Interwoven's Third Quarter Gets Off To A Good Start

July was a good month for Interwoven as it posted strong Q2 profits, acquired an e-discovery vendor, was selected as the content management system for the largest municipally owned energy company in the country, and received accolades from Gartner.On the earnings front, Interwoven's Q2 revenue rose 16% to $63.2 million from $54.6 million for the same period last year. I found it interesting that its revenue breaks down roughly as 1/3 for software licensing and 2/3 for support and services. That raises the important point that the license is only a part of the overall total cost of ownership for almost every content management platform.

Interwoven's acquisition of Discovery Mining is an interesting move, and gets it into the e-discovery business in a big way. E-discovery is the process in which legal teams compile, organize, and sort large amounts of digital content -- images, e-mails, documents, audio, and video files -- in preparation for legal proceedings or for regulatory compliance. This type of electronic records management has become particularly important in the past few years, due to the Sarbanes-Oxley Act and other regulations.

The CPS Energy deal -- made in partnership with Enterpulse, an IT services company -- focuses on revamping the cpsenergy.com site. The updates are intended to improve usability, enhance self-service capabilities and support the creation and management of more targeted, robust content. With more than 600,000 electric and 300,000 natural gas customers, the site will likely have a significant user base, and using TeamSite as the CMS should support that quite well.

Finally, we'd mentioned it a few weeks ago, but it bears repeating that Interwoven received a "Strong Positive" rating in Gartner's MarketScope for Web Content Management 2008. That's certainly a feather in its cap and will hopefully allow it to keep up the positive momentum it's shown in the first half of the year. Good stuff all around.