<PAGE>
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
July 16, 1998
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Date of Report (Date of earliest event reported)
DOCUMENTUM, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-27358 95-4261421
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
5671 GIBRALTAR DRIVE
PLEASANTON, CA 94588-8547
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(Address of principal executive offices)
(925) 463-6800
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On July 16, 1998, Documentum, Inc. announced its financial results for the
quarter ending June 30, 1998. The issued press release is attached hereto as
Exhibit 99.1.
On July 16, 1998, Documentum, Inc. announced that it had acquired Relevance
Technologies, Inc.. The issued press release is attached hereto as Exhibit 99.2.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT DESCRIPTION
NUMBER
99.1 Documentum, Inc. press release dated July 16, 1998
99.2 Documentum, Inc. press release dated July 16, 1998
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SIGNATURE
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 hereunto duly authorized.
DOCUMENTUM, INC.
Date: July 16, 1998 /s/ Mark S. Garrett
-------------------
Mark S. Garrett
Vice President, Chief Financial Officer and
Secretary
<PAGE>
Exhibit 99.1
DOCUMENTUM ANNOUNCES RECORD RESULTS
Second Quarter Revenue Increases 64 percent and Net Income Increases 119 percent
PLEASANTON, Calif., July 16, 1998 DOCUMENTUM(R), Inc. (NASDAQ: DCTM), the
recognized leader in enterprise document and knowledge management solutions for
client/server and Web environments, today announced record results for the
second quarter ending June 30, 1998.
Revenues for the second quarter of 1998 were $28.4 million, a 64 percent
increase over revenues of $17.3 million for the same period of 1997. Net income
for the second quarter increased 119 percent to $3.2 million compared with net
income of $1.4 million reported for the same period of 1997. Earnings per share
grew to $.19 in the second quarter, up 90 percent from $.10 for the second
quarter of 1997.
For the first six months of 1998, revenues were $53.5 million, a 65 percent
increase over revenues of $32.3 million for the same period of 1997. Net
income, excluding the effects of a one-time charge of $2.2 million primarily
related to the acquisition of Workgroup Management, Inc., for the first six
months of 1998 was $5.4 million, or $.32 per share, up from $2.6 million, or
$.17 per share for the same period of 1997.
"Our continued focus on delivering vertically aligned solutions and state
of the art technology has resulted in 18 consecutive quarters of revenue
growth," said Jeffrey A. Miller, president and chief executive officer of
DOCUMENTUM. "With the recent launch of EDMS 98, we've introduced the first
enterprise application platform for automating the lifecycle of business-
critical documents from their creation and capture to retirement. EDMS 98 now
provides customers with a `one-stop shop' for enterprise document management."
In addition to historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties. The
company's future actual results could differ materially from the forward-looking
statements discussed herein. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed from time to time
in the company's public reports filed with the Securities and Exchange
Commission, such as those under "Risk Factors" included in the company's annual
report on Form 10-K for fiscal year ended 1997, and the company's quarterly
report on Form 10-Q for the quarter ended March 31, 1998.
ABOUT DOCUMENTUM
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DOCUMENTUM (http://www.documentum.com) develops, markets and supports
a family of enterprise document management products that improve the
effectiveness of the organization based on a company's business-critical
information and proven processes. Headquartered in Pleasanton, California,
DOCUMENTUM sells its products and services worldwide through a direct sales
force, systems integrators, and affiliated distributors. DOCUMENTUM is the
recognized leader in the document management market, with global customers in
the process manufacturing, discrete manufacturing, finance and government
services sectors.
###
CONTACT:
Mark Garrett
Vice President and Chief Financial Officer
DOCUMENTUM, Inc.
510/463-6800
[email protected]
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DOCUMENTUM, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands; unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 14,754 $ 14,236
Short-term investments 79,624 78,895
Accounts receivable, net of allowances 21,747 19,996
Other current assets 6,691 3,740
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Total current assets $122,816 $116,867
Property and equipment, net 11,245 9,837
Other assets 6,000 499
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$140,061 $127,203
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,727 $ 1,721
Accrued liabilities 18,378 15,225
Deferred revenue 11,444 8,224
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Total current liabilities 32,549 25,170
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Stockholders' equity 107,512 102,033
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$140,061 $127,203
======== ========
</TABLE>
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DOCUMENTUM, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
Pro Forma Statement of Operations for the six months ended June 30, 1998
excludes the effects of a one time charge of $2,171 primarily related to the
acquisition of Workgroup Management, Inc.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ----------------------------
1998 1997 1998 1997
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Licenses $ 18,716 $ 12,007 $ 35,767 $ 23,069
Services 9,721 5,303 17,742 9,278
-------- -------- -------- --------
Total revenues 28,437 17,310 53,509 32,347
-------- -------- -------- --------
Cost of revenues:
Licenses 703 411 1,906 797
Services 5,961 2,911 11,007 5,401
-------- -------- -------- --------
Total cost of revenues 6,664 3,322 12,913 6,198
-------- -------- -------- --------
Gross profit 21,773 13,988 40,596 26,149
-------- -------- -------- --------
Operating expenses:
Sales and marketing 11,847 8,613 22,416 15,898
Research and development 3,732 2,563 7,374 4,861
General and administrative 2,424 1,197 4,719 2,501
-------- -------- -------- --------
Total operating expenses 18,003 12,373 34,509 23,260
-------- -------- -------- --------
Income from operations 3,770 1,615 6,087 2,889
-------- -------- -------- --------
Interest and other income, net 1,034 552 2,144 997
-------- -------- -------- --------
Income before income tax provision 4,804 2,167 8,231 3,886
Provision for income taxes (1,633) (720) (2,798) (1,322)
-------- -------- -------- --------
Net income $ 3,171 $ 1,447 $ 5,433 $ 2,564
======== ======== ======== ========
Basic Earnings per Share $ 0.20 $ 0.10 $ 0.34 $ 0.18
Diluted Earnings per Share $ 0.19 $ 0.10 $ 0.32 $ 0.17
Shares used to compute earnings per share
Basic 15,903 14,200 15,855 14,187
Diluted 17,014 14,805 16,883 14,843
</TABLE>
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DOCUMENTUM, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ----------------------------
1998 1997 1998 1997
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Licenses $ 18,716 $ 12,007 $ 35,767 $ 23,069
Services 9,721 5,303 17,742 9,278
-------- -------- -------- --------
Total revenues 28,437 17,310 53,509 32,347
-------- -------- -------- --------
Cost of revenues:
Licenses 703 411 1,906 797
Services 5,961 2,911 11,007 5,401
-------- -------- -------- --------
Total cost of revenues 6,664 3,322 12,913 6,198
-------- -------- -------- --------
Gross profit 21,773 13,988 40,596 26,149
-------- -------- -------- --------
Operating expenses:
Sales and marketing 11,847 8,613 22,416 15,898
Research and development 3,732 2,563 7,374 4,861
General and administrative 2,424 1,197 4,719 2,501
Acquisition & related costs -- -- 2,171 --
-------- -------- -------- --------
Total operating expenses 18,003 12,373 36,680 23,260
-------- -------- -------- --------
Income from operations 3,770 1,615 3,916 2,889
-------- -------- -------- --------
Interest and other income, net 1,034 552 2,144 997
-------- -------- -------- --------
Income before income tax provision 4,804 2,167 6,060 3,886
Provision for income taxes (1,633) (720) (2,399) (1,322)
-------- -------- -------- --------
Net income $ 3,171 $ 1,447 $ 3,661 $ 2,564
======== ======== ======== ========
Basic Earnings per Share $ 0.20 $ 0.10 $ 0.23 $ 0.18
Diluted Earnings per Share $ 0.19 $ 0.10 $ 0.22 $ 0.17
Shares used to compute earnings per share
Basic 15,903 14,200 15,855 14,187
Diluted 17,014 14,805 16,883 14,843
</TABLE>
<PAGE>
Exhibit 99.2
For Immediate Release
DOCUMENTUM ACQUIRES RELEVANCE TECHNOLOGIES, INC.
Document management leader teams with developer
of breakthrough intelligent content mining technology
PLEASANTON, Calif. - July 16, 1998 -- DOCUMENTUM(R), Inc. (NASDAQ: DCTM), the
recognized leader in enterprise document and knowledge management for Web and
client/server environments, today announced the acquisition of Relevance
Technologies, Inc., for consideration totaling $36.5 million. With the purchase
of Relevance, DOCUMENTUM's solutions will have the enhanced ability to deliver
the most relevant information to users as it relates to a specific industry or
business task, whether this information is housed in a DOCUMENTUM Docbase(TM),
other internal company resources, or external sources, such as databases, wire
services and the Internet.
Located in San Francisco, Calif., Relevance is developing a family of
software products based on leading-edge content mining technology for
unstructured information. This "intelligent content mining" automatically
analyzes, categorizes and delivers internal and external information to users in
the context of their job function or areas of interest, thus accelerating
business performance.
DOCUMENTUM'S EXPANSION INTO KNOWLEDGE MANAGEMENT
Today, DOCUMENTUM's business focuses on providing a common enterprise
repository for the capture, change and control of the knowledge contained within
business-critical documents. This acquisition represents a new market
opportunity for DOCUMENTUM to develop additional applications for the sharing
and applying of both corporate and Internet based knowledge. Relevance will
play a central role in DOCUMENTUM's evolution into knowledge management -- what
DOCUMENTUM calls "knowledge chain management," defined as the way knowledge is
created, shared and leveraged in the context of a business process.
<PAGE>
"This acquisition accelerates our evolution from document management
solutions to knowledge chain management solutions," said Jeffrey A. Miller,
president and chief executive officer of DOCUMENTUM. "The new applications and
solutions that will result from the acquisition will help our customers
effectively discover and apply the information, expertise and insight that is
buried in their enterprise as well as scattered across the Internet."
THE MARKET OPPORTUNITY
Electronic data exists in both structured and unstructured forms in
companies today. The decision support or "business intelligence" market for
structured, transaction-based data is a billion dollar market today. However,
that figure does not account for the 80 percent of business information that is
unstructured, in the form of documents and Web pages. To address this market
potential, Relevance's leading-edge technology will deliver the next generation
of business intelligence products by performing "intelligent content mining" of
unstructured information. As a result, DOCUMENTUM will now have the ability to
deliver knowledge chain management solutions that turn unstructured data into
knowledge that can be used by people to make informed decisions and solve
business problems.
"With the acquisition of Relevance Technologies, DOCUMENTUM extends its
products' capabilities beyond document management into the knowledge management
arena," said Carl Frappaolo of the Delphi Group. "This coupled with the ability
to understand information in context strengthens DOCUMENTUM's offering. Using
"maps" of a business and its competitors, enables the DOCUMENTUM system to
provide what is relevant, not just what "matches" for people trying to find and
apply knowledge."
<PAGE>
ABOUT RELEVANCE
Relevance has developed a powerful technology called Semantic Modeling
Architecture(TM) (SMA(TM)) that provides the ability to automatically encode,
warehouse and analyze a wide range of text-based information assets. Relevance
solutions "understand" the content and value of information from an industry and
functional perspective and can effectively apply it at specific points in
knowledge-centric business processes. Relevance is able to do this with
information from a broad range of sources, from inside and outside
organizations. In addition to documents contained in the DOCUMENTUM Docbase,
Relevance can access information from corporate intranets, the Internet, file
servers, email, discussion databases, news feeds and more. It can even integrate
with information from structured sources, such as enterprise resource planning
(ERP) and sales force automation (SFA) applications.
Relevance's SMA technology can be deployed to support knowledge-intensive
business processes such as sales, marketing, research, or planning. For example,
in a sales application, the technology would automate basic tasks such as
competitive intelligence gathering, customer analysis, presentation development,
and proposal preparation. To automate these processes, Relevance would access
information through the appropriate profile "maps" from internal and external
sources to assemble a set of information assets that are relevant to the
specific sales task at hand. Unique analytical capabilities allow users to
perform sophisticated concept pivoting and drill-down, to further extend the
relevancy and usefulness of the information.
"The knowledge management market is really about a new class of business
intelligence applications," said Ford Goodman, chief executive officer of
Relevance Technologies. "Our unique information modeling and thin-client
technologies are a perfect fit for DOCUMENTUM's proven document and knowledge
chain management solutions. We chose to join a world-class team with market
leadership in order to have a swifter and more powerful impact on this quickly
emerging market."
About DOCUMENTUM
DOCUMENTUM (http://www.documentum.com) develops, markets and supports a
family of enterprise document management products that improve the effectiveness
of the organization based on a company's business-critical information and
proven processes. Headquartered in Pleasanton, California, DOCUMENTUM sells its
products and services worldwide through a direct sales force, systems
integrators, and affiliated distributors. DOCUMENTUM is the recognized leader
in the document management market, with global customers in the process
manufacturing, discrete manufacturing, finance and government services sectors.
In addition to historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties. The
company's future actual results could differ materially from the forward-looking
statements discussed herein. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed from time to time
in the company's public reports filed with the
<PAGE>
Securities and Exchange Commission, such as those under "Risk Factors" included
in the company's annual report on Form 10-K for fiscal year ended 1997, and the
company's quarterly report on Form 10-Q for the quarter ended March 31, 1998.
XXX
DOCUMENTUM is a trademark of DOCUMENTUM, Inc. and may be registered in certain
jurisdictions. All other company and product names are used for identification
purposes only and may be trademarks of their respective owners.
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<S> <C>
Contacts:
Clay Helm Carla Schlemminger
DOCUMENTUM, Inc. Niehaus Ryan Wong, Inc.
925-463-6800 650-827-7023
[email protected] [email protected]
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