Vignette Drops on Loss, Forecast

Vignette (Nasdaq: VIGN) fell 87 U.S. cents to $6 in morning trading Friday, after reporting a loss for the first quarter andreportedly lowering its outlook for the second.

Chairman and chief executive officer Greg Peters said that the company is “wellpositioned” for the future, having taken steps early in the year to cutcosts and deal with a downturn in demand.

“We end the first quarter withmore license revenue, more customers and more live sites than any othercompany in our sector,” Peters said.

The Austin, Texas-based maker of e-commerce software said that revenue for thefirst quarter ended March 31st rose 63 percent from a year earlier to $90.1 million, while the operating loss before non-recurring charges totaled $8.1million, or a penny per share, compared with income of $432,000, orbreakeven, a year earlier.

After charges for restructuring and cost-cutting moves, as well aswritedowns for investments and receivables, the net loss widened to $229.76million, or 97 cents per share, from $83.52 million, or 47 cents.

Product revenue rose to $48 million in the latest quarter from $29 millionin the year-earlier period, while services revenue grew to $42 million from$26 million, Vignette said.

Vignette also said that it added American Airlines, CingularInteractive, Nokia Europe and Prudential Insurance to its customer listduring the quarter. Previous customers, including Advanced Micro Devices,Hewlett-Packard and British Telecom, also made “significant” purchases duringthe quarter, the company said.

Vignette pointed to an alliance announced during the quarter with BEASystems as further evidence of its success. The two plan to collaborate ontechnology and make their e-business systems compatible. Vignette said italso expanded relationships with IBM and Accenture duringthe quarter.

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