Income Statement
 
INTERWOVEN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
 
 
  Three Months Ended September 30, Nine Months Ended September 30,
         2001               2000               2001               2000       
  (unaudited)
 (unaudited)
(unaudited)
 (unaudited)
Revenues:        
License..........................................................  $      20,712  $       26,538  $       90,442  $     51,347
Services.........................................................      22,476        12,878         68,254    26,190
Total revenues........................................ 43,188 39,416 158,696 77,537
 
Cost of revenues:
License.......................................................... 660 317 1,832 584
Services......................................................... 13,999       11,610     46,085  24,172
Total cost of revenues............................. 14,659 11,927 47,917 24,756
                                                                                 
Gross profit.....................................................        28,529         27,489        110,779         52,781
     
Operating expenses:    
Research and development.............................       7,043     5,091            23,910 10,487
  Sales and marketing........................................   22,312   21,212 76,951 45,130
General and administrative.............................. 5,473 3,708 16,903 8,476
Amortization of deferred stock-based
compensation...................................................		         3,207 1,504 12,068 2,954
Amortization of acquired intangible assets........      22,209 5,006      66,209 5,109
Writeoff of in-process research & development........          -            1,724      -            1,724
 Facilities relocation charge.............      9,382           -        22,166          -
Total operating expenses........................ 69,626    38,245 218,207      73,880
     
Loss from operations........................................     (41,097)       (10,756)     (107,428)       (21,099)
     
Interest and other income, net...........   1,997  3,191     6,986     9,172
 
Net loss before provision for income taxes........ (39,100) (7,565)  (100,442) (11,927)
Provision for income taxes........................ - 121 1,420 227
 
Net loss...............................................................  $    (39,100)  $     (7,686)  $    (101,862)  $     (12,154)
     
 
     
Basic and diluted net loss per share..................  $       (0.39)  $       (0.08)  $       (1.02)  $       (0.13)
     
Shares used in computing basic and
diluted net loss per share (2) .......................		        100,672          93,906          99,508          90,256
         
Pro forma information (1)
         
Historical net loss............................................  $    (39,100)  $     (7,686)  $    (101,862)  $     (12,154)
Add back of certain non-cash and acquisition charges:    
Amortization of deferred stock-based compensation 3,207 1,504 12,068 2,954
Amortization of intangible assets ................... 22,209 5,006 66,209 5,109
Writeoff of in-process research & development ................... - 1,724 - 1,724
Facilities Relocation Charge ................... 9,382 - 22,166 -
Total add back................................................     34,798      8,234 100,443            9,787

Pro forma net income (loss) excluding certain non-cash
and acquisition related charges..................

  $      (4,302)  $     548  $      (1,419)  $     (2,367)
     
Pro forma basic net income (loss) per share (2)  $         (0.04)  $       0.01  $        (0.01)  $       (0.03)
 
Pro forma diluted net income (loss) per share (2)  $         (0.04)  $       0.01  $         (0.01)  $       (0.03)
     
Shares used in computing pro forma basic net income
(loss) per share (2) ..............................................		       100,672         93,906        99,508         90,256
     
Shares used in computing pro forma diluted net income
(loss) per share (2)  ................................................		       100,672       111,162      99,508        90,256
         
(1)  The accompanying pro forma financial information is presented for informational purposes only and should not be considered a substitute for the historical financial information presented in accordance with accounting principles generally accepted in the United States.
(2) On October 17, 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.