Interwoven, Inc. (Nasdaq: IWOV), provider of Enterprise Content Management (ECM) solutions for business, today announced its financial results for the first quarter ended March 31, 2006.
Interwoven reported total revenues of $46.5 million for the first quarter of 2006, an increase of 9% from total revenues of $42.5 million for the same period last year. Net loss for the first quarter of 2006, calculated in accordance with generally accepted accounting principles (GAAP), was $1.4 million, or $0.03 per share, as compared to a net loss of $249,000, or $0.01 per share, for the same period last year. On a non-GAAP basis, Interwoven reported net income of $3.6 million for the first quarter of 2006, or $0.08 per share, compared to non-GAAP net income of $2.5 million, or $0.06 per share, for the same period last year. Non-GAAP results exclude restructuring and excess facilities charges, charges associated with the retirement of the company’s Chief Executive Officer, stock-based compensation charges, amortization of intangible assets, and the related tax impact of these adjustments. At the end of the first quarter of 2006, Interwoven had cash and investments of $143.1 million, an increase of $5.9 million from the $137.2 million at December 31, 2005.
A reconciliation of net loss and net loss per share calculated in accordance with generally accepted accounting principles and non-GAAP net income and net income per share is provided in the tables immediately following the consolidated statements of operations. Additional information about the company's non-GAAP financial measures can be found under the caption "Non-GAAP Financial Information" below.
"Q1 was an excellent quarter for Interwoven. We achieved strong financial results across the board and acquired an impressive number of new customers," said Max Carnecchia, Interim President at Interwoven. "All geographies and product lines performed well. I'm very pleased with the Interwoven team's accomplishments in the quarter on a number of fronts including technology innovation, new customer momentum, and financial performance."
Customer Acquisition
Interwoven continued its strong global customer momentum in the first quarter by adding 80 new customers. As a result, Interwoven has now sold to more than 3,500 customers worldwide.
New customers selecting Interwoven in the first quarter include: Caterpillar; Anglo Irish Bank; First Bank in Taiwan; Hong Kong Tourism Board; MetLife; Odakyu Electric Railway; Strategem Technologies; Tickets Now; Tokyo Star Bank and many more. Interwoven also continued to attract new world-class professional services customers including: Simmons & Simmons; Preston Gates & Ellis; Gleiss Lutz; Zuckerman Spaeder; Shepherd & Wedderburn; White & Williams; and many others.
In the first quarter, Interwoven also received orders from existing customers including: 3M; Allstate; Avaya; Avon; Bank of America; BellSouth; Blue Cross Blue Shield of Mississippi; BT; Capital One; Heidelberger Druckmaschinen; Iron Mountain; NEC Electronics America; Novartis; Principal Life Insurance; Sky Italia; Sony; Symantec; Tesco; Toyota Financial Services; and many more. Reorders from professional services firms in the first quarter include: Cetrulo & Capone; Fitzpatrick Cella Harper & Scint; Halloran & Sage; John L. Wortham & Son; Littler Mendelson; Minter Ellison; Powell Goldstein; Wilmer Cutler & Pickering Hale; and others.
As global companies renew their focus on accelerating top-line revenue rather than solely cost cutting, Interwoven believes that investment in core technologies such as Web Content Management (WCM), Digital Asset Management (DAM), Content Distribution, and Content Intelligence, continues to increase as companies strive to grow revenues through the delivery of an improved customer experience. During the quarter, new and existing customers worldwide purchased Interwoven solutions to deliver an enhanced customer experience through greater brand consistency and improved customer interactions across touchpoints.
For example, Sky Italia, an existing Interwoven Digital Asset Management customer and the leading satellite television provider in Italy, purchased Interwoven's Web Content Management solution to enhance the Sky Italia's new broadband portal service through which it is delivering additional high-value media content services to its customers including downloads of movies, sporting events, and news, as well as access to user communities. Leveraging the Interwoven WCM solution, Sky Italia's marketing department, internal divisions, and external journalists now have a robust solution to create, edit, and publish customer-facing content.
In addition, new customer Odakyu Electric Railway Company in Japan purchased the Interwoven WCM solution as part of its initiative to provide improved customer service through the delivery of more timely and accurate information to both the railway's employees and nearly 3 million daily riders. Using the Interwoven solution, Odakyu can achieve automatic and synchronized multi-channel publishing of key information such as schedule details to its website, train station display boards, and customers’ mobile devices as well as those of train conductors.
Solution and Product Leadership
Interwoven continued to bring innovative solutions and products to market. New solutions and products recently announced include:
Interwoven Customer Experience Solution—Interwoven introduced the first offering of its kind designed to enable enterprises to automate the Customer Experience Management process—from the creation of customer-facing content through the publishing of this content across customer touchpoints including the Web, mobile devices, contact centers, e-mail, retail stores, printed collateral, and more. The new solution—which is further enhanced by Interwoven's partner ecosystem—addresses a critical need for Global 2000 companies, that are looking to accelerate business growth and drive new revenue opportunities through a more consistent brand experience worldwide, reduce time to market for new products and campaigns, and improve customer interactions across touchpoints.
Wireless Solutions—Interwoven announced a new integration for BlackBerry mobile devices, enabling organizations to deliver enhanced customer service through greater mobile e-mail and document management capabilities. As a result, organizations can ensure greater access to customer information for faster response times and consistent, high-quality customer interactions. Additionally, Interwoven joined forces with Ericsson, a leading telecom supplier of personalized media solutions to operators, to serve as the key ECM component of Ericsson’s Media Solution offerings, improving the mobile customer experience through the delivery of high demand media content services such as: ringtones, MP3 files, and image downloads; personalized news feeds; and more.
Interwoven Scrittura BuySide Solution—Extending its financial services industry solution leadership, Interwoven recently introduced the industry’s first solution for buy-side financial institutions to automate the incoming confirmations process for Over-the-Counter (OTC) derivatives. The new solution—Scrittura BuySide—is designed to enable buy-side firms to achieve increased regulatory compliance and reduce trade processing times by automating and validating the confirmation process for OTC derivative instruments such as interest rate, credit, equity, foreign exchange, and energy.
New Business Intake and Conflicts Manager—Reinforcing its commitment to the professional services industry, Interwoven introduced the Interwoven New Business Intake and Interwoven Conflicts Manager products. These products provide professional services firms with the ability to manage the complete client engagement lifecycle—from the time a firm establishes first contact with a potential client to the disposition of that client file—within a single solution.
Partner Momentum
As part of its ongoing efforts to deliver best-in-class solutions, Interwoven continued to forge new strategic alliances as well as to strengthen existing partnerships.
Global Customer Experience Management Partner Ecosystem—In conjunction with its introduction of the industry’s first complete Customer Experience Management Solution, Interwoven announced that it is enabling end-to-end customer experience management through the support of an extensive partner ecosystem. Industry leaders such as Adobe, Avenue A | Razorfish, BEA, FAST, Idiom Technologies, Macquarium, Microsoft, Molecular, SDL International, thebigword, Translations.com, Transware, and others joined forces with Interwoven to enable enterprises to automate the customer experience management process.
SDL—Interwoven and SDL International, a leader in the emerging market for global information management (GIM) solutions, entered into a partnership to deliver a joint solution for global customer experience management. Powered by a best-in-class combination of software and process management, the solution is designed to enable multinational companies to increase their customers’ loyalty and satisfaction in markets around the world through the accelerated delivery of multilingual content to global markets.
Microsoft—Interwoven's strategic relationship with Microsoft continued to achieve strong momentum with professional services firms, resulting in key technology innovations and notable customers wins. Since the two companies announced their expanded relationship, successes include: new integrations of Interwoven's WorkSite Engagement/Matter-Centric Collaboration solution with Microsoft Office SharePoint Portal Server; nearly 30 customer wins over the past six months; early adoption of the SQL Server 2005 platform as part of the WorkSite solution; tighter technology roadmap alignment between WorkSite and the 2007 Microsoft Office system, Windows Vista, and other Microsoft technologies; and successful collaboration around numerous global go-to-market activities.
DataBuilder—Interwoven entered into an OEM agreement with Data Builder, Inc., the leader in document management software and services for general contractors and building owners, under which Data Builder is using Interwoven WorkSite Document Management as the foundation for a new hosted electronic project control system (e-PCS) for the construction industry. Data Builder e-PCS empowers general contractors to manage documents and workflow from pre-construction through post-construction, delivering an enhanced client experience, improving productivity, and facilitating risk management.
Metastorm—Interwoven and Metastorm, a leading provider of Business Process Management (BPM) software for modeling, automating, integrating, and improving both human and system-based processes, jointly announced that they have strengthened their partnership through a formal technology partnership and the development of a packaged integration adaptor. As a result, joint customers can take advantage of the integrated solution to combine process flows and content to gain greater control of business processes and visibility into the underlying content.
Company Developments
New Chairman of the Board of Directors and Interim President—During the quarter, Interwoven announced the appointment of long-time Interwoven Board member and Lead Independent Director, Frank Fanzilli, as the new Chairman of the Board. Interwoven also announced that Max Carnecchia, Interwoven's Senior Vice President of Worldwide Sales, has assumed the role of Interim President. Fanzilli joined the Interwoven Board of Directors in 2002, and last year became the Board's Lead Independent Director. Previously, he was with Credit Suisse First Boston for nearly two decades, holding numerous executive positions in technology, and also served on the Board of Directors of PeopleSoft, Inc., the Open Source Development Labs, and several privately held companies. As Senior Vice President of Worldwide Sales for Interwoven, Carnecchia oversees sales in the Americas, Asia Pacific and Europe, the Middle East, and Africa, and has also served as the company's Vice President of Alliances. Prior to Interwoven, Carnecchia's breadth of experience included overseeing sales, alliances, technical support, professional services, and training at a number of leading companies including Xoriant and Smart DB Corporation.
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