted earnings per share are expected to range from $1.94 to $2.04.

US GAAP diluted earnings per share for fiscal year 2007 are expected to include approximately $51 million of stock based compensation expense, approximately $48 million of amortization of intangible assets, and $26 million for a non-cash legal reserve, which would impact EPS by approximately $1.03 per share, after tax effect.

Business Objects offers the following guidance for the second quarter ending June 30, 2007:

• Total revenues are expected to range from $345 million to $350 million;

• US GAAP diluted earnings per share are expected to range from $0.21 to $0.24;

• Non-GAAP diluted earnings per share are expected to range from $0.42 to $0.45.

US GAAP diluted earnings per share for the second quarter of 2007 are expected to include approximately $12 million of stock based compensation expense and approximately $12 million of amortization of intangible assets, which would impact EPS by approximately $0.21, after tax effect.

The anticipated stock based compensation expense of approximately $12 million for the second quarter of 2007 and $51 million for fiscal year 2007 includes the impact of options assumed in prior acquisitions, as well as prior employee grants and estimated employee grants for the current year. These expected expenses are based on estimates, including future stock price, employee turnover, growth in new employees, grants to current and new employees, stock volatility, and future interest rates.

The outlook for the second quarter and fiscal year 2007 assumes a US dollar to euro exchange rate of $1.34 per €1.00, a US dollar to Canadian dollar exchange rate of $0.88 per CDN $1.00, an effective US GAAP tax rate of 43 percent, and an effective non-GAAP tax rate of 33 percent. The non-GAAP tax rate differs from the US GAAP tax rate due to the elimination of the tax rate effect of the US GAAP expenses that are being excluded to arrive at the non-GAAP expenses.

The above information concerning our forecast for the second quarter and fiscal year 2007 represents our outlook only as of the date hereof, and we undertake no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise.

Legal Contingency Reserve

The company is a defendant in a patent infringement lawsuit filed by Informatica against Acta Technology. The case has been in litigation for four and a half years, and was inherited by Business Objects when it acquired Acta Technology in July 2002. On April 2, 2007, a jury decided in favor of Informatica. No cash payment has been made as this trial is still ongoing,

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pending the judge’s decision on the enforceability of the two patents in question and the final amount of the damages. In the event of an unfavorable ruling, we could appeal this case. However, since a jury verdict has been rendered, the company recorded an accrual of $26 million in the first quarter of 2007.

Conference Call
Business Objects will hold a conference call to discuss its financial results for the first quarter of 2007 on April 25, 2007. The call will begin at 5:00 a.m. PT (8:00 a.m. ET, 1:00 p.m. GMT, 2:00 p.m. CET). The dial-in numbers are +1 (800) 399-7988 for North America and +1 (706) 634-5428 for Europe and Asia, with ID # 5165044. The conference call also will be webcast live, and can be accessed on the investor relations section of the company’s website at www.businessobjects.com/company/investors/. A replay of the webcast will be available on the site approximately two hours after the end of the live call.

Accounting Principles
Business Objects prepares its financial statements in accordance with US GAAP. Because the company is listed on both the Eurolist by Euronext™ in France and the Nasdaq Global Select Market in the United States, it is required to separately report consolidated financial statements prepared in accordance with both US GAAP and International Financial Reporting Standards (“IFRS”). The most significant identified differences between the two reporting standards for Business Objects relate to the treatment of stock-based compensation expense, the accounting for deferred tax assets on certain intercompany transactions and the accounting for business combinations.

In accordance with French regulations and IFRS, Business Objects filed with the Autorité des Marchés Financiers in France its Document de Référence 2006 on April 6, 2007 under the registration number D.07-0285, which included its consolidated financial statements for the year ended on December 31, 2006, presented in accordance with International Financial Reporting Standards. The Document de Référence 2006 includes the consolidated information that Business Objects published on April 18, 2007 to the Bulletin des Annonces Légales Obligatoires (“BALO”) in France.

Use of Non-GAAP Financial Measures
The non-GAAP financial measures such as operating income, net income, and earnings per share information for the first quarter of 2007 included in this press release are different from those otherwise presented under US GAAP as these non-GAAP measures exclude certain charges. These charges include the write-off of in-process research and development, amortization of intangible assets, stock-based compensation expense, and other non-recurring or non-cash charges. The non-GAAP tax rate differs from the US GAAP tax rate due to the elimination of the tax rate effect of the US GAAP expenses that are being eliminated to arrive at the non-GAAP expenses. Business Objects has provided these measures in addition to US GAAP financial results because management believes these non-GAAP measures provide a consistent basis for comparison between quarters and of growth rates year-over-year that are not influenced by certain non-cash charges or impacts of prior period acquisitions, and therefore are helpful in understanding Business Objects’ underlying operating results. In addition, this press release also includes non-GAAP measures that use a constant currency to separate the impact of conversion from other foreign currencies to US dollars from other

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changes in our business. These non-GAAP measures are some of the primary measures Business Objects’ management uses for planning and forecasting. These measures are not in accordance with, or an alternative to, US GAAP and these non-GAAP measures may not be comparable to information provided by other companies. Reconciliations of US GAAP to non-GAAP results are presented at the end of this press release.

Forward-Looking Statements
This document contains forward-looking statements that involve risks and uncertainties concerning the company’s expected financial performance for the second quarter and full year 2007, the company’s expected growth and profitability, the company’s product and business strategies, the company’s strategic relationships, the company’s licensing and adoption of its BusinessObjects XI products, and the company’s on-demand business intelligence solutions and the company’s proposed acquisition of Cartesis. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, among others, fluctuations in the company’s quarterly and yearly operating results; the company’s ability to estimate and sustain or increase its profitability; the company’s ability to attract, migrate and retain customers for BusinessObjects XI; the enterprise performance management products and products acquired from nSite Software, Inc.; the company’s ability to issue new releases of its products, including those obtained through acquired businesses; the company’s ability to timely complete and successfully integrate the acquisition of Cartesis and the company’s ability to integrate acquired businesses successfully; changes to current accounting policies which may have a significant, adverse impact upon the company’s financial results, including FAS 123(R); the introduction of new products by competitors or the entry of new competitors into the markets for Business Objects’ products; the impact of the pricing of competing technologies; the company’s ability to preserve its key strategic relationships; the company’s reliance upon selling products only in the Business Intelligence software market; the company’s ability to manage large scale deployments; the company’s mid-market strategy; and economic and political conditions in the US and abroad. More information about potential factors that could affect Business Objects’ business and financial results is included in Business Objects’ Form 10-K for the year ended December 31, 2006, which is on file with the SEC and available at the SEC’s website at www.sec.gov. Business Objects is not obligated to undertake any obligation to update these forward-looking statements to reflect events or circumstances after the date of this document.

About Business Objects

Business Objects is the world’s leading business intelligence (BI) software company, with more than 43,000 customers worldwide, including over 80 percent of the Fortune 500. Business Objects helps organizations of all sizes create a trusted foundation for decision making, gain better insight into their business, and optimize performance. The company’s innovative business intelligence suite, BusinessObjects™ XI, offers the BI industry’s most advanced and complete solution for performance management, planning, reporting, query and analysis, and enterprise information management. BusinessObjects XI includes the award-winning Crystal line of reporting and data visualization software. Business Objects has also built the industry’s strongest and most diverse partner community, and offers consulting and education services to help customers effectively deploy their business intelligence projects.

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Business Objects has dual headquarters in San Jose, Calif., and Paris, France. The company’s stock is traded on both the Nasdaq (BOBJ) and Euronext Paris (ISIN: FR0004026250 — BOB) stock exchanges. More information about Business Objects can be found at www.businessobjects.com.

Business Objects and the Business Objects logo, BusinessObjects, WebIntelligence, Crystal Reports, Intelligent Question, Xcelsius, and Desktop Intelligence are trademarks or registered trademarks of Business Objects S.A. or its affiliated companies in the United States and/or other countries. All other names mentioned herein may be trademarks of their respective owners.

Business Objects Investor Contacts:	Business Objects Public Relations Contacts:
John Ederer	Peter Olson
Vice President of Investor Relations	Senior Manager of Public Relations
+1 (408) 953 6064	+1 (408) 953 6320
john.ederer@businessobjects.com	peter.olson@businessobjects.com
	Philippe Laguerre
Edouard Lassalle
Director of Investor Relations EMEA	Director of Public Relations EMEA
+33 (1) 41 25 24 33	+33 (1) 41 25 38 15
edouard.lassalle@businessobjects.com	philippe.laguerre@businessobjects.com
Nina Camera
Senior Manager, U.S. Investor Relations
+1 (408) 953 6138
nina.camera@businessobjects.com

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BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except nominal value per ordinary share)

	March 31, 2007			December 31, 2006
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	631,479		$	506,792
Short-term investments		5,760			5,736
Restricted cash		38,449			42,997
Accounts receivable, net		309,063			334,387
Deferred tax assets		12,483			15,189
Prepaid and other current assets		68,341			59,462
Total current assets		1,065,575			964,563
Goodwill		1,270,181			1,266,057
Other intangible assets, net		117,391			128,635
Property and equipment, net		90,695			91,091
Deposits and other assets		17,567			20,897
Long-term restricted cash		11,169			11,131
Long-term deferred tax assets		11,771			12,616
Total assets	$	2,584,349		$	2,494,990
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	40,187		$	36,070
Accrued payroll and related expenses		85,321			105,967
Income taxes payable		2,221			96,088
Deferred revenues		332,003			283,631
Other current liabilities		131,609			106,776
Escrows payable		34,889			34,539
Total current liabilities		626,230			663,071
Long-term escrows payable		7,692			7,654
Other long-term liabilities		7,103			7,077
Long-term income taxes payable		99,292			—
Long-term deferred tax liabilities		2,521			4,597
Long-term deferred revenues		8,760			9,772
Total liabilities		751,598			692,171
Shareholders’ equity
Ordinary shares, Euro 0.10 nominal value		10,804			10,707
Additional paid-in capital		1,347,994			1,320,993
Treasury, Business Objects Option LLC, and Employee Benefit Sub-Plan Trust shares		(6,039	)		(5,247	)
Retained earnings		415,191			417,709
Accumulated other comprehensive income		64,801			58,657
Total shareholders’ equity		1,832,751			1,802,819
Total liabilities and shareholders’ equity	$	2,584,349		$	2,494,990

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BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per ordinary share and ADS data)

	Three Months Ended
	March 31,
	2007			2006
	(unaudited)
Revenues:
Net license fees	$	137,393		$	125,894
Services		196,950			152,377
Total revenues		334,343			278,271
Cost of revenues:
Net license fees		10,870			7,976
Services		68,831			60,767
Total cost of revenues		79,701			68,743
Gross profit		254,642			209,528
Operating expenses:
Sales and marketing		137,341			117,500
Research and development		52,341			43,737
General and administrative		33,639			30,363
Legal contingency reserve		25,700			—
Total operating expenses		249,021			191,600
Income from operations		5,621			17,928
Interest and other income, net		4,129			2,855
Income before provision for income taxes		9,750			20,783
Provision for income taxes		(4,168	)		(8,446	)
Net income	$	5,582		$	12,337
Basic net income per ordinary share and ADS	$	0.06		$	0.13
Diluted net income per ordinary share and ADS	$	0.06		$	0.13
Ordinary shares and ADSs used in computing basic net income per ordinary share and ADS		95,235			92,552
Ordinary shares and ADSs and equivalents used in computing diluted net income per ordinary share and ADS		97,094			95,333

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BUSINESS OBJECTS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three Months Ended
	March 31,
	2007			2006
	(unaudited)
Operating activities:
Net income	$	5,582		$	12,337
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment		8,161			7,881
Amortization of other intangible assets		12,074			8,869
Stock-based compensation expense		11,596			13,410
Excess tax benefits from stock-based compensation					(2,422	)
Deferred income taxes		(729	)		(2,835	)
Changes in operating assets and liabilities:
Accounts receivable, net		27,609			20,800
Prepaid and other current assets		(8,600	)		(5,826	)
Deposits and other assets		3,360			2,516
Accounts payable		(481	)		2,391
Accrued payroll and related expenses		(21,270	)		(17,607	)
Income taxes payable		(96	)		6,163
Deferred revenues		45,466			46,416
Other liabilities		24,737			(3,824	)
Short-term investments classified as trading		(24	)		(302	)
Net cash provided by operating activities		107,385			87,967
Investing activities:
Purchases of property and equipment		(7,031	)		(10,018	)
Net transfer of cash from restricted cash accounts		4,510			(191	)
Increase in escrows payable		332			191
Net cash used in investing activities		(2,189	)		(10,018	)
Financing activities:
Proceeds from issuance of shares		15,506			11,820
Excess tax benefits from stock-based compensation		—			2,422
Net cash provided by financing activities		15,506			14,242
Effect of foreign exchange rate changes on cash and cash equivalents		3,985			781
Net increase in cash and cash equivalents		124,687			92,972
Cash and cash equivalents, beginning of the period		506,792			332,777
Cash and cash equivalents, end of the period	$	631,479		$	425,749

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BUSINESS OBJECTS S.A.
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(in millions, except per ordinary share and ADS data, unaudited)

		Three Months Ended
		March 31,
		2007			2006
GAAP Cost of Revenues		$	79.7		$	68.8
Amortization of intangible assets
in cost of net licence fees			(8.8	)		(6.0	)
in cost of services			(2.7	)		(2.5	)
	Total		(11.5	)		(8.5	)
Stock-based compensation in cost of services			(1.4	)		(1.4	)
	Total		(1.4	)		(1.4	)
Non-GAAP Cost of Revenues			66.8			58.9
GAAP Gross Profit			254.6			209.5
	% of total revenues		76	%		75	%
Amortization of intangible assets			11.5			8.5
Stock-based compensation			1.4			1.4
Non-GAAP Gross Profit			267.5			219.4
	% of total revenues		80	%		79	%
GAAP Operating Expenses			249.0			191.6
Amortization of intangible assets and in-process R&D
in sales and marketing expenses			(0.5	)		(0.4	)
in research and development expenses			(0.1	)		0.0
	Total		(0.6	)		(0.4	)
Stock-based compensation
in sales and marketing expenses			(4.4	)		(3.5	)
in research and development expenses			(1.4	)		(1.8	)
in general and administrative expenses			(4.4	)		(6.7	)
	Total		(10.2	)		(12.0	)
Legal contingency reserve			(25.7	)		0.0
Non-GAAP Operating Expenses			212.5			179.2
GAAP Income from Operations			5.6			17.9
	% of total revenues		2	%		6	%
Total amortization of intangibles and in-process R&D			12.1			8.9
Total stock based compensation			11.6			13.4
Legal contingency reserve			25.7			0.0
Non-GAAP Income from Operations			55.0			40.2
	% of total revenues		16	%		14	%
GAAP Net Income			5.6			12.3
Total amortization of intangibles and in-process R&D			12.1			8.9
Total stock based compensation			11.6			13.4
Legal contingency reserve			25.7			0.0
Tax effect of the above adjustments			(14.8	)		(3.5	)
Non-GAAP Net Income			40.2			31.1
Basic net income per ordinary share and ADS
GAAP		$	0.06		$	0.13
Non-GAAP		$	0.42		$	0.34
Diluted net income per ordinary share and ADS
GAAP		$	0.06		$	0.13
Non-GAAP		$	0.41		$	0.33

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BUSINESS OBJECTS S.A.
Q1 FISCAL 2007 SUPPLEMENTAL INFORMATION
(in millions, except per ordinary share and ADS data)
(Unaudited)

	Fiscal 2006															Fiscal 2007
	Q1			Q2			Q3			Q4			Total			Q1
SUPPLEMENTAL INCOME STATEMENT INFORMATION
Revenues
Net license fees	$	125.9		$	123.1		$	131.6		$	179.6		$	560.2		$	137.4
Maintenance		108.6			123.5			128.5			136.9			497.4			143.8
Consulting and training		43.8			47.9			50.3			54.1			196.2			53.1
Total revenues		278.3			294.5			310.4			370.6			1,253.8			334.3
Total expenses
Cost of net license fees		2.0			2.9			3.3			3.0			10.9			2.1
Cost of services		56.9			61.6			63.8			65.5			247.9			64.7
Sales and marketing		113.6			119.0			116.9			139.1			488.6			132.5
Research and development		41.9			47.5			48.4			49.8			187.8			50.8
General and administrative		23.7			24.5			25.0			29.3			102.4			29.2
Amortization of intangible assets (1)		8.9			14.0			10.6			15.8			49.4			12.1
Stock-based compensation (2)		13.4			11.5			12.9			11.2			49.0			11.6
Legal contingency reserve		—			—			—			—			—			25.7
Total expenses		260.4			281.0			280.9			313.7			1,136.0			328.7
Income from operations		17.9			13.5			29.5			56.9			117.8			5.6
Interest and other income, net		2.9			3.0			4.7			3.2			13.8			4.2
Income before provision for income taxes		20.8			16.5			34.2			60.1			131.6			9.8
Provision for income taxes		(8.5	)		(8.6	)		(14.6	)		(24.6	)		(56.2	)		(4.2	)
Effective tax rate		41	%		52	%		43	%		41	%		43	%		43	%
Net income		12.3			7.9			19.6			35.5			75.4			5.6
Net income per ordinary share and ADS
Basic		0.13			0.09			0.21			0.37			0.81			0.06
Diluted		0.13			0.08			0.21			0.37			0.79			0.06
Ordinary shares and ADSs used in computing net income per share (000’s)
Basic		92,552			93,310			93,685			94,745			93,552			95,235
Diluted		95,333			95,083			94,976			96,776			95,368			97,094
Amortization of intangible assets
Cost of net license fees		6.0			7.4			7.5			9.0			30.1			8.8
Cost of services		2.5			2.9			2.3			2.8			10.5			2.7
Sales and marketing		0.4			0.4			0.4			0.5			1.6			0.5
Research and development (1)		—			3.3			0.4			3.5			7.2			0.1
Total		8.9			14.0			10.6			15.8			49.4			12.1
Stock-based compensation (2)
Cost of services		1.4			1.5			1.5			1.4			5.7			1.4
Sales and marketing		3.5			3.7			4.2			4.0			15.4			4.4
Research and development		1.8			1.8			1.8			1.7			7.1			1.4
General and administrative		6.7			4.5			5.4			4.1			20.8			4.4
Total		13.4			11.5			12.9			11.2			49.0			11.6
Legal contingency reserve		—			—			—			—			—			25.7
Non-GAAP income from operations (3)		40.2			39.0			53.0			83.9			216.2			55.0
% of total revenues		14	%		13	%		17	%		23	%		17	%		16	%
Interest and other income, net		2.9			3.0			4.7			3.2			13.8			4.2
Income before provision for income taxes		43.1			42.0			57.7			87.1			230.0			59.2
Provision for income taxes		(12.0	)		(12.9	)		(19.2	)		(29.4	)		(73.5	)		(19.0	)
Effective tax rate		28	%		31	%		33	%		34	%		32	%		32	%
Non-GAAP net income		31.1			29.1			38.5			57.7			156.5			40.2
% of total revenues		11	%		10	%		12	%		16	%		12	%		12	%
Non-GAAP net income per ordinary share and ADS
Basic		0.34			0.31			0.41			0.61			1.67			0.42
Diluted		0.33			0.31			0.41			0.60			1.64			0.41

(1)	Includes acquired in-process research and development related to acquisitions
(2)	Represents stock-based compensation expense recorded in accordance with FAS 123R.
(3)	Non-GAAP measures are reconciled from US GAAP figures. Non-GAAP measures exclude in-process research and development, amortization of intangible assets, stock-based compensation expense, and legal contingency reserve.

12

BUSINESS OBJECTS S.A.
Q1 FISCAL 2007 SUPPLEMENTAL INFORMATION
(in millions, except for number of transactions, DSO and headcount information)
(Unaudited)

	Fiscal 2006															Fiscal 2007
	Q1			Q2			Q3			Q4			Total			Q1
REVENUE ANALYSIS
Total revenues by geography
Americas	$	147.2		$	167.7		$	175.1		$	197.7		$	687.7		$	172.8
EMEA		112.0			106.8			112.7			147.5			479.0			137.2
Asia Pacific, including Japan		19.1			20.0			22.6			25.4			87.1			24.3
Total	$	278.3		$	294.5		$	310.4		$	370.6		$	1,253.8		$	334.3
Analysis of currency impact (year-over-year)
Reported revenue growth rate		12	%		12	%		19	%		22	%		16	%		20	%
Constant currency growth rate		17	%		12	%		16	%		16	%		16	%		14	%
Impact of foreign currency on growth rate		-5	%		0	%		3	%		6	%		0	%		6	%

	Fiscal 2006															Fiscal 2007
	Q1			Q2			Q3			Q4			Total			Q1
LICENSE REVENUE ANALYSIS
License revenues by channel
Direct		54	%		48	%		52	%		57	%		54	%		60	%
Indirect		46	%		52	%		48	%		43	%		46	%		40	%
Total		100	%		100	%		100	%		100	%		100	%		100	%
Number of transactions by size
Over $1 million		9			4			9			13			35			12
$200 thousand to $999 thousand		104			113			107			157			481			121

	Fiscal 2006								Fiscal 2007
	Q1		Q2		Q3		Q4		Q1
SELECTED BALANCE SHEET ITEMS
Cash and cash equivalents, restricted cash, and short-term investments	$	474	$	532	$	548	$	567	$	687
DSO (Days sales outstanding)		80		73		73		81		83
HEADCOUNT
Total headcount		4,484		4,977		5,141		5,208		5,428

13

EX-99.2

Exhibit 99.2
 

First Quarter 2007 Results Earnings Conference Call April 25, 2007

Safe Harbor: Forward Looking Statements During the course of today's presentation, our executives will make forward-looking statements including statements regarding the company's expected financial performance for the second quarter and full year 2007; expected growth and profitability; product and business strategies; the pending acquisition of Cartesis S.A.; strategic relationships; licensing and adoption of its BusinessObjects XI products; IDD growth; the anticipated release of the XI Productivity Suite; the introduction of Mobile BI; on-demand business intelligence solutions; and our mid-market initiative. We wish to caution you that such statements are just predictions based on management's current expectations or beliefs, and that actual events or results may differ materially. We refer you to documents we file with the Securities and Exchange Commission and the French Autorite des Marches Financiers (AMF), including form 10-K for the year ended December 31, 2006 and the Document de Reference for the year ended December 31, 2006. These documents identify important risk factors that could cause actual results to differ materially from those contained in our forward-looking statements. These potential risks and uncertainties include, but are not limited to, fluctuations in our quarterly and yearly operating results; our ability to estimate and sustain or increase our profitability; our ability to attract and retain customers, including for BusinessObjects XI; our ability to successfully complete the pending acquisition of Cartesis S.A.; our ability to successfully integrate the companies we acquire; changes to our current accounting policies; our ability to preserve our key strategic relationships; and our reliance upon selling products only in the Business Intelligence software market. We assume no duty to confirm, update or revise the financial forecast for the year, or any other forward looking information in this call as a result of new developments or otherwise.

Use of Non-GAAP Financial Measures Today we will be discussing our results on a US GAAP as well as a non-GAAP basis. These non-GAAP results, also sometimes called pro forma results, exclude write-off of in process research and development charges, amortization of purchase intangibles, stock based compensation expense and other non-recurring or non-cash charges. We use these additional non-GAAP measures as we believe they give useful operating information in addition to the US GAAP results. A reconciliation of US GAAP to non- GAAP financial statements is available in our press release and on our investor relations webpage at www.businessobjects.com/company/investors.

Total revenue growth continues at double-digit pace +20% to $334M First Quarter 2007 Highlights All geographies produced double-digit total revenue growth Rebound in large deals: 12 transactions above $1M vs. 9 in Q1 06 Non-GAAP operating margin up +210bps Revenues at high-end and non-GAAP EPS above guidance Balance sheet and cash flow from operations remain strong Continued license revenue growth driven by new products +9% to $137M Improving non-GAAP margin drives higher non-GAAP EPS +24% to $0.41 US GAAP EPS negatively impacted by one-time accrual $0.06 vs $0.13, due to $26M accrual

First Quarter 2007 Financial Results Note: Dollars in millions, except per share data. * US GAAP results include a non-cash $26m contingency legal reserve related to the ongoing litigation with Informatica, impacting fully diluted EPS by $0.15 after tax effect. ** Non-GAAP results exclude stock based compensation, amortization of intangible assets and other non- recurring or non-cash charges. Specifically, in Q1 2007, Non-GAAP results exclude the non-cash $26m contingency legal reserve related to the ongoing litigation with Informatica. ** ** * *

First Quarter 2007 Revenue Analysis License revenues of $137 million, up 9% (+3% CC*) Very rapid growth of EPM and EIM Flat performance of IDD: strong growth in BusinessObjects XI balanced the decline of older product lines More customers buying integrated BI solutions Maintenance revenues of $144 million, up 32% (+25% CC*) Very high renewal rates Continued success in up-selling premium maintenance packages Addition of deferred revenue from 2006 acquisitions Global services revenues of $53 million, up 21% (+12% CC*) Engaged on higher value-added assignments Better performance in EMEA Balancing expansion with profitability in 2007 * Growth in constant currencies

Americas: $173M (+18%) Key drivers: mid-market growth and up-selling of EPM and EIM EMEA: $137M (+22%; +11% CC*) Key drivers: increased migrations to BusinessObjects XI and product cross-selling APJ: $24M (+27%) Key drivers: investing for strong demand Americas EMEA APJ Revenue 173 137 24 Double-Digit Growth in All Geographies in Q1 * Growth in constant currencies.

First Quarter 2007 Expense Analysis Strength of maintenance and improved services margins drove gross margin +210bps improvement in Non-GAAP operating margin driven by higher gross margin and better sales productivity US GAAP operating margin negatively impacted by $26M non-cash reserve $ Dollars in Millions

Total Cash and Investments $637M Deferred Revenues $341M Total Assets $2.6B DSO 83 days As of March 31, 2006 Strong Balance Sheet Total cash and investments at $637M, up $125M from Dec. 31, 2006 Deferred revenues at to $341M, up $47M from Dec. 31, 2006 DSOs remained consistent with seasonal patterns at 83 days

FY 2007 Guidance Assumptions: US GAAP diluted EPS are expected to include approximately $51 million of stock based compensation expense, approximately $48 million of amortization of intangible assets and a $26 million non-cash legal reserve, which would impact EPS by approximately $1.03 per share, after tax effect. US Dollar to Euro exchange rate of $1.34 per €1.00 & U.S. Dollar to Canadian Dollar exchange rate of $0.88 US GAAP tax rate of 43% and a non-GAAP tax rate of 33% Fiscal 2007 Financial Guidance FY 2007 Guidance Total Revenue range $1.415B - $1.435B US GAAP Diluted EPS range $0.91 - $1.01 Non-GAAP Diluted EPS range $1.94 - $2.04

Q2 2007 Guidance Assumptions: US GAAP diluted EPS are expected to include approximately $12 million of stock based compensation expense and approximately $12 million of amortization of intangible assets, which would impact EPS by approximately $0.21, after tax effect. US Dollar to Euro exchange rate of $1.34 per €1.00 & U.S. Dollar to Canadian Dollar exchange rate of $0.88 US GAAP tax rate of 43% and a non-GAAP tax rate of 33% Second Quarter 2007 Financial Guidance Q2 2007 Guidance Total Revenue range $345M - $350M US GAAP Diluted EPS range $0.21 - $0.24 Non-GAAP Diluted EPS range $0.42 - $0.45

The BI Market is at an Inflection Point Significant opportunities ahead for Business Objects Market demand for BI remains very robust A top priority for CIOs: #1 in 2007 * vs. #14 in 2002 ** BI also becoming a top priority for CFOs The pending acquisition of Cartesis considerably strengthens our solution and positioning for the office of the CFO BI becomes available to more and more end-users Customers need open, scaleable, broad solutions * Source: Gartner, Inc. Gartner Executive Programs, January 2007, Creating Enterprise Leverage: The 2007 CIO Agenda, Mark P. McDonald, et al, 1 February 2007 ** Source: Gartner, Inc. Gartner Executive Programs, March 2004, Preparing for the Upswing: The 2004 CIO Agenda, Marcus Blosch, et al, 1 March 2004

Why We Win The category innovator and leader Uniquely positioned to lead the BI market OPEN neutral to all OS, DBs, MWs and applications BROAD end-to-end BI from data quality to financial applications INTEGRATED one single platform, BusinessObjects XI Global distribution, services and support capacity Solution selling approach Offer targeted at both enterprise and mid-market segments Reach extended to line of business executives, notably the CFO

Solution Selling and Customer Success Customers increasingly demand all 3 elements of our BI solution Multiple executives buy our product: CIOs, line of business executives, CFOs Each category of buyers requires an end- to-end solution Our solution selling strategy is working Deals are getting larger and more strategic to customers Numerous transactions involve multiple BI elements Over 1,200 new customers in Q1 2007 to more than 43,000 worldwide EPM IDD EIM Business Solution for CFOs/LOB Executives IT Solution for CIOs

Constant Innovation Constant innovation is the key to our success Launch of BusinessObjects XI Release 2 Productivity Suite New search features New OLAP interface New version of Live Office New Query as a Web Service Mobile BI Introduction of Business Objects Crystal Decisions Targeted at specific needs of mid-market customers Standard Edition launched in Q1 2007 Professional and Premium Editions expected to roll out later in 2007 All features of the BusinessObjects XI platform expected to be available to mid-market soon Support for the developer community Launch of Business Objects Open Appliance Initiative Continued success with crystalreports.com Winner of 2007 SIIA Codie Award

Scorecards & Analytics Cost & Profitability Management Financial Reporting & Consolidation Financial Governance, Risk & Compliance Planning & Budgeting ? ? ? (group) ? ? ? (division) ? ? ? ? ? Business Objects Cartesis Combined Business Objects and Cartesis combined deliver the most comprehensive and powerful performance management solution available Standards-based and independent of transactional and other operational data systems Business Intelligence Platform ? ? Acquisition of Cartesis Creating the Performance Management Leader

Growth Strategies for 2007 and Beyond Lead in Open End-to-End BI Expand Global Services Gain Share in the Mid-Market Further Extend Global Sales Innovate with New Business Models, such as BI OnDemand Open End-to-End BI Global Services Global Expansion New Business Models Mid-Market

Confidence in Business Performance Q1 2007 was a solid quarter The team delivered on the goals we established The BI market has reached an inflection point All levels of organizations use BI as daily window on operations BI solutions used to align execution with strategic goals and budgets Solid strategies in place for continued growth Focus on continued margin expansion in 2007

Questions & Answers Earnings Conference Call April 25, 2007