FileNet Corporation (NASDAQ: FILE), the leading provider of Enterprise Content and Business Process Management solutions, recently announced financial results for its second quarter ended June 30, 2006.
Total revenues for the second quarter of 2006 were $117.1 million compared to total revenues of $104.6 million for the same period in 2005. Software revenues for the second quarter of 2006 were $48.3 million compared to $40.6 million for the same period in 2005.
Net income was $11.1 million in the second quarter of 2006 and includes equity-based compensation expense, net of tax, of $3.4 million. Net income for the second quarter of 2005 was $8.7 million and includes equity-based compensation expense for non-vested stock grants, net of tax, of $0.3 million. Earnings per basic and diluted share were $0.26 for the second quarter of 2006 and include all equity-based compensation expense (for stock options and non-vested shares) of $0.07 per share. This compares to earnings per basic and diluted share of $0.21, for the second quarter of 2005. Net income prior to 2006 did not include employee equity-based compensation expense for stock options, but did include compensation expense for non-vested shares.
In addition to GAAP results, FileNet is reporting net income and net income per share excluding equity-based compensation expense, referred to respectively as “non-GAAP net income” and “non-GAAP net income per share.” A further discussion of these non-GAAP financial measures and reconciliations to comparable GAAP measures for the three months ended June 30, 2006 and 2005 appear in the GAAP to Non-GAAP reconciliation found below.
Non-GAAP net income for the second quarter of 2006 was $14.5 million, or $0.33 per diluted share. Non-GAAP net income for the second quarter of 2005 was $9.0 million, or $0.21 per diluted share.
As of June 30, 2006, FileNet had cash and investments of $451.8 million, compared to $392.0 million at December 31, 2005. The company has no long-term debt.
“Our solid performance in the quarter - including record revenues and strong growth in non-GAAP operating income - was driven by global demand for our FileNet P8 offering,” said Lee Roberts, Chairman and CEO of FileNet. “Looking forward, we remain focused on capitalizing and delivering on our long-term strategy of expanded market leadership.”
About FileNet
FileNet Corp. offers enterprise software and services that help customers make better decisions, faster. A leader and innovator in Enterprise Content Management (ECM), Business Process Management (BPM) and Compliance solutions, FileNet simplifies critical and everyday decision-making processes, giving organizations a competitive advantage. Since the company’s founding in 1982, more than 4,300 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. For more information, visit the FileNet Website at http://www.filenet.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release may contain forward-looking statements that involve risks and uncertainties, including statements regarding the anticipated benefits and performance of FileNet’s products, FileNet’s products’ support of industry standards, and integration with third party products, systems and services. Words such as "anticipates," "expects," "intends," "plans," "believes," "may," "will" and similar expressions are intended to identify forward-looking statements. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are FileNet's ability to develop, complete, introduce, market, distribute and gain market acceptance for its products and technologies in a timely manner; unforeseen technical difficulties related to the development and optimization of FileNet’s products; announcements of technological innovations, new products or product enhancements by FileNet or its competitors; general market conditions; and other factors detailed in the FileNet's filings with the United States Securities and Exchange Commission, including its recent filings on Forms 10-K and 10-Q.
