Back to all announcements

FileNet Reports First Quarter 2006 Results

Company Achieves 17% Software Revenue Growth

FileNet Corporation (Nasdaq: FILE), the leading provider of Enterprise Content and Business Process Management solutions, today announced financial results for its first quarter ended March 31, 2006.

Total revenues for the first quarter of 2006 were $108.9 million compared to total revenues of $100.0 million for the same period in 2005. Software revenues for the first quarter of 2006 were $44.9 million compared to $38.5 million for the same period in 2005.

Net income was $7.6 million in the first quarter of 2006 and includes equity-based compensation expense, net of tax, of $2.4 million. Net income for the first quarter of 2005 was $8.3 million and includes equity-based compensation expense for non-vested stock grants, net of tax, of $0.3 million. Earnings per basic and diluted share were $0.18 for the first quarter of 2006 and include all equity-based compensation expense (for stock options and non-vested shares) of $0.05 per share. This compares to earnings per basic and diluted share of $0.20, for the first quarter of 2005. Net income prior to 2006 did not include employee equity-based compensation expense for stock options, but did include compensation expense for non-vested shares.

In addition to GAAP results, FileNet is reporting net income and net income per share excluding equity-based compensation expense, referred to respectively as "non-GAAP net income" and "non-GAAP net income per share." A further discussion of these non-GAAP financial measures and reconciliations to comparable GAAP measures for the three months ended March 31, 2006 and 2005 appear in the GAAP to Non-GAAP reconciliation found below.

Non-GAAP net income for the first quarter of 2006 was $10.1 million, or $0.23 per diluted share. Non-GAAP net income for the first quarter of 2005 was $8.5 million, or $0.20 per diluted share.

As of March 31, 2006, FileNet had cash and investments of $422.9 million, compared to $392.0 million at December 31, 2005. The company has no long-term debt.

“We’re pleased with our solid first quarter performance and continue to experience particular strength in our European operations,” said Lee Roberts, chairman and CEO of FileNet. "Our FileNet P8 platform continues to drive demand and position us for ECM and BPM standardizations.”