FileNET Announces Preliminary First Quarter Financial Results

Apr 02, 2001, 01:00 ET from FileNET Corporation

    COSTA MESA, Calif., April 2 /PRNewswire/ -- FileNET Corporation
 (Nasdaq:   FILE), a leading provider of eProcess and Web Content Management
 software and applications, today announced preliminary financial results for
 the first quarter of 2001 ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000207/FILENETLOGO )
 
     For the first quarter, the company expects to report:
 
     --  Total revenue in the range of $81 million to $84 million compared with
         total revenue of $92.8 million in the first quarter of 2000 with
         software revenue in the range of $31 million to $34 million compared
         with software revenue of $48.1 million in the first quarter of 2000.
     --  Cash and marketable securities at March 31, 2001 of approximately
         $155 million up $15 million over the previous quarter.
 
     "At the end of the first quarter, we saw several large enterprise
 customers across many vertical industries delay purchasing decisions due to
 recent economic downturn and reductions in IT budgets," stated Lee Roberts,
 FileNET's chief executive officer.  "This greatly impacted our ability to
 close many significant transactions that we expected to finalize late in the
 quarter.  Delayed IT spending combined with the current economic uncertainty
 will limit our visibility going forward.
     "In response to current market conditions, we are carefully reviewing all
 possible means of reducing our operating expenses.  As we revise our operating
 plan, we will provide investors with new guidance on our business outlook for
 2001, since current market conditions have rendered our previous guidance
 obsolete.
     "Looking ahead, we believe the market for FileNET's products remains
 fundamentally strong and our value proposition will continue to offer
 customers success by providing eProcess Management software and applications
 that enable them to improve operating efficiencies, reduce costs, capitalize
 on new revenue opportunities and provide a higher return on their investment.
 FileNET has a strong cash position, no debt, an excellent customer base and a
 strong product line. We are well positioned to deal with these times of
 economic uncertainty and remain confident about our business and markets over
 the long term."
 
     Conference Call Information
     FileNET management will host a conference call for investors at 10:00 a.m.
 ET on Tuesday, April 3, 2001.  The call will be available via web cast at
 www.FileNET.com, or via dial-in on (800) 493-3979 or (303) 267-1000 conference
 call ID number 993888.  A replay will be available from 12:00 p.m. on April 3,
 2001 through midnight ET on April 5, 2001 at (800) 625-5288 or (303) 804-1855.
 The conference call ID number for the replay is 993888. Final results and
 further comments on the outlook for 2001 are scheduled to be released on April
 12, 2001, and will also be available on www.FileNET.com
 
     About FileNET
     FileNET Corporation (Nasdaq:   FILE) provides The Substance Behind
 eBusiness(TM) by delivering eProcess management software solutions.  FileNET
 enables organizations around the globe to increase productivity, customer
 satisfaction and revenue by linking customers, business partners, suppliers,
 and employees through efficient and flexible eBusiness processes.
 Headquartered in Costa Mesa, Calif., the company markets its innovative
 solutions in more than 90 countries through its own global sales, professional
 services and support organizations, as well as via its ValueNET(R) Partner
 network of resellers, system integrators and application developers.  To put
 more substance into your eBusiness, visit FileNET's Web site at
 www.filenet.com or call 1 800 FileNET.
 
     FileNET and ValueNET are registered trademarks and Panagon is a trademark
 of FileNET Corporation. All other named products mentioned in this release may
 have been identified by trademarks or registered trademarks of their
 respective holders.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     This release contains forward-looking statements that are based on our
 current expectations, estimates and projections about our industry,
 management's beliefs and certain assumptions made by us.  Words such as
 "anticipates," "expects," "intends," "plans," "believes," "seeks,"
 "estimates," "may," "will" and variations of these words or similar
 expressions are intended to identify forward-looking statements. In addition,
 any statements that refer to expectations, projections or other
 characterizations of future events or circumstances, including any underlying
 assumptions, are forward-looking statements.  These statements are not
 guarantees of future performance and are subject to certain risks,
 uncertainties and assumptions that are difficult to predict. Therefore, our
 actual results could differ materially and adversely from those expressed in
 any forward-looking statements as a result of various factors.
     Important factors that may cause such a difference for FileNET include,
 but are not limited to, the volume of our sales and pricing concessions on
 volume sales; our ability to specify, develop or acquire, complete, introduce,
 market, distribute and gain market acceptance for new products and
 technologies in a timely manner; the mix of products and services sold by the
 company; the timing, rescheduling or cancellation of significant customer
 orders; the loss of a key customer; our ability to control expenses;
 announcements of technological innovations, new products or product
 enhancements by the company or its competitors; the emerging nature of the
 eProcess and Web Content Management market; key management changes; changes in
 joint marketing and development programs; developments relating to patents or
 other intellectual property rights or disputes;  changing relationships with
 customers, distributors, suppliers and strategic partners; potential
 contractual or employment issues; and general conditions in the worldwide
 economy and the software/technology sector and other factors.  Our Annual
 Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q,
 recent Current Reports on Forms 8-K and other Securities and Exchange
 Commission filings discuss some of the important risk factors that may affect
 our business, results of operations and financial condition. We undertake no
 obligation to revise or update publicly any forward-looking statements for any
 reason.
 
     For further information, please contact Sam Auriemma, CFO, 714-327-3799,
 sauriemma@filenet.com, or Tom Hennessey, Corporate Relations Manager,
 714-327-5050, thennessey@filenet.com, or Peter Hargittay, Investor Relations
 Manager, 714-327-3405, phargittay@filenet.com, all of FileNET Corporation.
 
 

SOURCE FileNET Corporation
    COSTA MESA, Calif., April 2 /PRNewswire/ -- FileNET Corporation
 (Nasdaq:   FILE), a leading provider of eProcess and Web Content Management
 software and applications, today announced preliminary financial results for
 the first quarter of 2001 ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000207/FILENETLOGO )
 
     For the first quarter, the company expects to report:
 
     --  Total revenue in the range of $81 million to $84 million compared with
         total revenue of $92.8 million in the first quarter of 2000 with
         software revenue in the range of $31 million to $34 million compared
         with software revenue of $48.1 million in the first quarter of 2000.
     --  Cash and marketable securities at March 31, 2001 of approximately
         $155 million up $15 million over the previous quarter.
 
     "At the end of the first quarter, we saw several large enterprise
 customers across many vertical industries delay purchasing decisions due to
 recent economic downturn and reductions in IT budgets," stated Lee Roberts,
 FileNET's chief executive officer.  "This greatly impacted our ability to
 close many significant transactions that we expected to finalize late in the
 quarter.  Delayed IT spending combined with the current economic uncertainty
 will limit our visibility going forward.
     "In response to current market conditions, we are carefully reviewing all
 possible means of reducing our operating expenses.  As we revise our operating
 plan, we will provide investors with new guidance on our business outlook for
 2001, since current market conditions have rendered our previous guidance
 obsolete.
     "Looking ahead, we believe the market for FileNET's products remains
 fundamentally strong and our value proposition will continue to offer
 customers success by providing eProcess Management software and applications
 that enable them to improve operating efficiencies, reduce costs, capitalize
 on new revenue opportunities and provide a higher return on their investment.
 FileNET has a strong cash position, no debt, an excellent customer base and a
 strong product line. We are well positioned to deal with these times of
 economic uncertainty and remain confident about our business and markets over
 the long term."
 
     Conference Call Information
     FileNET management will host a conference call for investors at 10:00 a.m.
 ET on Tuesday, April 3, 2001.  The call will be available via web cast at
 www.FileNET.com, or via dial-in on (800) 493-3979 or (303) 267-1000 conference
 call ID number 993888.  A replay will be available from 12:00 p.m. on April 3,
 2001 through midnight ET on April 5, 2001 at (800) 625-5288 or (303) 804-1855.
 The conference call ID number for the replay is 993888. Final results and
 further comments on the outlook for 2001 are scheduled to be released on April
 12, 2001, and will also be available on www.FileNET.com
 
     About FileNET
     FileNET Corporation (Nasdaq:   FILE) provides The Substance Behind
 eBusiness(TM) by delivering eProcess management software solutions.  FileNET
 enables organizations around the globe to increase productivity, customer
 satisfaction and revenue by linking customers, business partners, suppliers,
 and employees through efficient and flexible eBusiness processes.
 Headquartered in Costa Mesa, Calif., the company markets its innovative
 solutions in more than 90 countries through its own global sales, professional
 services and support organizations, as well as via its ValueNET(R) Partner
 network of resellers, system integrators and application developers.  To put
 more substance into your eBusiness, visit FileNET's Web site at
 www.filenet.com or call 1 800 FileNET.
 
     FileNET and ValueNET are registered trademarks and Panagon is a trademark
 of FileNET Corporation. All other named products mentioned in this release may
 have been identified by trademarks or registered trademarks of their
 respective holders.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     This release contains forward-looking statements that are based on our
 current expectations, estimates and projections about our industry,
 management's beliefs and certain assumptions made by us.  Words such as
 "anticipates," "expects," "intends," "plans," "believes," "seeks,"
 "estimates," "may," "will" and variations of these words or similar
 expressions are intended to identify forward-looking statements. In addition,
 any statements that refer to expectations, projections or other
 characterizations of future events or circumstances, including any underlying
 assumptions, are forward-looking statements.  These statements are not
 guarantees of future performance and are subject to certain risks,
 uncertainties and assumptions that are difficult to predict. Therefore, our
 actual results could differ materially and adversely from those expressed in
 any forward-looking statements as a result of various factors.
     Important factors that may cause such a difference for FileNET include,
 but are not limited to, the volume of our sales and pricing concessions on
 volume sales; our ability to specify, develop or acquire, complete, introduce,
 market, distribute and gain market acceptance for new products and
 technologies in a timely manner; the mix of products and services sold by the
 company; the timing, rescheduling or cancellation of significant customer
 orders; the loss of a key customer; our ability to control expenses;
 announcements of technological innovations, new products or product
 enhancements by the company or its competitors; the emerging nature of the
 eProcess and Web Content Management market; key management changes; changes in
 joint marketing and development programs; developments relating to patents or
 other intellectual property rights or disputes;  changing relationships with
 customers, distributors, suppliers and strategic partners; potential
 contractual or employment issues; and general conditions in the worldwide
 economy and the software/technology sector and other factors.  Our Annual
 Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q,
 recent Current Reports on Forms 8-K and other Securities and Exchange
 Commission filings discuss some of the important risk factors that may affect
 our business, results of operations and financial condition. We undertake no
 obligation to revise or update publicly any forward-looking statements for any
 reason.
 
     For further information, please contact Sam Auriemma, CFO, 714-327-3799,
 sauriemma@filenet.com, or Tom Hennessey, Corporate Relations Manager,
 714-327-5050, thennessey@filenet.com, or Peter Hargittay, Investor Relations
 Manager, 714-327-3405, phargittay@filenet.com, all of FileNET Corporation.
 
 SOURCE  FileNET Corporation