7/18...IWOV Announces Record Second Quarter Revenue -- Up 738%
108 New Blue-Chip Customers Added During the Quarter
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 18, 2000--Interwoven, Inc. (Nasdaq:IWOV - news), the leading provider of enterprise-class content management software, today reported record second quarter results, with revenues for the quarter ended June 30, 2000 of $24.3 million, an increase of 738% over revenues of $2.9 million for the quarter ended June 30, 1999 and a 75% sequential increase over revenues of $13.9 million for the quarter ended March 31, 2000. License revenues represented 64%, and service revenues were 36%, of the total revenues for the quarter ended June 30, 2000. Interwoven signed 108 new license customers in the quarter ended June 30, 2000 bringing the total count to 363.
The net loss before the effect of non-cash charges related to stock-based compensation and acquisition-related expenses was $755,000, or $0.02 per share on a pro forma basic and diluted basis, for the quarter ended June 30, 2000, compared with $2.5 million, or $0.09 per share on a pro forma basic and diluted basis, for the quarter ended June 30, 1999.
For the six-month period ended June 30, 2000, revenues were $38.1 million, a 662% increase over revenues of $5.0 million for the comparable period in 1999. The net loss before the effect of non-cash charges related to stock-based compensation and acquisition expenses was $2.9 million, or $0.07 per share on a pro forma basic and diluted basis, for the six months ended June 30, 2000, compared with $4.6 million, or $0.16 per share on a pro forma basic and diluted basis, for the six month period ended June 30, 1999.
``We were recently named the fastest growing software company in Silicon Valley and that was before our fantastic Q2 results,'' said Martin Brauns, president and CEO of Interwoven. ``Our rapid increases in our worldwide sales and professional services staff, augmented by our highly effective partner channel and our continued international traction have all contributed to our tremendous success this quarter.''
Stock Split
On June 1, 2000 the Company's Board of Directors effected a two-for-one stock split of the outstanding shares of Common Stock. These shares were distributed on July 14, 2000.
Q2 Highlights
Customers
Interwoven signed 108 new license customers in the quarter ended June 30, 2000. New customers included General Motors Corporation, John Deere and Co., Eli Lilly, Perkin Elmer, Rockwell Power, Sutter Health, The Mayo Clinic, Lucent Technologies, Texas Instruments, Nextel Communications, Fleet Credit Card Services, Oppenheimer Funds, The Vanguard Group, US Bancorp, Target Stores and Payless Shoe Source. With these additions, Interwoven's total customer count was 363 at quarter end.
International
19 new international customers were added in the quarter ended June 30, 2000, including British Airways, China eNet, Financial Times PFD, Glaxo Welcome, Hong Kong Shanghai Bank (HSBC), Qantas Airways, Sony Computer, Taiwan Semiconductor (TSMC) and Zurich Insurance. Interwoven solutions have now been sold into 15 countries. Interwoven opened international sales and services offices in Amsterdam, Hong Kong and Toronto, which brings its international office count up to eight (Amsterdam, Hong Kong, London, Munich, Singapore, Sydney, Tokyo and Toronto).
Products
In May, Interwoven announced the availability of TeamSite for the Windows 2000 platform.
In June, Interwoven and Microsoft announced the beta release of Content Express for Microsoft Commerce Server 2000, Interwoven's entry-level content management solution designed specifically for Microsoft's new eCommerce server, also in beta.
Acquisition of Neonyoyo
On July 11, 2000 Interwoven announced its agreement to acquire wireless software start-up Neonyoyo to support Interwoven's strategy to accelerate time to wireless Web for its blue-chip customer base. For more information on the Neonyoyo acquisition please see the July 11, 2000 press release (http://www.interwoven.com/news/pressreleases/0711NYYpr.html).
Partners
The Interwoven UltraTeam Partner Program added 26 new partners in the second quarter of 2000, bringing the total to 111.
New consulting partners included: Acumen Systems, Deepbridge Content Solutions, Digital Channel Partners, Internosis, Javelin Technology, Omnie Labs, Newtek International, Rare Medium, Razorfish, Third Millenium, Thoughtmill, Tvisions, and Zefer.
New technology partners included BEA, Hyperion, Information Architects, EC Cubed, gForce, NextPage, SDL, Speedera, Velogic, Versata and 2Roam.
New international partners included BEKK of Norway and Web Media of New Zealand.
In Q2, Interwoven trained 326 consultants from 50 different partners including Andersen Consulting, Cambridge Technology Partners, Ernst & Young, IBM, IXL, KPMG, MarchFIRST, PricewaterhouseCoopers and Sapient. In addition, Q2 saw the true globalization of partner training with routine teaching of ``bootcamps'' in London, Sydney, Hong Kong and Singapore.
About Interwoven
Interwoven, Inc. (Nasdaq:IWOV - news) is the leading provider of enterprise-class 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.
INTERWOVEN, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, December 31,
2000 1999
Assets (unaudited) (audited)
Current assets:
Cash and cash equivalents $ 47,393 $ 10,983
Short-term investments 119,300 44,665
Accounts receivable, net of allowance for
doubtful accounts
of $500 and $288, respectively 23,723 5,158
Prepaid expenses and other current assets 3,191 1,346
------- -------
Total current assets 193,607 62,152
Investments 58,297 16,464
Property and equipment, net 6,191 3,145
Intangible assets, net 313 416
Restricted cash 605 605
Other assets 149 297
------- -------
$259,162 $ 83,079
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,129 $ 834
Accrued liabilities 13,369 4,966
Deferred revenue, current 16,117 1,939
------- -------
Total current liabilities 31,615 7,739
Stockholders' equity 227,547 75,340
------- -------
$259,162 $ 83,079
======== ========
INTERWOVEN, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
(unaudited) (unaudited)
Revenues:
License $ 15,421 $ 1,898 $ 24,809 $ 3,258
Services 8,840 1,004 13,312 1,746
------ ----- ------ -----
Total revenues 24,261 2,902 38,121 5,004
Cost of revenues:
License 148 104 214 119
Services 7,961 880 12,615 1,429
----- --- ------ -----
Total cost
of revenues 8,109 984 12,829 1,548
------ --- ------ -----
Gross profit 16,152 1,918 25,292 3,456
------ ----- ------ -----
Operating expenses:
Research and
development 3,188 922 5,396 1,701
Sales and
marketing 14,249 2,938 23,918 5,225
General and
administrative 2,808 646 4,768 1,244
Amortization of
deferred
stock-based
compensation 617 1,028 1,450 1,668
Amortization of
acquired
intangible
assets 51 -- 103 --
Total operating ------ ----- ------ -----
expenses 20,913 5,534 35,635 9,838
Loss from
operations (4,761) (3,616) (10,343) (6,382)
Interest and
other income
(expense), net 3,338 89 5,875 154
------- ------- ------- -------
Net loss (1,423) (3,527) (4,468) (6,228)
======= ======= ======= =======
Accretion of
mandatorily
redeemable
convertible
preferred
stock to
redemption
value -- (4,224) -- (6,350)
Net loss
attributable
to common --------- --------- --------- --------
stockholders ($ 1,423) ($ 7,751) ($ 4,468) ($12,578)
========= ========= ========= =========
Basic and
diluted
net loss
per share ($ 0.03) ($ 1.08) ($ 0.10) ($ 1.83)
========= ========= ========= =========
Shares used in
computing
basic and
diluted net
loss per
share(3) 44,910 7,182 44,215 6,869
====== ===== ====== =====
Pro forma
basic and
diluted net
loss per
share(1)(3) ($ 0.03) ($ 0.12) ($ 0.10) ($ 0.22)
========= ========= ========= =========
Shares
used in
computing
pro forma
basic and
diluted
net loss
per share(1)(3) 44,910 29,002 44,215 28,000
====== ====== ====== ======
Three Months Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Supplemental (unaudited) (unaudited)
information (2)
Historical net loss ($1,423) ($3,527) ($4,468) ($6,228)
Add back certain
non-cash and
acquisition charges:
Amortization of
deferred stock-based
compensation 617 1,028 1,450 1,668
Amortization of
intangible assets 51 -- 103 --
--- ----- ----- -----
Total add back 668 1,028 1,553 1,668
Supplemental net
loss excluding
certain non-cash
and acquisition ------ ------- ------- -------
related charges ($755) ($2,499) ($2,915) ($4,560)
====== ======= ======= =======
Pro forma basic
and diluted net
loss per share (1)(3) ($0.02) ($0.09) ($0.07) ($0.16)
======= ======= ======= =======
Shares used in
computing pro
forma basic
and diluted
net loss
per share (1)(3) 44,910 29,002 44,215 28,000
====== ====== ====== ======
(1) 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.
(2) 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.
(3) On June 1, 2000, the Company's Board of Directors effected a
two-for-one stock split of the outstanding shares of Common
Stock. All common shares and per share information included in
these financial statements have been retroactively adjusted to
reflect this stock split. |
