Vignette Profitable From Operations in Fourth Quarter 2003
 |  | http://www.contentmanager.net/magazine/news_h6534_vignette_profitable_from_operations_in_fourth.html |
Vignette Corporation today announced financial results for the fourth quarter and fiscal year ended December 31, 2003, meeting or exceeding its objectives for the sixth consecutive quarter. Total revenue for the fourth quarter was $39.2 million with license revenue representing $16.2 million of total revenue. For the year ended December 31, 2003, total revenue was $158.3 million, with license revenue representing $61.0 million of total revenue.
On a GAAP basis, Vignette's operating profit for the fourth quarter was $8.9 million while its net income was $10.3 million or $.04 per share. On a GAAP basis, operating loss for the year totaled $4.0 million and the net loss for the year was $33,000 or $0.00 per share. GAAP results for the fourth quarter and full year include a benefit of $12.7 million related to a real estate restructuring.
On a non-GAAP basis, Vignette's operating profit for the quarter was $66,000, and non-GAAP net income for the quarter was $1.5 million or $0.01 per share. The non-GAAP operating loss for the year was $7.9 million and the non-GAAP net loss for the year was $3.9 million or $(0.02) per share. Non-GAAP results exclude amortization of deferred stock compensation and certain intangible assets and one-time charges. One-time charges generally include business restructuring-related, investment and fixed asset impairment charges.
"I couldn't be more proud of the roughly 800 men and women in Vignette who have worked tirelessly in our drive to profitability," said Thomas E. Hogan, president and chief executive officer at Vignette. "Our results from core operations, combined with the strength of our balance sheet, ensure our long-term ability to innovate, lead and invest, as well as to serve our customers with the highest levels of service and support. Our priorities going forward will focus on steady improvements in top-line growth and market share, while maintaining our commitment to our customers' unqualified satisfaction. Our planned acquisition of TOWER Technology will clearly play an important role in our growth imperative. With the acquisition of TOWER Technology, Vignette will have the unique and compelling ability to both manage and deliver critical business information."
Intent to Acquire TOWER Technology Pty Ltd
Vignette today also announced that it has signed a definitive agreement to acquire TOWER Technology Pty Ltd, a leading enterprise document and records management vendor. When complete, the acquisition will bring together the market leader in content management, collaboration and portal solutions with TOWER Technology's industry-leading document and records management solutions to offer organizations worldwide a comprehensive enterprise content management application set upon which to base and manage enterprise Web initiatives. Under the terms of the agreement with TOWER Technology, Vignette will pay $125 million, comprised of $45 million in cash and $80 million of Vignette stock. The transaction is subject to approval from TOWER Technology stockholders and customary closing conditions. For additional details, please see the related press release.
Intraspect Software Acquisition and Product Shipment
On December 11, 2003, Vignette completed its acquisition of Intraspect Software Inc., a leading collaboration solutions company, for approximately $10 million in cash and 4.2 million shares of Vignette stock. With the acquisition of Intraspect, Vignette is uniquely positioned as the only independent enterprise software vendor to offer organizations a unified, award-winning content management, portal and collaboration solution that incorporates business processes and delivers advanced capabilities to power the enterprise Web and drive business efficiency. Concurrent with the close of the transaction, Vignette announced the general availability of three solutions based on Intraspect technology: Vignette® Business Workspaces, Vignette® Strategic Account Management and Vignette® Project Delivery.
By incorporating Intraspect's leading collaboration solutions into the Vignette® V7 family of products, Vignette has strengthened its product portfolio to give the company a strong competitive differentiation. Vignette collaboration solutions integrate seamlessly with the desktop productivity tools of today's business user, while providing the scalability, security, extensibility and standards support that Web-based enterprise solutions demand.
"We are very pleased with the contribution of Vignette Collaboration Services to our fourth quarter results," Hogan continued. "The marked and immediate customer interest for Vignette's new collaboration solutions affirmed the strategic value of our decision and the synergy of enterprise collaboration with content and portal applications. We believe we have an opportunity to lead this category and expect collaboration to make a major contribution to our growth."
Industry Recognition
Transform Magazine selected Vignette V7 as its 2003 Product of the Year and Readers' Choice Awards winner for Web Content Management. As a Transform Magazine Product of the Year winner, Vignette V7 was selected for its innovation and advancement in technology, outstanding value, and proven market success. Transform Magazine's editors examined the latest in content and collaboration technologies, and their year-end selection process leveraged insight gained from intense market research and customer interviews. Analysts and IT consultants also weighed in, providing extensive knowledge of the content management industry and personal experience with the products.
Also during the quarter, Vignette was named a Forbes Magazine Best of the Web winner for the fourth consecutive year. The magazine praised Vignette V7's broad set of capabilities, including Web content management, portal development and deployment, and custom Web applications. Selected this year as a top software vendor, Vignette has been included in Forbes' Best of the Web since the program's inception in 1999. This list evaluates numerous companies in 21 industries based on company strategy, execution and product offering. Vignette was recognized for its ability to operate in both major programming environments, Microsoft .NET and J2EE™, and its ability to support most content authoring tools.
Customers
New customers added during the quarter include the Athens Olympics Committee 2004, British Medical Journal, Keenan and Associates, Mexico Secretaria de Communicaciones y Transportes, Multnomah County (Ore.), National Instruments, Telenor and the U.K. House of Commons. The company also recognized follow-on orders from existing customers including Axa Banque, Ballard Power Systems, Caixa Geral de Depositos, Euronext Paris, Iberia, IHC Health Services, National Semiconductor, Optus, Telecom Italia Mobile, Telefonica Moviles, Telekom Austria AG and Wells Fargo Services Company.
Executive Leadership
In November 2003, Vignette appointed Joseph M. Grant to its board of directors. Grant is currently chairman and CEO of Texas Capital Bancshares Inc. as well as chairman of Texas Capital Bank and its Internet division, BankDirect. Grant brings valuable financial and corporate governance expertise to Vignette's board, having ascended steadily in banking since launching his career in 1961 at Citibank. Additionally, he served as chief financial officer at EDS from 1990 to 1998.
Also in November 2003, Patti Jones assumed responsibility for Vignette's global sales as Vignette's new senior vice president of worldwide sales and distribution. Previously the company's vice president of strategic alliances and business development, Jones is tasked with accelerating Vignette's reach and market penetration in its direct sales, channel distribution and key vertical markets.
30.01.2004, Vignette Corporation
