Mixed Results for Content Management

By Dennis Callaghan  |  Posted 2002-10-17 Print this article Print

FileNet reported increasing revenues while Vignette's and Interwoven's sales were down.

Content management software vendors reported a mixed bag of results this week with FileNet Corp. seeing revenues up slightly and turning a profit while Vignette Corp. and Interwoven Inc. saw revenues slide amid more losses. With the three companies reporting third quarter earnings on the same day, FileNet clearly showed its strength, with revenues of $83.1 million, compared with $80.6 million in the same period a year ago. The companys net profit for the quarter was $1.4 million, compared with a $2.2 million loss in last years third quarter. FileNets license revenue was up slightly year-to-year from $26.9 million to $30.5 million.
"Despite the difficult environment, FileNet continues to lead the competition in the [enterprise content management] space with our ability to preserve profits while investing heavily in our future and generating significant cash flow," said Lee Roberts, chairman and CEO of Costa Mesa, Calif.-based FileNet, in a statement. FileNet increased its cash position by nearly $8 million in the quarter, closing with $176.3 million in cash and investments.
The picture at Vignette was not nearly as rosy as revenues dipped from $70.5 million in last years third quarter to $32.7 million this year. License revenues led the drop-off, falling from $40.3 million to just $11.4 million. The company did manage to shave its losses, year to year, turning in a $34.2 million net loss after posting a $147.9 million loss in the same period a year ago. Despite the companys sagging revenues, President and CEO Thomas Hogan said in a statement that Austin, Texas-based Vignette had a good quarter. "While we are pleased with our quarterly results, exceeding objectives in revenue, expense, and operating income, our progress is an important but minor step in our long term growth strategy," Hogan said. Meanwhile, Interwovens revenues didnt drop quite as much, but the companys losses more than doubled. Total revenues slumped from $43.8 million to $30 million year-to-year, including a fall-off in license revenues from $20.7 million to $12.4 million. The Sunnyvale, Calif.-based company saw its net loss jump from $39.1 million in last years third quarter to $86.6 million this year. Much of the loss could be ascribed to a $76.4 million impairment of assets charge. Interwoven CEO John Van Siclen said in a statement that the company was well prepared for a market shifting to more centralized content management.

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