Stellent Reports First Quarter Fiscal 2005 Financial Results
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Revenue and earnings per share exceed previous company guidance; quarterly revenues grow 30% year-over-year
EDEN PRAIRIE, MN, July 22, 2004 — Stellent, Inc. (Nasdaq: STEL), a global provider of content management solutions, announced today its financial results for the first quarter ended June 30, 2004.
First quarter revenues were $22.7 million, a 10% sequential increase over the $20.6 million reported in the prior quarter and an increase of 30% from the $17.4 million reported for the same period last year. License revenues represented 52%, and service revenues 48%, of the total gross revenue for the quarter ended June 30, 2004.
On a Generally Accepted Accounting Principles (GAAP) basis, the net loss for the quarter ended June 30, 2004 was $3.8 million, or $0.16 per share on a basic and diluted share basis, compared with a net loss of $5.7 million, or $0.26 per share on a basic and diluted share basis, for the quarter ended June 30, 2003. Pro forma net income was $154,000, or $0.01 per share on a basic and diluted share basis, for the quarter ended June 30, 2004, compared with a pro forma net loss of $2.7 million, or $0.12 per share on a basic and diluted share basis, for the quarter ended June 30, 2003.
Stellent believes the pro forma results better reflect its operating performance as they exclude the effects of non-cash or non-recurring charges related primarily to expenses such as amortization of certain intangible assets and unearned compensation, restructuring and acquisition-related sales, marketing and other costs.
“The Stellent team generated another period of strong financial performance during the first quarter,” said Robert Olson, president and chief executive officer for Stellent. “We completed our merger with Optika on May 28, and are now operating as a single entity that is beginning to experience the cost and revenue synergies we predicted the merger would create.
“During the quarter, we continued to maintain a strong revenue balance between new and existing content management customers. We signed 42 new customer accounts during the first quarter, including Stellent® Content Management customers Argonne National Laboratory, Network Appliance, FBI, City of Ottawa, National Life Insurance Co., Nasdaq, ING Life Korea, Samsung Electronics, Station Casinos, IMD, New Jersey Department of Health and Senior Services, Washington State Department of Health and Autobytel.
“Existing customers that continued to expand their Stellent implementations include City University of New York, Defense Intelligence Agency, Flextronics International, Odyssey Re, Los Alamos National Laboratory, United Utilities, City of Los Angeles, Tesoro, City of Aurora, @NetHome, Lawrence Livermore National Laboratory, Fairview Hospitals, Suzuki, US Navy, Bureau of Land Management, Assurity Life Insurance, The Wellcome Trust, City of Mesa, MDS Pharma Services, Embry Riddle Aeronautical University and FiServ. In the first quarter, our Content Components Division signed or renewed contracts with companies including Microsoft Corp., Yahoo!, Network Associates, Lexis-Nexis, Endeca and RightNow Technologies.
“Our partners also influenced a significant amount of sales during the quarter. For example, we closed the Tesoreria General de la Seguridad Social transaction with Software AG, and secured expanded Stellent rollouts at Sesame Workshop, University of Michigan and MBC with IBM.
“We further strengthened our compliance capabilities this quarter by signing a strategic agreement with Protiviti Inc., a leading internal audit and business and technology risk consulting firm. The combination of our software products with Protiviti’s thought leadership and consulting services offers customers highly effective, efficient solutions for complying with a variety of government and regulatory mandates.
“In the first quarter, we also announced an enhanced version of our Web content management multi-site offering — Stellent Site Studio — which continues to be a popular purchase among customers. Site Studio is now operational across global environments with the product localized in six languages. In addition, we enhanced Site Studio’s usability and strengthened its content re-use capabilities.
“We are very pleased with the positive momentum Stellent produced during our first quarter of fiscal 2005. We completed a key accomplishment by closing the Optika acquisition, which further solidifies our position as one of the leading vendors in the content management market. This quarter’s successes position us well to meet our business objectives for the remainder of the year — generating growth, profitability, a strong balance sheet and increased shareholder value.”
Other Recent Highlights
Customers
Stellent now has 4,237 total customers comprised of 3,231 corporate content management customers; 444 OEM customers; and 562 corporate customers for its desktop viewing and conversion technology.
Corporate News
At separate special meetings on May 28, 2004, the shareholders of Stellent and Optika Inc. (Nasdaq: OPTK) approved the merger between the two companies. In the merger, which was completed shortly after the shareholder meetings, Stellent acquired Optika for approximately 4.2 million shares of Stellent common stock, $10 million in cash and the assumption by Stellent of Optika’s outstanding options. At the close of the merger, former stockholders of Optika owned approximately 16% of the outstanding shares of Stellent common stock, and Stellent shareholders owned approximately 84% of the combined entity.
Stellent acquired Content Management de México, S.A. de C.V., a content management solutions provider who has offered sales, support and training services for Stellent products across Mexico and Central America since 2001. Stellent purchased the company for $750,000 in cash and certain contingent considerations based on revenues generated in Mexico over a two-year period.
Products
In April, Stellent announced a new release of its award-winning Stellent Site Studio, a Web content management application based upon Stellent’s enterprise-scalable Universal Content Management system and designed to support the growing trend of companies building multiple Web sites. Site Studio and its unique, three-tiered approach to Web content management allows companies to easily maintain a desired degree of centralized control over the architecture and presentation of Web sites, while distributing content ownership and site management to each business unit, franchise or geographic location.
Stellent released Version 7 of the Stellent Content Integration Suite, which enables organizations to utilize service-oriented architecture to rapidly integrate content or content management functions into J2EE applications. With Version 7, developers can now embed Content Integration Suite directly into Java applications in order to provide reliable, scalable integration with Stellent Universal Content Management.
Stellent released the Stellent Content Portlet Suite. The new Content Portlet Suite enables portal developers to provide access to Stellent Universal Content Management services, such as check-in, workflow and search, via Java™ Specification Request (JSR) 168-compliant portal servers — such as BEA WebLogic Portal, the Plumtree Enterprise Web Suite and Sun Java™ Enterprise System.
Stellent announced a new release of Stellent SmartCabinet, a Web-based application that provides paper-intensive real estate companies and corporations with a platform to more effectively share and access business-critical documents –– including leases, franchise contracts, insurance policies, amendments and architectural drawings. The enhanced SmartCabinet application now offers real estate users more advanced contribution, customization, control, comprehension and collaboration features.
Partners
In May, Stellent entered into a strategic agreement with Protiviti Inc. to create a next-generation, content management-based compliance platform. Under the agreement, Stellent will deliver and market compliance solutions based on the Stellent Universal Content Management system and supported by Protiviti subject matter expertise. These solutions, to be co-marketed by Protiviti, will offer capabilities such as audit trails, document management, project management and reporting, personalized interfaces, automated process documentation collection and process testing, secure, Web-based access by internal and external users, and records management.
Stellent signed five new reseller partners: 3t Systems of Denver, Colo.; Applied Microsystems Inc. of Anchorage, Alaska; Digital World Alliance Corp. of Irvine, Calif.; Document Imaging Service Corp. of San Diego, Calif.; and Frontline Logic of Russiaville, Ind.
26.07.2004, Stellent GmbH
