Vignette Corporation (NASDAQ: VIGN), the company that the world’s
leading brands rely on for innovative and dynamic Web experiences, today
announced that total revenue for the first quarter 2009 was $33.9
million, a decrease of 24.2% from the first quarter of 2008. GAAP net
loss for the quarter was $1.8 million, versus a loss of $0.8 million in
the same period last year. EPS for the quarter was $(0.08) versus
$(0.03) last year. Vignette's non-GAAP net income for the first quarter
2009 was $1.4 million, a decrease of 24.5% from the first quarter of
2008. Non-GAAP diluted EPS for the quarter was $0.06 versus $0.07 last
year. Vignette generated $6.1 million of cash in its operating
activities during the quarter.
Non-GAAP results exclude amortization of acquired technology, stock
option expense, business restructuring charges (benefits),
acquisition-related charges, amortization expense for certain intangible
assets and other one-time charges and gains.
“We were able to deliver non-GAAP profitability and positive cash flow
from operations despite an uncertain economic environment. We will
continue to manage the business prudently in order to position ourselves
for long-term success,” stated Mike Aviles, president and CEO of
Vignette.
New Business
Vignette recognized orders from new and existing customers during the
quarter, including the Department of Homeland Security, the Government
of the District of Columbia and the Church of Jesus Christ of Latter-Day
Saints.
Conference Call Details
Prepared remarks for the conference call will be posted to the Investor
Relations section of the Vignette Web site simultaneous to this
earnings announcement and filed with the Form 8-K reporting the
financial results.
President and Chief Executive Officer Mike Aviles will host a conference
call and live Webcast regarding the financial results on Tuesday, April
28 at 5 p.m. ET. During the call, the prepared remarks will not be read.
The call will consist of opening comments regarding first quarter
performance followed by a question and answer session. To access the
Webcast, visit the Investor
Relations section of the Vignette Web site.
If you are not able to access the live Webcast, dial-in information is
as follows:
Dial-in number: 888-201-0273
International Dial-in: +1-706-634-9519
Call title: Vignette Q1 Conference Call
The Webcast and conference call will be archived and available for
replay from April 28, 2009 at 6:00 p.m. ET to May 28, 2009 at 11:59 p.m.
ET. The replay information is as follows:
Toll-free number: 800-642-1687
International number: +1-706-645-9291
Access code: 95203241
About Vignette
Vignette provides software and services that deliver the Web's most
dynamic user experiences. The Vignette Web Experience brings rich media
and engaging content to life for the world's greatest brands. Vignette
is headquartered in Austin, Texas, with operations worldwide. Visit www.vignette.com.
FORWARD-LOOKING STATEMENTS
The statements contained in this press release that are not purely
historical are forward-looking statements including statements regarding
the Company’s expectations, beliefs, hopes, intentions or strategies
regarding the future. Forward-looking statements include statements
regarding Vignette’s products, future sales, market growth and
competition. All forward-looking statements included in this press
release are based upon information available to the Company as of the
date hereof, and the Company assumes no obligation to update any such
forward-looking statement. Actual results could differ materially from
the Company’s current expectations. Factors that could cause or
contribute to such differences include, but are not limited to, Future
Losses, Limited Operating History, Fluctuation of Quarterly Revenues and
Operating Results, Acquisition Integration, Competition, Dependence on a
Small Number of Large Orders, Lengthy Sales Cycle and Product
Implementation, Market Awareness of Our Product, Rapid Changes in
Technology and New Products, and other factors and risks discussed in
the Company’s reports filed from time to time with the Securities and
Exchange Commission. In addition, unfavorable changes in economic
conditions may affect the Company’s current expectations.
Vignette and the V Logo are trademarks or registered trademarks of
Vignette Corp. in the United States and other countries. All other names
are the trademarks or registered trademarks of their respective
companies.
|
VIGNETTE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in thousands, except share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2009
|
|
|
December 31, 2008
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
104,561
|
|
|
$
|
120,348
|
|
|
Short-term investments
|
|
|
38,562
|
|
|
|
18,572
|
|
|
Accounts receivable, net of allowance of $622 and $676, respectively
|
|
|
22,299
|
|
|
|
24,564
|
|
|
Prepaid expenses and other current assets
|
|
|
5,358
|
|
|
|
6,148
|
|
|
Total current assets
|
|
|
170,780
|
|
|
|
169,632
|
|
|
Property and equipment, net
|
|
|
6,660
|
|
|
|
5,981
|
|
|
Long-term investments
|
|
|
4,921
|
|
|
|
4,945
|
|
|
Goodwill
|
|
|
121,090
|
|
|
|
121,090
|
|
|
Other intangible assets, net
|
|
|
8,460
|
|
|
|
10,639
|
|
|
Other assets
|
|
|
11,911
|
|
|
|
12,156
|
|
|
Total assets
|
|
$
|
323,822
|
|
|
$
|
324,443
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
19,451
|
|
|
$
|
19,876
|
|
|
Deferred revenue
|
|
|
33,242
|
|
|
|
32,605
|
|
|
Other current liabilities
|
|
|
5,189
|
|
|
|
5,534
|
|
|
Total current liabilities
|
|
|
57,882
|
|
|
|
58,015
|
|
|
Long-term liabilities, less current portion
|
|
|
1,804
|
|
|
|
2,076
|
|
|
Total liabilities
|
|
|
59,686
|
|
|
|
60,091
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value; 500,000,000 shares authorized;
23,837,122 and 23,698,945 shares issued and outstanding at March 31,
2009 and December 31, 2008, respectively (net of treasury shares of
7,596,135 and 7,579,366 as of March 31, 2009 and December 31, 2008,
respectively)
|
|
|
238
|
|
|
|
237
|
|
|
Additional paid-in capital
|
|
|
2,658,404
|
|
|
|
2,656,743
|
|
|
Accumulated other comprehensive income
|
|
|
1,352
|
|
|
|
1,452
|
|
|
Retained earnings
|
|
|
(2,395,858
|
)
|
|
|
(2,394,080
|
)
|
|
Total shareholders’ equity
|
|
|
264,136
|
|
|
|
264,352
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
323,822
|
|
|
$
|
324,443
|
|
|
VIGNETTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
in thousands, except per share data
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product license
|
|
$
|
6,923
|
|
|
$
|
9,741
|
|
|
Services
|
|
|
26,996
|
|
|
|
35,011
|
|
|
Total revenue
|
|
|
33,919
|
|
|
|
44,752
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
Product license
|
|
|
332
|
|
|
|
474
|
|
|
Amortization of acquired technology
|
|
|
1,310
|
|
|
|
1,254
|
|
|
Services
|
|
|
10,279
|
|
|
|
15,852
|
|
|
Total cost of revenue
|
|
|
11,921
|
|
|
|
17,580
|
|
|
Gross profit
|
|
|
21,998
|
|
|
|
27,172
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
|
7,293
|
|
|
|
8,399
|
|
|
Sales and marketing
|
|
|
11,313
|
|
|
|
15,373
|
|
|
General and administrative
|
|
|
4,518
|
|
|
|
4,790
|
|
|
Business restructuring (benefit) charges
|
|
|
131
|
|
|
|
(2
|
)
|
|
Amortization of intangible assets
|
|
|
869
|
|
|
|
817
|
|
|
Total operating expenses
|
|
|
24,124
|
|
|
|
29,377
|
|
|
Income (loss) from operations
|
|
|
(2,126
|
)
|
|
|
(2,205
|
)
|
|
Other income, net
|
|
|
292
|
|
|
|
1,821
|
|
|
Income (loss) before provision for income taxes
|
|
|
(1,834
|
)
|
|
|
(384
|
)
|
|
Provision for (benefit from) income taxes
|
|
|
(56
|
)
|
|
|
455
|
|
|
Net income (loss)
|
|
$
|
(1,778
|
)
|
|
$
|
(839
|
)
|
|
Basic net income (loss) per share
|
|
$
|
(0.08
|
)
|
|
$
|
(0.03
|
)
|
|
Diluted net income (loss) per share
|
|
$
|
(0.08
|
)
|
|
$
|
(0.03
|
)
|
|
Shares used in computing basic net income (loss) per common share
|
|
|
23,103
|
|
|
|
24,372
|
|
|
Shares used in computing diluted net income (loss) per common share
|
|
|
23,103
|
|
|
|
24,372
|
|
About Non-GAAP Financial Measures
The Company provides non-GAAP measures for net income, operating income
and net income per share data as supplemental information regarding the
Company’s core business operational performance. The Company believes
that these non-GAAP financial measures are useful to investors because
they exclude certain non-operating or non-recurring charges. The
Company’s management excludes these non-operating or non-recurring
charges when it internally evaluates the performance of the Company’s
business and makes operating decisions, including internal budgeting,
performance measurement and the calculation of bonuses and discretionary
compensation. In addition, these non-GAAP measures more closely reflect
the essential revenue generation activities of the Company and the
direct operating expenses (resulting in or from cash expenditures)
needed to perform these revenue generating activities. Accordingly,
management excludes amortization of acquired technology, stock-based
compensation related to employee stock options, business restructuring
charges (benefits), amortization expense for certain acquired intangible
assets and one-time charges and gains.
The Company believes that providing the non-GAAP measures that
management uses is useful to investors for two primary reasons. First,
it provides a consistent basis for investors to understand the Company’s
financial performance on a trended basis across many historical periods,
particularly given the adoption of SFAS 123R at the beginning of fiscal
year 2006 and the changes it has introduced for calculating stock-based
compensation expenses relative to prior periods. Second, it allows
investors to evaluate the Company’s performance using the same
methodology and information as that used by the Company’s management.
Non-GAAP measures are subject to material limitations as these measures
are not in accordance with, or a substitute for, US GAAP and therefore
the Company’s definition or interpretation may be different from similar
non-GAAP measures used by other companies and independent financial
analysts. However, the Company’s management compensates for these
limitations by providing the relevant and detailed disclosure of the
items excluded in the calculation of non-GAAP net income and net income
per share, which should be supplementaly considered when evaluating the
Company’s results. In addition, items such as amortization expense for
certain intangible assets, stock compensation charges, business
restructuring charges (benefits) and one-time charges and gains that are
excluded from non-GAAP net income and earnings per share can have a
significant impact on earnings. Management compensates for these
limitations by evaluating the non-GAAP measure together with the most
directly comparable GAAP measure. The Company has historically provided
non-GAAP measures to investors to supplement its GAAP results in order
to help investors evaluate the company's core operating performance the
way management does.
|
VIGNETTE CORPORATION
RECONCILIATION OF UNAUDITED GAAP OPERATING INCOME (LOSS), NET
INCOME (LOSS) AND NET INCOME (LOSS) PER SHARE TO
NON-GAAP
OPERATING INCOME, NET INCOME AND NET INCOME PER SHARE
(Unaudited)
in thousands, except per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
GAAP Operating Income (Loss)
|
|
$
|
(2,126
|
)
|
|
$
|
(2,205
|
)
|
|
Amortization of acquired technology
|
|
|
1,310
|
|
|
|
1,254
|
|
|
Stock option expense (a)
|
|
|
825
|
|
|
|
566
|
|
|
Business restructuring charges (benefits)
|
|
|
131
|
|
|
|
(2
|
)
|
|
Amortization of intangible assets
|
|
|
869
|
|
|
|
817
|
|
|
Adjusted Operating Income
|
|
$
|
1,009
|
|
|
$
|
430
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income (Loss)
|
|
$
|
(1,778
|
)
|
|
$
|
(839
|
)
|
|
Amortization of acquired technology
|
|
|
1,310
|
|
|
|
1,254
|
|
|
Stock option expense (a)
|
|
|
825
|
|
|
|
566
|
|
|
Business restructuring charges (benefits)
|
|
|
131
|
|
|
|
(2
|
)
|
|
Amortization of intangible assets
|
|
|
869
|
|
|
|
817
|
|
|
Adjusted Net Income
|
|
$
|
1,357
|
|
|
$
|
1,796
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income (Loss) Per Share (diluted)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.03
|
)
|
|
Adjusted Net Income Per Share (diluted)
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income (loss) per share:
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
23,206
|
|
|
|
24,541
|
|
Supplemental Disclosure
(a) For the three months ended March 31, 2009 and March 31, 2008 the
company excluded stock option expense of $825 thousand and $566
thousand, respectively, in its non-GAAP results which was attributable
to the following cost categories: Cost of revenue services $65 thousand
and $40 thousand, respectively; Research and development $157 thousand
and $103 thousand, respectively; Sales and marketing $117 thousand and
$62 thousand, respectively; and General and administrative $486 thousand
and $361 thousand, respectively.
The Company provides non-GAAP measures for net income, operating income
and net income per share data as supplemental information regarding the
Company’s core business operational performance. The Company believes
that these non-GAAP financial measures are useful to investors because
they exclude certain non-operating or non-recurring charges. The
Company’s management excludes these non-operating or non-recurring
charges when it internally evaluates the performance of the Company’s
business and makes operating decisions, including internal budgeting,
performance measurement and the calculation of bonuses and discretionary
compensation. In addition, these non-GAAP measures more closely reflect
the essential revenue generation activities of the Company and the
direct operating expenses (resulting in or from cash expenditures)
needed to perform these revenue generating activities. Accordingly,
management excludes amortization of acquired technology, stock-based
compensation related to employee stock options, business restructuring
charges (benefits), amortization expense for certain acquired intangible
assets, and one-time charges and gains.
The Company believes that providing the non-GAAP measures that
management uses is useful to investors for two primary reasons. First,
it provides a consistent basis for investors to understand the Company’s
financial performance on a trended basis across many historical periods,
particularly given the adoption of SFAS 123R at the beginning of fiscal
year 2006 and the changes it has introduced for calculating stock-based
compensation expenses relative to prior periods. Second, it allows
investors to evaluate the Company’s performance using the same
methodology and information as that used by the Company’s management.
Non-GAAP measures are subject to material limitations as these measures
are not in accordance with, or a substitute for, US GAAP and therefore
the Company’s definition or interpretation may be different from similar
non-GAAP measures used by other companies and independent financial
analysts. However, the Company’s management compensates for these
limitations by providing the relevant and detailed disclosure of the
items excluded in the calculation of non-GAAP net income and net income
per share, which should be supplementaly considered when evaluating the
Company’s results. In addition, items such as amortization expense for
certain intangible assets, stock compensation charges, business
restructuring charges (benefits) and one-time charges and gains that are
excluded from non-GAAP net income and earnings per share can have a
significant impact on earnings. Management compensates for these
limitations by evaluating the non-GAAP measure together with the most
directly comparable GAAP measure. The Company has historically provided
non-GAAP measures to investors to supplement its GAAP results in order
to help investors evaluate the company's core operating performance the
way management does.
Vignette Corporation
Investor Contact:
Pat Kelly, 512-741-4541
investor_relations@vignette.com
or
Media
Contact:
Melanie Brenneman, 512-741-4871
pr@vignette.com
