Q2 License Revenue Grew Sequentially by 7%, 51 New Customers Added
SUNNYVALE, Calif. - July 17, 2002 - Interwoven, Inc. (Nasdaq: IWOV), the leader in Enterprise Content Management, today reported second quarter results, with revenues of $33.0 million for the quarter ended June 30, 2002, a decrease of 41% from revenues of $55.6 million for the quarter ended June 30, 2001 and a increase of 1% from revenues of $32.7 million for the quarter ended March 31, 2002. License revenues represented 48% of total revenues and service revenues represented 52% of total revenues for the quarter ended June 30, 2002. Interwoven signed 51 new license customers in the quarter ended June 30, 2002, bringing its total customer count to 1,049.
For the quarter ended June 30, 2002, pro forma net loss was $5.2 million, or $0.05 net loss per share on a basic and diluted basis, compared with pro forma net income of $552,000, or $0.01 net income per share on a basic and diluted basis, for the quarter ended June 30, 2001. On a GAAP basis, net loss was $13.8 million, or $0.13 net loss per share on a basic and diluted basis for the quarter ended June 30, 2002, compared with net loss of $38.4 million, or $0.39 net loss per share on a basic and diluted basis, for the quarter ended June 30, 2001.
For the six months ended June 30, 2002, revenues were $65.7 million, a decrease of 44% from revenues of $116.3 million for the comparable period in 2001. Pro forma net loss, which excludes the effect of non-cash charges related to stock-based compensation, acquisition-related and non-recurring costs, was $15.2 million, or $0.15 per share on a basic and diluted basis, for the six months ended June 30, 2002, compared with net income of $2.9 million, or $0.03 income per share on a basic and diluted basis for the six months ended June 30, 2001.
The Company believes that the pro forma results better reflect its operating performance as they exclude the effects of non-cash charges related to stock-based compensation and acquisition-related expenses such as amortization of goodwill, in addition to special charges related to facilities relocation and corporate restructuring costs. Total expenses included in the GAAP results that were excluded from the pro forma results were $8.6 million and $39.0 million for the quarters ended June 30, 2002 and 2001, respectively and were $14.3 million and $65.6 million for the six months ended June 30, 2002 and 2001, respectively.
"I am proud of the results our team produced this past quarter despite the difficult IT spending environment," said Martin Brauns, chairman of Interwoven. "I do believe that Interwoven is positioned stronger now than at any time in the company's history to take advantage of this dynamic market going forward, and that we will continue to deliver the industry's best ECM solution to meet the global collaboration goals of companies worldwide."
Q2 Highlights
Interwoven signed 51 new license customers in the quarter ended June 30, 2002 bringing the licensed customer count to 1,049. Interwoven's customer list includes seven of the Fortune 10 companies.
Key new global customers include Cathay Life Insurance, Centrica, Hang Seng Bank Limited, Hyundai Motors, IKEA, NTT Software, Samsung Fire and Marine Insurance, SBC, The BOC Group, The Boots Company, and Union Pacific Railroad.
On the government side, Interwoven added the Federal Reserve Bank of Chicago, the Human Resources Department of Canada, The State of Louisiana, and The U.S. Department of Housing, and Urban Development, among others.
Product Launches
Interwoven hosted a 9-city worldwide product launch entitled "Transforming Content into Capital" with more than 1,000 total in attendance, and announced the following new products during Q2 of 2002:
· Interwoven TeamCode for collaborative application management;
· Interwoven TeamDoc for collaborative business document management;
· Interwoven TeamPortal for collaborative content management of enterprise portals;
· Interwoven Solution for eGovernment for governments to comply with legislation requiring information access for all citizens.
Partners
· Interwoven announced its support for the BEA WebLogic Enterprise Platform, extending a proven relationship that currently addresses the eBusiness needs of more than 50 joint customers worldwide.
· Interwoven and IBM announced a new joint portal solution that includes IBM software, hardware and services in conjunction with Interwoven's industry-leading ECM solutions, and highlighted the fact that more than 70 customers are currently using Interwoven TeamSite software and IBM WebSphere.
· Interwoven and Inktomi expanded their alliance to deliver innovative, fully integrated information management, categorization, and retrieval solutions.
· Interwoven announced TeamPortal for Oracle to provide business users with new collaborative content application portlets for Oracle9iAS that enable enterprises to rapidly integrate enterprise content management into their corporate portal.
Industry Awards and Accolades · Interwoven and customer CSFB won CMP Media's 2002 RealWare Special Merit Award based on strong ROI - CSFB implementation was recognized for 250% efficiency gains and estimated $5 million annual savings using Interwoven ECM.
· In partnership with Interwoven, Deere & Company won KM World's Best Practice Award for their global implementation of Interwoven ECM and ability to demonstrate significant time and cost savings.
New Hires
Interwoven announced Thor Culverhouse as senior vice president of sales, Chris Gale as vice president of finance and administration for Europe, Middle East and Africa, Steve Martello as senior vice president of services, and Bob McNinch as regional vice president for Northern Europe.
Interwoven, Inc. (Nasdaq: IWOV) is the world's leading provider of Enterprise Content Management software. The Interwoven 5 platform provides complete content lifecycle services including Content Processing, Content Management, Content Intelligence, Content Production and Content Distribution. Its products are used by more than 1000 global organizations including British Airways, Cisco Systems, General Electric, General Motors and Singapore Airlines. Interwoven teams with the leading best-of-breed enterprise application providers to provide customers complete, collaborative business enterprise solutions. Recently, Interwoven won Transform Magazine's "2001 Product of the Year" award for Enterprise Content and Collaboration Technology. For more information on Interwoven and its proven XML-based ECM solutions, visit the Interwoven Website at www.interwoven.cn .
Interwoven, TeamSite, TeamPortal, TeamCode, TeamDoc, the taglines, logo and service marks are trademarks of Interwoven, Inc., which may be registered in certain jurisdictions. All other trademarks are owned by their respective owners. Copyright 1996-2002 Interwoven, Inc. All rights reserved.
This press release contains "forward-looking" statements, including statements about new customers and new products that may suggest trends for our business. These statements are based on information available to us at the time of the release; we assume no obligation to update any of them. Statements in this release are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including: customer spending on web initiatives may be reduced during the current economic downturn, which may be longer than anticipated; the market for our products is relatively new and customer acceptance of our products is not proven; our dependence on large customer orders makes our results potentially volatile; and our international expansion poses special difficulties and creates extra expenses. These and other risks and uncertainties associated with our business are described in our most recent annual report on Form 10-K and subsequent Forms 10-Q and 8-K, which are on file with the SEC and available through www.sec.gov .
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