Restructuring Leaves FileNet Holding 1-Cent-a-Share Loss

Citing a charge for costs associated with its restructuring, FileNet Corp. said Tuesday that is expects to post a net loss of about $400,000, or 1 cent a share, for its 1998 fourth quarter when it releases final figures next week.

The Costa Mesa developer of document management systems said it earned $1 million for the quarter, before restructuring and other charges. For the final period of 1997, FileNet posted a profit of $5.9 million, or 13 cents a share.

Revenue is expected to total $85.1 million, up 11% from $76.4 million for the fourth quarter of 1997, the company said.

Analysts had estimated that FileNet would report quarterly earnings of at least 3 cents a share, and annual earnings of 6 cents a share or more.

For the full year, FileNet estimated net income of $1 million, or 3 cents a share, on record sales. The company lost $5.5 million or 18 cents a share in 1997.

Revenue is expected to total $310.2 million, up 23% from the $251.4 million reported for 1997.

FileNet said it expects to announce final results Tuesday.

‘We’ve made a strong rebound from our third quarter,” said Lee Roberts, the company’s president and chief executive. “We opened new markets and had a record number of [$1 million-or-more] contracts this year.”

The company’s stock fell 25 cents Tuesday in moderate Nasdaq trading to close at $11.25 a share.