Interwoven Announces Record Second Quarter Financial Results
Revenue Growth of 16%; 106 New Customers; Announces Intent to Acquire eDiscovery Innovator Discovery Mining, Inc.
SAN JOSE, Calif. - July 24, 2008 - Interwoven, Inc. (NASDAQ: IWOV), a global leader in content management solutions, today announced financial results for the three and six months ended June 30, 2008.
Interwoven reported total revenues of $63.2 million for the second quarter of 2008, an increase of 16% from total revenues of $54.6 million for the second quarter of 2007. Net income for the second quarter of 2008, calculated in accordance with generally accepted accounting principles, was $7.5 million, or $0.16 per share, compared to net income of $4.2 million, or $0.09 per share, for the same period in 2007. On a non-GAAP basis, Interwoven reported a net income of $8.3 million for the second quarter of 2008, or $0.18 per share, compared to non-GAAP net income of $6.7 million, or $0.14 per share, for the second quarter of 2007.
For the six months ended June 30, 2008, Interwoven reported total revenues of $124.6 million, an increase of 16% from total revenues of $107.3 million for 2007. Net income for the six months ended June 30, 2008, calculated in accordance with generally accepted accounting principles, was $13.6 million, or $0.29 per share, compared to a net income of $8.9 million, or $0.19 per share, for 2007. On a non-GAAP basis, Interwoven reported net income of $15.6 million for the six months ended June 30, 2008, or $0.34 per share, compared to non-GAAP net income of $12.8 million, or $0.27 per share, for 2007.
Reconciliations of net income and net income per share calculated in accordance with generally accepted accounting principles and non-GAAP net income and non-GAAP net income per share are 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.
"Our second quarter performance - in which we delivered the largest top line revenues in our company's history - is another strong proof point of our strategy and demonstrates our increasing momentum," said Joe Cowan, CEO at Interwoven. "Our core businesses performed exceptionally well during the quarter, and I'm thrilled by our announcement earlier today of our entry into a definitive agreement to acquire Discovery Mining. This acquisition - our second in less than a year - is another important milestone in our strategy to capitalize on our leadership position in the high-growth markets we serve."
Customer Success Highlights
During the quarter, Interwoven added 106 new customers, bringing the total to nearly 4,400 customers worldwide.
Notable customer orders included: Bank of America, Bond Pearce LLP, British Telecom, Chadbourne & Parke, Cole Schotz, CPS Energy, Delta Airlines, Discovery Communications, Fidelity UK, General Motors, Intrawest Corporation, KhattarWong, LexisNexis (a division of Reed Elsevier Inc), Liberty Mutual Group, McGraw-Hill, Panasonic, Pearson PLC, Princess Cruises, Sanofi-Aventis, Sky Italia, Southwest Airlines, and The AmeriHealth Mercy Family of Companies.
Product News and Industry Leadership Highlights
Interwoven Rated "Strong Positive" in Gartner's Web Content Management (WCM) MarketScope Report - In Gartner's recently published WCM MarketScope, Interwoven was one of only two vendors that received a "Strong Positive" rating, the highest possible rating out of 17 companies evaluated in the report. The MarketScope report evaluated WCM vendors based on their product/service offering, customer experience, sales execution and pricing, overall viability, innovation, marketing execution and geographic strategy.
Interwoven Optimost Continues to Gain Momentum - During the second quarter, Interwoven continued to build momentum for Interwoven Optimost, the company's Website optimization solution, with several new customer wins and implementations. LOVEFiLM, Europe's leading online DVD rental and games subscription service with over 600,000 members, generated a 10 percent increase in subscription conversions within the first four weeks of implementing Interwoven Optimost. Amnesty International USA used Interwoven Optimost to more than double its donation page completion rates from the prior year, and increase the return on investment for their search keyword program from 6:1 to over 10:1.
Interwoven Receives Top Score in CPA Technology Advisor's Annual Review of Document Management Solutions - In June, Interwoven announced that The CPA Technology Advisor awarded Interwoven WorkSite solution its only 5-star rating in its annual review of document management systems. The CPA Technology Advisor cited "depth and breadth of functionality" in WorkSite as a key factor in the ranking.
Interwoven Expands Customer Base Among Professional Services Firms in Asia-Pacific - In early July, Interwoven announced strong gains in momentum in building out its Asia-Pacific presence to capitalize on the growing opportunity among professional services firms in the region. Interwoven recently secured several strategic customers in the region, including India-based J Sagar Associates; six leading Singaporean law firms, Allen & Gledhill LLP, Colin Ng & Partners LLP, KhattarWong, Rajah & Tann LLP, Rodyk & Davidson LLP and WongPartnership LLP; and two of the largest firms in Malaysia, Shearn Delamore & Co. and Zaid Ibrahim & Co.
Interwoven Announces Intent to Acquire eDiscovery Innovator Discovery Mining, Inc. Interwoven announced earlier today it has entered into a definitive agreement to acquire Discovery Mining, a leading eDiscovery provider to law firms and corporations. Discovery Mining significantly streamlines and simplifies the discovery phase of litigations and investigations with a software-as-a-service solution for processing, reviewing and producing massive volumes of electronic data.
Under the terms of the agreement, Interwoven will pay approximately $36 million in cash for all outstanding shares and vested stock options of Discovery Mining, and assume certain existing employee stock options. While the acquisition is expected to be completed in the third quarter of 2008, the transaction is subject to customary closing conditions. To read the press release and learn more about the acquisition, please visit www.interwoven.com.
Non-GAAP Financial Information To supplement the company's consolidated financial statements presented in accordance with generally accepted accounting principles, Interwoven uses measures of operating results, net income, net income per share, and shares used in the net income per share calculation, which are adjusted to exclude restructuring and excess facilities charges and recoveries, stock-based compensation expense, amortization of intangible assets, recoveries from amounts held in escrow related to the settlement of certain claims associated with the acquisition of Scrittura, costs associated with the company's completed voluntary review of historical stock option grant procedures and related accounting, expenses incurred associated with the Company's new corporate headquarters while in the process of completing tenant improvements and the related tax impact of these adjustments. These non-GAAP results are not in accordance with, or an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Interwoven believes that the presentation of non-GAAP results provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Interwoven also believes that where the adjustments used in calculating non-GAAP net income and non-GAAP net income per share are based on specific, identified charges that impact different line items in the consolidated statements of operations (including cost of revenues-license, cost of revenues-support and service, sales and marketing, research and development, general and administrative expenses and provision for income taxes), it is useful to investors to know how these specific line items in the consolidated statements of operations are affected by these adjustments. For its internal budgets, Interwoven's management uses consolidated financial statements that do not include restructuring and excess facilities charges and recoveries, stock-based compensation expense, amortization of intangible assets, recoveries from amounts held in escrow related to the settlement of certain claims associated with the acquisition of Scrittura, costs associated with the company's completed voluntary review of historical stock option grant procedures and related accounting, expenses incurred associated with the Company's new corporate headquarters while in the process of completing tenant improvements and the related tax impact of these adjustments. Interwoven uses these non-GAAP measures in assessing corporate performance and determining incentive compensation. Readers are advised to review and consider carefully the financial information prepared in accordance with accounting principles generally accepted in the United States of America contained in this press release and Interwoven's periodic filings with the Securities and Exchange Commission.
Conference Call Information Interwoven's 2008 second quarter financial results, its financial outlook for the third quarter of 2008 and the acquisition of Discovery Mining, Inc. will be discussed today, July 24, 2008 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Conference Call Details: Date: Thursday, July 24, 2008
Time: 2:00 p.m. PDT (5:00 p.m. EDT) Live Dial-in #: (800) 388-8975 or (913) 312-0845 Replay #: (888) 203-1112 or (719) 457-0820 Pass code: 8602354
Audio Webcast instructions will be available on Interwoven's Website at http://www.interwoven.com/investors. The call replay will be available starting on July 24, 2008 at approximately 5:00 p.m. Pacific Time (5:00 p.m. Eastern Time) for a limited time period.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements, including statements about historical results that may suggest trends in our business. These statements are based on estimates and information available to us at the time of this press release and are not guarantees of future performance. Our forward-looking statements include statements about customer demand and the expected timing of closing the Discovery Mining, Inc. acquisition. Actual results could differ materially from our current expectations as a result of many factors including: our ability to develop new products, services, features and functionality successfully and on a timely basis; customer acceptance of our solutions; changes in customer spending on enterprise content management initiatives; the possibility that the Discovery Mining, Inc. acquisition does not close; our ability to cross-sell and up-sell additional products, including Discovery Mining's products and services, into our installed base of customers; the lack of market acceptance of Discovery Mining's products and services; failure of the market for eDiscovery software solutions to develop and grow as quickly as expected; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; the timing and impact of acquisition-related costs or amortization costs for acquired intangible assets; the success of our strategic business alliances; intense competition in our markets; changes in key personnel; the introduction of new products or services by competitors; and the ongoing consolidation in our markets. These and other risks and uncertainties associated with our business are described in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Forms 8-K, which are on file with the Securities and Exchange Commission and available through www.sec.gov.
Interwoven, Inc. (NASDAQ: IWOV) is a global leader in content management solutions. Interwoven's software and services enable organizations to maximize online business performance and organize, find, and govern business content. Interwoven solutions unlock the value of content by delivering the right content to the right person in the right context at the right time. Over 4,700 of the world's leading companies, professional services firms, and governments have chosen Interwoven, including Airbus, Amnesty International USA, Avaya, BT, Cisco, Citi, Delta Air Lines, DLA Piper, FedEx, Grant Thornton, Hilton Hotels, HKMP LLP, Hong Kong Trade and Development Council, HSBC, LexisNexis, MasterCard, Microsoft, Samsung, Shell, Sky Italia, Qantas Airways, Tesco, Virgin Mobile, and White & Case. A community of over 25,000 developers and over 300 partners enrich and extend Interwoven's offerings. To learn more about Interwoven, please visit www.interwoven.com.
Summary: ...retention algorithm, the UNT Health Science Center can quickly determine the storage requirements of all relevant records. As Woodall explains, “Every file inventoried via the Autonomy solution automatically has the right retention criteria applied to it, eliminating the need for manual calculations.”...
Summary: ...Vertica Case Study: hMetrix. The Tableau software leverages the Vertica Analytic Database to do the query processing and calculations, while the desktop and web based client does the interactive manipulation and visual display of results – making analysis very fast and easy. Analyses recalculate as...
Summary: ...and provides reports to customers as well as to internal employees. Using the ICS application, customers can mine the CDRs to analyze their traffic patterns, monitor and forecast their profitability, and perform other analyses. In the six years since NetworkIP deployed the data warehouse, Director of...
Summary: ...D.C. The ACIAR project team agrees that ease of use is critically important in implementing an EDRM. ACIAR’s Information Manager reported: “There has been significant user acceptance with faster access to information. We have certainly greatly improved our corporate recordkeeping and knowledge management...
Summary: ...design principles based on a solid foundation of data, rather than subjective intuition. “Small things made a big difference, such as adding multiple calls-to-action and shading the disclaimer on the email page differently,” reported Salmanowitz. “Even something as simple as hyperlinking the title...
Summary: ...Queensland Department of Natural Resources, Mines, and Energy - Case Study. PROMOTE POWER PROTECT Autonomy Helped The Queensland Department of Natural Resources, Mines, and Energy Increase the Speed, Accuracy, and Efficiency of its Website Updates As access to information is vital for the successful management...
Summary: ...Boden - Case Study. PROMOTE POWER PROTECT Boden Company Background Founded by Johnnie Boden in 1991, Boden is an award-winning, UK-based clothing retailer with operations throughout Europe and the Unites States. Its collections comprise the Boden range for men and women, Jonnie B for teenagers, Mini Boden...
Summary: ...into a sophisticated information and sales tool, in order to deliver knowledge to the company’s target audiences to increase site usage and ultimately contribute to increased sales opportunities. Understanding all aspects of CITEC’s complex organisation processes, and the wider principles of knowledge...
Summary: ...Vertica Case Study: Crowdstar. This new rapid analytics capability will help the gaming sites acquire and maintain a maximum number of happy fans by quickly responding to their user community’s requirements. The Challenge Sibblingz is a virtual world platform with multiple social games which let their...
Summary: ...huge amounts of short-term flow data— data samples of IP conversations taken at five-minute intervals. Because it is real-time data, short-term data is essential for network troubleshooting. It is also the primary detail data used to calculate all other data sets. The appliance database stores all the...
Summary: ...as the manual routing of applications for appropriate review and signatures.The Trust department’s business processes focus on managing and maintaining financial and legal documents in accordance with State and Federal regulations. Types of documents include trust authorizations and agreements, 401K,...
Summary: ...As the product of mergers of several regulated utility companies, KeySpan supported multiple businesses with their website—each with their own look and feel. These “mini sites,” fragmented and difficult to manage and use, inhibited customers from being able to explore the full array of KeySpan services...
This is a small selection of the Autonomy case studies available, please visit our publications site at http://publications.autonomy.com/ for more information.
Summary: ...expression. Most powerfully, an Agent can be trained or re-trained by example, simply by being shown a document, video, or verbal conversation that matches a user’s interests. The Agent will then learn the concepts within the example and define itself accordingly. Once an Agent has been created it will...
Summary: ...Take the following example: Watch/Listen Buzz Aldrin set foot on the Moon 20 minutes after Neil Armstrong PLAY VIDEO PLAY VIDEO Neil Armstrong steps on the Moon President Nixon speaks live to the astronauts 21 Jul 1969 19 Nov 1969 Timeline: Space Man takes first steps on the Moon Second Apollo mission...
Summary: ...Autonomy Retina Overview. Natural language queries allow users to find results without having to be familiar with search algorithms or syntax Users can combine Boolean and Proximity operators to form simple or complex Boolean expressions Parametric search Users can search for items by certain field values....
Summary: ...connected infrastructure. Given today’s highly litigious business environment, companies, law firms and legal service providers who fail to conduct eDiscovery in accordance with the FRCP are subjecting organizations to significant increasing sanctions and fines - or worse - settling litigation because...
Summary: ...numbers, and are assigned to approved vendors. In addition, line items match items ordered and received, and totals match totals. As a result, these invoices are easily postable for payment in an acceptable timeframe. In reality, however, invoices are submitted without P.O.’s, suppliers are not in the...
Summary: ...Notices Are Not Enough: Courts have made it clear that a legal hold notice is not enough. Why Custodian Self Collection is Risky: Self-Collection is rarely systemized, repeatable, or defensible and generally fails to meet Court requirements for legal holds. Automated Preservation and Collection Mitigates...
Summary: ...Meridio Professional Services. Customer, Meridio or 3rd party Partner - Defines timelines for completion of project or phase - Outline of personnel days and costs required to complete the SOW Customer Requirements Studies Customer requirements studies generally start with an onsite meeting involving Meridio...
Summary: ...Server Active Directory 2000/2003, Oracle Internet Directory 10g, SunONE Directory Server 5.2, eDirectory 8.7.3 Mail Server SMTP Required for LiquidOffice email notification BlackBerry Smartphone OS V4 and higher Min. Server Specifications Intel/AMD/UltraSparc Processor, 1GB RAM, 10GB Disk Space Recommended...
Summary: ...and transportation. The economic meltdown has triggered unparalleled mergers and acquisitions and unfortunately massive litigation. The FBI has reported dozens of investigations and over 1400 mortgage-fraud cases and shareholder lawsuits nationwide. Many financial institutions are facing these very issues...
Summary: ...if a specified statistic for a service falls outside an acceptable range ? Generate tables and graphs of a service’s statistical data ? Set up Keepalives to make periodic checks of a service’s status, and restart the service automatically if it stops running ? Display and analyze service logging information...
Summary: ...all sizes is the difficulty of establishing and enforcing enterprise-wide policies and procedures to protect the firm against liability. Without accepted and implemented retention and disposal policies, organizations face mounting costs for storage With WorkSite, in-house counsel can organize all relevant...
Summary: ...lower, more predictable cost structures and mitigates risk, while enabling defensible, comprehensive information governance enterprisewide. The Autonomy cloud helps organizations remain agile when disruptions arise, as in the case of mergers and acquisitions when businesses must quickly bring on board...
This is a small selection of the Autonomy Product Briefs available, please visit our publications site at http://publications.autonomy.com/ for more information.
Summary: ...consecutive quarters with cash reserves in excess of $75 million, Autonomy’s organic growth is approximately 20% year-over-year. Autonomy is publicly listed on the London Stock Exchange (AU.). Our revenues are reported in accordance with the stringent standards laid out by US GAAP and International...
Summary: ...clarity into potential outcomes, making these arrangements more likely to benefit the firms. ■ Allowing work to take less time, making deadlines easier to hit without overworking the entire team. Return-on-Investment As part of their Six Sigma program, DuPont requires a calculation of measurable savings...
Summary: ...spend more than 30 minutes a day managing their mailboxes.5 Adding to lost end-user productivity, corporate users now spend more time searching for information than analyzing it.6 While it can be argued that not all time spent on managing email is unproductive, it is generally accepted that user time...
Summary: ...financial data, such as database data, which is often subject to regulatory as well as legal restrictions. Employee Acceptance and Adherence Most document retention policies are not followed because employees are generally unaware they exist. If a company has decided to save e-mail for some period of...
Summary: ...for records management best practices, ARMA International’s Generally Accepted Recordkeeping PrinciplesSM (GARP) have been published with two key goals in mind: to foster a general awareness of recordkeeping standards and principles, and to assist organizations in developing consistent records systems...
Summary: ...that simply incorporating information available publicly may well have identified serious risk.17, 18 11 Impact to net income in FY 2007 was $124 (CAD), which represented 22% of total net income before taxes reported for the same period 12 Scannel, Sara. SEC Had Chances for Years to Expose Madoff’s...
Summary: ...stored information, or metadata) need to be preserved and disclosed in discovery. Applicable state and federal laws and regulations may also require retention of certain types of documents, such as personnel files and payroll information, for a specified period of time that may or may not exceed the length...
Summary: ...the profitability of reducing operational costs by the investment in cloud security — as well as additional soft benefits. In some companies, additional components of ROI calculations for technology projects include: - Net Present Value - Opportunity Cost - Payback Period It is important to check with...
Summary: ...price. By requiring a longer commitment for a lower price the company can simultaneously increase the response rate and reduce the remarketing costs currently incurred at the end of the shorter commitment period. In the statistical language of experimental design, this is called an interaction.1 By Second...
Summary: ...might indeed be useful, follow-up tests can be conducted to assess that. On the other hand, pre-planned designs typically assume that none of the interactions is important, not even those among just two of the variables (for example, it’s very possible that with a higher price, a certain “guarantee”...
Summary: ...Autonomy Whitepaper - How to Measure ROI for Online PC Backup and Recovery. In the cost calculations for asset loss, it is important to include the recovery costs for system software. Analysts estimate about six percent of assets (installed hardware and software) are lost per year. The total cost of ownership...
Summary: ...of, data provide a competitive advantage and introduce a new dependency within organizations. The dependency on data for everything from targeted advertising, split second trading algorithms and both tactical and strategic business decisions manifests in new requirements for availability, scalability,...
This is a small selection of the Autonomy White Papers available, please visit our publications site at http://publications.autonomy.com/ for more information.
Related Case Studies
