WebMethods Rises as Results Beat Forecasts

WebMethods, Inc. (Nasdaq: WEBM) was at US$88.09 Thursday morning, up $2.22, after the stock climbed as high as $91 following news of stronger-than-expected quarterly results.

“Strong revenue growth driven by increased penetration of both Global 2000companies and major industry-backed exchanges were significant contributorsto the company reaching profitability,” said WebMethods chairman and chief executiveofficer Phillip Merrick. “Reaching this milestone in our first year as apublic company reinforces our leadership position in the integrationsoftware market.”

WebMethods, a Fairfax, Virgina-based maker of business-to-business (B2B)integration software, said revenue for the third quarter ended December 31st rose 237percent from a year earlier to $59.4 million, while income before specialcharges totaled $2.7 million, or 5 cents per share. The results were well above analysts’ estimates of a penny per share.

In the year-earlier quarter, WebMethods reported a loss of $15.5 million, or 82 cents.

After acquisition and other charges, the company posted a net loss of $12.7million, or 27 cents per share, against a loss of $15.5 million, or 82cents, a year earlier.

WebMethods said it added 85 new customers during the quarter, bringing its total to more than 500. The company now serves customers including Bank ofAmerica, Cargill, Cisco Systems and Fidelity Investments.

WebMethods also expanded overseas during the quarter, opening up in Japan,Singapore and Taiwan and boosting its presence in Europe, the Middle Eastand Africa. The company also formed a partnership with BroadVision(Nasdaq:BVSN) and expanded alliances with Dell Computer Corp. (Nasdaq: DELL) and EDS(NYSE: EDS).

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