FileNet Shares Advance on Expression of Confidence

Shares of FileNet Corp. rose 13.6% Tuesday, a day after the developer of document management software boosted its financial outlook and expressed confidence about its potential to close larger deals.

The Costa Mesa company, appearing at the American Electronics Assn. Classic Financial Conference in San Diego, estimated revenue increases of 20% to 25% for next year, up from 15%, said analyst Robert Kugel at FAC/Equities. FileNet generated revenue of $310.2 million in 1999.

“Management is convinced that the slowdown during the spring is behind it, based on an expanding pipeline and growth in the volume of larger deals in the market,” he noted.

The company expects growth to be driven by Web content management infrastructure sales, its emerging applications business and consulting, Kugel added.

Another FAC/Equities analyst, Troy Peery, noted that FileNet is working on some Web content management infrastructure deals as well as other new applications.

The stock closed at $33.88, up $4.06 a share, in Nasdaq trading. The shares had moved up $2.69 on Monday.