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Stellent Reports Record Quarterly Revenues Of $30.1 Million
Stellent, Inc., provider of content management solutions, announced financial results for the second quarter ended Sept. 30, 2005.
Second quarter fiscal 2006 revenues were $30.1 million, an increase of 8% over the $28.0 million reported for the same period last year. Revenues for the six-month period ended Sept. 30, 2005 were $58.7 million, a 16% increase over revenues of $50.6 million for the comparable period of fiscal 2005.
On a Generally Accepted Accounting Principles (GAAP) basis, net income for the quarter ended Sept. 30, 2005 was $0.6 million, or $0.02 per share on a basic and diluted share basis, compared with net income of $0.8 million, or $0.03 per share on a basic and diluted share basis, for the quarter ended Sept. 30, 2004. GAAP net income for the six months ended Sept. 30, 2005 was $1.6 million, or $0.06 per share on a basic and diluted share basis, compared with a net loss of $(3.1) million, or $(0.12) per share on a basic and diluted share basis, for the same period of fiscal 2005.
Non-GAAP net income was $2.2 million, or $0.08 per share on a basic and diluted share basis, for the quarter ended Sept. 30, 2005, compared with non-GAAP net income of $1.6 million, or $0.06 per share on a basic and diluted share basis, for the quarter ended Sept. 30, 2004. Non-GAAP net income for the six months ended Sept. 30, 2005 was $3.9 million, or $0.14 per share on a basic and diluted share basis, compared with net income of $1.7 million, or $0.07 per share on a basic and diluted share basis, for the same period of fiscal 2005.
Stellent believes the non-GAAP results better reflect its operating performance as they exclude the effects of non-cash or non-recurring charges primarily related to expenses such as acquisition-related sales, marketing and other costs; amortization of acquired intangible assets and unearned compensation; and restructuring or reorganization charges.
"We are pleased to have met or exceeded our second quarter financial targets, including achieving record quarterly revenues of $30.1 million and maintaining profitability on both a GAAP and non-GAAP basis,” said Robert Olson, president and chief executive officer for Stellent. "At the same time, we produced positive cash flow from operations, ending the quarter with a cash and marketable securities balance of approximately $70 million, up from $68.2 million last quarter.
"Stellent® Universal Content Management™ license revenue in particular showed strong, organic growth during the quarter, with 49 percent of this revenue generated from new customers. Specifically, we posted year-over-year Universal Content Management license revenue growth of 51 percent globally and 74 percent in North America, which substantially countered a decrease in year-over-year total license revenue attributable to one large OEM transaction that occurred in the September 2004 quarter. The strong growth in second quarter Universal Content Management license revenues was primarily driven by compliance and multi-site management initiatives. Universal Content Management services revenue also showed solid growth within the quarter.
"We secured 57 new customers during the second quarter - our strongest new customer adoption rate in more than two years - including Universal Content Management customers Trend Micro, Samsung Electronics, the U.S. Department of Homeland Security, the U.S. Army, Rite Aid, Moody’s Japan and American Express Incentive Services. A number of existing customers continued to expand their Stellent Universal Content Management implementations, including the Bureau of Land Management, Memorial Sloan-Kettering, UMB Financial, Bell Canada, Los Angeles Times, Wendy’s International, Argonne National Laboratory, O’Reilly Automotive, U.S. Department of Commerce and Regis Corp. Also during the second quarter, our Content Components Division signed or renewed contracts with companies such as KPMG, Canon, Ricoh, Kroll Ontrack, Postini and IronPort Systems.
"We solidified Stellent’s leadership position in our top three target markets — financial compliance, multi-site Web content management and enterprise content management (ECM) via a unified architecture — through significant product enhancements, receiving strong commendations from leading industry analysts. For example, we released version 7.5 of Stellent Site Studio, the multi-site Web content management component of Stellent Universal Content Management, during the second quarter. This new version enhances the experience of all users involved in multi-site management — information technology staff, Web developers, site designers, content contributors and content consumers — offering expanded Web site lifecycle management capabilities and more robust, flexible in-context contribution.
"On the compliance front, we expanded our retention management capabilities to allow users to apply disposition and retention rules to any content item, not just records. And, we were recently named in the ‘visionary’ quadrant in Gartner, Inc.’s ‘Magic Quadrant for Financial Compliance Process Management Software, 2005’1 report, which was published Oct. 24, 2005. This recognition reaffirms our position as one of the top pure-play content management vendors providing financial compliance solutions.
"Similarly, we recently received multiple industry accolades for our unified ECM product suite. We were named ‘the strongest pure-play ECM suite offering’ by Forrester in its Oct. 7, 2005 report, ‘The Forrester Wave™: Enterprise Content Management Suites, Q3 2005,’2 and KMWorld also named Stellent Universal Content Management 7.5 a ‘Trend-Setting Product of 2005,’ recognizing the system for its superior usability, flexibility and adoption, and low total cost of ownership. These rave reviews come on the heels of our second consecutive ‘Best of Show Award’ for the ‘Best Enterprise Content Management Suite,’ which we won at the AIIM 2005 Conference and Exposition earlier this year.
"We believe our mounting success in these key areas, as well as the markets for our OEM transformation technology, will help drive our ability to grow profitably, and increase market share and shareholder value during fiscal 2006.”
Other Recent Highlights
Customers
4,557 customers — comprised of 3,414 corporate content management customers; 506 OEM customers; and 637 corporate customers for desktop viewing and conversion technology — have selected Stellent solutions to power their content-centric business applications.
Corporate news
Software Magazine named Stellent one of the world’s largest software providers for the seventh consecutive year.
Stellent was recognized on Supply & Demand Chain Executive’s annual list of the top supply and demand chain vendors, the Supply & Demand Chain Executive 100.
Stellent was selected to Manufacturing Business Technology’s 2005 Global 100, an annual list of the world’s top information technology (IT) providers to the manufacturing industry. 08.11.2005, Stellent GmbH
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