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Vignette Reports Second Quarter 2007 Financial Results

  • 27 July, 2007 14:41

<p>Note to Editors: Please find following Vignette’s financial results for second quarter 2007 that were released this morning. As you would appreciate, the release is generated from the US. If you would like to speak to someone locally about the Asia-Pacific region, please do not hesitate to contact Alex Merton-McCann from Max Australia on (02) 9954 3492 or alex.mertonmccann@maxaustralia.com.au.</p>
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<p>Q2 marks fourth consecutive quarter of increased operating profit versus prior year</p>
<p>AUSTIN, Texas— July 26, 2007— Vignette Corporation (NASDAQ:VIGN) today announced second quarter GAAP net income increased a significant 371% over the second quarter of 2006. Vignette’s GAAP net income for the quarter was $4.0 million and diluted EPS was $0.14, versus $0.9 million and $0.03 in the same quarter of last year. Total revenue for the quarter was $48.0 million, down 1.6% from the second quarter of 2006.</p>
<p>Vignette’s non-GAAP net income increased 66% over the second quarter of 2006. Vignette's non-GAAP net income for the quarter was $6.6 million and non-GAAP net income per share was $0.23, versus $4.0 million and $0.13 in the same quarter of last year. Non-GAAP results exclude purchased in-process research and development, acquisition-related charges, stock option expense, amortization expense for certain intangible assets and one-time charges and gains.</p>
<p>"We continue to show strong operating progress and performance,” said Mike Aviles, president and chief executive officer at Vignette. "We are making solid progress on sales force productivity, partner program effectiveness and product innovation. We remain focused on driving license revenue growth and bringing to market world-class, innovative solutions that deliver meaningful and profitable customer experiences."</p>
<p>During the quarter, Vignette generated $7.7 million of cash flow from operations. Also during the quarter, Vignette transferred $11.7 million from cash and short term investments to long-term investments as part of its overall cash investment program. The combination of strong positive cash flow from operations, the transfer to long-term investments and the repurchase of Vignette common stock resulted in a net $21.7 million reduction in cash and short term investments over the prior quarter and a balance of $167 million at quarter end.</p>
<p>New Business</p>
<p>Vignette recognized orders from new and existing customers during the quarter including ALSAC/St. Jude Children’s Research Hospital, Avnet Inc., Atlantic Health Systems Inc., Bituminous Casualty Corporation and its affiliates, County of Santa Clara, Fortis Financial, Get Connected Inc., Global Brand Consulting LLC, Houston Community College System, HRB Management Inc. and its affiliates, Legislative Counsel of California, News Interactive, Shared Technology Services Group Inc., TNL PCS S/A - OI, Vermont Student Assistance Corporation and World care Inc.</p>
<p>Product Enhancements</p>
<p>During the quarter Vignette released product updates focused on helping organizations enhance the online customer experience and provide greater service. Vignette Collaboration captures, shares and reuses information across disparate geographic and organizational boundaries. The latest version seamlessly integrates with Vignette Content and Vignette Portal and features support for RSS, wakes and bogs. The enhanced version of Vignette Dialog, which helps marketing organizations automate their communication and connections with their audiences, offers improved usability for marketers and improved overall product performance.</p>
<p>Vignette Analyst Day</p>
<p>Industry analysts from numerous firms attended Vignette Analyst Day 2007 on May 30th in Boston. Analyst Day provides some of the world’s most influential analysts with direct access to Vignette executives and customers. During the event, Vignette laid out the execution strategies and vision for its innovation roadmap and Customer Experience Management platform. Customers participating in Analyst Day included Marriott International Inc., Martha Stewart Living Omni media, Fallon Clinic, OneBeacon Insurance Company and State Employees’ Credit Union.</p>
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<p>Vignette Village</p>
<p>Vignette's Annual User Conference provides a three-day immersion in business discussions, technology and best practices, delivered by both Vignette representatives and customers from the world’s most prominent brands. This year’s conferences will be held in Dallas, TX (Oct. 29-31), Sydney, Australia (Nov. 8) and Barcelona, Spain (Nov. 13-15). The theme is “Make the Customer Connection,” in recognition of the high priority Vignette customers place on improving every aspect of their online customer interactions. Attendee registrations for Vignette Village 2007 are running well ahead of last year’s pace. For additional information, visit www.VignetteVillage.com.</p>
<p>Stock Repurchase Program</p>
<p>In November 2006, Vignette announced a program to repurchase up to $75 million of its common stock over a 12 month period. During the quarter, Vignette purchased an additional 1,022,500 shares of common stock on the open market at an average price of $18.81. As of the end of the quarter, Vignette had purchased a total of 2,759,500 shares at an average price of $17.83 since the share repurchase program commenced.</p>
<p>3Q 2007 Financial Outlook</p>
<p>Vignette currently anticipates third quarter 2007 revenue to be between $46.0 million and $50.0 million. Third quarter 2007 GAAP net income is currently expected to be between $0.05 and $0.12 per share on a fully diluted basis. The company expects third quarter 2007 non-GAAP net income per share to be between $0.15 and $0.22 per share on a fully diluted basis. For a discussion of factors that could cause actual results to differ materially from these targets, see 'Forward-Looking Statements' below.</p>
<p>Conference Call Details</p>
<p>Vignette will host a conference call and live web cast regarding its second quarter financial results on Thursday, July 26, 2007, at 8:00 a.m. EDT. A press release associated with the announcement will be distributed approximately 30 minutes prior to the start of the conference call. To access the web cast, visit the Investor Relations section of Vignette’s Web site.</p>
<p>If you are not able to access the live web cast, dial-in information is as follows:</p>
<p>Dial-in number: (888) 201-0273</p>
<p>International Dial-in: (706) 634-9519</p>
<p>Call title: Vignette Financial Results</p>
<p>The web cast and conference call will be archived and available for replay from Thursday, July 26, 2007, at 9:00 a.m. EDT to Sunday, August 26, at 11:59 p.m. EDT. The replay information is as follows:</p>
<p>Toll-free number: (800) 642-1687</p>
<p>International number: (706) 645-9291</p>
<p>Access code: 6248831</p>
<p>Non-GAAP Financial Measures</p>
<p>The Company believes 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.</p>
<p>A reconciliation of net income calculated in accordance with GAAP and non-GAAP net income is provided in the tables immediately following the condensed consolidated balance sheets. The presentation of this additional information is not a substitute for results prepared in accordance with accounting principles generally accepted in the United States.</p>
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<p>About Vignette</p>
<p>Vignette helps organizations improve interactions with customers and partners by delivering highly personalized, interactive online experiences. Our early content management and delivery tools laid the groundwork for some of the Web’s most popular sites. Today, our award-winning Next-Generation Web solution powers some of the world’s most recognizable online brands and enables organizations to have more meaningful interactions with their customers and associates. Our Imaging and Workflow solution adds the ability to deliver and manage online and offline document-driven customer transactions. Vignette is headquartered in Austin, Texas with operations worldwide. Visit www.vignette.com.</p>
<p>FORWARD-LOOKING STATEMENTS</p>
<p>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.</p>
<p>Vignette and the V Logo are trademarks or registered trademarks of Vignette Corp. in the United States and other countries.</p>
<p>All other names are the trademarks or registered trademarks of their respective companies.</p>
<p>Contacts:</p>
<p>Investor Contact:</p>
<p>Pat Kelly</p>
<p>Chief Financial Officer</p>
<p>(512) 741-4727</p>
<p>pat.kelly@vignette.com</p>
<p>Media Contact:</p>
<p>David Tishgart</p>
<p>Senior Manager, Public Relations</p>
<p>(512) 741-4871</p>
<p>david.tishgart@vignette.com</p>

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