SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report(Date of earliest event reported): April 1, 1997
FILENET CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 95-3757924
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3565 Harbor Boulevard
Costa Mesa, CA 92626
(Address of principal executive offices) (Zip code)
(714) 966-3400
(Registrant's telephone number including area code)
Not applicable
(Former name and former address, if changed since last report)
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Item 5. Other Events
FileNet announced an estimated loss for the first quarter ended March 31,
1997 and plan to restructure, as described in the Registrant's April 1, 1997
press release attached as an exhibit hereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99 Registrant's News Release April 1, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FILENET CORPORATION
April 1, 1997 By: /s/ Mark S. St. Clare
Date Mark S. St. Clare, Chief Financial Officer
and Sr. Vice President, Finance
(Principal Financial Officer)
For Immediate Release
Contacts:
Mark St. Clare, FileNet Corp. Bonnie McBride (investor contact)
Chief Financial Officer Lynne Farris (general information)
(714) 966-3577 Financial Relations Board
[email protected] (415) 986-1591
Colleen Edwards, FileNet Corp.
(714) 966-3218
E-mail: [email protected]
FileNet Announces Estimated First Quarter Loss
and Plans to Restructure
Costa Mesa, CA, April 1, 1997 - FileNet Corporation (Nasdaq NM: FILE) today
announced that it expects to report a net loss of approximately $9.0 million, or
60 cents per share, for the first quarter ended March 31, 1997. The Company
expects to report first quarter revenue of approximately $47 million. This
compares with first quarter 1996 revenue of $66.7 million and a net loss of
$11.8 million, or 79 cents per share, which included a one-time after-tax charge
of $16 million for merger, restructuring, and write-off of purchased in-process
research and development costs.
"New orders were unexpectedly weak for the quarter," stated Ted Smith, president
and chief executive officer. "The weakness was experienced in both our domestic
and international markets. In particular, several large orders solicited by our
European and North American sales organizations did not come through."
In April, the Company will begin consolidating its imaging product development
groups. As a result, the Company will be relocating those activities from its
Watermark facilities in Burlington, Massachusetts to Costa Mesa, California. An
estimated restructuring charge related to these activities ranging between $2.5
million and $3.0 million is expected to be recorded in the second quarter of
1997.
Additionally, in light of the slower than expected growth, the Company will
begin to adjust its expense levels, primarily through headcount reduction,
attrition, and reduced hiring, during the second quarter of 1997. Restructuring
charges relative to these changes will also be reflected in the second quarter
of 1997 but cannot be determined until a restructuring plan is completed.
FileNet expects to announce final results on April 23, 1997.
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The foregoing statements regarding anticipated first quarter results and second
quarter restructuring activities are preliminary and constitute forward-looking
information. Actual results could differ materially. Among the factors that
could cause actual results to differ are the following: adjustments made in
connection with closing the first quarter; increases or decreases in reserve
accounts; changes in the level of headcount reduction from that currently
contemplated; or unanticipated charges in connection with the Watermark
relocation. For a more detailed discussion of those and other factors that may
affect the Company's future results, please refer to "Management's Discussion
and Analysis of Results of Operations and Financial Condition -- Factors That
May Affect Future Results" in the Company's Annual Report for the year ended
December 31, 1995, "Business -- Certain Considerations" in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995 and the Company's
Quarterly Report on Form 10-Q for the quarters ended March 31, 1996, June 30,
1996 and September 30, 1996. Fourth quarter and year-end 1996 financial results
can be found in FileNet's February 10, 1997 press release located on the FileNet
Home Page on the World Wide Web at www.filenet.com.
About FileNet
Costa Mesa, Calif.-based FileNet Corp. (http://www.filenet.com) delivers to
corporate and government organizations a Foundation for Enterprise Document
Management(TM) through a family of workflow, document-imaging, electronic
document management, and COLD(TM) (Computer Output to Laser Disk) client/server
and Internet software solutions. The Company's FileNet(R), Greenbar(TM),
Saros(R), and Watermark(R) products provide its customers the benefits of
streamlined business processes and enhanced management of information assets
across the enterprise. FileNet, the 34th largest independent software vendor
worldwide according to Software Magazine, markets its products in more than 60
countries through the FileNet sales and support organization, and the
ValueNet(R) Partner Program of resellers, system integrators, and application
developers. For more information, call (800) FILENET (345-3638) or (714)
966-3400.
FileNet, Saros, Watermark and ValueNet are registered trademarks and Greenbar,
COLD and Foundation for Enterprise Document Management are trademarks of FileNet
Corp.
