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On that conference call, Interwoven expects to report total revenues in
line with its previous guidance and net income per share above its previous
guidance. Interwoven expects to report total revenues of
Additional information about the company's non-GAAP financial measures can be found under the caption "Non-GAAP Financial Information" below.
Conference Call Details: Date: Thursday, January 29, 2009 Time: 2:00 p.m. PT (5:00 p.m. ET) Live Dial-in #: (877) 879-6174 or (719) 325-4768 Replay Dial-in #: (888) 203-1112 or (719) 457-0820 Replay Passcode: 4243053
A live and archived webcast of the conference call will be available on
Interwoven's website at http://www.interwoven.com/investors. A telephonic
replay of the call will be available for one week starting on
About Interwoven
Interwoven (NASDAQ: IWOV) is a global leader in content management
solutions. Interwoven's software and services enable organizations to maximize
online business performance and organize, find, and govern business content.
Interwoven solutions unlock the value of content by delivering the right
content to the right person in the right context at the right time. Over
4,600 of the world's leading companies, professional services firms, and
governments have chosen Interwoven, including adidas, Airbus, Avaya, BT,
Cisco, Citi, Delta Air Lines, DLA Piper, FedEx,
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks
and uncertainties. These forward-looking statements include Interwoven,
Inc.'s preliminary estimates of revenue, net loss per share in accordance with
generally accepted accounting principles and non-GAAP net income per share for
the quarter ended
Non-GAAP Financial Information
The financial measures indentified as "non-GAAP" in this press release are
financial measures that are not prepared in accordance with accounting
principles generally accepted in
Interwoven believes the presentation of these non-GAAP financial measures, when taken together with the corresponding financial measures presented in accordance with GAAP, provides useful supplemental information regarding the Company's operating performance for the reasons discussed below. The Company's management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods or determining incentive compensation. Interwoven believes that these non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods and that investors benefit from an understanding of these non-GAAP financial measures and how specific, identified amounts impact different line items in its consolidated statements of income.
As described above, Interwoven excludes the following items from one or more of its non-GAAP measures when applicable:
Stock-based compensation expense. Stock-based compensation expense consists of expenses for equity compensation awards determined in accordance with Statement of Financial Accounting Standards No. 123R ("SFAS 123R"), Share-Based Payment. Interwoven excludes stock-based compensation expense from its non-GAAP financial measures primarily because this expense is non-cash in nature and not reflective of the Company's ongoing operating results. When evaluating the performance of its business and developing short- and long-term plans, Interwoven does not consider stock-based compensation expense. Interwoven's management team is held accountable for cash-based compensation, but Interwoven believes that management is limited in its ability to project the impact of stock-based compensation and, accordingly, is not held accountable for its impact on the Company's consolidated operating results. Although stock-based compensation is necessary to attract and retain quality employees, Interwoven's consideration of stock-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such awards. In addition, Interwoven believes it is useful to provide a non-GAAP financial measure that excludes stock-based compensation expense in order to better understand the long-term performance of the Company's core business from period to period and may facilitate comparability of the Company's operating results with those of other companies. Further, unlike cash compensation, the value of stock-based compensation is determined using a complex formula that incorporates factors, such as market volatility, that are beyond Interwoven's control. In addition, the Company believes it is useful to investors to understand the impact of SFAS 123R on its results of operations.
Amortization of purchased technology. In connection with business combinations, Interwoven is required to allocate a portion of the purchase price to the accounting value assigned to the technology acquired and amortize this amount over the estimated useful lives associated therewith. Typically, the acquired business has itself previously expensed the costs incurred to develop the purchased technology, and the purchase price allocated to these intangible assets is not necessarily reflective of the cost Interwoven would incur in developing them. The Company eliminates these recurring amortization charges from its non-GAAP operating results to provide better comparability of pre- and post-business combination operating results and because doing so may facilitate comparability of Interwoven's operating results with those of other companies using internally developed intangible assets.
Amortization of intangible assets. In connection with business combinations, Interwoven is required to allocate a portion of the purchase price to the accounting value assigned to the identified intangible assets acquired and amortize these amounts over the estimated useful lives of the acquired intangible assets. The purchase price allocated to these intangible assets and the amortization expense associated therewith have no direct correlation to the operation of Interwoven's business. The Company eliminates these recurring amortization charges from its non-GAAP operating results to provide better comparability of pre- and post-business combination operating results and because they have no direct correlation to the operation of Interwoven's business.
Income tax effect on above items. Interwoven excludes the income tax effect of the non-GAAP adjustments from net income per share to assist investors in understanding the income tax provision associated with these adjustments.
SOURCE Interwoven, Inc.