PRZOOM - /newswire/ -
Dubai, UAE, United Arab Emirates, 2006/08/26 - FileNet Corporation (NASDAQ: FILE), the leading provider of Enterprise Content and Business Process Management solutions, recently announced financial results for its second quarter ended June 30, 2006..
Total revenues for the second quarter of 2006 were $117.1 million compared to total revenues of $104.6 million for the same period in 2005. Software revenues for the second quarter of 2006 were $48.3 million compared to $40.6 million for the same period in 2005.
Net income was $11.1 million in the second quarter of 2006 and includes equity-based compensation expense, net of tax, of $3.4 million. Net income for the second quarter of 2005 was $8.7 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 $0.26 for the second quarter of 2006 and include all equity-based compensation expense (for stock options and non-vested shares) of $0.07 per share. This compares to earnings per basic and diluted share of $0.21, for the second 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 June 30, 2006 and 2005 appear in the GAAP to Non-GAAP reconciliation found below.
Non-GAAP net income for the second quarter of 2006 was $14.5 million, or $0.33 per diluted share. Non-GAAP net income for the second quarter of 2005 was $9.0 million, or $0.21 per diluted share.
As of June 30, 2006, FileNet had cash and investments of $451.8 million, compared to $392.0 million at December 31, 2005. The company has no long-term debt.
“Our solid performance in the quarter - including record revenues and strong growth in non-GAAP operating income - was driven by global demand for our FileNet P8 offering,” said Lee Roberts, Chairman and CEO of FileNet. “Looking forward, we remain focused on capitalizing and delivering on our long-term strategy of expanded market leadership.”