WebMethods Breaks Even - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

WebMethods Breaks Even

The application-integration software vendor leads competitors in earnings results.

In terms of earnings, webMethods Inc. appears to be leading the pack of pure-play application-integration software vendors. The company was the only one in its class to increase market share in each of the last two quarters and to increase revenue sequentially from the third to the fourth quarters, financial holding company Friedman, Billings, Ramsey & Co. Inc. said in a research report released Thursday.

On a pro forma basis, excluding amortization of stock, warrants and goodwill, and equity investment impairment charges, webMethods reported breaking even for the quarter ended March 31 at zero cents a share on revenue of $50.7 million. During the same quarter last year, webMethods reported a loss of $46.8 million, or 97 cents a share, on revenue of $61.8 million. When the charges are included, webMethods reported losing $15.7 million, or 31 cents per share.

When compared with the third quarter, WebMethods' license revenue increased 8% to $32.8 million, and its revenue increased 3% from $49.1 million. The company signed 55 new customers in the latest quarter, five for more than $1 million. In the third quarter, webMethods signed 50 new customers. In addition, the company broke even a quarter earlier than projected and two quarters sooner than forecast by some analysts. The company had reported four straight quarters of pro forma losses. WebMethods also beat Wall Street estimates for the fourth quarter. Analysts polled by First Call/Thomson Financial had predicted a pro forma loss of 5 cents a share on revenue of $49.7 million.

For fiscal 2002, webMethods reported a net loss of $82.7 million, or $1.67 per share, compared with a loss of $131.6 million, or $2.81 per share, for the previous year. Revenue was $196 million for 2002, compared with $202 million in 2001. For fiscal 2003, company execs forecast revenue between $210 million and $225 million and earnings per share between 10 and 14 cents.

Despite the better-than-average numbers, FBR, which has a buy rating on the stock, warns that webMethods' stock carries some risks from increasing competition in the market, the possibility of a longer-than-expected economic downturn, and market acceptance of XML, a new standard core to webMethods' products. Also, FBR analysts wrote, "similar to other fast-growing technology companies, the company's stock has experienced above-average volatility."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll