Interwoven Announces First Quarter 2004 Results
Revenues Increase 46% Year-Over-Year; 69 New Customers Purchase Interwoven ECM in Q1
SUNNYVALE, Calif., - April 21, 2004 - Interwoven, Inc. (Nasdaq: IWOV), the world`s next-generation enterprise content management (ECM) company, today announced its financial results for the first quarter ended March 31, 2004.
Interwoven reported total revenues of $37.4 million for the first quarter, an increase of 11% sequentially from the $33.7 million posted in the quarter ended December 31, 2003, and an increase of 46% from total revenues of $25.6 million for the same period last year. Net loss for the first quarter of 2004 calculated in accordance with generally accepted accounting principles was $7.0 million, or $0.17 per share, as compared to a net loss of $9.1 million, or $0.36 per share, for the same period last year. On a pro forma basis, Interwoven reported a net loss of $583,000 for the first quarter of 2004, or $0.01 per share versus a pro forma net loss of $7.1 million, or $0.28 per share, last year. Pro forma results exclude restructuring charges and amortization of stock-based compensation and intangible assets. For the first quarter, Interwoven was cash flow positive, with cash and investments of $143.0 million, an increase of $2.5 million from the $140.5 million at December 31, 2003.
A reconciliation of net loss calculated in accordance with generally accepted accounting principles and pro forma net loss, is provided in the tables immediately following the consolidated statements of operations below. These pro forma measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. Interwoven believes that the presentation of pro forma results provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Readers of Interwoven`s consolidated financial statements are advised to review and consider carefully the financial information prepared in accordance with generally accepted accounting principles contained in this press release and Interwoven`s periodic filings with the Securities and Exchange Commission.
"In this, our first full post-merger quarter, we`ve produced excellent results. We are delivering on the promise of the merger, and we have the numbers and customer traction to prove it," said Martin Brauns, chairman and CEO of Interwoven. "I`m very encouraged to see the momentum of the business, and I`m equally excited about the outlook for 2004 and beyond."
Customer Highlights
Interwoven continued its customer momentum with the addition of 69 new customers in the first quarter:
• New customers include: City of Raleigh, North Carolina; DigitalThink; Epson Singapore; Euskaltel; First National Bank of Arizona; King & Wood; Konica Minolta; Lockheed Martin; Max Re; Merrill Lynch; New York State Department of Labor; Public Works and Government Services of Canada; Sovereign Bank and Thomas Weisel Partners.
• Interwoven also received significant customer re-orders that include: Air France; Allianz Life Insurance; Cox Communications; DuPont; Fannie Mae; General Motors; Intuit; Johnson & Johnson; Motorola; Novartis Pharmaceuticals and Siebel Systems.
Interwoven continued to extend its technology leadership in a number of different product and solution areas, and demonstrated market traction with several industry awards and accolades.
Products
• WorkSite 8.0 - The first major WorkSite release after the merger of Interwoven and iManage, WorkSite 8.0 was released for customer delivery in Q1. The industry`s first platform designed specifically for matter centric collaboration in law firms, accounting firms, and other professional services organizations, WorkSite 8.0 allows these businesses to effectively consolidate all relevant content for any given matter-documents, e-mails, billing information, and contacts-in a single electronic matter file that can be accessed globally.
• Interwoven TeamSite 6.0 Content Server software - TeamSite, the industry`s leading Web content management product, has been adopted by double the number of customers when compared to the prior release. Much of the rapid adoption is driven by the world-class user interfaces introduced in TeamSite 6.0 that enable business-focused individuals anywhere in the enterprise to participate in the content publishing and review processes.
Solutions
In Q1, Interwoven also introduced several new solutions targeting business challenges encountered by many enterprises today.
• Deal Management Solution - With WorkSite MP Collaboration and Document Server at its core, the Interwoven Deal Management Solution enables deal teams distributed around the globe comprised of enterprise professionals-bankers, account executives, financiers, brokers and dealers-to collaborate on document-intensive deals from inception, execution and ultimately archival. With this solution, leading companies like Bear Stearns and Rothschild have dramatically accelerated the deal cycle, increased employee productivity, and met regulatory compliance challenges.
• Marketing Content Management Solution - At one of the largest US content management conferences, AIIM International, Interwoven launched the industry`s first suite of truly effective solutions for Marketing Content Management (MCM) - which provides customers a more efficient way to create, manage, distribute, and publish marketing content. At the heart of this MCM solution suite is Interwoven`s digital asset management (DAM) product, used by marketing teams across the globe.
• Corporate Legal Solution - Based on the market-leading Interwoven WorkSite Server software suite, Interwoven announced a new solution designed for the specific challenges of corporate legal departments (CLDs). The Interwoven CLD solution addresses five key pain points experienced by today`s corporate legal departments: managing the matter file; managing external counsel; board of directors` compliance; policy publication and monitoring; and contract management.
Awards and Accolades
• In recognition of its leading DAM product, Frost & Sullivan recognized Interwoven with its 2004 Business Development Strategy Award for the World Digital Asset Management Market. This award commended Interwoven for being an early mover in the ECM market, and for leveraging its MediaBin offering to meet customers` needs.
• Interwoven announced that its flagship product, TeamSite, won the Gold Performer Award in the Content Management category in the annual Asia Computer Weekly (ACW) Readers` Choice Survey. ACW is a well-read information technology trade magazine reaching out primarily to readers in the Asia Pacific region.
• During the quarter, Interwoven announced that it has reached a critical leadership milestone in the legal market with 51% of AmLaw 100 firms (the definitive ranking of the largest American law firms) adopting the company`s WorkSite product suite. In 2003, Interwoven added more than 100 new law firm clients from around the globe, which included more than 30 firms representing over 20,000 users switching from competitive systems.
Conference Call Information
Interwoven`s first quarter results and its business outlook for the second quarter of 2004 will be discussed today, April 21, 2004 at 2:00 p.m. PT/5:00 p.m. ET.
Conference Call Details:
Date: Wednesday, April 21, 2004
Time: 2:00 p.m. PT (5:00 p.m. ET)
Live Dial-in #: (719) 867-0700
Replay #: (719) 457-0820
Pass code: 531649
Audio Webcast instructions will be available on Interwoven`s Website at http://www.interwoven.com/investors.
About Interwoven
Interwoven, Inc. is the world`s next-generation enterprise content management (ECM) company. Interwoven`s patented, award-winning ECM platform integrates the six pillars of content management: collaboration, e-mail management, document management, Web content management, digital asset management, and records management. Allied with the leading enterprise application providers, the Interwoven ECM platform provides complete, end-to-end content management for more than 2,800 organizations worldwide including Air France, Citibank, Ford, General Electric, Jones Day, Pfizer, Procter & Gamble, and Yamaha. For more information visit www.interwoven.com.
Contact:
Jennifer Lee
Investor Relations
(408) 530-5801
jlee@interwoven.com
Mary Ellen Ynes
Public Relations
(408) 530-7043
mynes@interwoven.com
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