FILE-Record earnings and revenue per share
Tuesday January 25, 12:05 am Eastern Time
Company Press Release
SOURCE: FileNET Corporation
FileNET Announces Record Results for Fourth Quarter And Year Ended
December 31, 1999
COSTA MESA, Calif., Jan. 25 /PRNewswire/ -- FileNET Corporation (Nasdaq: FILE - news) today reported final financial results for the fourth quarter
and year ended December 31, 1999. FileNET reported record revenue of $94.1 million for the quarter, up 11 percent from $85.1 million for the fourth
quarter of 1998. Net income for the quarter was $9.1 million or 26 cents per diluted share, compared to net income before restructuring costs of $1.0
million or 3 cents per diluted share for the fourth quarter of 1998. The net loss for the fourth quarter of 1998 after restructuring costs was $0.4 million or 1
cent per share.
For the year ended December 31, 1999, revenue was $347.1 million, up 12 percent from $310.2 million for the year ended December 31, 1998. Net
income for 1999, the highest in the company's history, was $19.7 million, or 59 cents per diluted share, compared to 1998 net income before restructuring
costs of $2.4 million, or 7 cents per diluted share. Net income in 1998 after restructuring costs was $1.0 million or 3 cents per share.
As of December 31, 1999, FileNET's balance sheet included total cash and investments of $108.7 million, total stockholders' equity of $150.5 million and
no long-term debt.
Lee Roberts, president and CEO stated, ``Achieving record revenue and earnings per share for both the fourth quarter and year end was a significant
accomplishment. Despite industry wide challenges associated with Y2K, our company has performed very well, growing market share and significantly
increasing the number of thin client enterprise wide deployments.
``Further, in the past two weeks, we announced a major initiative to position our company as a market leader in the rapidly emerging web content
management market. We are confident that our technology, solutions orientation and blue chip customer base combine to create a huge new business
opportunity. Just as FileNET has been a market leader in both imaging and workflow and then integrated document management, we intend to do the same
in this new Web market by taking a laser-focus on e-content and e-process applications.
``Today, we are also announcing the formation of a new e-business unit -- Panagon eSolutions -- to capitalize on a potentially large market and further
differentiate ourselves from our competition. Panagon eSolutions will develop custom business-to-business portals and specific e-business applications
that will allow individuals to search for information within a company's repositories and the Internet. By generating a personalized view of both business
information stored within corporate databases and by searching the Internet, organizations will have access to the most complete information available --
traditional Internet search engines or internal document management solutions cannot alone match this level of completeness,' continued Lee Roberts.
``We are building on FileNET's strengths in Web content management and will create portal applications designed first for the insurance and financial
services industries,' added Roberts. ``Panagon eSolutions products will be a natural extension of our technology and we're confident they will significantly
expand our market reach.'
This press release contains forward-looking statements regarding the company's future performance. Those statements and the company's future results of
operations are subject to risks and uncertainties, therefore revenues and operating results for the fourth quarter and prior periods may not be predictive of
the company's future financial results. For a detailed discussion of the risk factors and uncertainties that affect the company's future results, please refer to
``Management's Discussion and Analysis of Financial Condition and Results of Operations -- Certain Considerations' in the company's Annual Report for
the year ended December 31, 1998; ``Business -- Certain Considerations' in the company's Annual Report on Form 10-K for the year ended December 31,
1998; and the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 1999.
Such risk factors and uncertainties include, but are not limited to, the timing of, and fluctuations in orders for the company's products, the mix of products
and services sold by the company; general conditions in the worldwide economy and the software/technology sector; timely development and introduction
of new products to respond to customer demands; announcements of technological innovations, new products or product enhancements by the company or
its competitors; emerging nature of Web content management market; key management changes; changes in joint marketing and development programs;
developments relating to patents or other intellectual property rights or disputes; and developments in the company's relationships with its customers,
distributors and suppliers.
FileNET Corporation is a leading provider of enterprise Web content management e-business applications software solutions that help corporations and
government organizations build Intranets, business-to-business and business-to-consumer portals, to manage their business information and work processes
more productively. Headquartered in Costa Mesa, Calif., the company markets its innovative products in more than 70 countries through its own global
sales, professional services and support organization, as well as via its ValueNET Partner network of resellers, system integrators and application
developers. Founded in 1982, the company currently employs more than 1,700 people.
For complete corporate information, visit the FileNET Web site at: filenet.com
FileNET and ValueNET are registered trademarks and Panagon and Panagon eSolutions are trademarks of FileNET Corporation. All other named products
mentioned in this release may have been identified by trademarks or registered trademarks of their respective holders.
FILENET CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Quarter Ended December 31, Year Ended December 31,
1999 1998 1999 1998
(Unaudited) (Unaudited)
Revenue:
Software $ 49,563 $ 47,375 $183,253 $171,153
Service 41,955 32,800 147,449 115,501
Hardware 2,539 4,925 16,418 23,579
Total revenue 94,057 85,100 347,120 310,233
Costs and expenses:
Cost of software revenue 5,223 4,013 16,984 16,814
Cost of service revenue 23,136 20,661 85,686 69,586
Cost of hardware revenue 1,362 3,540 8,805 13,181
Research and development 14,219 13,323 54,307 50,132
Selling, general and
administrative 38,782 42,884 157,708 161,013
Restructuring and
other costs -- 2,000 -- 2,000
Total costs and expenses 82,722 86,421 323,490 312,726
Operating income (loss) 11,335 (1,321) 23,630 (2,493)
Other income, net 583 728 3,409 3,840
Income (loss) before
income taxes 11,918 (593) 27,039 1,347
Provision (benefit) for
income taxes 2,826 (169) 7,362 391
Net income (loss) $ 9,092 $ (424) $ 19,677 $ 956
Earnings (loss) per share:
Basic $0.28 $(0.01) $0.61 $0.03
Diluted $0.26 $(0.01) $0.59 $0.03
Weighted average shares outstanding:
Basic 32,359 31,805 32,125 31,083
Diluted 35,131 31,805 33,360 33,367
Note: Certain reclassifications have been made to the prior-year's
balances to conform to the current year's presentation
FILENET CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 71,528 $ 55,820
Short-term investments 31,581 15,484
Accounts receivable, net 72,736 61,636
Inventories 3,399 2,419
Prepaid expenses and other current assets 8,080 8,865
Deferred income taxes 938 --
Total current assets 188,262 144,224
Property, net 40,593 44,177
Long-term investments 5,542 10,885
Deferred income taxes 4,752 6,385
Other assets 1,743 1,151
Total assets $240,892 $206,822
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,642 $ 21,022
Accrued liabilities 53,557 43,300
Unearned maintenance revenue 16,286 10,988
Deferred income taxes -- 942
Total current liabilities 86,485 76,252
Unearned maintenance revenue 3,949 250
Stockholders' equity 150,458 130,320
Total liabilities and stockholders' equity $240,892 $206,822
Note:Certain reclassifications have been made to the prior-year's
balances to conform to the current year's presentation
SOURCE: FileNET Corporation |
