Interwoven Announces Record Third Quarter Financial Results
Revenue Growth of 19%; 114 New Customers
SAN JOSE, Calif. - October 23, 2008 - Interwoven, Inc. (NASDAQ: IWOV), a global leader in content management solutions, today announced financial results for the three and nine months ended September 30, 2008.
Interwoven reported total revenues of $65.9 million for the third quarter of 2008, an increase of 19% from total revenues of $55.5 million for the third quarter of 2007. Net income for the third quarter of 2008, calculated in accordance with generally accepted accounting principles, was $7.7 million, or $0.16 per share, compared to net income of $4.1 million, or $0.09 per share, for the same period in 2007. On a non-GAAP basis, Interwoven reported a net income of $8.4 million for the third quarter of 2008, or $0.18 per share, compared to non-GAAP net income of $7.3 million, or $0.16 per share, for the third quarter of 2007.
For the nine months ended September 30, 2008, Interwoven reported total revenues of $190.5 million, an increase of 17% from total revenues of $162.8 million for the same period in 2007. Net income for the nine months ended September 30, 2008, calculated in accordance with generally accepted accounting principles, was $21.3 million, or $0.45 per share, compared to a net income of $13.0 million, or $0.28 per share, for the same period in 2007. On a non-GAAP basis, Interwoven reported net income of $24.0 million for the nine months ended September 30, 2008, or $0.52 per share, compared to non-GAAP net income of $20.1 million, or $0.43 per share, for the same period in 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 third quarter performance - in which we delivered the largest top line revenues in our company's history - represents the 20th consecutive quarter of year-over-year revenue growth for Interwoven," said Joe Cowan, CEO at Interwoven. "We have continued to perform from a position of strength, with a large and growing customer base, strong balance sheet, recognized leadership position, and solutions that deliver much needed business impact. Now more than ever, our customers view Interwoven's solutions as key to helping them win new business and get the maximum value from their content."
Customer Success Highlights
During the quarter, Interwoven added 114 new customers, bringing the total to over 4,600 customers worldwide.
Notable customer orders included: Akin Gump Strauss Hauer & Feld LLP, Blue Cross Blue Shield of Tennessee, Caterpillar Inc., Cox Communications, Digi-Key Corporation, Hunton & Williams LLP, ICICI Bank, J&A Garrigues, Kao Corporation, Kawasaki Motor Corporation, Lathrop & Gage LC, Montgomery, McCracken, Walker & Rhoads LLP, and The Carphone Warehouse Group PLC.
Product News
Interwoven Enhances Flagship Offerings for Maximizing Online Business Performance - In the third quarter, Interwoven announced the general availability of enhanced versions of Interwoven TeamSite and Interwoven LiveSite. These versions provide a wide range of innovations that allow marketers to more rapidly create and refresh Website content, and to more easily target that content to a broader set of Website visitors.
Interwoven Continues to Redefine Web Optimization with Launch of Adaptive Targeting - Earlier this week, Interwoven announced the availability of Interwoven Optimost Adaptive Targeting, dramatically enhancing the ability of businesses to identify the best combination of content for each Web visitor based on a wide-range of audience characteristics and behaviors. Adaptive Targeting joins Interwoven's current solutions to create the industry's most comprehensive set of targeting offerings, providing an unequaled ability to identify new audience segments, continually refine existing segments, and deliver optimized content to every visitor.
Interwoven Delivers Enhanced Digital Asset Management to Increase Business Agility and Speed - Earlier this week, Interwoven announced the general availability of an enhanced version of Interwoven MediaBin, the company's Digital Asset Management solution. The new version of MediaBin gives marketers increased speed, interactivity, and control for managing and deploying rich media assets.
Interwoven and Lexis Nexis Team Up to Introduce Integrated Solution - In the third quarter, Interwoven announced that it has entered into an agreement with global business information solution provider LexisNexis to integrate and launch Lexis® Search Advantage, a new search enrichment offering, with Interwoven Universal Search. The integration of Lexis Search Advantage with Interwoven Universal Search combines the market leading enterprise search solution for professional service firms with content and services from LexisNexis® to provide lawyers with a single destination to efficiently find and leverage internal work product and trusted content from LexisNexis.
Interwoven RecordsManager Enhanced - In the third quarter, Interwoven announced enhancements to Interwoven RecordsManager, which significantly expands upon Interwoven's strategy of delivering an integrated governance solution for electronic documents and physical records. The new capabilities in Interwoven RecordsManager simplify the management of records centers, ease the implementation and configuration of the solution, and provide key stakeholders in the records process a user experience finely tuned to their specific roles.
Business Highlights
Interwoven Acquires Discovery Mining - On August 4, Interwoven announced that it completed the acquisition of Discovery Mining, a leading provider of software and services for eDiscovery to professional services firms and corporations. The acquisition of Discovery Mining extends Interwoven's offering - the legal industry's de facto standard for organizing, finding, and governing matter content - by adding a service for managing eDiscovery. In the two months following the acquisition, Interwoven is seeing increasing demand and participation in a larger number of opportunities.
Interwoven Web Solutions Gain Traction with Key Customer Wins - In the last three months, Interwoven announced several strategic wins that showcase how businesses are turning to Interwoven to transform their online presence and engage with customers. These include American Medical Association, CPS Energy, Discovery Communications, Premier Farnell, Shutterfly, and T. Rowe Price. For example, Discovery Communications is using Interwoven's Web Solutions to power PlanetGreen.com, the online counterpart of Discovery's Planet Green television network launched this summer. Interwoven's Web Solutions enable Discovery to provide a compelling and dynamic online experience to the community of environmental enthusiasts that visit PlanetGreen.com every day.
Interwoven Names Jeff Kissling Senior Vice President of Engineering - On August 19, Interwoven announced that Jeff Kissling has been appointed senior vice president of engineering. Kissling brings nearly 30 years of experience in leading engineering teams in the development of enterprise-class technologies. Most recently, Kissling served as senior vice president of technology transition for JDA Software Group, Inc. Kissling came to JDA as a result of the company's 2006 acquisition of Manugistics Group, Inc., where he was chief technology officer and was responsible for the entire lifecycle of Manugistics' products and services. Prior to Manugistics, Kissling was the chief technology officer at both BAAN (now a unit of SSA Global Technologies, Inc.) and Invensys Manufacturing and Process Systems.
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 third quarter financial results, its financial outlook for the fourth quarter of 2008 will be discussed today, October 23, 2008 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Conference Call Details: Date: Thursday, October 23, 2008 Time: 2:00 p.m. PDT (5:00 p.m. EDT) Live Dial-in #: 877-723-9502 or 719-325-4834 Replay Dial-in #: 888-203-1112 or 719-457-0820 Replay Passcode: 4131260
Audio Webcast instructions will be available on Interwoven's Website at http://www.interwoven.com/investors. The call replay will be available starting on October 23, 2008 at approximately 5:00 p.m. Pacific Time (8:00 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. Actual results could differ materially from our current expectations as a result of many factors including: factors beyond our control such as general geopolitical and economic conditions; conditions in the financial services markets; the overall demand for enterprise software and services and general political and economic developments; 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; our ability to cross-sell and up-sell additional products into our installed base of customers; 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: ...with a Trust Department that is responsible for processing a number of new accounts per month, in addition to keeping over 7,000 existing accounts current. Previously, transactional information associated with these accounts used paperbased processes that were labor intensive and prone to error. With...
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: ...file and database protection safeguards all data without complex plug-ins or costly third-party tools. The Results ZRI has been using LiveVault for nine months now and is pleased at just how automated the solution is. Its recovery feature was put to the test when ZRI’s ERP server for its manufacturing,...
Summary: ...to run a report, which is not acceptable from a Web interface,” says cofounder and CTO Dave Britt. “As far as our customers were concerned, it was our product that was slow. They don’t know or care that it’s the database.” Customers also wanted to keep a month of data on hand, but the database...
Summary: ...and Seeboard, is one of the largest energy companies in the UK. Based in London with operations across the country, EDF Energy employs 11,300 people. More than a quarter of the UK population depends on EDF Energy for electricity. The Need Rapid email growth has meant trouble for users at EDF Energy. As...
Summary: ...submittal archival and workflow processes. Case Study Organization The County of San Diego is one of the fastest growing municipalities in the country. Its population has more than doubled in the past 25 years. Today, approximately 2.9 million people call the county home—the third most populous of California’s...
Summary: ...Study Customer Kaiser Permanente is the largest non-profit health plan in the United States, serving more than 8.6 million members in nine states and the District of Columbia. Industry Healthcare Challenges • Managers required a more accurate way to measure service • Improve efficiency of implementing...
Summary: ...Surprisingly, Pettigrove points to a reduction in travel expenditure as a result of the deployment. “When an audit involves interstate travel, our auditors used to incur huge excess luggage costs as they brought the paperwork back to the offce. Now they just return with documentation on a hard drive.”...
Summary: ...in twice by two different operators, and the results were then compared. If all entries were consistent, the form was accepted. If inconsistencies were found, then the form was keyed in a third time. If the third version was consistent with one of the first two, that version was accepted. And if inconsistencies...
Summary: ...KPMG Case Study - Professional Services Intranet. The descriptions of the results that match those parameters can then be searched for “mergers and acquisitions” to quickly narrow in on tax prospects and clients in Europe’s financial services industry with an M&A history. The Benefits IDOL K2 delivers...
Summary: ...used to be mostly on what happened last week and last month. Today, customers want to know things over a long period of time. They want to look at trends and at things that happened over the last 12 months, and to be able to compare this year with last year. Most of our queries have only been able to...
Summary: ...Veritas NetBackup. The IT department believes that without the archiving software, the sheer size of VUMC's email storage would have prevented it from successfully completing full backups during its allotted backup window. Finally, although VUMC does not currently use the EAS software for discovery purposes,...
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: ...or "hot", and prioritize that data in hours and days instead of weeks or months. By prioritizing the data into a more manageable result set, legal teams can significantly decrease the volume of data that is sent on for review, creating measurable cost savings for their clients. The system then automatically...
Summary: ...any supporting documentation needs to be uniquely handled as well. Data Acquisition – After automatically identifying and sorting each unique invoice type, the Cardiff Intelligent Document Solution for AP will automatically handle the application of all appropriate data acquisition rules, based on document...
Summary: ...Autonomy Scrittura Product Brief. POWER PROMOTE PROTECT Efficiency Customer Use Case A major tier-1 bank reported the following efficiency gains after using Autonomy’s Scrittura for 3 months: • 99.19% of trades are dispatched on T+1 using Scrittura • eConfirm enabled trades • 90% of trades are...
Summary: ...Autonomy Scrittura for Commodities Product Brief. POWER PROMOTE PROTECT Efficiency Customer Use Case A major tier-1 bank reported the following efficiency gains after using Autonomy’s Scrittura Commodities for 3 months: • 99.19% of trades are dispatched on T+1 using Scrittura Commodities • eConfirm...
Summary: ...Autonomy LiveSite - Product Overview. Improving Usability for All Web Applications With Autonomy LiveSite, runtime delivery applications – such as enterprise portals, eCommerce solutions, custom applications (J2EE, .NET, RIAs), and mobile devices – are able to leverage the simple and intuitive authoring...
Summary: ...a dramatic and measurable boost to bottom-line performance by significantly improving conversion rates, including online sales, click-throughs, registrations, leads, downloads, page views, or other measures of online success. Multivariate testing gives unparalleled insight into how each piece of content...
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: ...for both physical records and content stored in WorkSite, at the client, engagement and document level. iManage Digital Safe – Consolidated Archive Digital Safe provides a massively scalable and consolidated archive across email servers and iManage WorkSite for any type of content, including email,...
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...
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: ...held for litigation and (appropriately) destroyed is critical to mitigating exposure under the new procedures governing electronic discovery. “It is dangerous to leave it up to users to enforce retention periods and delete or archive records.” —Gartner, June 20 2008 EAS can archive from over 400...
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: ...In many cases, organizations must restore data from tape and then work with a third party to import this data into a discovery management solution for review and production. The costs of such a process can reach millions of dollars, causing some organizations to settle frivolous cases rather than incur...
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: ...spent per month recovering or restoring files for users (both end users and requests for discovery). - Some categories of tasks are performed on a periodic basis, for example, performing functional tests to validate that backups run correctly and that data can be restored an acceptable amount of the time....
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: ...of the hardware and media, now and in the future, is borne by the service provider. The amount of storage you select for your backup data and retention periods is determined in the monthly subscription fee. Software Costs In the SaaS model, not only does the monthly service fee cover use of the basic...
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: ...Outlay– limited upfront costs allows budget allocation to other items Yes No Expense Stream– consistent, predictable costs to eliminate billing surprises Yes No Setup Deployment– time-to-production generally measured in (time period) Days Weeks Infrastructure– uses customer’s infrastructure...
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: ...with all applicable laws, rules, regulations and statements as prescribed by SEC Rule 17a-3 and in a format, medium and retention period that complies with SEC Rule 17a-4. 5. The Sarbanes-Oxley Act of 2002 (also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly...
Summary: ...Mover, moves batches of data out of memory and into disk-based containers, compressing and sorting the columns in the process. Thus, the performance cost of sorting and compression is shared and amortized across many tuples. Thirdly, since Vertica databases can be partitioned across a grid of shared-nothing...
Summary: ...internal retention policies conflict with the requirements of a lawsuit (e.g. a company has a 90 day retention period but a case is expected to last 12 months) retention policies in the archive must be set for a “legal hold.” Legal holds are required by companies to systematically enforce retention...
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
