7/25....VIGN...Reports Record Second Quarter Financial Results
Quarterly Revenues Increased 419% Year-Over-Year and 40% Over Last Quarter To $77.1 Million
AUSTIN, Texas, July 25 /CNW/ -- Vignette Corporation (Nasdaq: VIGN - news), the leading supplier of eBusiness applications for building businesses on-line, today reported financial results for the quarter ended June 30, 2000.
VIGNETTE CORPORATION
Three Months Ended 6.30.00 Six Months Ended 6.30.00
Total Revenue $77.1 million $132.4 million
Core Operating Loss $(3.5) million $(8.9) million
Core EPS $0.01 $0.01
"This was another tremendous quarter for the Company," said Greg Peters, Chairman, CEO and President of Vignette. "We continue to strengthen our market leadership as seen by the accelerating acceptance of our products and our vision for the direction of the industry. In addition, our business model continues to track ahead of plan."
Key Financial Data
-- Total Revenue for the second quarter increased to $77.1 million,
representing a 419% increase over the second quarter of 1999 and a
40% increase over last quarter.
-- Core Operating Loss was $3.5 million, beating Wall Street consensus
estimates of a $4.4 million loss.
-- Core EPS of $0.01 beat Wall Street consensus estimates of $0.00.
Second Quarter Highlights
Customers
Vignette added 137 new customers during the quarter. New customers this quarter include:
High Tech: Agiliti, Cisco, IBM China, NEC, Parametric Technology, Sharp
Electronics
Financial Services: AIG, Alliance Capital Management, Bank of Montreal,
JP Morgan, Metropolitan Life, Schroder Investment Management, Scudder
Weisel
Telecommunications: Coreon, Mobilrom, Telcel
New Media/ Publishing: Intelligroup, M Shanken Communications, Singapore
Press Holdings, Time Out Communications, Warner Home Video
Education: Digital Think, Sageport, Texas Education Agency, Tutor.com
Government: Army & Air Force Exchange, Calpers, National Governors
Association
Entertainment: BskyB, Globo.com, Resort Sports Network
Retail: Ralph Lauren Media, Robert Mondavi Corporation, TY Trade
The Company recognized significant orders from existing customers. In the U.S., this included Advanced Micro Devices, Amazon.com, Andersen Consulting, Arthur Andersen, AT&T, British Telecom, Chicago Board of Trade, Compaq, ComputerWorld, CSC Holdings, Fidelity, Industry Standard, Ingram Micro, Hewlett-Packard, Hoover's, Lucent Technologies, Questlink, Southwestern Bell, StarMedia Network, Thomson Direct, Turner Entertainment Group and US West Communications. International follow-on orders came from Cathay Pacific, Credit Suisse, Netera and Telecom Italia. In addition, Vignette received its largest customer order ever from Terra Networks, the Internet subsidiary of Telefonica in Spain.
New Product Offerings
During the second quarter, the Company launched and shipped its new V/Series architecture that includes the V/5 product family. The V/5 eBusiness application platform provides a comprehensive set of application services, which are necessary for building and deploying open, scalable, high-availability eBusiness applications.
Included in the V/5 eBusiness application platform are two new products. First, the V/5 Relationship Marketing Server (RMS), enables powerful, closed-loop eMarketing applications. RMS incorporates campaign management, real-time personalization, and sophisticated data analysis capabilities which allow companies to create and manage targeted eMarketing campaigns as well as measure and analyze customer and partner interactions in order to gain the business insight they need to drive sales and maximize profitability. Second, the V/5 Communication Server, is a multi-channel communications engine which allows companies to manage relationships with their customers, partners, and employees via pagers, electronic mail, cell phones, WAP-enabled devices and PDAs. The V/5 product family also includes the V/5 Content Management Server, the V/5 Lifecycle Personalization Server, and the V/5 Syndication Server.
Also during the second quarter, Vignette announced and shipped the Vignette Application Foundation (VAF) and the Vignette Application Power Pack (VAPP). VAF provides an open application framework and standard development guidelines for rapidly assembling, deploying and managing modular eBusiness applications. Ten ISV partners became VAF partners during the second quarter and have committed to building eBusiness applications utilizing the Vignette Application Foundation. VAPP is a set of reusable packaged application modules that run on VAF and that further support Vignette's "configure and go" approach to application development. CentriMed, ResortSports Network, Robert Mondavi, and Scudder Weisel Capital became VAPP customers in the second quarter.
Commitment to Open Standards
To enhance and accelerate customer and ISV integration with the V/5 product family, Vignette continued to expand its commitment to open technology standards. In the quarter, Vignette announced and made available direct support for Microsoft's Active Server Page templates and COM technology, critical parts of Microsoft's new Windows DNA 2000 environment. This Microsoft support lies within Vignette's eBusiness application object model and allows customers and ISVs to leverage their existing business logic that is encapsulated in COM components and exposed online via Active Server Pages templates. For customers and ISV's who work in a Microsoft environment, this support reduces their risk and time-to-market while leveraging the existing resources and skill sets they have in-house.
In the quarter, Vignette also announced a comprehensive, three-tiered Java technology strategy that encompasses tools, applications and a complete Java technology-enabled platform. The strategy will further accelerate adoption of the V/5 eBusiness application platform as a standard for companies serious about conducting business online. The Vignette V/5 eBusiness application platform will be the only eBusiness applications platform to support XML, the Java and Java Server Page environment as well as the Microsoft COM and Active Server Page environment, making it the most open and comprehensive eBusiness applications platform on the market.
Partnerships and The Vignette® Economy
The Vignette Economy continued to expand throughout the second quarter. There are now approximately 1,400 third-party professionals trained on Vignette products worldwide. During the quarter, Vignette formed a strategic alliance with Andersen Consulting designed to help customers build successful online businesses. As part of the alliance, the companies will jointly develop and market services and solutions, showcase Vignette's eBusiness platform and applications at Andersen Consulting Solution Centers and dot.com Launch Centers around the world and train more than 500 Andersen Consulting professionals on Vignette software.
Vignette also added new global consulting partners including Arthur Andersen, ePresence and Semtor as well as new Application Service Providers including Center 7, Intelligroup, and Surebridge.
OnDisplay Acquisition
On May 22, Vignette announced a definitive agreement to acquire OnDisplay, Inc. Vignette accepted tendered shares on July 1 and formally closed the acquisition on July 5. The acquisition will be accounted for as a purchase. Integration of the two companies is progressing far ahead of Vignette's original schedule and expectations.
"Our acquisition of OnDisplay furthers Vignette's mission to support eBusinesses in the development and deployment of sophisticated online applications," said Bill Daniel, Senior VP of Products at Vignette. "Companies serious about building their businesses online increasingly demand integrated solutions. The combined Vignette and OnDisplay offering provides our customers with visibility into customer, supplier, and partner interactions across supply and demand chains as well as the ability to interact and transact across multiple communication channels."
OnDisplay's products provide XML-based technology that powers B2B interaction and collaboration for companies including Grainger, McKesson, Travelocity and Wesco. By allowing critical business information -- such as purchase orders, inventory status checks, invoices and product catalog data -- to be integrated, aggregated and exchanged between multiple supply and demand chain partners quickly and efficiently, OnDisplay's technology enables the creation of real-time trading networks.
The combined Vignette and OnDisplay offering provides all of the critical application functionality for running a business online, leveraging back-office data, automating interactions across multiple enterprises and managing relationships with suppliers and vendors. The Vignette and OnDisplay combined product line provides:
personalized, customer and partner interaction;
industry-leading content management, aggregation, and syndication;
inter-enterprise and intra-enterprise eBusiness application integration;
eBusiness transaction support;
business process automation;
and comprehensive business measurement and analysis.
During the second quarter, OnDisplay added 54 new customers including American Automobile Association, Baker Concrete, Delta Air Lines, Honeywell, Hughes Network, OfficeClick, PurchaseSoft, QuestLink, Sabre, Silicon Valley Oil, Wesco and WorldSpan. OnDisplay received follow-on orders from existing customers such as Enersection, Prefer.com, Purchase Pro and Robertson Stephens.
During the quarter, Vignette and OnDisplay had joint customer wins at The Associates Corp., JP Morgan, New York Life Insurance and Sabre.
Together, Vignette and OnDisplay added 191 customers in the quarter.
Key quarterly financial results for Vignette, OnDisplay and the combined company are presented below. OnDisplay's results are presented to conform with Vignette's revenue recognition policy.
Vignette Stand-Alone OnDisplay Stand-Alone Combined Company
Total Revenue $77.1 million $11.1 million $88.2 million
Core Operating Loss $(3.5) million $(10.8) million $(14.3) million
The combined company has a significant market presence with:
-- over 1,000 customers;
-- approximately 1,800 employees;
-- 132 quota-carrying sales persons;
-- more than 300 employees internationally;
-- more than 600 professional services consultants;
-- nearly $500 million in cash.
"Vignette has been executing extremely well," said Greg Peters, Chairman, CEO and President of Vignette. "We recently announced, closed and are integrating our acquisition of OnDisplay. We released new products that have gained immediate traction and momentum in the marketplace. Vignette has never been more focused on serving our customers and partners, and the results prove it."
About Vignette Corporation
Vignette Corporation is the leading supplier of eBusiness applications. Vignette's products enable businesses to create and extend relationships with prospects and customers and ease high-volume transaction exchanges with suppliers and partners, all of which enhances customer satisfaction. Headquartered in Austin, Texas, Vignette Corporation has offices located throughout Europe, Asia, and in Australia and can be found on the Web at vignette.com .
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
1995:
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, Acquisition Integration, Market Awareness of Our Product, Rapid Changes in E-Business 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: Vignette, the V Logo, www.vignette.com, V/Series, V/5, V/5 E-business Platform, V/5 Content Management Server, V/5 Lifecycle Personalization Server, V/5 Communication Server, V/5 Relationship Marketing Server, V/5 Syndication Server, V/5 Advanced Deployment Server, V/5 Development Center, V/5 Tools, Vignette Application Foundation and Vignette Application Power Pack are trademarks or registered trademarks of Vignette Corporation in the United States and foreign countries. All other names and terms in this release are trademarks or registered trademarks of their respective companies.
Contacts:
Joel G. Katz
Chief Financial Officer
512-306-6501
jkatz@vignette.com
Kellie R. Nugent
Manager, Investor Relations
512-306-4541
knugent@vignette.com
Mike Berman
Director, Public Relations
512-306-4910
mberman@vignette.com
VIGNETTE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $395,022 $402,229
Accounts receivable, net 106,398 45,065
Prepaid expenses and other 6,565 5,588
Total current assets 507,985 452,882
Property and equipment, net 21,800 11,059
Investments 60,309 27,011
Intangibles, net 492,166 20,467
Other assets 3,481 3,311
Total assets $1,085,741 $514,730
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $56,645 $31,074
Deferred revenue 75,510 44,846
Current portion of long-term debt
and capital lease 257 254
Other current liabilities 5,806 1,497
Total current liabilities 138,218 77,671
Long-term debt and capital lease,
less current portion 135 --
Total liabilities 138,353 77,671
Stockholders' equity 947,388 437,059
Total liabilities and
stockholders' equity $1,085,741 $514,730
VIGNETTE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Quarter Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited)
Revenue:
Product license $42,173 $7,575 $71,321 $12,198
Services 34,958 7,298 61,039 11,807
Total revenue 77,131 14,873 132,360 24,005
Cost of revenue:
Product license 2,372 734 3,733 1,153
Services 25,724 5,765 45,413 10,234
Total cost of revenue 28,096 6,499 49,146 11,387
Gross profit 49,035 8,374 83,214 12,618
Operating expenses:
Research and development 10,386 2,992 17,920 5,717
Sales and marketing 34,661 10,027 61,733 16,580
General and administrative 7,533 1,738 12,423 3,349
Charge for purchased
in-process research
and development,
acquisition-related, and
other charges 3,135 14,690 59,610 14,690
Amortization of deferred
stock compensation 1,320 1,288 3,001 2,957
Amortization of intangibles 48,503 -- 74,584 --
Total operating expenses 105,538 30,735 229,271 43,293
Loss from operations (56,503) (22,361) (146,057) (30,675)
Other income, net 5,814 834 11,851 1,210
Net loss $(50,689) $(21,527) $(134,206) $(29,465)
Basic and diluted net
loss per share (A) $(0.27) $(0.14) $(0.73) $(0.26)
Shares used in computing
basic and diluted net
loss per share 187,007 150,735 182,969 114,529
(A) The six months ended June 30, 1999 assumes the conversion of redeemable convertible preferred stock and convertible preferred stock into an equivalent number of common stock at the time of issuance.
VIGNETTE CORPORATION
CONSOLIDATED STATEMENTS OF CORE OPERATIONS
(In thousands, except per share data)
Quarter Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited)
Revenue:
Product license $42,173 $7,575 $71,321 $12,198
Services 34,958 7,298 61,039 11,807
Total revenue 77,131 14,873 132,360 24,005
Cost of revenue:
Product license 2,372 734 3,733 1,153
Services 25,724 5,765 45,413 10,234
Total cost of revenue 28,096 6,499 49,146 11,387
Gross profit 49,035 8,374 83,214 12,618
Operating expenses:
Research and development 10,386 2,992 17,920 5,717
Sales and marketing 34,661 10,027 61,733 16,580
General and administrative 7,533 1,738 12,423 3,349
Total operating expenses 52,580 14,757 92,076 25,646
Core loss from operations (A) (3,545) (6,383) (8,862) (13,028)
Other income, net 5,814 834 11,851 1,210
Core income/(loss) before
income taxes 2,269 (5,549) 2,989 (11,818)
Provision for income taxes 908 -- 1,196 --
Core net income/(loss) (B) $1,361 $(5,549) $1,793 $(11,818)
Basic and diluted core net
income/(loss) per share (C) $0.01 $(0.04) $0.01 $(0.10)
Shares used in computing core
net income/(loss) per share:
Basic 187,007 150,735 182,969 114,529
Diluted 228,284 150,735 227,442 114,529
(A) Core loss from operations excludes other income, charges for amortization of deferred stock compensation, amortization of intangibles, purchased in-process research and development, acquisition-related, and integration charges.
(B) Core net income/(loss) excludes charges for amortization of deferred stock compensation, amortization of intangibles, purchased in-process research and development, acquisition-related, and integration charges. Assumes an effective tax rate of 40%.
(C) The six months ended June 30, 1999 assumes the conversion of redeemable convertible preferred stock and convertible preferred stock into an equivalent number of common stock at the time of issuance.
For further information
Joel G. Katz, Chief Financial Officer, 512-306-6501, or jkatz@vignette.com, or Kellie R. Nugent, Manager, Investor Relations, 512-306-4541, or knugent@vignette.com, or Mike Berman, Director, Public Relations, 512-306-4910, or mberman@vignette.com, all of Vignette Corporation
Web site: vignette.com
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