Interwoven Announces Strong Q3 Results
Wednesday October 20, 4:07 pm ET
Pro Forma Profitability Doubles Sequentially; 89 New Customers Added
SUNNYVALE, Calif., Oct. 20 /PRNewswire-FirstCall/ -- Interwoven, Inc. (Nasdaq: IWOV - News), provider of Enterprise Content Management (ECM) solutions for business, today announced strong financial results for the quarter ended September 30, 2004.
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Interwoven reported total revenues of $40.3 million for the third quarter of 2004, an increase from the $39.5 million posted in the quarter ended June 30, 2004, and an increase of 54 percent from total revenues of $26.1 million for the same period last year. Net loss for the third quarter of 2004, calculated in accordance with generally accepted accounting principles, was $2.6 million, or $0.06 per share, compared to a net loss of $18.8 million, or $0.71 per share, for the same period last year. On a pro forma basis, Interwoven reported net income of $1.5 million for the third quarter of 2004, or $0.04 per share compared to a pro forma net loss of $4.4 million, or $0.17 per share, in the third quarter last year. Pro forma net income (loss) excludes amortization of stock-based compensation and intangible assets, restructuring adjustments and the related tax impact of these items.
For the nine months ended September 30, 2004, Interwoven reported total revenues of $117.2 million, an increase of 50 percent from the $77.9 million for the same period last year. Net loss for the nine months ended September 30, 2004, calculated in accordance with generally accepted accounting principles, was $25.2 million, or $0.62 per share, compared to a net loss of $35.1 million, or $1.36 per share, for the same period last year. On a pro forma basis, Interwoven reported net income of $1.6 million for the nine months ended September 30, 2004, or $0.04 on a per share basis, compared to a pro forma net loss of $15.8 million, or $0.61 per share, last year. Pro forma net income (loss) excludes restructuring adjustments, amortization of stock- based compensation and intangible assets, a charge for in-process research and development in 2003 and the related tax impact of these items.
A reconciliation of net loss calculated in accordance with generally accepted accounting principles and pro forma net income (loss), is provided in the tables immediately following the consolidated statements of operations below. These pro forma measures are not in accordance with, or an alternative for, similar measures calculated in accordance with generally accepted accounting principles and may be different from pro forma measures used by other companies. Interwoven believes that the presentation of pro forma results provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Readers of Interwoven's consolidated financial statements are advised to review and carefully consider the financial information prepared in accordance with generally accepted accounting principles contained in this press release and Interwoven's periodic filings with the Securities and Exchange Commission.
"Q3 was an extremely strong quarter for Interwoven as we more than doubled our pro forma profits from last quarter," said Martin Brauns, chairman and CEO of Interwoven. "During a seasonally difficult quarter, Interwoven delivered impressive results, reaffirmed our position as a leading provider of ECM solutions for business, added many notable companies to our solid customer roster, and expanded relationships with existing customers who continue to extend their investment in our complete ECM platform. I look forward to continuing our positive momentum throughout Q4 and into 2005."
Customer Momentum
Interwoven continued its momentum in the third quarter with 89 new customers. Today, more than 3,000 enterprises and professional services organizations worldwide are using Interwoven solutions.
New customers selecting Interwoven ECM solutions for business in the third quarter include: Amtrak; A&E Television Networks; Entercom Communications; Masonite; XRoads Solutions Group; the City of San Antonio; and Frank, Rimerman & Co. LLP, a leading provider of accounting and consulting services. New customer growth in the legal vertical market continued worldwide as Interwoven added new firms and corporate legal departments, including Segal McCambridge Singer & Mahoney Ltd; Gomez-Acebo & Pombo; Cassels Brock & Blackwell LLP; Webber Wentzel Bowens, a leading full-service law firm in South Africa; and, Wragge & Co. LLP, a leading UK-based law firm. As a result, Interwoven now has more AmLaw 200 firms (the definitive ranking of the largest American law firms) as customers than any other ECM vendor. These leading law firms have adopted Interwoven WorkSite software for document management and collaboration.
In the quarter, Interwoven also received new orders from existing customers including: Royal Caribbean Cruises; Adobe; Adidas-Salomon; Howard Hughes Medical Institute; Federal Express; Allstate Insurance; Library of Congress; Walt Disney Company; Phillip Morris International; BP Oil; British Telecom; Troutman Sanders LLP; Chaffe, McCall, Phillips, Toler & Sarpy, LLP; Fujitsu Limited; Intesa Mediofactoring in Italy; Konica Minolta in Japan; and Queensland Department of Employment in Australia.
Customers are continuing to invest in the complete Interwoven ECM platform. For example, ABN AMRO, a long-time Interwoven TeamSite customer in Europe, has expanded its Interwoven implementation with the purchase of Interwoven WorkSite MP software, a leading document management and collaboration solution. And, Visa International expanded its implementation with the purchase of MediaBin software.
ECM Solutions and Industry Leadership
Interwoven ECM solutions for business unify people, content and processes to better enable organizations to minimize business risk, accelerate time-to- value and sustain lower total cost of ownership. Interwoven provides content- rich solutions designed to solve critical business challenges for departments, enterprises, or industries including: Document Management, Collaboration, Web Content Management, E-mail Management, Intranets, Digital Asset Management, and Records Management.
Throughout the quarter, Interwoven continued to extend its ECM technology
leadership in a number of different solution and product areas:
-- Records Management Solution -- Interwoven announced the acquisition of
the assets of Software Intelligence, Inc., a leading provider of
records management (RM) systems. Software Intelligence's comprehensive
RM product has been renamed Interwoven Records Manager software, and is
enabling companies to manage paper documents, electronic documents and
e-mail under a single unified records system. Although the transaction
closed in mid-August, the integration work is already complete, and
Interwoven closed several RM deals in the third quarter, including
Jeffer, Mangels, Butler & Marmaro, an AmLaw 200 law firm.
-- Marketing Content Management Solution -- Interwoven continued to
increase momentum for its Marketing Content Management (MCM) solution
with new functionality, usability and performance enhancements to
MediaBin Asset Server 4.5, the company's industry-leading Digital Asset
Management (DAM) system. Already in use by global marketers such as
General Mills and Reebok, the Interwoven MCM solution enables companies
to speed time-to-market, increase brand equity and improve marketing
efficiency.
-- E-mail Management Solution -- Interwoven announced that it has extended
its market-leading E-mail Management solution to support businesses
using Lotus Notes. The new E-mail Management solution for Notes is an
addition to already available solutions for Microsoft Outlook. The
Interwoven E-mail Management solution is based on Interwoven Worksite 8
software, and offers relief to organizations challenged with addressing
records retention policies and removing the risks created by e-mail and
documents disassociated and split between multiple repositories.
-- Enterprise Web Content Management Solution -- Interwoven introduced the
availability of TeamSite for the Linux platform. Powering the
industry's most advanced enterprise-class Web Content Management
solution, TeamSite joined Interwoven OpenDeploy and Interwoven WorkSite
MP software on the Linux platform, making Interwoven the only ECM
vendor with a full suite of products available on Linux. The initial
release of TeamSite for Linux helps enable organizations to achieve a
lower total cost of ownership for departmental solution deployments
such as employee self-service, portals and intranets.
Awards/Accolades
Interwoven continued to demonstrate market traction with several industry
awards and accolades.
-- Gartner ECM Magic Quadrant -- Today it was announced that Interwoven is
positioned in the Leaders Quadrant of Gartner, Inc.'s first Enterprise
Content Management Magic Quadrant. Interwoven was recognized by Gartner
for its full ECM suite, solutions focus, and strong understanding of e-
mail management.
-- Law Office Computing Readers' Choice Awards -- Interwoven announced
that it has been named the top document management solution by the
readers of Law Office Computing Magazine in its 10th Annual Readers'
Choice Awards. The awards honor the most useful legal technology
products.
-- e-LOTIES Awards -- As further recognition of its pioneering work in
delivering leading document management, e-mail management and matter-
centric collaboration solutions to the legal industry, Interwoven was
awarded two prestigious e-LOTIES (Legal Office Technology Innovation)
awards. The annual e-LOTIES awards recognize companies in the UK for
the latest innovations in e-commerce, knowledge management and Web-
based technology for the legal sector. Members of the UK legal
community voted Interwoven the industry's Best KM/Information Portal
Supplier and Best E-mail Management System.
-- CIO Magazine Agile 100 -- Interwoven announced that many of its
customers across diverse industries have been selected for the CIO
Magazine Agile 100, which lists those organizations best able to
combine IT agility with business agility to adapt to rapidly changing
business conditions. Interwoven is helping to enable this agility for
many of its customers today.
-- Software 500 -- Interwoven was recognized by Software Magazine as one
of the largest software companies in the publication's 22nd annual
Software 500 listing.
Partners
In Q3, Interwoven continued to drive business through the channel as well
as strengthen strategic alliances.
-- OEM & VAR Partners -- Interwoven OEM and VAR partners continued to
build new and innovative solutions leveraging WorkSite MP, Interwoven's
Document Management and Collaboration offering. As the convergence of
both structured and unstructured content continues to gain momentum,
independent software vendors (ISVs) are finding that they must manage
the unstructured content lifecycle around documents, correspondence,
and ad-hoc communications. WorkSite MP continues to offer ISVs the most
compelling platform for building solutions through an expanded set of
application programming interfaces, enhanced configuration and data
modeling tools, and new compliance and records management features.
-- Kofax and BCS Systems -- Interwoven announced that it has teamed with
Kofax, the world's largest information capture vendor, and BCS Systems,
a leading systems integration specialist, to offer an integrated
enterprise information capture and Document Management and
Collaboration solution to customers worldwide. BCS' Advanced Capture
integrates Interwoven's WorkSite MP Server and Kofax's Ascent Capture
platform with customer application data and transactions to enable
enterprises to dramatically reduce the cost and complexity of capturing
and organizing mission-critical business information.
Company
Interwoven added key industry leaders to its senior management team during
the quarter.
-- David Nelson-Gal, formerly vice president of software engineering at
Sun Microsystems, joined Interwoven as senior vice president of
engineering. A highly respected development executive with a long and
successful track record, David is in charge of spearheading the day-to-
day operations of Interwoven's worldwide engineering teams, enabling
Rafiq Mohammadi, CTO of Interwoven, to focus on the long-term direction
of Interwoven's architecture and solutions.
-- Hiroyasu Sugimoto joined Interwoven as the managing director of
Interwoven Japan. Hiroyasu-san brings a wealth of experience to
Interwoven with more than 20 years in business development, consulting,
and operational management roles, and most recently served as
Documentum's managing director over the last three years.
Conference Call Information
Interwoven's third quarter results and its business outlook for the fourth quarter of 2004 will be discussed today, October 20, 2004 at 2:00 p.m. PT (5:00 p.m. ET).
Live Dial-in #: (913) 981-5592
Replay #: (719) 457-0820 or (888) 203-1112
Replay Passcode #: 814409
Audio Webcast instructions will be available on Interwoven's Website at: interwoven.com. The call replay will be available starting October 20, 2004 (5:00 p.m. PT) through October 26, 2004.
About Interwoven
Interwoven, Inc., provider of Enterprise Content Management solutions for business, enables organizations to unify people, content and processes to minimize business risk, accelerate time-to-value and sustain lower total cost of ownership. Interwoven delivers deep industry-specific solutions which reduce business process cycle time from initial collaboration through design, production, sales, marketing, legal review, IT and service. Interwoven leads the industry with a service-oriented architecture today and easy-to-use, best- in-class components and solutions. Today, more than 3,000 enterprises, law firms and professional services organizations worldwide are Interwoven customers including British Telecom, Ford, Freshfields Bruckhaus Deringer, General Motors, Jones Day, Motorola and Yamaha. Interwoven is headquartered in Sunnyvale, Calif., with offices around the world. For more information visit www.interwoven.com. |
