<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
October 14, 1998
------------------------------------------------
Date of Report (Date of earliest event reported)
DOCUMENTUM, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-27358 95-4261421
- ---------------------------- ---------------------- --------------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
5671 GIBRALTAR DRIVE
PLEASANTON, CA 94588-8547
----------------------------------------
(Address of principal executive offices)
(925) 463-6800
----------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
On October 14, 1998, Documentum, Inc. announced its financial results
for the quarter ending September 30, 1998. The issued press release is attached
hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------ -----------------------
99.1 Documentum, Inc. press release dated October 14, 1998.
<PAGE>
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 hereunto duly authorized.
DOCUMENTUM, INC.
Dated: October 16, 1998 By: /s/ Mark S. Garrett
-------------------------------
Mark S. Garrett
Vice President and Chief Financial
Officer
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
Number DESCRIPTION OF DOCUMENT
- ------ --------------------------------------------------------------
99.1 Documentum, Inc. press release dated October 14, 1998.
<PAGE>
Exhibit 99.1
[LOGO]
NEWS
FOR IMMEDIATE RELEASE
DOCUMENTUM ANNOUNCES RECORD REVENUES
19TH QUARTER OF SEQUENTIAL REVENUE IMPROVEMENT
PLEASANTON, Calif. October 14, 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 revenues for the
third quarter ended September 30, 1998. For comparative purposes, except where
noted, the results discussed throughout this release exclude the effects of a
one time charge of $34.6 million related to the previously announced acquisition
of Relevance Technologies, Inc., that closed on July 16, 1998.
Revenues for the third quarter of 1998 were $33.9 million, a 72 percent
increase over revenues of $19.7 million for the same period of 1997. Excluding
the one time charge, net income for the third quarter of 1998 increased 61
percent to $3.3 million, compared with net income of $2.0 million reported for
the third quarter ended September 30, 1997. Diluted earnings per share,
excluding the one time charge, grew 36 percent to $0.19 in the third quarter, up
from $0.14 for the third quarter of 1997. Including the one time charge of
$34.6 million, the net loss for the quarter was $31.4 million ($1.90 loss per
diluted share).
"We are extremely pleased with the growth we achieved in the third
quarter," said Jeffrey A. Miller, president and CEO of DOCUMENTUM, Inc. "The
launch of EDMS 98 was a resounding success, and fueled the adoption of our
technology among Global 2000 corporations. Our combination of leading edge
technology, industry knowledge and market focus has made DOCUMENTUM one of the
fastest-growing software companies in the world."
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
<PAGE>
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
reports on Form 10-Q for the quarters ended March 31, 1998 and June 30, 1998.
ABOUT DOCUMENTUM
DOCUMENTUM (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
VP and Chief Financial Officer
Documentum, Inc.
925/463-6800
[email protected]
P1117
<PAGE>
DOCUMENTUM, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands; unaudited)
SEPTEMBER 30, DECEMBER 31,
1998 1997
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 16,291 $ 14,236
Short-term investments 80,858 78,895
Accounts receivable, net of allowances 25,713 19,996
Other current assets 7,168 3,740
-------------- --------------
Total current assets 130,030 116,867
Property and equipment, net 13,286 9,837
Other assets 5,491 499
-------------- --------------
$ 148,807 $ 127,203
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,034 $ 1,721
Accrued liabilities 22,479 15,225
Deferred revenue 12,869 8,224
-------------- --------------
Total current liabilities 39,382 25,170
-------------- --------------
Stockholders' equity 109,425 102,033
-------------- --------------
$ 148,807 $ 127,203
============== ==============
<PAGE>
DOCUMENTUM, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- -------------------
1998 1997 1998 1997
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Licenses $ 21,562 $ 14,215 $ 57,329 $ 37,284
Services 12,321 5,454 30,063 14,732
--------- --------- -------- ---------
Total revenues 33,883 19,669 87,392 52,016
--------- --------- -------- ---------
Cost of revenues:
Licenses 944 678 2,851 1,475
Services 7,272 3,166 18,278 8,567
--------- --------- -------- ---------
Total cost of revenues 8,216 3,844 21,129 10,042
--------- --------- -------- ---------
Gross profit 25,667 15,825 66,263 41,974
--------- --------- -------- ---------
Operating expenses:
Sales and marketing 13,823 8,926 36,239 24,824
Research and development 5,391 2,885 12,764 7,746
General and administrative 2,635 1,407 7,355 3,908
--------- --------- -------- ---------
Total operating expenses 21,849 13,218 56,358 36,478
Income from operations 3,818 2,607 9,905 5,496
Interest and other income, net 1,112 464 3,256 1,461
--------- --------- -------- ---------
Income before income tax provision 4,930 3,071 13,161 6,957
Provision for income taxes (1,676) (1,044) (4,474) (2,366)
--------- --------- -------- ---------
Net income $ 3,254 $ 2,027 $ 8,687 $ 4,591
========= ========= ========= =========
Basic earnings per share $ 0.20 $ 0.14 $ 0.54 $ 0.32
Diluted earnings per share $ 0.19 $ 0.14 $ 0.51 $ 0.31
Shares used to compute earnings per share
Basic 16,500 14,341 16,072 14,293
Diluted 17,383 14,994 17,112 14,891
</TABLE>
NOTE:
Condensed Consolidated Statement of Operations for the three and nine months
ended September 30, 1998 excludes the effects of a one time charge of
$34,622,000 primarily related to the acquisition of Relevance Technologies,
Inc.
Condensed Consolidated Statement of Operations for the nine months ended
September 30, 1998 excludes the effects of a one time charge of $2,171,000
primarily related to the acquisition of Workgroup Management, Inc.
<PAGE>
DOCUMENTUM, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- -------------------
1998 1997 1998 1997
--------- --------- -------- ---------
<S> <C> <C> <C> <C>
Revenues:
Licenses $ 21,562 $ 14,215 $ 57,329 $ 37,284
Services 12,321 5,454 30,063 14,732
--------- --------- -------- ---------
Total revenues 33,883 19,669 87,392 52,016
--------- --------- -------- ---------
Cost of revenues:
Licenses 944 678 2,851 1,475
Services 7,272 3,166 18,278 8,567
--------- --------- -------- ---------
Total cost of revenues 8,216 3,844 21,129 10,042
--------- --------- -------- ---------
Gross profit 25,667 15,825 66,263 41,974
--------- --------- -------- ---------
Operating expenses:
Sales and marketing 13,823 8,926 36,239 24,824
Research and development 5,391 2,885 12,764 7,746
General and administrative 2,635 1,407 7,355 3,908
Acquisition and related costs - - 2,171 -
Purchased in process research and
development 34,622 - 34,622 -
--------- --------- -------- ---------
Total operating expenses 56,471 13,218 93,151 36,478
Income (loss) from operations (30,804) 2,607 (26,888) 5,496
Interest and other income, net 1,112 464 3,256 1,461
--------- --------- -------- ---------
Income (loss) before income tax
provision (29,692) 3,071 (23,632) 6,957
Provision for income taxes (1,676) (1,044) (4,075) (2,366)
--------- --------- -------- ---------
Net income (loss) $(31,368) $ 2,027 $(27,707) $ 4,591
========= ========= ========= =========
Basic earnings (loss) per share $ (1.90) $ 0.14 $ (1.72) $ 0.32
Diluted earnings (loss) per share $ (1.90) $ 0.14 $ (1.72) $ 0.31
Shares used to compute earnings (loss)
per share
Basic 16,500 14,341 16,072 14,293
Diluted 16,500 14,994 16,072 14,891
</TABLE>
