Interwoven reports operating profit, sets split

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Interwoven Inc. (Nasdaq: IWOV) reported third quarter earnings of a penny a share to trump First Call Corp.'s expected loss of 2 cents a share. The company also issued a 2-for-1 stock split.

Shares in the provider of enterprise-class content management software were up 10 to 113.75 Tuesday. Wit Soundview, expecting a strong quarter, reiterated its "strong buy" rating on the stock Monday with its recently raised $133 price target.

Net income before the effect of non-cash charges related to stock-based compensation and acquisition-related expenses was $548,000, or a penny a share on a pro forma basic and diluted basis. That's much narrower than the loss of $3.5 million, or 10 cents per share on a pro forma basic and diluted basis, for 1999's third quarter.

Including charges, the company lost $7.68 million, or 16 cents a share.

Revenue for the quarter ended September 30 was $39.4 million, an increase of 816 percent over revenue of $4.3 million for the quarter ended September 30, 1999 and a 62 percent sequential increase over revenues of $24.3 million for the previous quarter.

License revenues represented 67 percent, and service revenues 33 percent, of the total.

Interwoven signed 140 new license customers in the quarter, bringing its total to over 500.

In other news Tuesday, the company said its board had declared a 2-for-1 stock split, payable Dec. 29 to shareholders of record Dec. 13.

Interwoven said the split requires approval by shareholders of an increase in the company's authorized shares, which will be sought at a special shareholder meeting on Dec. 12.

The split would increase the number of shares outstanding to about 99 million, the company said.