Austin, TX April 9, 2001 Coming on the heels of a spate of bad, disappointing, poorly decorated or just uncouth earnings statements, Vignette Corporation's announcement today that it will meet expectations is a welcome respite from the prevailing tone of doom and gloom.
It appears that the powers that be at Vignette saw the weakening economic picture, took steps to ensure their company made some belt-tightening changes, and are now reaping the benefits of their frugality. The company announced preliminary financial results for the first quarter of 2001. Vignette expects revenue for the quarter to be approximately $90 million. Based on this revenue, the company expects to report a core net loss of $0.01 per share excluding one-time charges, which is in line with company guidance and consensus financial analyst expectations. Core results generally exclude charges for amortization of deferred stock compensation and intangibles, purchased in-process R&D and acquisition related and other charges. One-time charges in the first quarter include the restructuring charge for cost-reduction efforts that the company announced in January as well as the impact of equity investment write-downs and the write-off of certain receivables resulting from the current economic environment.
While our revenue is within the range of financial analyst estimates, it did not meet our own expectations, said Greg Peters, chairman and CEO of Vignette. However, because we identified the changing economic climate early and took steps in January to lower our cost structure, we were able to manage our business and our operational costs appropriately during the quarter. We end the first quarter with approximately $420 million in cash, and we are extremely well positioned to extend our leadership position.