Vignette Corporation Announces Record Fourth Quarter Results
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Tuesday January 25, 4:05 pm Eastern Time
Company Press Release
SOURCE: Vignette Corporation
Vignette Corporation Announces Record Fourth Quarter Results
Quarterly Revenue Increases 512% Year-Over-Year, and 69% Sequentially Quarter-to-Quarter
AUSTIN, Texas, Jan. 25 /PRNewswire/ -- Vignette Corporation (Nasdaq: VIGN - news) today announced that for the quarter ended December 31, 1999, total
revenues increased 512% to $40.9 million from revenues of $6.7 million for the same period in 1998. Loss from core operations for the fourth quarter, excluding
acquisition-related charges, amortization of deferred stock compensation and amortization of intangibles was $2.7 million or $(.05) per share, compared to $7.6
million or $(.20) per share for the same period in 1998. Reported net loss for the quarter was $5.6 million or $(.10) per share, compared to a net loss of $9.2 million
or $(.24) per share, for the same period in 1998.
For the twelve months ended December 31, 1999, total revenues were $89.2 million, a 450% increase over total revenues of $16.2 million for the same period in
1998. Reported net loss for the twelve months ended December 31, 1999 was $42.5 million compared to a net loss of $26.2 million for the same period in 1998.
In an effort to provide a comparison with analyst models, the net loss per share figures above have been presented on a pro forma basis, as if all preferred shares
were converted to common shares at the time of issuance.
``1999 was a phenomenal year for Vignette and placed the Company as the fastest growing enterprise software company ever,' said Greg Peters, president and
CEO, Vignette Corporation. ``This achievement reinforces the market acceptance of our leading e-business applications and is the result of superior execution by an
incredibly energized workforce focused on the success of our customers.'
FOURTH QUARTER 1999 HIGHLIGHTS
Record Customer Orders
A record 125 new customers chose Vignette during the fourth quarter, raising the company's total customer base to 518. New customers included a broad range of
high profile companies including Salomon Smith Barney, Credit Suisse, Dain Rauscher Wessels, United Airlines, ICQ Inc. (a division of AOL), Siemans Business
Services, itworld.com (an IDG company), Telefonica, Southwestern Bell, Lexmark-Europe, Harrods Limited, Buena Vista Internet Group (a subsidiary of Disney),
Shell Services International, and Volkswagon of America, Inc.
The Company also realized significant orders from existing customers including: British Telecom, Datakom (Austria's Telecom), Deutsche Telecom, Nokia (Europe),
Qualcomm Inc., Charles Schwab & Co., First Union Corporation, MONY Life Insurance Co., Paine Webber, CBS Broadcasting Inc., Encyclopaedia Brittannica,
Headland Digital Media, iWon, Inc., Time Inc., Turner Entertainment Group, Compaq Computer Corporation, Ingram Micro, Inc., Tpuppy.com, United
Healthcare, Volvo, and Phone.com.
Release of Vignette StoryServer 5.0
As expected, the next release of the Company's flagship product, StoryServer 5.0, shipped in December. StoryServer 5.0 is built on an open architecture that has
been significantly enhanced and tuned to meet the increased security, scalability, flexibility, and performance needs of enterprise level customers. This release extends
Vignette's lead in delivering best of class e-business applications to it customers.
Secondary Public Offering
On December 9, 1999, Vignette Corporation completed a Secondary Public Offering in which the company sold approximately 2.2 million shares of common stock.
The net proceeds raised by the Company during the offering totaled approximately $356 million.
System Integrators, Solution Providers, and Technology Partners
On October 25, 1999, Vignette announced a strategic alliance with Computer Sciences Corporation (NYSE: CSC - news), one of the top ten Internet consultants
worldwide. As part of the alliance, CSC will train more than 200 of its consultants on Vignette's product suite, leverage a competency center to showcase best
practices in e-business solutions using Vignette's technology, and offer co-developed solutions piloting future practices in the evolving world of online financial
services.
On November 1, 1999, the Company formed a strategic alliance with PricewaterhouseCoopers LLP. The relationship combines Vignette's e-business application
platform with PricewaterhouseCooper's proven experience in customer relationship management, e-business strategy, and process and technology consulting. By
implementing industry specific solutions, the Company's joint clients will be able to better manage customer relationships through the internet and generate a
measurable return on investment.
During the quarter, the Company also formed relationships with several solution providers and technology partners including Janna Systems, Net Perceptions,
OnDisplay, Idiom, RogueWave and Mission Critical Software.
Recent Acquisitions and Strategic Investments
On October 25, 1999, Vignette announced an exclusive, strategic partnership with Vitessa Corporation (formerly EC Direct), and concurrently invested
approximately $23 million in the Company. The Vitessa-Vignette solution is the only distributed e-commerce and e-relationship solution that extends Vignette's
e-business application capabilities significantly.
On January 10, 2000, the Company announced it signed a definitive agreement to acquire DataSage, Inc., the leading provider of e-marketing and personalization
applications that help organizations create a comprehensive single enterprise-wide view of their customers. The acquisition will allow Vignette to add important
e-marketing capabilities to its e-business applications. Customers will be able to analyze extensive purchase and click-stream data in real-time to increase the
success of targeted marketing efforts by dynamically adjusting offers through e-mail campaigns, direct mail and site personalization.
On January 11, 2000, the Company announced the acquisition of Engine 5, Ltd., a pioneer in enterprise-wide Java server technology. The Engine 5 team will
spearhead the Company's development of EJB and J2EE technologies. This acquisition will significantly broaden the Company's transaction and e-commerce
capabilities and further expand the Company's leadership position in the e-business applications market.
Special Shareholders Meeting
On January 24, 2000, the Board of Directors approved an increase in its authorized capital stock from 80 million to 500 million shares. Stockholder approval of the
increase will be sought at a special meeting of the company's stockholders, which has been scheduled for March 14, 2000 (for which the record date shall be
February 10, 2000). Each of these dates is subject to the timing of any review by the Securities and Exchange Commission of proxy materials for the special
stockholders' meeting.
About Vignette Corporation
Vignette Corporation is the leading supplier of e-business applications for building online businesses. Vignette enables Internet businesses to reach more prospects,
attract and retain new customers, increase overall customer satisfaction and raise the total purchase per visit. Vignette powers more than 500 of the leading dot.com
and Fortune 500 e-businesses, including AT&T, BMW, CBS Broadcasting, c/net, Daimler/Chrysler, Drug Emporium, FedEx, Kinko's, Simon & Schuster, Sprint,
Tandy Corporation, United Airlines and Waste Management. Vignette e-business applications transparently automate the customer's side of the interaction, taking
away all the anxiety and work involved in being a customer. Headquartered in Austin, Texas, Vignette Corporation has offices located throughout Europe and in
Australia and can be found on the Web at vignette.com .
The statements contained in this earnings release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. Forward-looking
statements include statements regarding future sales, market growth, and competition. All forward-looking statements included in this earnings release are based
upon information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statement. Actual
results could differ materially from the Company's current expectations. Factors that could cause or contribute to such differences include, but are not limited to,
Future Losses, Limited Operating History, Fluctuation of Quarterly Revenues and Operating Results, Competition, Dependence on a Small Number of Large
Orders, Lengthy Sales Cycle and Product Implementation, Market Awareness of Our Product, Rapid Changes in E-Relationships Technology and New Products,
and other factors and risks discussed in the Company's Registration Statement on Form S-1, as amended and filed with the Securities and Exchange Commission
and any reports filed from time to time with the Securities and Exchange Commission.
NOTE: StoryServer, Vignette Syndication Server, VSS, Vignette Development Center, VDC, Vignette Multi-Channel Server and Vignette are trademarks of
Vignette Corporation. All other names and terms in this release are trademarks or registered trademarks of their respective companies.
VIGNETTE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $402,229 $12,242
Accounts receivable, net 45,065 7,488
Prepaid expenses and other 5,588 390
Total current assets 452,882 20,120
Property and equipment, net 11,059 1,754
Investments 28,011 --
Intangibles, net 20,467 --
Other assets 2,311 907
Total assets $514,730 $22,781
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses $31,074 $8,090
Deferred revenue 44,846 6,092
Current portion of long-term debt
and capital lease 254 1,902
Other current liabilities 1,497 279
Total current liabilities 77,671 16,363
Long-term debt and capital lease,
less current portion -- 758
Total liabilities 77,671 17,121
Redeemable convertible preferred stock -- 36,258
Warrants -- 169
Stockholders' equity (deficit) 437,059 (30,767)
Total liabilities and stockholders'
equity (deficit) $514,730 $22,781
VIGNETTE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
(Unaudited)
Revenue:
Product license $21,730 $3,432 $46,292 $8,584
Services 19,212 3,262 42,893 7,621
Total revenue 40,942 6,694 89,185 16,205
Cost of revenue:
Product license 1,376 454 3,306 964
Services 13,520 3,761 33,488 9,340
Total cost of revenue 14,896 4,215 36,794 10,304
Gross profit 26,046 2,479 52,391 5,901
Operating expenses:
Research and development 6,216 2,122 16,447 6,962
Sales and marketing 20,740 6,482 49,559 15,880
General and administrative 3,508 1,413 9,494 4,864
Charge for purchased in-process
research and development,
acquisition-related,
and other charges 458 -- 15,641 2,089
Amortization of deferred
stock compensation 1,536 1,608 5,654 2,475
Amortization of intangibles 898 -- 1,796 --
Total operating expenses 33,356 11,625 98,591 32,270
Loss from operations (7,310) (9,146) (46,200) (26,369)
Other income (expense), net 1,684 (32) 3,723 172
Net loss $(5,626) $(9,178) $(42,477) $(26,197)
Pro forma basic and diluted
net loss per share (2) $(0.10) $(0.24) $(0.84) $(0.73)
Shares used in computing
pro forma basic and diluted
net loss per share (2) 54,316 37,651 50,304 35,808
Supplemental Data (1) (2):
Adjusted net loss applicable
to common stockholders (1) $(2,734) $(7,570) $(19,386) $(21,633)
Adjusted pro forma basic
and diluted net loss
per share (2) $(0.05) $(0.20) $(0.39) $(0.60)
Shares used in computing
pro forma basic and diluted
net loss per share (2) 54,316 37,651 50,304 35,808
(1) Excludes charges for amortization of deferred stock compensation, amortization of intangibles, purchased in-process research and development,
acquisition related, and integration charges.
(2) Pro forma assumes the conversion of redeemable convertible preferred stock and convertible preferred stock into an equivalent number of common stock
at the time of issuance.
SOURCE: Vignette Corporation |
