Exhibit 99.01
Interwoven Announces Record Fourth Quarter Revenues - Up 628%
$54.6 Million Q4 tops off Interwoven's year 2000 revenues - a 686% year over
year increase
SUNNYVALE, Calif., January 23, 2001 - Interwoven, Inc. (Nasdaq: IWOV), the
leading provider of enterprise-class content management software, today reported
record fourth quarter results, with revenues for the quarter ended December 31,
2000 of $54.6 million, an increase of 628% over revenues of $7.5 million for the
quarter ended December 31, 1999 and a 39% sequential increase over revenues of
$39.4 million for the quarter ended September 30, 2000. License revenues
represented 65%, and service revenues 35%, of the total revenues for Q4 2000.
With the addition of 147 new license customers in Q4 2000, Interwoven now has
over 650 customers.
Net income for the quarter ended December 31, 2000, before the effect of non-
cash charges related to stock-based compensation and acquisition-related
expenses, was $2.0 million, or $0.02 per share on a supplemental basic and
diluted basis, compared with a net loss of $3.5 million, or $0.05 per share on a
supplemental basic and diluted basis, for the quarter ended December 31, 1999.
For the year ended December 31, 2000, total revenues were $132.1 million, a 686%
increase over revenues of $16.8 million for the comparable period in 1999. The
net loss before the effect of non-cash charges related to stock-based
compensation and acquisition expenses was $391,000, or $0.00 per share on a
supplemental basic and diluted basis, for the year ended December 31, 2000,
compared with a net loss of $11.6 million, or $0.38 per share on a supplemental
basic and diluted basis, for the year ended December 31, 1999.
"We are very pleased with our Q4 results which have topped off a year of
exceptional growth," said Martin Brauns, president and CEO of Interwoven. "It is
clear that IT spending priorities are being set around initiatives that will
deliver tangible results in the short term and it is clear to us that content
management remains among the top four "must-have" categories for IT spending."
Q4 Highlights
Customers
Interwoven signed 147 new license customers in the quarter ended December 31,
2000. New customers included 3Com, Alcoa, Avon Products, Coors Brewing, DIRECTV,
Dow Jones & Company, Fannie Mae, Freddie Mac, Hilton Hotels, Home Box Office,
Kraft Foods, MasterCard International, Owens Illinois, Robert Half
International, Seagate Software, Siemens Corporation, SmithKline Beecham,
Spiegel, Stanford University, Neiman Marcus, Sherwin-Williams, and Time Inc.
With these additions, Interwoven's total customer count is now over 650.
Interwoven also saw significant reorders from many of its larger customers
including American Airlines, Bell South, Cisco, General Motors and Philips.
International
46 new international customers were added in the quarter ended December 31,
2000, including adidas-Solomon, British Telecom, CSC Computer Science,
Department of Education for New South Wales, Hitachi Zosen Information Systems,
Pirelli, Rikei, Singapore Airlines and Telenor.
Products
In December 2000, Interwoven announced Interwoven B2B Edition which empowers
trading partners to easily contribute and publish B2B content to Ariba and
Commerce One based marketplaces.
In Q4, Interwoven acquired Ajuba Solutions and Metacode Technologies to
accelerate development of intelligent content tagging and augment Interwoven's
XML engineering team.
Partners
During the 4th quarter, Interwoven focused its alliance efforts in expanding the
roles of key partners. Highlights included:
-New as resellers are IBM Global Services and Accenture (formerly Andersen
Consulting).
-New B2B partners include Ariba and Bowstreet and new as a B2B partner is
BEA, already a strategic technology partner.
-Interwoven trained close to 500 consultants from 37 different partners
including large groups from Accenture, Cambridge Technology Partners, IBM
Global Services and March First in Q4 2000.
In Q4, Interwoven acquired Ajuba Solutions and Metacode Technologies to
accelerate development of intelligent content tagging and augment Interwoven's
XML engineering team.
About Interwoven
Interwoven, Inc. (Nasdaq: IWOV) is the world's leading provider of enterprise-
class content management software. Its solutions control the development,
management and deployment of Web content and are the de facto standard for over
500 Global 1000 companies including General Electric, General Motors and Cisco
Systems. Interwoven
teams with the leading best-of-breed eBusiness application providers to provide
customers an end-to-end platform for eBusiness. For more information on the
fastest growing software company in Silicon Valley and its proven XML-based
solutions, visit the Interwoven Web site at www.interwoven.com.
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This press release contains "forward-looking" statements, including projections
about our business, within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. For example,
statements in the future tense, and statements including words such as "expect",
"plan", "estimate", "anticipate" or "believe," are forward-looking statements.
These statements are based on information available to us at the time of the
release; we assume no obligation to update any of them. The statements in this
release are not guarantees of future performance. Actual results could differ
materially from our current expectations as a result of numerous factors,
including our limited operating history, which makes it difficult to predict
future performance, the fact that our market is new and customer acceptance of
our products is not proven, and special difficulties associated with
international expansion. These and other risks and uncertainties associated with
our business are detailed in our annual report on Form 10-K and subsequent Forms
10-Q, which are on file with the SEC and available through www.sec.gov.
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INTERWOVEN, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
2000 1999
(unaudited) (unaudited)
Assets
Current assets:
Cash and cash equivalents.................................. $ 75,031 $10,983
Short-term investments..................................... 147,253 44,665
Accounts receivable, net of allowance for
doubtful accounts of $500 and $288, respectively......... 36,806 5,158
Prepaid expenses and other current assets.................. 10,252 1,346
Total current assets............................... 269,342 62,152
Investments.................................................. - 16,464
Property and equipment, net.................................. 14,889 3,145
Intangible assets, net....................................... 238,502 416
Restricted cash.............................................. 605 605
Other assets................................................. 871 297
$524,209 $83,079
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable........................................... $ 1,727 $ 834
Accrued liabilities........................................ 33,602 4,966
Deferred revenue........................................... 34,529 1,939
Total current liabilities............................... 69,858 7,739
Stockholders' equity......................................... 454,351 75,340
$524,209 $83,079
INTERWOVEN, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended December 31, Year Ended December 31,
------------------------------- --------------------------
2000 1999 2000 1999
--------- -------- --------- ---------
(unaudited) (unaudited)
Revenues:
License.................................. $ 35,659 $ 4,892 $ 87,006 $ 10,706
Services................................. 18,933 2,653 45,123 6,100
--------- -------- --------- ---------
Total revenues........................ 54,592 7,545 132,129 16,806
Cost of revenues:
License.................................. 516 37 1,100 181
Services................................. 14,369 3,034 38,541 6,576
--------- -------- --------- ---------
Total cost of revenues................ 14,885 3,068 39,641 6,757
--------- -------- --------- ---------
Gross profit............................... 39,707 4,477 92,488 10,049
--------- -------- --------- ---------
Operating expenses:
Research and development................. 7,213 1,269 17,700 4,199
Sales and marketing...................... 27,553 6,524 72,683 15,582
General and administrative............... 5,465 1,143 13,941 3,220
Amortization of deferred stock-based 4,568 1,002 7,522 687
compensation.............................
Amortization of acquired intangible 17,209 128 22,318 377
assets..................................
Writeoff of in-process research 100 - 1,824 -
development............................. --------- -------- --------- ---------
Total operating expenses............ 62,108 10,066 135,988 27,065
Loss from operations....................... (22,401) (5,589) (43,500) (17,016)
Interest and other income (expense), net... 2,883 945 12,055 1,361
Provision for income taxes................. 383 - 610 -
--------- -------- --------- ---------
Net loss................................... (19,901) ($4,644) (32,055) ($15,655)
--------- -------- --------- ---------
Accretion of mandatorily redeemable - - - (13,227)
convertible
preferred stock to redemption value
--------- -------- --------- ---------
Net loss attributable to common ($19,901) ($4,644) ($32,055) ($28,882)
stockholders.............................. --------- -------- --------- ---------
Basic and diluted net loss per share....... ($0.20) ($0.06) ($0.35) ($0.95)
--------- -------- --------- ---------
Shares used in computing pro forma basic 97,148 77,228 91,979 30,472
and --------- -------- --------- ---------
diluted net loss per share (2)(3)..........
Supplemental information (1) (unaudited) (unaudited)
Historical net loss........................ ($19,901) ($4,644) ($32,055) ($15,655)
Add back of certain non-cash and
acquisition charges:
Amortization of deferred stock-based 4,568 1,002 7,522 3,687
compensation
Amortization of intangible assets....... 17,209 128 22,318 377
Writeoff of in-process research 100 - 1,824 -
development. --------- -------- --------- ---------
Total add back............................. 21,877 1,130 31,664 4,064
--------- -------- --------- ---------
Supplemental net loss excluding certain $ 1,976 ($3,514) ($391) ($11,591)
non-cash and acquisition related charges.. --------- -------- --------- ---------
Pro forma basic net income (loss) per $0.02 ($0.05) ($0.00) ($0.38)
share (2)(3) --------- -------- --------- ---------
Pro forma diluted net income (loss) per $0.02 ($0.05) ($0.00) ($0.38)
share (2)(3) --------- -------- --------- ---------
Shares used in computing pro forma basic 97,148 77,228 91,979 30,472
net income (loss) per share (2)(3)........ --------- -------- --------- ---------
Shares used in computing pro forma diluted 115,096 77,228 91,979 30,472
net income --------- -------- --------- ---------
(loss) per share (2)(3)....................
(1) The accompanying supplemental financial information is presented for
informational purposes only and should not be considered a substitute for the
historical financial information presented in accordance with accounting
principles generally accepted in the United States.
(2) Pro forma net income (loss) per share is computed using the weighted average
number of shares of Common Stock outstanding, including the pro forma effects of
the exercise of warrants to purchase Series B and Series E Preferred Stock and
the conversion of all of the Company's Preferred Stock into shares of the
Company's Common Stock as if such conversion occurred at the beginning of the
period, or at the date of issuance, if later. For periods in which net income is
presented, the Company has included the dilutive effect of options of common
stock as calculated using the treasury stock method. The calculation excludes
any antidilutive common stock equivalents.
(3) On October 17, 2000, the Company's Board of Directors effected a two-for-one
stock split of the outstanding shares of Common Stock. All common shares and per
share information included in these financial statements have been retroactively
adjusted to reflect this stock split.