Vignette Reports Third Quarter 2008 Financial Results
Company Approaches Market with Continued Product Innovation and Strong Balance Sheet
AUSTIN, Texas (October 30, 2008)
Vignette Corporation (NASDAQ: VIGN) today announced total revenue for the third quarter 2008 was $41.9 million, a decrease of 3.8% from the third quarter of 2007. GAAP net loss for the quarter was $4.3 million, versus a profit of $3.0 million in the same period last year. GAAP net loss for the quarter included $2.6 million in restructuring charges incurred during the quarter. EPS for the quarter was $(0.19) versus $0.11 last year. Vignette used $0.5 million of cash in its operating activities during the quarter.
Vignette's non-GAAP net income for the third quarter 2008 was $1.2 million, a decrease of 78.8% from the third quarter of 2007. Non-GAAP diluted EPS for the quarter was $0.05 versus $0.21 last year. Non-GAAP results exclude acquisition-related charges, stock option expense, amortization expense for certain intangible assets, restructuring charges (benefits) and one-time charges and gains.
"Vignette is well positioned with a strong balance sheet that will allow us to continue investing in new products during these turbulent economic times," said Mike Aviles, president and CEO of Vignette. "2008 has been a year of innovation for Vignette, including a renewed vertical focus in key areas such as media and entertainment. We are getting positive feedback from our customers and remain confident that we have the right focus to drive future growth."
New Business
Vignette recognized orders from new and existing customers during the quarter, including Academy of Art Institute, Allegheny County Sanitary Authority, American Express Travel Services, Analog Devices, Baystate Health, Collaborative Data Solutions, Department of Homeland Security-USCIS, Euro RSCG Worldwide, Health Management Associates, Inc., Pillar Administration, TechTarget, The Ohio National Life Insurance Company, TNL PCS S.A., U.S. Department of Labor and WesCorp.
Products and Innovation
Over the last year, Vignette has made significant strides in expanding and strengthening its product portfolio. The company continues to make progress with its strategic focus on innovation and delivering a new generation of Web infrastructure solutions to support video-centric, collaborative and social Web experiences, which have become critical to today's enterprise-class companies. Vignette's key product announcements included the following:
- Vignette Media is one of the first solutions of its kind-a content management platform specifically built for companies in the telecommunications, media and entertainment space. Such companies must create, manage and publish huge volumes of dynamic and sophisticated multimedia content to a variety of platforms, from desktops to cell phones. The product provides customers with simpler tools while reducing the training requirements needed. Customers and analysts have responded enthusiastically to Vignette Media.
- Vignette Community Applications is an enterprise-class social media platform that helps companies rapidly build communities, enable participation and encourage online interaction to increase loyalty, improve demand generation, give customers a voice, and speed innovation. Vignette is one of the only enterprise software companies that can deliver robust social media capabilities with the combination of Vignette Community Applications, Vignette Community Services, Vignette Recommendations and Vignette Video Services. Together, these products enable organizations to build powerful social sites, launch compelling campaigns, and create innovative product sites.
Customer Recognition
In the third quarter, Vignette customers were recognized by industry experts for deploying various Vignette solutions. National Instruments and QAD Inc. were recognized by the Web Marketing Association's Web Awards for their Vignette-powered, public-facing Web sites. QAD was honored with the Manufacturing Excellence Award while National Instruments was recognized for an Outstanding Website.
Vignette Village
Vignette's annual global user conference, Vignette Village, was recently hosted in Austin, Texas from October 20 to 22. The three-day user conference attracted customers and partners from more than 20 countries for intensive training, seminars, workshops and idea exchanges. The event also included presentations by major Vignette customers such as Fox News Digital.
Stock Repurchase Program
In the third quarter, Vignette purchased an additional 396,177 shares of common stock on the open market at an average price of $12.22, bringing the total cash used on the share repurchase program to $120 million.
Q4 2008 Financial Outlook
Vignette currently anticipates fourth quarter 2008 revenue to be between $42 million and $47 million. Fourth quarter 2008 GAAP net income is currently expected to be between $(0.15) and $(0.01) per share on a fully diluted basis. The company expects fourth quarter 2008 non-GAAP net income to be between $0.01 and $0.14 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.
Conference Call Details
Vignette will host a conference call and live Webcast regarding its third quarter financial results on Thursday, October 30, 2008, at 5:00 p.m. EDT. To access the Webcast, visit the Investor Relations section of Vignette's Web site.
If you are not able to access the live Webcast, dial-in information is as follows:
Dial-in number: (888) 201-0273
International Dial-in: +1 (706) 634-9519
Call title: Vignette Financial Results
The Webcast and conference call will be archived and available for replay from October 30, 6:00 p.m. EDT to November 30, 11:59 p.m. EDT. The replay information is as follows:
Toll-free number: (800) 642-1687
International number: (706) 645-9291
Access code: 67959428
Financial Documents
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Q3 2008 financial results 8-K |
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third quarter 2008 financial tables |