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Vignette Reports First Quarter Financial Results

  • 27 April, 2007 10:41

<p>Q1 marks third consecutive quarter of increased operating profit vs. prior year</p>
<p>AUSTIN, Texas — April 26, 2007 — Vignette Corporation (NASDAQ: VIGN) today announced first quarter GAAP net income and non-GAAP net income increased 250% and 86%, respectively, over the first quarter of 2006. Vignette’s GAAP net income for the quarter was $4.8 million and diluted EPS was $0.16, versus $1.4 million and $0.05 in the same quarter of last year. Vignette's non-GAAP net income for the quarter was $6.9 million and non-GAAP net income per share was $0.24, versus $3.7 million and $0.12 in the same quarter of last year. Total revenue for the quarter was 47.6 million, which was up 1.5% from the first quarter of 2006.</p>
<p>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. One-time charges and gains generally relate to business restructuring, investment and fixed asset impairment. 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. Further description of the adjustments can be found under the caption, ‘Non-GAAP Financial Measures' below.</p>
<p>During the quarter, Vignette generated $8.7 million of cash flow from operations. Also during the quarter, Vignette transferred $9.2 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 $15.6 million reduction in cash and short term investments over the prior quarter and a balance of $188.8 million at quarter end.</p>
<p>“We continue to be pleased with our progress and the increased recognition we are getting in the marketplace,” said Mike Aviles, president and chief executive officer at Vignette. “As the Web resurgence continues, more and more organizations are utilizing Vignette solutions to make better connections with their customers and extend their brands across multiple channels.”</p>
<p>New Business</p>
<p>Vignette recognized orders from new and existing customers during the quarter including Champion Enterprises Management Co., Commonwealth of Massachusetts, Eagle General Agency, INTRAV, MapInfo, Methodist Le Bonheur Healthcare, Parker Hannifin Corporation, Penn Mutual, QVC, Robert Half International, Saudi Arabian Airlines, Tetra Tech, T. Rowe Price, University of Texas Southwestern Medical Center at Dallas, Vanguard Car Rental, Warwickshire County Council and Webmotors S.A.</p>
<p>Vignette named one of America’s Most Trustworthy Companies</p>
<p>During the quarter, Vignette was named one of America’s most trustworthy companies according to Audit Integrity, an independent Los Angeles firm that researches corporate governance best practices. Vignette was one of only three software companies to make the inaugural Audit Integrity Top 100 list recognizing organizations that displayed “the highest degree of accounting transparency and fair dealing to stake-holders during 2006."</p>
<p>Product Enhancements</p>
<p>In February Vignette launched its Digital Services Hub, enabling organizations to manage and deliver rich multimedia content to any Web-enabled device through a single unified framework. The initial offering targets telecommunications, media and entertainment companies that depend on differentiated and interactive content; however, the technology has broad application across all markets, such as financial services, healthcare, and retail, which require anytime, anyplace onnections with end-users.</p>
<p>Significant enhancements were also made to Vignette’s Imaging and Workflow solution. During the first quarter, Vignette Records and Documents received U.S. DoD 5015.2 including Chapter 4 certification, meaning organizations can now use the Vignette product to manage classified records. The latest Vignette IDM release features an enhanced user interface and support for Microsoft .NET development tools and the HP operating system.</p>
<p>Vignette also enhanced its Next-Generation Web solution with the latest release of its Portal product. Vignette Portal gives customers the ability to create more dynamic, content-rich Web sites and deliver a more personalized, interactive online customer experience. Enhanced features include support for leading-edge Web 2.0 technologies like AJAX, RSS and mashups as well as federated search capabilities.</p>
<p>Commitment to Customer Care</p>
<p>A key initiative for Vignette is driving customer success and increased satisfaction. During the quarter Dr. Ken Skinner was named vice president of Worldwide Customer Care. Dr. Skinner is a seasoned executive with a broad range of professional experience with companies such as Sun Microsystems, Digital Equipment Corporation and Sohio Petroleum. Dr. Skinner spent his last 12 years at BMC Software in several leadership roles including vice president of Customer Support and Technical Services, vice president of the Software Business School and vice president of Software Consulting.</p>
<p>Stock Repurchase Program</p>
<p>In November 2006, Vignette announced a stock repurchase program to repurchase up to $75 million of its common stock over a 12 month period. During the quarter, Vignette purchased 921,250 shares of common stock on the open market at an average price of $17.66. As of the end of the quarter, Vignette had purchased a total of 1,737,000 shares at an average price of $17.22 since the share repurchase program commenced.</p>
<p>2Q 2007 Financial Outlook</p>
<p>Vignette currently anticipates second quarter 2007 revenue to be between $44 million and $49 million. Second quarter 2007 GAAP net income is currently expected to be between $0.05 and $0.13 per share on a fully diluted basis. The company expects second 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 webcast regarding its first quarter 2007 financial results on Thursday, April 26, 2007, at 8:00 a.m. EDT. To access the webcast, visit the Investor Relations section of Vignette’s Web site.</p>
<p>If you are not able to access the live webcast, dial-in information is as follows:</p>
<p>Dial-in number: (888) 275-3515</p>
<p>Call title: Vignette Financial Results</p>
<p>The webcast and conference call will be archived and available for replay from Thursday, April 26, at</p>
<p>9:00 a.m. EDT to Friday, May 25, 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: 4248726</p>
<p>Non-GAAP Financial Measures</p>
<p>The Company believes that these 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. 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>
<p>About Vignette Corp.</p>
<p>Vignette helps organizations improve interactions with customers and prospects 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 solutions power some of the world’s most powerful online brands and enable organizations to have more meaningful interactions with their customers. Vignette is headquartered in Austin, Texas with operations worldwide. Visit</p>
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<p>This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements included in this document are based upon information available to Vignette as of the date hereof, and Vignette assumes no obligation to update any such forward-looking statement. Vignette and the V Logo are trademarks or registered trademarks of Vignette Corp. in the United States and other countries. All other names are the trademarks or registered trademarks of their respective companies.</p>
<p>Note to Editors: Please find attached details of Vignette Corporation's financial results for the first quarter 2007. If you would like to speak to someone about these results from an Australian perspective, please do not hesitate to contact Jessica Tubnor at Max Australia or on 9954 3492.</p>

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