FileNet to switch strategy in wake of 4th-period woes; computer firm must 'reinvent' itself after changes in industry it founded
Article Abstract:
FileNet Corp faces serious challenges in the industry it founded, for computer systems that store images of documents. FileNet stock plunged $7.75 to $15 in one day in Jan 1993 after the company announced that it expected to post a 4th qtr 1992 loss and lower revenues. FileNet blames a slow economy in Europe and the United States for the fall-off in growth. In reality, the firm is facing the same problems that many technical innovators face, including a clutch of new competitors and a fast-changing industry. The company made its mark in the mid-1980s by developing and marketing elaborate computer systems featuring 'jukebox' storage devices that store vast quantities of scanned document images. FileNet is responding by changing its focus from hardware to software. Recently, the company agreed to port its software to HP computers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Net at Software Toolworks surged during 4th period
Article Abstract:
Software Toolworks Inc reports a very strong 4th qtr 1990, with net income more than tripling. Revenue for the quarter increased by 78 percent, to $21.9 million from $12.3 million for the same period a year ago. Net income jumped from $740,000 a year ago, to $2.3 million. Figures for the quarter include an after-tax charge of $1.2 million related to costs of acquiring Mindscape Inc, and a $677,000 tax credit for previous losses. Software Toolworks is already reaping the rewards of acquiring Mindscape, a maker of Nintendo game cartridges, claiming the game firm contributed to the healthy quarter. Software Toolworks also announces it has signed a letter of intent with Canon Inc to develop software for a new microcomputer.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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FileNet to post surprise loss for 4th period
Article Abstract:
FileNet Corp expects to post revenues of $33.5 million and a loss of $9.9 million for its 4th qtr, which ended Jan 3, 1993, including $4.9 million in one-time charges. The software company's stock plunged from $22.75 to $15 on Jan 4 in heavy trading following the surprise announcement. The one-time charges represent the cost of terminating more than 10 percent of employees and asset write-downs. A year earlier, FileNet reported revenue of $37 million and a net income of $3.3 million. Analysts say that FileNet was hurt by lethargic economies in Europe and California. The company makes elaborate document-management software; an average installation costs approximately $500,000.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Comment about this article or add new information about this topic:
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