Content Management: Overview of earnings Q1/02
Nobody is expecting much from CM revenues , let’s admit it.
Investors in CM companies must be long term hopefuls.
Research and development costs are huge, and marketing budgets, especially for the larger vendors, are even bigger, while sales just about trickle in, as the market opens up.
The first results to be published towards the end of April were Documentum and Interwoven.
Documentum posted a loss of $1.7 million on revenue of $50.6 million, compared with a loss of $14.7 million on revenue of $45.3 million last year. Average deal size climbed to $306,000 from $238,000 a year ago. Interwoven posted a loss of $15.7 million on revenue of $32.7 million, compared with a loss of $24.3 million on revenue of $60.5 million last year. Software-license revenue was $14.9 million, down from $39.0 million a year earlier, and deal size shrunk to $210,000 from $220,000. Compared to last year, there are some positive trends, as revenues have increased 12%, licenses 21% and deal size is up 29%, says the company
Interwoven's Net loss was $11.2 million, or $0.11 net loss per share on a basic and diluted basis, compared with pro forma net income of $2.3
million, or $0.02 net income per share on a basic and diluted basis, for the quarter ended March 31, 2001.
Revenue is down 46% from last year, software licenses are down 61%, average deal size is off 5%, and profitability isn't within reach.
A decrease of 46% from revenues of $60.5 million for the quarter ended March 31, 2001 and a decrease of 26% from revenues of $44.0 million for the quarter ended December 31, 2001.
Two different type of losses,
say observers, some loss making companies are heading up and some heading down.
Vignette then also posted first quarter losses of $37.9 million on revenue of $46.4 million, down from a loss of $229.6 million on revenue of $90.1 million a year earlier. The previous year's loss included $126.9 million in amortization and $49.1 million in restructuring charges.
To narrow its losses Vignette also reduced sales and marketing expenses to $29 million, from $52.7 million last year, while R&D spending was cut to $13.9 million, from $19 million.
A marketing budget that weights a fraction than R&D budget is significant, and in content-wire opinion, highly unbalanced. While branding and communications are important, even larger vendors like Vignette are bound to benefit from higher level investment in product development.
But Greg Peters remains hopeful as he is comfortable that he has a solid pipeline for next quarter, and we wish him good luck.
FileNET reported a net increase in the basic shares of .04 US$ per share. The company reported cash and investments of $183.6 million
dollars and no long-term debt as of March 31. This contrasts with last year's first quarter loss of .16 US$ per share.
FileNET has recently acquired mid market Web Content Management Player,
eGrail which will complement the companies own CMS
contender, Panagon.
The total purchase price for eGrail amounted to 9
million US$ in cash and the assumption of an estimated $1 million in further outstanding debt.
Also Tridion, the dutch CM company and leading european player in the sector, says it achieved profitability and grew revenues by 33% over the fourth quarter of 2001.
Download
the Table with summary results from: Broadvision, Day, divine, Documentum, FileNET Interwoven, Percussion, Stellent, Tridion, Vignette
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