FileNet Says It Will Report 114% Increase in Earnings
COSTA MESA — FileNet Corp., a manufacturer of computerized document storage systems, said Tuesday it expected to report sharply higher revenue and profits for the fourth quarter of 1989 as well as improved results for the full year.
The company, which had struggled since the middle of 1988 in the face of intensified competition from International Business Machines Corp., said it anticipated 1989 earnings of $3 million, up 114% from $1.4 million in 1988. Revenue is expected to be $82 million, up 30% from $63.2 million in 1988.
For the fourth quarter ended Dec. 31, FileNet said it expected to earn $2.8 million, a 367% jump from the $600,000 registered during the comparable quarter a year ago. Revenue for the quarter rose 41% to $26 million from $18.4 million in 1989.
The figures release Tuesday were preliminary, with final results expected in mid-February.
Theodore J. Smith, president and chief executive, attributed the improved performance to reduced losses on the European distribution operations that were set up in 1988 and the end of purchasing delays that resulted when IBM announced in 1988 that it would introduce a new line of image processing equipment.
FileNet makes integrated systems that electronically read documents and file them on optical disks for easy retrieval. The systems are used primarily by large businesses and government agencies, but FileNet is hoping that its introduction last year of an entry-level product selling for $100,000--one-third the price of its standard system--would broaden the base of potential customers.
