FileNet / Costa Mesa

Nature of business: Image storage and business automation hardware and software. Total employees: 890 In Orange County: 490 Stock listing in The Times: On NASDAQ as “FileNet” Ticker symbol: “FILE” Friday’s stock close: $12.38 One-week change: Up $0.13

Analyst review: “FileNet’s product sales and service revenues for the second quarter exceeded our estimates. Software is now 46% of new product sales compared to only 31% last year. This should bolster investors’ perceptions of the company as a software entity whereas its previous emphasis was on hardware. FileNet also continues to make good progress on its joint product development and marketing relationship with Hewlett-Packard. Under this arrangement, FileNet will provide the software and HP the hardware to build a complete document imaging system. Costs at the company remained under firm control. We’ve given it a ‘buy’ rating.” --Robert Johnson, analyst The Chicago Corp., Chicago

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‘90 ’91 ’92 ’92 ’93 Revenue $103.0 $122.4 $138.3 $69.3 $73.0 Profit $3.8 $8.1 ($8.0) $2.6 $1.6

Dollar amounts in millions

Corporate outlook: “We have shifted from proprietary hardware to open systems and this has helped us expand our market. In the second quarter we added 21 new accounts. This is a healthy rebound from fourth quarter 1992 when we were restructuring and feeling the effects of the slow economy. Our approach will remain conservative, with an emphasis on product development.” --Mark St. Clare, CFO.

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RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE:

FISCAL YEAR ENDING Dec. 31 Dec. 31 Jan. 3 2 QTRS. 2 QTRS. ’90 ’91 ‘92* ’92 ’93 52-week high $21.50 $22.50 $37.50 $37.50 $16.50 52-week low $5.00 $6.75 $10.50 $10.50 $8.75 Book value per share $6.66 $7.10 $6.88 $6.51 $6.89 Price per share $8.50 $21.75 $14.50 $14.63 $12.88 Net profit per share $0.37 $0.75 ($0.76) $0.23 $0.14 Price-to-earnings ratio 23:1 29:1 N/A 32:1 46:1 Avg. return on 6% 10% N/A 7.1% 4.2% investor equity

* In 1992, FileNet changed its fiscal year-end to the first Sunday after Dec. 31.

For more information call or write, FileNet: 3565 Harbor Blvd., Costa Mesa, Calif. 92626 (714) 966-3400

Researched by JANICE L. JONES / Los Angeles Times