iManage Reports Record First Quarter Revenues of $8.7 Million Company Continues to Build Momentum and Drive Revenue Growth

Apr 25, 2001, 01:00 ET from iManage, Inc.

    SAN MATEO, Calif., April 25 /PRNewswire/ -- iManage, Inc. (Nasdaq: IMAN),
 a leading provider of e-business software, today announced record revenues of
 $8.7 million for the first quarter ended March 31, 2001.  This represents a
 21% increase compared to $7.2 million in total revenues posted in the
 first quarter of 2000 and a 9% sequential increase from $8.0 million reported
 in the fourth quarter of fiscal 2000.
     Excluding amortization of goodwill and a deferred stock-based compensation
 charge, iManage posted a pro forma net loss in the first quarter of 2001 of
 $2.6 million, or $0.11 per share, compared to pro forma net income of
 $751,000, or $0.04 per share, in the same period in 2000.  Including the
 goodwill amortization and deferred stock-based compensation charge, the
 company reported a net loss of $5.0 million, or $0.22 per share, in the
 first quarter of 2001 compared to a net loss of $48,000, or $0.00 per share,
 for the same period in 2000.  The company closed the quarter with
 approximately $41 million in cash and investments.
     "I am very pleased with the way our team executed in the first quarter, as
 evidenced by our record results," said iManage president and CEO,
 Max Panjwani.  "In this economy, customers are looking for affordable
 solutions that are quick to deploy and deliver a fast return on investment.
 Hence, we did not see the slowdown experienced by many other technology
 companies in the first quarter of 2001."
     "At the recent Forrester Research B2B technology leadership forum, 85% of
 senior executives concluded that tightening integration with their partners
 and customers is a top priority.  This confirms our belief that businesses
 still see technology as the key to improving their companies' productivity.
 We think the next round of software investment will focus on dynamic
 collaboration solutions that enable enterprises to seize competitive advantage
 by optimizing their value chain network."
     "This is exactly the sweet spot of iManage's recently announced 'Website
 to Worksite' initiative," said Panjwani.  "The new iManage WorkSite(TM) is a
 suite of products that combines content management, collaboration, portal, and
 workflow technologies.  This means that corporations no longer have to buy
 various technology components and patch together a solution.  It significantly
 reduces the cost of ownership and simplifies delivery of a comprehensive
 solution, enabling enterprise employees to connect with other employees,
 suppliers, partners, and customers."
     During the first quarter of 2001, iManage focused on growing its business
 by broadening its customer base and expanding product offerings.  Recent
 developments include:
 
     -- Motorola, Rothchilds, Inc., and Capella University are among the
        first set of customers to buy the new iManage WorkSite suite of
        products.  iManage WorkSite products will enable them to drive
        productivity, decrease coordination costs, and build stronger business
        relationships.
     -- The Coca-Cola Company selected iManage web-based solutions to enable
        its employees to work together more efficiently by having real-time,
        distributed access to high-value content.
     -- Boron, LePore, a leading provider of strategic medical communications
        programs for the pharmaceutical industry, is using iManage products to
        extend its e-business activities to the Internet.
     -- The company closed four of the top 100 law firms in the United States,
        along with over 25 other law firms selecting iManage, representing over
        7,000 seats converting from a competitor solution to iManage.  These
        wins underscore iManage's continued dominant presence in the legal
        industry.
     -- The company signed 47 new customers, including diverse industry
        segments such as high tech, financial services, health care, education,
        and government agencies.  Over 850 customers are now using iManage
        solutions for content management and collaboration.
     -- The company launched the WorkSite product suite -- The iManage WorkSite
        suite of products enables an enterprise to securely extend its Web
        sites to become productive and interactive WorkSites, seamlessly
        connecting its employees with customers, suppliers, and partners.
     -- iManage licensed Application Builder from Autonomy Corporation to
        provide natural language search capabilities for content located in
        customers' iManage-based repositories.  Autonomy's technology will
        enable customers to search their ever-increasing amount of emails, Web
        pages, reports, documents, and spreadsheets for key concepts,
        automating the categorizing and linking of unstructured content.
     -- The company continued to strengthen the sales organization.  iManage
        augmented the sales organization with proven, industry-seasoned sales
        executives to execute the company's strategy.  In addition to regional
        sales managers for corporate sales in North America and a manager for
        sales operations in Europe, iManage also appointed executives to manage
        the company's strategic alliances and professional services activities.
 
     For the second quarter of fiscal 2001, iManage expects revenues in the
 range of $9.5-$9.9 million, with a pro forma net loss (excluding amortization
 of goodwill and a deferred stock-based compensation charge) of
 $2.2-$2.6 million, or $0.09-$0.11 per share.
     iManage will discuss the results of the most recent quarter and the
 Company's expectations for future growth on a conference call at 1:30 p.m.
 Pacific Time today, Wednesday, April 25.  The conference call can be accessed
 via live webcast at http://www.imanage.com .  A rebroadcast of the call will
 be available upon its completion and will remain available until May 1, 2001.
 
     The iManage WorkSite Product Suite
     The iManage WorkSite product suite consists of the iManage WorkSite Server
 and four application components:  WorkDocs(TM), WorkTeam, WorkPortal(TM), and
 WorkRoute(TM).  Our modular product design enables enterprises to configure an
 iManage WorkSite solution that complements the way in which they work and
 facilitates timely, accurate decision-making across the extended enterprise
 value chain of partners, suppliers, and customers.  As an integrated one-stop
 solution, iManage WorkSite synergistically combines content management,
 collaboration, portal, and business process applications to drive new business
 efficiencies.
 
     About iManage, Inc.
     iManage, Inc. is a leading provider of e-business software platforms and
 applications for enterprises engaged in information commerce as part of their
 e-business strategy.  The company's products provide a centralized web-based
 unified content platform for information and collaboration management, both
 for internal use and for use across the extended enterprise.  iManage software
 offers a scalable, reliable, and highly secure server network that ensures
 timely delivery of relevant information to appropriate parties and integrates
 with both the Internet and existing email systems.  iManage sells its software
 products through its direct sales force and through a network of strategic
 partners and systems integrators.
     Headquartered in San Mateo, California, the company first introduced the
 iManage suite of solutions in 1996.  For detailed sales and product
 information, please contact info@imanage.com or visit our web site at
 www.imanage.com.
 
     Legal Notice Regarding Forward-Looking Statements:
     This press release includes forward-looking statements that involve risks
 and uncertainties, including, but not limited to:  declining economic
 conditions, including a possible recession; cutbacks by our customers in their
 purchases of software such as ours; delays and difficulties in introducing new
 products and upgrades of existing versions of our products; lack of market
 acceptance for the iManage WorkSite product suite; the market for e-business
 content and collaboration software may not develop as quickly as expected;
 competition from other providers of content and collaboration tools may
 increase; our products may not be able to scale to meet the demands of
 thousands of concurrent users; the market may fail to accept the iManage
 platform and suite of products; the company may not succeed in penetrating
 enterprise environments, as well as risks as detailed from time to time in the
 company's Securities and Exchange Commission filings.  Actual results may
 differ materially from management expectations.  See the Risk Factors
 described in iManage's Annual Report on Form 10-K for the year ended
 December 31, 2000.
     NOTE:  The iManage logo is a registered trademark of iManage, Inc.
 iManage and iManage WorkSite are trademarks of iManage, Inc.
 
                                 iMANAGE, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                         Three Months Ended
                                                     March 31,       March 31,
                                                        2001           2000
                                                            (Unaudited)
 
     Revenues:
       Licenses                                        $5,787         $5,410
       Support and services                             2,875          1,772
         Total revenues                                 8,662          7,182
 
     Cost of revenues:
       Licenses                                           291            280
       Support and services                             1,327          1,002
         Total cost of revenues                         1,618          1,282
 
     Gross profit                                       7,044          5,900
 
     Operating expenses:
       Sales and marketing                              6,387          3,502
       Research and development                         2,619          1,522
       General and administrative                       1,092            838
       Amortization of goodwill                         2,121             --
       Stock-based compensation                           252            799
         Total operating expenses                      12,471          6,661
 
     Loss from operations                             (5,427)          (761)
     Net interest income                                  449            736
     Loss before provision for income taxes           (4,978)           (25)
     Provision for income taxes                          (30)           (23)
     Net loss                                        $(5,008)          $(48)
 
     Net loss per share-basic and diluted             $(0.22)            $--
 
     Weighted average shares used in net
      loss per share- basic and diluted                23,071         21,289
 
                                 iMANAGE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                    (Unaudited)
 
     Assets
     Current assets:
       Cash and cash equivalents                      $20,831        $24,056
       Short term investments                          15,729         11,640
       Accounts receivable, net                         9,847         10,655
       Other current assets                             2,553          2,041
         Total current assets                          48,960         48,392
     Property and equipment, net                        3,416          3,568
     Long term investments                              4,170          6,090
     Other assets                                       2,287          2,788
     Goodwill                                          10,388         12,509
         Total assets                                 $69,221        $73,347
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and other liabilities          $4,107         $4,280
       Deferred revenues                                9,366          8,902
       Bank lines of credit, current portion            4,291          4,083
         Total current liabilities                     17,764         17,265
     Bank lines of credit, less current portion         1,970          2,345
         Total liabilities                             19,734         19,610
     Stockholders' equity                              49,487         53,737
         Total liabilities and stockholders'
          equity                                      $69,221        $73,347
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X07128172
 
 

SOURCE iManage, Inc.
    SAN MATEO, Calif., April 25 /PRNewswire/ -- iManage, Inc. (Nasdaq: IMAN),
 a leading provider of e-business software, today announced record revenues of
 $8.7 million for the first quarter ended March 31, 2001.  This represents a
 21% increase compared to $7.2 million in total revenues posted in the
 first quarter of 2000 and a 9% sequential increase from $8.0 million reported
 in the fourth quarter of fiscal 2000.
     Excluding amortization of goodwill and a deferred stock-based compensation
 charge, iManage posted a pro forma net loss in the first quarter of 2001 of
 $2.6 million, or $0.11 per share, compared to pro forma net income of
 $751,000, or $0.04 per share, in the same period in 2000.  Including the
 goodwill amortization and deferred stock-based compensation charge, the
 company reported a net loss of $5.0 million, or $0.22 per share, in the
 first quarter of 2001 compared to a net loss of $48,000, or $0.00 per share,
 for the same period in 2000.  The company closed the quarter with
 approximately $41 million in cash and investments.
     "I am very pleased with the way our team executed in the first quarter, as
 evidenced by our record results," said iManage president and CEO,
 Max Panjwani.  "In this economy, customers are looking for affordable
 solutions that are quick to deploy and deliver a fast return on investment.
 Hence, we did not see the slowdown experienced by many other technology
 companies in the first quarter of 2001."
     "At the recent Forrester Research B2B technology leadership forum, 85% of
 senior executives concluded that tightening integration with their partners
 and customers is a top priority.  This confirms our belief that businesses
 still see technology as the key to improving their companies' productivity.
 We think the next round of software investment will focus on dynamic
 collaboration solutions that enable enterprises to seize competitive advantage
 by optimizing their value chain network."
     "This is exactly the sweet spot of iManage's recently announced 'Website
 to Worksite' initiative," said Panjwani.  "The new iManage WorkSite(TM) is a
 suite of products that combines content management, collaboration, portal, and
 workflow technologies.  This means that corporations no longer have to buy
 various technology components and patch together a solution.  It significantly
 reduces the cost of ownership and simplifies delivery of a comprehensive
 solution, enabling enterprise employees to connect with other employees,
 suppliers, partners, and customers."
     During the first quarter of 2001, iManage focused on growing its business
 by broadening its customer base and expanding product offerings.  Recent
 developments include:
 
     -- Motorola, Rothchilds, Inc., and Capella University are among the
        first set of customers to buy the new iManage WorkSite suite of
        products.  iManage WorkSite products will enable them to drive
        productivity, decrease coordination costs, and build stronger business
        relationships.
     -- The Coca-Cola Company selected iManage web-based solutions to enable
        its employees to work together more efficiently by having real-time,
        distributed access to high-value content.
     -- Boron, LePore, a leading provider of strategic medical communications
        programs for the pharmaceutical industry, is using iManage products to
        extend its e-business activities to the Internet.
     -- The company closed four of the top 100 law firms in the United States,
        along with over 25 other law firms selecting iManage, representing over
        7,000 seats converting from a competitor solution to iManage.  These
        wins underscore iManage's continued dominant presence in the legal
        industry.
     -- The company signed 47 new customers, including diverse industry
        segments such as high tech, financial services, health care, education,
        and government agencies.  Over 850 customers are now using iManage
        solutions for content management and collaboration.
     -- The company launched the WorkSite product suite -- The iManage WorkSite
        suite of products enables an enterprise to securely extend its Web
        sites to become productive and interactive WorkSites, seamlessly
        connecting its employees with customers, suppliers, and partners.
     -- iManage licensed Application Builder from Autonomy Corporation to
        provide natural language search capabilities for content located in
        customers' iManage-based repositories.  Autonomy's technology will
        enable customers to search their ever-increasing amount of emails, Web
        pages, reports, documents, and spreadsheets for key concepts,
        automating the categorizing and linking of unstructured content.
     -- The company continued to strengthen the sales organization.  iManage
        augmented the sales organization with proven, industry-seasoned sales
        executives to execute the company's strategy.  In addition to regional
        sales managers for corporate sales in North America and a manager for
        sales operations in Europe, iManage also appointed executives to manage
        the company's strategic alliances and professional services activities.
 
     For the second quarter of fiscal 2001, iManage expects revenues in the
 range of $9.5-$9.9 million, with a pro forma net loss (excluding amortization
 of goodwill and a deferred stock-based compensation charge) of
 $2.2-$2.6 million, or $0.09-$0.11 per share.
     iManage will discuss the results of the most recent quarter and the
 Company's expectations for future growth on a conference call at 1:30 p.m.
 Pacific Time today, Wednesday, April 25.  The conference call can be accessed
 via live webcast at http://www.imanage.com .  A rebroadcast of the call will
 be available upon its completion and will remain available until May 1, 2001.
 
     The iManage WorkSite Product Suite
     The iManage WorkSite product suite consists of the iManage WorkSite Server
 and four application components:  WorkDocs(TM), WorkTeam, WorkPortal(TM), and
 WorkRoute(TM).  Our modular product design enables enterprises to configure an
 iManage WorkSite solution that complements the way in which they work and
 facilitates timely, accurate decision-making across the extended enterprise
 value chain of partners, suppliers, and customers.  As an integrated one-stop
 solution, iManage WorkSite synergistically combines content management,
 collaboration, portal, and business process applications to drive new business
 efficiencies.
 
     About iManage, Inc.
     iManage, Inc. is a leading provider of e-business software platforms and
 applications for enterprises engaged in information commerce as part of their
 e-business strategy.  The company's products provide a centralized web-based
 unified content platform for information and collaboration management, both
 for internal use and for use across the extended enterprise.  iManage software
 offers a scalable, reliable, and highly secure server network that ensures
 timely delivery of relevant information to appropriate parties and integrates
 with both the Internet and existing email systems.  iManage sells its software
 products through its direct sales force and through a network of strategic
 partners and systems integrators.
     Headquartered in San Mateo, California, the company first introduced the
 iManage suite of solutions in 1996.  For detailed sales and product
 information, please contact info@imanage.com or visit our web site at
 www.imanage.com.
 
     Legal Notice Regarding Forward-Looking Statements:
     This press release includes forward-looking statements that involve risks
 and uncertainties, including, but not limited to:  declining economic
 conditions, including a possible recession; cutbacks by our customers in their
 purchases of software such as ours; delays and difficulties in introducing new
 products and upgrades of existing versions of our products; lack of market
 acceptance for the iManage WorkSite product suite; the market for e-business
 content and collaboration software may not develop as quickly as expected;
 competition from other providers of content and collaboration tools may
 increase; our products may not be able to scale to meet the demands of
 thousands of concurrent users; the market may fail to accept the iManage
 platform and suite of products; the company may not succeed in penetrating
 enterprise environments, as well as risks as detailed from time to time in the
 company's Securities and Exchange Commission filings.  Actual results may
 differ materially from management expectations.  See the Risk Factors
 described in iManage's Annual Report on Form 10-K for the year ended
 December 31, 2000.
     NOTE:  The iManage logo is a registered trademark of iManage, Inc.
 iManage and iManage WorkSite are trademarks of iManage, Inc.
 
                                 iMANAGE, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                         Three Months Ended
                                                     March 31,       March 31,
                                                        2001           2000
                                                            (Unaudited)
 
     Revenues:
       Licenses                                        $5,787         $5,410
       Support and services                             2,875          1,772
         Total revenues                                 8,662          7,182
 
     Cost of revenues:
       Licenses                                           291            280
       Support and services                             1,327          1,002
         Total cost of revenues                         1,618          1,282
 
     Gross profit                                       7,044          5,900
 
     Operating expenses:
       Sales and marketing                              6,387          3,502
       Research and development                         2,619          1,522
       General and administrative                       1,092            838
       Amortization of goodwill                         2,121             --
       Stock-based compensation                           252            799
         Total operating expenses                      12,471          6,661
 
     Loss from operations                             (5,427)          (761)
     Net interest income                                  449            736
     Loss before provision for income taxes           (4,978)           (25)
     Provision for income taxes                          (30)           (23)
     Net loss                                        $(5,008)          $(48)
 
     Net loss per share-basic and diluted             $(0.22)            $--
 
     Weighted average shares used in net
      loss per share- basic and diluted                23,071         21,289
 
                                 iMANAGE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                    (Unaudited)
 
     Assets
     Current assets:
       Cash and cash equivalents                      $20,831        $24,056
       Short term investments                          15,729         11,640
       Accounts receivable, net                         9,847         10,655
       Other current assets                             2,553          2,041
         Total current assets                          48,960         48,392
     Property and equipment, net                        3,416          3,568
     Long term investments                              4,170          6,090
     Other assets                                       2,287          2,788
     Goodwill                                          10,388         12,509
         Total assets                                 $69,221        $73,347
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and other liabilities          $4,107         $4,280
       Deferred revenues                                9,366          8,902
       Bank lines of credit, current portion            4,291          4,083
         Total current liabilities                     17,764         17,265
     Bank lines of credit, less current portion         1,970          2,345
         Total liabilities                             19,734         19,610
     Stockholders' equity                              49,487         53,737
         Total liabilities and stockholders'
          equity                                      $69,221        $73,347
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X07128172
 
 SOURCE  iManage, Inc.