Documentum Announces Record Fourth-Quarter Revenue and Fiscal Year Financial Results - Company Financial Information

Edge: Work-Group Computing Report, Jan 31, 2000

Documentum, Inc. (NASDAQ:DCTM), the leading provider of Internet-scale content management solutions for powering eBusiness applications, Thursday announced record revenues for their fourth quarter and fiscal year ended December 31, 1999.

For comparative purposes, except where noted, the full year results discussed throughout this release exclude the effects of one-time charges of $34.6 million related to the July 16, 1998 acquisition of Relevance Technologies, Inc., and $2.2 million related to the acquisition of Workgroup Management Inc., in the first quarter of fiscal 1998.

Revenues for the fourth quarter of 1999 were a record $41.0 million, a 12.6 percent increase over revenues of $36.4 million for the same period of 1998 and a 21.3 percent increase over third quarter of fiscal 1999. Net income for the fourth quarter of 1999 was $0.2 million, a 95.2 percent decrease compared with net income of $4.2 million reported for the fourth quarter ended December 31, 1998. Diluted earnings per share for the fourth quarter of 1999 were $0.01 per share, a decrease of 95.8 percent from diluted earnings per share of $0.24 for the fourth quarter of 1998 and an improvement of 112.5 percent over the prior quarter in fiscal 1999.

Revenues for the fiscal year ended December 31, 1999, were a record $128.0 million, a 3.4 percent increase over revenues of $123.8 million for the fiscal year ended December 31, 1998. Net loss for the year was $8.4 million, a decrease of 165.1 percent compared with net income of $12.9 million reported for the year ended December 31, 1998. Diluted loss per share for the year was $0.50 per share, a 166.7 percent decrease from diluted income per share of $0.75 for fiscal 1998.

"We are aggressively executing our new eBusiness strategy announced last quarter, and it has resulted in a number of new eBusiness customer wins this quarter," said Jeffrey A. Miller, president and chief executive officer for Documentum, Inc. "By powering the eBusiness connections of our customers with our content management solutions, we are giving our customers a fundamental and crucial capability for their eBusiness success. This in turn is fueling Documentum's revenue growth."

Documentum, the leading provider of Internet-scale content management solutions for powering eBusiness applications, offers solutions that integrate dynamic content, complex business processes and people everywhere - enabling seamless collaboration, communication and knowledge sharing between employees, suppliers and customers. Documentum offers the only open, standards-based content management platform and applications suite for managing complex processes as well as any content type, in a truly collaborative environment enabling trusted content to be delivered to the right person at the right time on any information device, regardless of its origin or location. Documentum's highly adaptable collaboration and content management solutions enable corporate developers and Internet System Integrators to quickly implement robust eBusiness applications with the reliability, scalability and interoperability required by today's 24x7 Internet economy. These eBusiness applications powered by Documentum help more than 800 global customers dramatically improve their top line by accelerating product lifecycles, re-architecting business processes, improving operational efficiency and turning knowledge into a corporate asset. Headquartered in Pleasanton, Calif., Documentum software and services are sold through a direct sales force, systems integrators and affiliated distributors worldwide. Additional information is available at www.documentum.com.