Documentum Announces Record Fourth-Quarter Revenue and Fiscal Year Financial Results.Business Editors and High Tech Writers PLEASANTON Pleasanton, city (1990 pop. 50,553), Alameda co., W Calif., a suburb of the San Francisco–Oakland area, in a vineyard and dairy region; inc. 1894. Wine and cheese are produced, and there are publishing and stone-quarrying industries. , Calif.--(BUSINESS WIRE)--Jan. 27, 2000 Documentum Documentum is an enterprise content management platform, now delivered by EMC Corporation, as well as the name of the software company that originally developed the technology. EMC acquired Documentum for $1.7 billion in December, 2003. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DCTM), the leading provider of Internet-scale content management solutions for powering eBusiness See e-business. applications, today announced record revenues for their fourth quarter and fiscal year ended December December: see month. 31, 1999. For comparative purposes, except where noted, the full year results discussed throughout this release exclude the effects of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges of $34.6 million related to the July July: see month. 16, 1998 acquisition of Relevance Technologies, Inc., and $2.2 million related to the acquisition of Workgroup Two or more individuals who share files and databases. Local networks (LANs) are designed to provide electronic sharing of data within workgroups. In general, products designed for workgroups support approximately 50 people, whereas departmental devices support several hundred, and Management Inc., in the first quarter of fiscal 1998. Revenues for the fourth quarter of 1999 were a record $41.0 million, a 12.6 percent increase over revenues of $36.4 million for the same period of 1998 and a 21.3 percent increase over third quarter of fiscal 1999. Net income for the fourth quarter of 1999 was $0.2 million, a 95.2 percent decrease compared with net income of $4.2 million reported for the fourth quarter ended December 31, 1998. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter of 1999 were $0.01 per share, a decrease of 95.8 percent from diluted earnings per share of $0.24 for the fourth quarter of 1998 and an improvement of 112.5 percent over the prior quarter in fiscal 1999. Revenues for the fiscal year ended December 31, 1999, were a record $128.0 million, a 3.4 percent increase over revenues of $123.8 million for the fiscal year ended December 31, 1998. Net loss for the year was $8.4 million, a decrease of 165.1 percent compared with net income of $12.9 million reported for the year ended December 31, 1998. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share for the year was $0.50 per share, a 166.7 percent decrease from diluted income per share of $0.75 for fiscal 1998. &uot;We are aggressively executing our new eBusiness strategy announced last quarter, and it has resulted in a number of new eBusiness customer wins this quarter,&uot; said Jeffrey A. Miller, president and chief executive officer for Documentum, Inc. &uot;By powering the eBusiness connections of our customers with our content management solutions, we are giving our customers a fundamental and crucial capability for their eBusiness success. This in turn is fueling Documentum's revenue growth.&uot; In addition to historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. The company's future actual results could differ materially from the forward-looking statements discussed herein as a result of contracts failing to close as expected, failure of contracts to meet revenue recognition rules, and other factors detailed in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Factors that could cause or contribute to such differences include, but are not limited to, those discussed from time to time in the company's public reports filed with the Securities and Exchange Commission, such as those under &uot;Risk Factors&uot; included in the company's annual report on Form 10-K for the fiscal year ended December 31, 1998, and the company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, 1999, June June: see month. 30, 1999, and September September: see month. 30, 1999. The company undertakes no obligation to update or revise these forward-looking statements. About Documentum Documentum, the leading provider of Internet-scale content management solutions for powering eBusiness applications, offers solutions that integrate dynamic content, complex business processes and people everywhere - enabling seamless See seamless integration. collaboration Working together on a project. See collaborative software. , communication and knowledge sharing between employees, suppliers and customers. Documentum offers the only open, standards-based content management platform and applications suite for managing complex processes as well as any content type, in a truly collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. environment enabling trusted content to be delivered to the right person at the right time on any information device, regardless of its origin or location. Documentum's highly adaptable a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil collaboration and content management solutions enable
corporate developers and Internet InternetPublicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the System Integrators See systems integrator. to quickly implement robust eBusiness applications with the reliability, scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it and interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. required by today's 24x7 Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . These eBusiness applications powered by Documentum help more than 800 global customers dramatically improve their top line by accelerating product lifecycles Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. , re-architecting business processes, improving operational efficiency and turning knowledge into a corporate asset. Headquartered in Pleasanton, Calif., Documentum software and services are sold through a direct sales force, systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: distributors worldwide. Additional information is available at www.documentum.com.
Documentum, Inc.
Condensed Consolidated Balance Sheet
(in thousands; unaudited)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 18,286 $ 16,240
Short-term investments 64,258 84,203
Accounts receivable,
net of allowances 37,492 28,177
Other current assets 14,674 8,192
---------------- ----------------
Total current assets 134,710 136,812
Property and equipment, net 28,030 13,426
Other assets 6,262 5,843
================ ================
$ 169,002 $ 156,081
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,645 $ 3,176
Accrued liabilities 33,783 26,170
Deferred revenue 18,290 9,922
Current portion of long term debt 232 -
---------------- ----------------
Total current liabilities 57,950 39,268
Long term debt 73 -
Stockholders' equity 110,979 116,813
================ ================
$ 169,002 $ 156,081
Note: Certain prior period balances have been reclassified to
conform to current year's presentation.
Documentum, Inc.
Pro Forma Condensed Consolidated Statement of Operations
(in thousands, except per share data; unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Licenses $ 25,418 $ 23,217 $ 72,007 $ 80,546
Services 15,536 13,221 55,957 43,283
------- ------- ------ ------
Total revenues 40,954 36,438 127,964 123,829
Cost of revenues:
Licenses 1,634 1,329 5,497 4,179
Services 8,817 7,405 32,118 25,684
------- ------- ------- -------
Total cost of revenues 10,451 8,734 37,615 29,863
Gross profit 30,503 27,704 90,349 93,966
Operating expenses:
Sales and marketing 18,433 14,186 61,486 50,425
Research and development 7,066 5,417 25,832 18,181
General and
administrative 5,605 2,901 19,549 10,255
------- ------- ------- -------
Total operating expenses 31,104 22,504 106,867 78,861
Income (loss)
from operations (601) 5,200 (16,518) 15,105
Interest and other
income, net 830 1,139 3,773 4,395
------- ------- ------- -------
Income (loss) before income
tax provision (benefit) 229 6,339 (12,745) 19,500
Provision for (benefit from)
income taxes 78 2,155 (4,333) 6,630
====== ======= ======= ======
Net income (loss) $ 151 $ 4,184 $ (8,412) $ 12,870
====== ======= ======= ======
Basic earnings (loss)
per share $ 0.01 $ 0.25 $ (0.50) $ 0.79
Diluted earnings (loss)
per share $ 0.01 $ 0.24 $ (0.50) $ 0.75
Shares used to compute
earnings (loss) per share
Basic 16,610 16,661 16,691 16,221
Diluted 18,271 17,793 16,691 17,233
NOTE: Condensed Consolidated Statement of Operations for the
twelve months ended December 31, 1998 excludes the effects of a one
time charge of $2,171,000 primarily related to the acquisition of
Workgroup Management, Inc. and a one time charge of $34,622,000
primarily related to the acquisition of Relevance Technologies, Inc.
Documentum, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share data; unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Licenses $ 25,418 $ 23,217 $ 72,007 $ 80,546
Services 15,536 13,221 55,957 43,283
--------- --------- --------- ---------
Total revenues 40,954 36,438 127,964 123,829
Cost of revenues:
Licenses 1,634 1,329 5,497 4,179
Services 8,817 7,405 32,118 25,684
--------- --------- --------- ---------
Total cost of revenues 10,451 8,734 37,615 29,863
--------- --------- --------- ---------
Gross profit 30,503 27,704 90,349 93,966
Operating expenses:
Sales and marketing 18,433 14,186 61,486 50,425
Research and development 7,066 5,417 25,832 18,181
General and administrative 5,605 2,901 19,549 10,255
Acquisition and related
costs - - - 2,171
Purchased in process
research and development - - - 34,622
--------- --------- --------- ---------
Total operating
expenses 31,104 22,504 106,867 115,654
---------- --------- --------- ---------
Income (loss) from
operations (601) 5,200 (16,518) (21,688)
Interest and other
income, net 830 1,139 3,773 4,395
---------- ---------- ---------- ----------
Income (loss) before income
tax provision (benefit) 229 6,339 (12,745) (17,293)
Provision for (benefit from)
income taxes 78 2,155 (4,333) 6,231
=========== ========== =========== =========
Net income (loss) $ 151 $ 4,184 $ (8,412) $ (23,524)
Basic earnings (loss)
per share $ 0.01 $ 0.25 $ (0.50) $ (1.45)
Diluted earnings (loss)
per share $ 0.01 $ 0.24 $ (0.50) $ (1.45)
Shares used to compute
earnings (loss) per share
Basic 16,610 16,661 16,691 16,221
Diluted 18,271 17,793 16,691 16,221
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