EXHIBIT 99.01
Interwoven Announces Record First Quarter Results;
Revenue growth - 337% year over year
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 17, 2001--Interwoven, Inc.
(Nasdaq:IWOV), the leading provider of enterprise-class content management
software, today reported first quarter results, with revenues for the quarter
ended March 31, 2001 of $60.5 million, an increase of 337% over revenues of
$13.9 million for the quarter ended March 31, 2000 and a 11% sequential increase
over revenues of $54.6 million for the quarter ended December 31, 2000. License
revenues represented 64%, and service revenues 36%, of the total revenues for Q1
2001. With the addition of 91 new license customers in Q1 2001, Interwoven now
has over 740 customers.
Net income for the quarter ended March 31, 2001, before the effect of non-cash
charges related to stock-based compensation and acquisition-related expenses,
was $2.3 million, or $0.02 per share on a supplemental basic and diluted basis,
compared with a net loss of $2.2 million, or $0.02 per share on a supplemental
basic and diluted basis, for the quarter ended March 31, 2000.
Interwoven announced an option exchange program that will be offered to
employees as an opportunity to exchange existing options for newly issued
options on a 2:1 basis. Any employee who wishes to participate may relinquish
two old options and, in return, will receive one new share to be granted at a
future date, with a new exercise price that will be based on the fair market
value at the time of grant.
"Once again Interwoven has outpaced its competitors even during a time when
customers are evaluating their IT spending priorities with more caution," said
Martin Brauns, president and CEO of Interwoven. "Content management continues to
be recognized as a priority in the IT budget because it delivers demonstrable
results to a company's eBusiness success."
Q1 Highlights
Customers
Interwoven signed 91 new license customers in the quarter ended March 31, 2001.
New customers included Allstate Corporation, Boston Scientific Corp., Citicorp
Diners Club Inc., CNA Life, Intuit Inc., Kennametal Inc., Newell Rubbermaid
Inc., Palm, Inc., Pfizer Inc., Reuters Health Information Inc., Six Flags Inc.,
Teleglobe Inc., The Goodyear Tire & Rubber Company, Thomson Financial, and
Virginia Electric & Power. With these additions, Interwoven's total enterprise
customer count is now over 740. The Interwoven customers list includes 42 of the
Fortune 100.
Interwoven also saw significant reorders from many of its larger customers
including Aon Corp., Compaq Computer Corp., Ericsson Enterprise and Toyota Motor
Corp.
International
39 new international customers were added in the quarter ended March 31, 2001,
including Activest (member of HypoVereinsbank Group), AMP Henderson Global
Investors, Australian Tourist Commission, De Beers Consolidated Mines Ltd.,
Dresdner Bank A.G., Gemplus S.A., Kao Corp., Lycos Europe N.V., Oversea-Chinese
Banking Corp. Ltd., Singapore Telecommunications Ltd., Skandia Insurance, and
Sol Melia S.A.
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Products/Partners
Alliance and Product highlights During Q1 2001
. Interwoven announced TeamCatalog, which enables customers to assemble and
manage catalog content while automating the processes necessary to ensure
"transaction-ready" product information.
. IBM will OEM a tightly integrated version of Interwoven's content management
software.
. Interwoven's content submission capabilities are now integrated into the
Plumtree portal.
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
700 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.
This press release contains "forward-looking" statements, including projections
about our business growth. 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 the fact that our market
is new and customer acceptance of our products is not proven, our growing
dependence on large customer orders, special difficulties associated with
international expansion, the extent to which we incur stock based compensation
charges and potential unexpected difficulties with integration of recent
acquisitions. These and other risks and uncertainties associated with our
business are described in our most recent annual report on Form 10-K and
subsequent Forms 10-Q and 8-K, which are on file with the SEC and available
through www.sec.gov.
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INTERWOVEN, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2001 2000
----------- ------------
(unaudited)
Revenues:
License $ 39,033 $ 9,388
Services 21,511 4,472
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Total revenues 60,544 13,860
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Cost of revenues:
License 490 66
Services 16,116 4,654
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Total cost of revenues 16,606 4,720
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Gross profit 43,938 9,140
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Operating expenses:
Research and development 8,923 2,208
Sales and marketing 28,545 9,669
General and administrative 5,770 1,960
Amortization of deferred stock-based compensation 4,575 833
Amortization of acquired intangible assets 22,072 52
----------- ------------
Total operating expenses 69,885 14,722
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Loss from operations (25,947) (5,582)
Interest and other income (expense), net 2,779 2,537
----------- ------------
Net loss before provision for income taxes (23,168) (3,045)
Provision for income taxes (1,148) -
----------- ------------
Net loss $ (24,316) $ (3,045)
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Basic and diluted net loss per share $ (0.25) $ (0.03)
=========== ============
Shares used in computing basic and diluted net loss per share (2) (3) 98,406 87,040
=========== ============
Three Months Ended March 31,
----------------------------
2001 2000
----------- ------------
(unaudited)
Supplemental information (1)
Historical net loss $ (24,316) $ (3,045)
----------- ------------
Add back of certain non-cash and acquisition charges:
Amortization of deferred stock-based compensation 4,575 833
Amortization of intangible assets 22,072 52
----------- ------------
Total add back 26,647 885
----------- ------------
Supplemental net income (loss) excluding certain non-cash
and acquisition related charges $ 2,331 $ (2,160)
=========== ============
Supplemental basic net income (loss) per share (2) (3) $ 0.02 $ (0.02)
=========== ============
Supplemental diluted net income (loss) per share (2) (3) $ 0.02 $ (0.02)
=========== ============
Shares used in computing supplemental basic net income
(loss) per share (2) (3) 98,406 87,040
=========== ============
Shares used in computing supplemental diluted net income
(loss) per share (2) (3) 109,315 87,040
=========== ============
(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) On June 1, 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.
(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.
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INTERWOVEN, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2001 2000
----------- ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $105,767 $ 75,031
Short-term investments 111,025 147,253
Accounts receivable, net of allowance for doubtful
accounts of $883 and $565, respectively 44,212 36,806
Prepaid expenses and other current assets 10,322 10,252
----------- ------------
Total current assets 271,326 269,342
Property and equipment, net 17,051 14,889
Intangible assets, net 218,770 238,502
Restricted cash 605 605
Other assets 870 871
----------- ------------
$508,622 $524,209
=========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,271 $ 9,918
Accrued liabilities 27,289 25,411
Deferred revenue 38,193 34,529
Total current liabilities 71,753 69,858
Stockholders' equity 436,869 454,351
----------- ------------
$508,622 $524,209
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