===================================================================================== 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 July 19, 2004 (July 19, 2004) 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 July 19, 2004. Item 12. Disclosure of Results of Operations and Financial Condition. On July 19, 2004, we issued a press release, which sets forth the results of our operations for the quarter ended June 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Such information shall not be deemed "filed" for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. 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: July 19, 2004 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 July 19, 2004. 4 Exhibit 99.1 [FileNet Corporation logo] FOR IMMEDIATE RELEASE FileNet Reports Second Quarter 2004 Results COSTA MESA, Calif. - July 19, 2004 - FileNet Corporation (Nasdaq: FILE), a leading provider of Enterprise Content Management (ECM) solutions, today announced financial results for its second quarter ended June 30, 2004. Total revenues for the second quarter of 2004 were $94.1 million compared to total revenues of $87.1 million for the same period in 2003 and $ 99.5 million for the first quarter of 2004. Software revenues for the second quarter of 2004 were $32.7 million compared to $33.6 million for the same period in 2003 and $41.4 million for the first quarter of 2004. Net income was $2.2 million in the second quarter of 2004, compared to net income of $1.5 million in the second quarter of 2003 and $4.0 million in the first quarter of 2004. Earnings per basic and diluted share were $0.06 and $0.05, respectively, for the second quarter of 2004, compared to earnings per basic and diluted share of $0.04, for the second quarter of 2003. For the first quarter of 2004, earnings per basic and diluted share were $0.10. "With today's introduction of version 3.0 of our ECM platform, FileNet P8, we continue to extend our product leadership in the Enterprise Content Management market," said Lee Roberts, chairman and CEO of FileNet. "By integrating process management capabilities throughout the entire breadth of our platform, we have differentiated our ECM offering from the market. With FileNet P8, customers can combine comprehensive process management, integration capabilities and rich content management to drive better, faster decision-making throughout their business." (see July 19, 2004 press announcement: FileNet Introduces its FileNet P8 3.0 Enterprise Content Management Platform) Quarterly Conference Call with Management Lee Roberts, Chairman and CEO, and Sam Auriemma, CFO will host a conference call for investors at 7:00 a.m. pacific time today. The call and presentation will be broadcast live over the Internet. To listen to the event 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 will be available for an extended period of time. Alternatively, to listen to the call live, dial (888) 482-0024. The conference call ID number for the call is 98697892. A replay of the call will be available from approximately 10:00 a.m. PT on July 19 through midnight PT on July 26. To listen to the replay, dial (888) 286-8010. The conference call ID number for the replay is 23291493. 5 About FileNet FileNet Corporation 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 4,000 organizations, including more than three quarters 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 nature of the Enterprise Content Management market; 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. 6 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 June 30, Six Months Ended June 30, 2004 2003 2004 2003 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue: Software $ 32,677 $ 33,555 $ 74,028 $ 69,077 Service 61,409 53,562 119,556 105,089 Total revenue 94,086 87,117 193,584 174,166 Costs: Cost of software revenue 3,128 3,608 6,651 6,616 Cost of service revenue 21,096 20,303 42,226 41,954 Total cost of revenue 24,224 23,911 48,877 48,570 Gross profit 69,862 63,206 144,707 125,596 Operating expenses: Sales and Marketing 39,198 34,856 80,759 69,255 Research and development 19,703 19,680 39,805 38,982 General and administrative 9,394 8,326 18,627 16,152 Total operating expenses 68,295 62,862 139,191 124,389 Operating income 1,567 344 5,516 1,207 Other income, net 1,066 1,620 1,993 2,665 Income before income taxes 2,633 1,964 7,509 3,872 Provision for income taxes 474 512 1,352 1,084 Net income $ 2,159 $ 1,452 $ 6,157 $ 2,788 Earnings per share: Basic $ 0.06 $ 0.04 $ 0.16 $ 0.08 Diluted $ 0.05 $ 0.04 $ 0.15 $ 0.08 Weighted average shares outstanding: Basic 38,854 36,173 38,567 36,057 Diluted 41,099 37,296 40,942 36,960 Note: Certain classifications have been made to prior years' balances to conform to current year's presentation. 8 FILENET CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 2004 2003 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 224,172 $ 203,305 Short-term investments 57,790 32,286 Accounts receivable, net 33,821 38,096 Prepaid expenses and other assets 12,879 13,174 Deferred income taxes 3,551 3,551 Total current assets 332,213 290,412 Property, net 25,597 26,922 Long-term investments 17,544 12,672 Goodwill 25,561 26,170 Intangible assets, net 6,679 7,979 Deferred income taxes 23,231 23,001 Other assets 3,260 4,692 Total assets $ 434,085 $ 391,848 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 11,526 11,006 Customer deposits/advances 6,742 5,217 Accrued compensation and benefits 23,456 27,648 Unearned maintenance revenue 60,288 40,691 Other accrued liabilities 15,455 16,524 Total current liabilities 117,467 101,086 Other Liabilities and unearned maintenance revenue 3,208 1,614 Total liabilities 120,675 102,700 Stockholders' equity 313,410 289,148 Total liabilities and stockholders' equity $ 434,085 $ 391,848 9
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Filenet (FILE) Inactive 8-KQ2 2004 Press Release
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