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Technology Stocks : Documentum (DCTM) Software -- Ignore unavailable to you. Want to Upgrade?

To: sand wedge who wrote (373)	1/21/1999 4:30:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 600

Earnings out documentum.com DOCUMENTUM ANNOUNCES RECORD REVENUE AND PROFITS FOR THE FOURTH QUARTER 1998 20th Consecutive Quarter of Sequential Revenue Growth PLEASANTON, Calif. -- Jan. 21, 1999 -- Documentum, Inc. (NASDAQ: DCTM), the recognized leader in enterprise document and knowledge management solutions for client/server and Web environments, today announced record revenues and net income for the fourth quarter and year ended December 31, 1998. Revenues for the fourth quarter of 1998 were $36.4 million, a 54 percent increase over revenues of $23.6 million for the same period of 1997. Net income for the fourth quarter increased to $4.2 million compared with net income of $2.8 million reported for the same period of 1997. Earnings per diluted share grew 33 percent to $.24 in the fourth quarter, up from $.18 for the fourth quarter of 1997. For comparative purposes, except where noted, the annual results discussed throughout this release exclude the effects of a one-time charge in the first quarter of 1998 of $2.2 million primarily related to the previously announced acquisition of Workgroup Management, Inc., which closed on January 5, 1998, and a one-time charge in the third quarter of 1998 of $34.6 million related to the previously announced acquisition of Relevance Technologies, Inc., which closed on July 16, 1998. For the year ended December 31, 1998, revenues were $123.8 million, a 64 percent increase over revenues of $75.6 million for the same period of 1997. Net income for the year ended December 31, 1998 was $12.9 million, or $.75 per diluted share, up from $7.4 million, or $.49 per diluted share for the same period of 1997. "Our performance is a direct result of the steady execution of our strategy to automate the knowledge-based processes that are critical to global organizations' success," said Jeffrey A. Miller, president and chief executive officer of Documentum, Inc.

To: sand wedge who wrote (373)	1/21/1999 11:17:00 PM
From: Michael Watkins	Respond to of 600

They appear to be delivering on license revenue growth. I didn't see anything terribly unusual in professional services growth nor in the guidance for the new year in that area. Random thoughts from listening to the con call: They appear to be continuing to focus on real solutions and in specific sectors, in an effort to derive additional revenue (apps are on top of EDMS 98 costs), reduce time to sale and time to implement. I wouldn't imagine that this will trouble the consulting community all that much. Web centric future. Con call didn't mention it but increasingly Microsoft centric too I think, joining the club (FILE, DOCSF; OTEXF still out on their own). Other message I heard in the con call was web content management and web centric applications (using their server/services) being a focus, with a market opportunity much larger than that which they currently enjoy a big chunk of. Two specific apps mentioned, Sales + Marketing support app (not competitive with SFA apps but complimentary); and Financial Services (probably packaging work they have already done in swaps/derivatives area. Other one on the drawing board was "Lab Notebook", help in patent approval / discovery. I suspect they have others in mind. I would have to say that we have seen a huge jump in interest and actual deployments of DM technology as part of intra/extranet applications. We are still mangling functionality around to do this work, with current products, I wonder what sorts of web application services they have in mind. FILE and OTEXF mentioned as key competitors but winning most deals up against them. I would imagine that DCTM picks their spots fairly carefully and does win. Any thoughts?