Documentum Becoming Content-Management Front-RunnerDocumentum Becoming Content-Management Front-Runner

Based on year-end earnings reports, Documentum Inc. appears to be separating itself from the content-management pack, far outdistancing rivals Vignette Corp. and Interwoven Inc. in revenue and nearing profitability ahead of the rest of the industry. Interwoven, meanwhile, continues to echo Vignette's falling revenue and mounting losses.

Documentum also enters 2003 anticipating continued revenue growth, fueled by a multimillion-dollar deal with Nestl? announced earlier this month. The vendor also starts the year with 21 new products, many of which stem from the 2002 acquisitions of Boxcar Software, eRoom Technology, and TrueArc, providing reason to believe the company will post its sixth consecutive quarter of revenue growth.

For the quarter ended Dec. 31, Documentum posted a loss of $1.1 million on revenue of $66.0 million, compared with a loss of $1.6 million on revenue of $50.7 million a year ago. For the year, the company posted a loss of $1.2 million on revenue of $226.9 million, compared with a loss of $38.3 million on revenue of $188.0 million last year. Just $4.6 million in revenue was a direct result of the year's acquisitions. Licensing revenue for the quarter reached $36.0 million, 45% more than a year earlier.

The numbers were far grimmer for Interwoven, which has seen a steep drop in revenue and continues to be hampered by acquisition-related restructuring costs. Licensing revenue was down 38% for the quarter ended Dec. 31, resulting in a drop in revenue to $31.1 million from $44.5 million last year. The quarterly loss was $32.4 million, including one-time charges of $29.5 million, compared with a loss of $27.3 million a year earlier. For the year, Interwoven lost $148.6 million, including one-time charges of $123.1 million, on revenue of $126.8 million, compared with a loss of $129.2 million on revenue of $204.6 million a year ago.