CNET también está disponible en español.

Ir a español

Don't show this again

Christmas Gift Guide
Tech Industry

Documentum jumps on surprise profit

Documentum Inc. (Nasdaq: DCTM) soared 23 percent Friday after it reported earnings of a penny a share in its fourth quarter and analysts upgraded the stock. First Call expected a loss of a penny a share.

Shares in the maker of the software-maker for content management were up 13 3/8 to 70 5/8. The stock has been rising slowly, though it dipped when one of its executives left last spring.

Credit Suisse First Boston upgraded the stock from "hold" to "buy," and set a $75 price target on the stock, citing the company's addition of 81 new customers and seven license deals in the quarter. Morgan Stanley Dean Witter raised the stock from "neutral" to "outperform."

Revenue for the fourth quarter was $41 million, up 12.6 percent over the $36.4 million for the same period of 1998 and up 21.3 percent over the third quarter.

The company took one-time charges of $34.6 million related to the July 16, 1998 acquisition of Relevance Technologies, Inc., and $2.2 million related to the acquisition of Workgroup Management Inc., in the first quarter of fiscal 1998, the company said. Full year results exclude the charges.

Net income for the fourth quarter was $200,000, a 95.2 percent decrease compared with net income of $4.2 million reported for 1998's fourth quarter. Diluted earnings were a penny a share for the fourth quarter, a decrease of 95.8 percent from earnings of 24 cents a share a year ago.

Revenue for the fiscal year was a record $128 million, a 3.4 percent increase over revenue of $123.8 million for 1998. Net loss for the year was $8.4 million, a decrease of 165.1 percent compared with net income of $12.9 million reported for the year ended December 31, 1998. Diluted loss for the year was 50 cents a share, a 166.7 percent decrease from the 75 cents a share in 1998.