Vignette Reports Fourth Quarter and Fiscal Year 2007 Financial Results
Strong fourth quarter contributes to solid year of earnings and cash flow
AUSTIN, Texas (January 24, 2008)
Vignette Corporation (NASDAQ: VIGN) today announced that total revenue for fiscal year 2007 was $191.8 million, down 3% from fiscal year 2006. GAAP net income for the year increased 102% to $24.8 million and diluted EPS was $0.89 versus $0.41 for fiscal year 2006. This significant increase included a $7.4 million deferred tax credit adjustment to the income tax provision. Vignette's non-GAAP net income for the year increased 22% over fiscal year 2006, to $26.7 million. Non-GAAP net income per share increased 32% to $0.96 for the year versus $0.73 per share in the prior year. For the full year, Vignette generated $30 million of cash flow from operations.
For the fourth quarter 2007, total revenue was $52.7 million versus $52.6 million the prior year. GAAP net income for the quarter increased 90% to $13.0 million and diluted EPS was $0.49 versus $0.23 for the fourth quarter of 2006. Vignette's non-GAAP net income for the quarter was $7.3 million versus $8.5 million in the fourth quarter of 2006. Non-GAAP net income per share was $0.28 for the quarter versus $0.28 for 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.
"Vignette is a stronger company today as our financial performance has been solid over the past two years," said Mike Aviles, president and chief executive officer at Vignette. "We have made good operating progress, and we continue to strengthen our team. We are now shifting more investment towards growth and are excited about the new and enhanced products we are bringing to market."
New Business
Vignette recognized orders from new and existing customers during the quarter, including American Red Cross, Australia and New Zealand Banking, Baptist Healthcare System and its Affiliates, Cathay Pacific Airways, Constellation Energy, Dana Corporation, Geisinger System Services, International Truck & Engine Corporation, Korea Food & Drug Administration, Korea Integrated Criminal Justice System, Kyoungpook National University, MBF Limited, Mercedes Benz USA, Methodist Healthcare, NASA & eTouch, National Semiconductor, News Interactive, Peoples United Bank and its Affiliates, Petrobras Energia, Rohm and Haas Company, Rush University Medical Center, Scottsdale Healthcare, Superior Tribunal de Justica (Brazil), the University of Wisconsin, Vertrue Incorporated, Westaff Support and Yahoo, Inc.
Vignette Appoints New EMEA GM
Vignette recently announced Dick Cahill as its new vice president and general manager for the EMEA region. Cahill has 25 years of sales and management experience in the enterprise software and services sector. Prior to joining Vignette, he was executive vice president, worldwide sales and EMEA general manager for MRO Software Inc (now part of IBM). Cahill has also held senior management positions at BMC, Siemens, IBM and ROLM Communications Inc.
Vignette Connect
In October, Vignette launched Vignette Connect, an extranet site for customers and partners to communicate and share best practices. As part of Vignette's ongoing commitment to providing world-class customer care, the new site features collaborative forums, enhanced content management and better access to Vignette product information and support. Vignette Connect was built using Vignette Content Management, Collaboration and Portal software.
Stock Repurchase Program
In the fourth quarter, Vignette extended the stock buyback program it began in November 2006. The Board of Directors authorized the purchase of an additional $75 million of common stock under a new program over an indefinite period of time. During the quarter, Vignette purchased an additional 1,493,415 shares of common stock on the open market at an average price of $16.15.
Q1 2008 Financial Outlook
Vignette currently anticipates first quarter 2008 revenue to be between $45 million and $50 million. First quarter 2008 GAAP net income is currently expected to be between $0.01 and $0.09 per share on a fully diluted basis. The company expects first quarter 2008 non-GAAP net income per share to be between $0.13 and $0.21 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 fourth quarter and full year financial results on Thursday, January 24, 2008, at 8:00 a.m. EST. A press release associated with the announcement will be distributed approximately 30 minutes prior to the start of the conference call. 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: (706) 634-9519
Call title: Vignette Financial Results
The Webcast and conference call will be archived and available for replay from Thursday, January 24, 2008, at 9:00 a.m. EST to Sunday, February 24, at 11:59 p.m. EST. The replay information is as follows:
Toll-free number: (800) 642-1687
International number: (706) 645-9291
Access code: 28806839
Non-GAAP Financial Measures
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.
A reconciliation of net income calculated in accordance with GAAP and non-GAAP net income is provided in the tables immediately following the consolidated statement of operations. The presentation of this additional information is not a substitute for results prepared in accordance with accounting principles generally accepted in the United States.
Financial Documents
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fourth quarter 2007 8-K |
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fourth quarter and fiscal year 2007 financial tables |