================================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934 October 16, 2003 (October 16, 2003) Date of Report (Date of earliest event reported) FILENET CORPORATION (Exact name of registrant as specified in its charter) Delaware 000-15997 95-3757924 (State or other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification Number) 3565 Harbor Boulevard 92626 Costa Mesa, California (Zip Code) (Address of principal executive offices) (714) 327-3400 (Registrant's telephone number, including area code) N/A (Former Name or Former Address, if Changed Since Last Report) ================================================================================================Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibits: Description of Document 99.1 Press Release dated October 16, 2003.* * This exhibit 99.1 is being furnished pursuant to Item 12, and is not deemed filed pursuant to Item 7. Item 12. Disclosure of Results of Operations and Financial Condition. On October 16, 2003, we issued a press release, which sets forth the results of our operations for the quarter ended September 30, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FILENET CORPORATION Date: October 16, 2003 By: /s/ Sam M. Auriemma Name: Sam M. Auriemma Title: Senior Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibits: Description of Document 99.1 Press Release dated October 16, 2003. 4 EXHIBIT 99.1 [FileNet Corporation Logo] FOR IMMEDIATE RELEASE FileNet Reports Third Quarter 2003 Results Company Achieves 16 Percent Year-Over-Year Software Revenue Growth in the Third Quarter COSTA MESA, Calif.--October 16, 2003--FileNet Corporation (Nasdaq: FILE), the leading provider of Enterprise Content and Business Process Management (ECM) solutions, today announced financial results for its third quarter ended September 30, 2003. Total revenues for the third quarter of 2003 were $89.4 million compared to total revenues of $83.1 million for the same period in 2002 and $87.1 million for the second quarter of 2003. Software revenues for the third quarter of 2003 were $35.3 million compared to $30.5 million for the same period in 2002 and $33.6 million for the second quarter of 2003. Net income was $2.5 million in the third quarter of 2003, compared to net income of $1.4 million in the third quarter of 2002 and $1.5 million in the second quarter of 2003. Earnings per basic and diluted share were $0.07 and $0.06, respectively, for the third quarter of 2003, compared to earnings per basic and diluted share of $0.04 for the third quarter of 2002 and $.04 for the second quarter of 2003. As of September 30, 2003, FileNet had cash and investments of $217.5 million, compared to $205.8 million at June 30, 2003. The company has no long-term debt. "Our third quarter results benefited from demand for our process management-based ECM solutions, continued traction of our new FileNet P8 suites and strong performance in the financial services market," said Lee Roberts, FileNet's chairman and CEO. "Business Process Management remains a key differentiator for FileNet, and by providing integrated process and content management capabilities, we are uniquely positioned to support our customers' compliance and regulatory requirements." Quarterly Conference Call with Management Lee Roberts, chairman and chief executive officer, and Sam Auriemma, chief financial officer, will host a quarterly conference call for investors at 7:00 a.m. PDT / 10:00 a.m. EDT today. The call will be broadcast live over the Internet. To listen to the live audio Web cast via the Internet, please follow the instructions that will be available on the investor relations' section of FileNet's Web site at http://www.filenet.com. A replay of the Web cast of the call will be available for an extended period of time. 5 Alternatively, to listen to the call live, dial (888) 821-2773 or (706) 634-7555. A replay of the call will be available from approximately 8:00 a.m. PDT on October 16 through midnight PDT on October 30. To listen to the replay, dial (800) 642-1687 or (706) 645-9291. The conference call ID number is 2797961 for all calls. About FileNet FileNet Corporation (Nasdaq: FILE) helps organizations make better decisions by managing the content and processes that drive their business. FileNet's Enterprise Content Management (ECM) solutions allow customers to build and sustain competitive advantage by managing content throughout their organizations, automating and streamlining their business processes, and providing the full spectrum of connectivity needed to simplify their critical and everyday decision-making. FileNet ECM solutions deliver a comprehensive set of capabilities that integrate with existing information systems to provide cost-effective solutions that solve real-world business problems. Since the Company's founding in 1982, more than 3,900 organizations, including 80 of the Fortune 100, have taken advantage of FileNet solutions for help in managing their mission-critical content and processes. Headquartered in Costa Mesa, Calif., the Company markets its innovative ECM solutions in more than 90 countries through its own global sales, professional services and support organizations, as well as via its ValueNet(R)Partner network of resellers, system integrators and application developers. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for FileNet include, but are not limited to, the volume of our sales and pricing concessions on volume sales; our ability to specify, develop or acquire, complete, introduce, market, distribute and gain market acceptance for new products and technologies in a timely manner; the mix of products and services sold by us; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; our ability to control expenses; announcements of technological innovations, new products or product enhancements by the company or its competitors; the emerging nature of the Enterprise Content Management market; 6 key management changes; changes in joint marketing and development programs; developments relating to patents or other intellectual property rights or disputes; changing relationships with customers, distributors, suppliers and strategic partners; potential contractual or employment issues; our ability to integrate acquired businesses; and general conditions in the worldwide economy and the software/technology sector and other factors. Our Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Note to editors: FileNet and ValueNet are registered trademarks of FileNet Corporation. All other company or product names referenced in this release may be trademarks or registered trademarks of their respective owners. # # # Investor Contact Greg Witter, Director, Investor Relations FileNet Corporation Phone: 714-327-3405 Email: gwitter@filenet.com Media Contact: Tom Hennessey, Director, Corporate Communications FileNet Corporation Phone: 714-327-5050 Email: thennessey@filenet.com 7 FILENET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Quarter Ended Sept. 30, Nine Months Ended Sept. 30, 2003 2002 2003 2002 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue: Software $ 35,320 $ 30,538 $ 104,397 $ 96,128 Service 53,324 50,589 157,119 154,760 Hardware 745 1,975 2,039 6,682 Total revenue 89,389 83,102 263,555 257,570 Costs: Cost of software revenue 3,800 2,484 10,416 7,239 Cost of service revenue 20,246 20,965 60,145 67,502 Cost of hardware revenue 827 1,337 2,882 4,847 Total cost of revenue 24,873 24,786 73,443 79,588 Gross profit 64,516 58,316 190,112 177,982 Operating expenses: Sales and Marketing 34,405 32,338 103,660 97,388 Research and development 19,049 17,764 58,031 53,993 In-process research and development - - - 400 General and administrative 8,241 7,455 24,393 24,248 Total operating expenses 61,695 57,557 186,084 176,029 Operating income 2,821 759 4,028 1,953 Other income, net 632 1,045 3,297 3,874 Income before income taxes 3,453 1,804 7,325 5,827 Provision for income taxes 967 415 2,051 1,340 Net income $ 2,486 $ 1,389 $ 5,274 $ 4,487 Earnings per share: Basic $ 0.07 $ 0.04 $ 0.15 $ 0.13 Diluted $ 0.06 $ 0.04 $ 0.14 $ 0.12 Weighted average shares outstanding: Basic 36,588 35,629 36,234 35,511 Diluted 38,494 36,445 37,471 36,803 Note: Certain reclassifications have been made to prior-years' balances to conform to the current year's presentation. 8 FILENET CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, December 31, 2003 2002 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 162,271 $ 130,154 Short-term investments 33,545 29,188 Accounts receivable, net 43,941 44,839 Inventories, net 1,244 2,568 Prepaid expenses and other assets 14,130 13,317 Deferred income taxes 802 802 Total current assets 255,933 220,868 Property, net 28,359 34,641 Long-term investments 21,705 25,864 Goodwill 24,676 16,907 Intangible assets, net 8,169 3,029 Deferred income taxes 20,047 21,792 Other assets 4,322 4,935 Total assets $ 363,211 $ 328,036 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,484 $ 7,706 Customer deposits/advances 6,248 2,962 Accrued compensation and benefits 23,549 20,729 Unearned maintenance revenue 45,024 38,945 Other accrued liabilities 13,174 15,224 Total current liabilities 98,479 85,566 Unearned maintenance revenue 2,009 3,565 Total liabilities 100,488 89,131 Stockholders' equity 262,723 238,905 Total liabilities and stockholders' equity $ 363,211 $ 328,036 9
- FILE Dashboard
- Filings
-
8-K Filing
Filenet (FILE) Inactive 8-KOther events
Filed: 16 Oct 03, 12:00am