IWOV kills earnings predictions****
Interwoven Q1 2000 Revenues up 562% -- Significantly Exceeding Expectations, 80 New Customers Added
Leadership Position in Enterprise-Class Content Management Confirmed with International Acceleration, Channel Influence, Expanded Service Capacity and Product Advancements
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 18, 2000-- Interwoven, Inc. (Nasdaq:IWOV - news), the leading provider of enterprise-class Web content management software, today reported strong first quarter results, with revenues for the quarter ended March 31, 2000 of $13.9 million, an increase of 562% over revenues of $2.1 million for the quarter ended March 31, 1999 and a 85% sequential increase over revenues of $7.5 million for the quarter ended December 31, 1999. Interwoven signed 80 new license customers in the quarter ended March 31, 2000 which brings the total count to 255. License revenues represented 68%, and service revenues were 32%, of the total revenues for the quarter ended March 31, 2000.
The net loss before the effect of non-cash charges related to stock-based compensation and acquisition related expenses was $2.2 million, or $0.10 per share on a pro forma basic and diluted basis, for the quarter ended March 31, 2000, compared with $2.1 million, or $0.15 per share on a pro forma basic and diluted basis, for the quarter ended March 31, 1999.
``This has been an spectacular quarter for Interwoven especially in terms of revenue growth, partnerships and international acceleration,' said Martin Brauns, president and CEO of Interwoven. ``Once again, we have exceeded expectations in all areas of our business. It has become clear that Interwoven is the enterprise-class Web content management leader.'
Q1 Highlights
Customers
Interwoven signed 80 new license customers in the quarter ended March 31, 2000. New customers included Akamai, AOL Moviephone, AOL Spinner.com, Commerce One, Compaq, CMGI, Conde Nast Publishing, HFC Bank, Martha Stewart Living Omnimedia, Procter & Gamble, Red Herring, Royal Bank of Scotland, Veritas Software, Western Digital and the Weatherchannel.com. With these additions, Interwoven's total customer count is 255.
Products
In late Q1, Interwoven also began shipping version 4.2 of all its products. TeamSite 4.2, its flagship product, enables organizations to accelerate their Web initiatives with an inclusive content architecture that supports all Web assets: database, file system and application code. It also includes an easy-to-use workflow engine, new workflow GUI and improvements in high-availability. TeamSite Templating 4.2 now makes it even easier to separate form from content, to re-use content across Web sites and to deliver dynamic Web pages by combining content elements from file systems and databases. Interwoven OpenDeploy 4.2 now supports the Linux and HP-UX platforms.
Partners
The Interwoven UltraTeam Partner Program added 40 new partners in the first quarter of 2000, bringing the total to 85.
-- New technology partners included AvantGo, Bowstreet, Delano,
Ecliptic, eTranslate, FileNET, kCommerce/Inference, LUZ, MediaWay,
Network Appliance, Plumtree, Radnet, Uniscape and XYAN.
-- New consulting partners included BlueStone Consulting, Citrix
Consulting, CMGI Solutions, Critical Mass, Destiny, DVCi,
Emerging.com, Fusive.com, Interflow Systems Consulting, KPMG
Consulting, Mediatrope, Nexgenix, Patni Computer Systems, PCSI,
Primeon, Sierra Systems and XUMA.
-- New international partners included Arcadia, Cell Networks, CSC,
DCS e-Integration, e-Tree, Frontec, and P A Consulting.
-- 187 outside consultants were trained on Interwoven products during
the quarter.
International
Eleven new International customers were added in the quarter ended March 31, 2000, including BP Amoco, Conde Nast Publishing, CSC, HFC Bank, Royal Bank of Scotland and Scotland Online. During this quarter, Interwoven added its first Italian customer -- Banco Nazionali de Lavorno (BNL) Multiservizi and its first Brazilian customer -- Idealize Participacoes. Interwoven opened international sales and services offices in Singapore, Tokyo and Munich, Germany.
About Interwoven
Interwoven, Inc. (Nasdaq:IWOV - news) is the leading provider of enterprise-class Web content management software. Its flagship product, TeamSite, controls the development, management and deployment of business-critical Web sites. Interwoven solutions are based on an inclusive content architecture that empowers all content contributors and leverages diverse Web assets including XML, Java, rich html, multimedia and database content. TeamSite is available for both the Sun Solaris operating system and Microsoft Windows platform. For more information on the company and its software solutions, visit the Interwoven Web site at www.interwoven.com or e-mail info@interwoven.com.
This press release contains ``forward-looking' statements, including projections about Interwoven's business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements including words such as ``expect', ``plan', ``estimate', ``anticipate' or ``believe,' are forward-looking statements. These statements are based on information available to the Company at the time of the release; the Company assumes no obligation to update any of them. The statements in this release are not guarantees of future performance and actual results could differ materially from the Company's current expectations as a result of numerous factors, including the Company's limited operating history, which makes it difficult to predict the Company's performance, the unproven nature of the Company's market and customer acceptance of the Company's products, and special difficulties associated with international expansion. These and other risks and uncertainties associated with the Company's business are detailed in the Company's registration statement on Form 10-K filed March 31, 2000, which is on file with the SEC and available through www.sec.gov.
INTERWOVEN, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, Dec. 31,
2000 1999
Assets (unaudited) (audited)
Current assets:
Cash and cash equivalents $ 49,884 $ 10,983
Short-term investments 111,887 44,665
Accounts receivable, net of allowance for
doubtful accounts of $275 and $288,
respectively 12,081 5,158
Prepaid expenses and other current assets 1,697 1,346
-------- --------
Total current assets 175,549 62,152
Investments 63,966 16,464
Property and equipment, net 4,230 3,145
Intangible assets, net 365 416
Restricted cash 605 605
Other assets 149 297
-------- --------
$244,864 $ 83,079
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,328 $ 834
Accrued liabilities 8,624 4,966
Deferred revenue, current 8,628 1,939
-------- --------
Total current liabilities 18,580 7,739
Stockholders' equity 226,284 75,340
-------- --------
$244,864 $ 83,079
======== ========
INTERWOVEN, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
March 31,
2000 1999
(unaudited)
Revenues:
License $ 9,388 $ 1,360
Services 4,472 742
-------- --------
Total revenues 13,860 2,102
Cost of revenues:
License 66 15
Services 4,654 549
-------- --------
Total cost of revenues 4,720 564
-------- --------
Gross profit 9,140 1,538
-------- --------
Operating expenses:
Research and development 2,208 779
Sales and marketing 9,669 2,287
General and administrative 1,960 598
Amortization of deferred stock-based
compensation 833 640
Amortization of acquired intangible assets 52 --
-------- --------
Total operating expenses 14,722 4,304
Loss from operations (5,582) (2,766)
Interest and other income (expense), net 2,537 65
-------- --------
Net loss (3,045) (2,701)
======== ========
Accretion of mandatorily redeemable
convertible preferred stock to redemption
value -- (2,126)
-------- --------
Net loss attributable to common stockholders ($ 3,045) ($ 4,827)
======== ========
Basic and diluted net loss per share ($ 0.14) ($ 1.47)
======== ========
Shares used in computing basic and diluted
net loss per share 21,745 3,278
======== ========
Pro forma basic and diluted net loss per
share(a) ($ 0.14) ($ 0.20)
======== ========
Shares used in computing pro forma basic and
diluted net loss per share(a) 21,745 13,499
======== ========
Supplemental information(b)
Historical net loss ($ 3,045) ($ 2,701)
Add back certain non-cash and acquisition
charges:
Amortization of deferred stock-based
compensation 833 640
Amortization of intangible assets 52 --
-------- --------
Total add back 885 640
Supplemental net loss excluding certain
non-cash and acquisition related charges ($ 2,160) ($ 2,061)
Pro forma basic and diluted net loss per
share(a) ($ 0.10) ($ 0.15)
======== ========
Shares used in computing pro forma basic and
diluted net loss per share(a) 21,745 13,499
======== ========
(a) Pro forma net loss per share is computed using the weighted
average number of shares of Common Stock outstanding, including
the pro forma effects of the exercise of warrants to purchase
Series B and Series E Preferred Stock and the conversion of all of
the Company's Preferred Stock into shares of the Company's Common
Stock as if such conversion occurred at the beginning of the
period, or at the date of issuance, if later.
(b) The accompanying supplemental financial information is presented
for informational purposes only and should not be considered as
substitute for the historical financial information presented in
accordance with accounting principles generally accepted in the
United States.
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