8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Earliest Event Reported: July 17, 2003

DOCUMENTUM, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-27358	95-4261421
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

6801 Koll Center Parkway, Pleasanton, California
(Address of principal executive offices) 94566-7047
(Zip Code)

Registrant’s telephone number, including area code (925) 600-6800

N/A

(Former name or former address, if changed since last report.)

TABLE OF CONTENTS

	Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
	Item 9. REGULATION FD DISCLOSURE
	Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
SIGNATURE
INDEX TO EXHIBITS
EXHIBIT 99.1
EXHIBIT 99.2
EXHIBIT 99.3

Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

(c) EXHIBITS.

99.1	Press release announcing financial results for the quarter ended June 30, 2003.
99.2	Press release announcing financial results for the quarter ended March 31, 2003.
99.3	Slide presentation of web-cast of financial results for the quarter ended March 31, 2003.

Item 9. REGULATION FD DISCLOSURE

     This current report on Form 8-K, including all exhibits hereto, is being furnished to report information pursuant to Item 12 – Results of Operations and Financial Condition. See Item 12 below. The information in this current report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     On July 17, 2003, Documentum issued a press release announcing financial results for the quarter ended June 30, 2003. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.

     On April 17, 2003, Documentum issued a press release announcing financial results for the quarter ended March 31, 2003. A copy of the press release is attached as Exhibit 99.2 and a copy of a slide presentation which was included as part of a web-cast held on April 17, 2003 is attached as Exhibit 99.3 to this current report on Form 8-K and is incorporated by reference herein.

     The non-GAAP financial measures used in these exhibits exclude the impact of charges related to amortization of certain intangible assets, deferred stock-based compensation and restructuring charges. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company’s management refers to these non-GAAP financial measures, such as non-GAAP net income and diluted earnings per share, in making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance.

-1-

     In addition, these non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency to the supplemental information used by management in its financial and operational decision-making. In addition, we have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting at this time. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in these exhibits to their most directly comparable GAAP financial measure as provided with the financial statements attached to these exhibits.

-2-

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DOCUMENTUM, INC

/s/ Sayed M. Darwish

Sayed M. Darwish

Vice President, General Counsel and Secretary

Date: July 17, 2003

-3-

DOCUMENTUM, INC.

Current Report on Form 8-K

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release announcing financial results for the quarter ended June 30, 2003.
99.2	Press release announcing financial results for the quarter ended March 31, 2003.
99.3	Slide presentation of web-cast of financial results for the quarter ended March 31, 2003.

-4- EX-99.1 3 f91554exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE July 17, 2003

Documentum Public Relations Contact:	Documentum Investor Relations Contact:
Bonnie Harris	Janet Scott
B3 Communications	Documentum
(415) 332-5816	(925) 600-6474
bharris@b3communications.com	janet.scott@documentum.com

DOCUMENTUM REPORTS 26% YEAR-OVER-YEAR
QUARTERLY REVENUE GROWTH

— Third Consecutive Quarter of Record Total Revenue —

PLEASANTON, Calif. – July 17, 2003 - Documentum, Inc. (NASDAQ: DCTM), the leading provider of enterprise content management (ECM), today announced financial results for the second quarter ended June 30, 2003.

Total revenue for the second quarter 2003 was $68.2 million, representing a 26 percent increase over the second quarter of 2002, and a 2 percent increase over the first quarter of 2003. This marks the third consecutive quarter that the company has set an all-time record for total revenue. On a GAAP basis, diluted earnings per share for the second quarter 2003 were $0.01, compared to a loss per share of $0.01 for the second quarter of 2002 and a loss per share of $0.10 for the first quarter of 2003. On a non-GAAP basis, diluted earnings per share for the second quarter 2003 were $0.07, compared to diluted earnings per share of $0.01 for the second quarter of 2002 and diluted earnings per share of $0.06 in the first quarter of 2003.

On a GAAP basis, net income for the second quarter of 2003 was $0.6 million, compared to a net loss of $0.5 million reported for the second quarter of 2002 and a net loss of $5.0 million for the first quarter of 2003. On a non-GAAP basis, net income for the second quarter 2003 was $3.6 million, compared to net income of $0.5 million in the second quarter of 2002 and net income of $2.9 million in the first quarter of 2003.

“Documentum is building on its fundamental strengths, and our continued growth and profitability are strong evidence that this strategy is working,” said Dave DeWalt, president and CEO of Documentum. “Our strong presence in a number of industries, our ability to expand into additional markets, and our range of products helped us deliver positive results. We look forward to continuing the momentum gained during the past seven quarters throughout the remainder of the year.”

Highlights

• Five orders over $1 million.

• All-time record total revenue of $68.2 million.

• All-time record service revenue of $35.5 million.

• All-time high cash and investments balance of $266.5 million.

• Added 96 new customers.

• Approximately 70% growth in number of customers over past four quarters.

• Reported non-GAAP EPS of $0.07 – meeting guidance.

• Shipped Documentum 5.2 and Enterprise Records Management Solution.

Second Quarter 2003 Results Conference Call and Webcast

Investors can listen to a teleconference of Documentum’s Second Quarter financial results on Thursday, July 17, 2003, at 2:00 p.m. PDT (5:00 p.m. EDT) by calling 1-719-457-2638 (pass code 648030). The accompanying slide presentation (no audio) will be webcast simultaneous with the live teleconference and may be accessed on Documentum’s investor relations web page at — www.documentum.com/news_events/investor

The dial-in number for the audio-only replay is 1-719-457-0820 (pass code 648030). A replay of the webcast may also be found on the company’s investor relations web page shortly after 6:00 p.m. PDT on July 17.

The non-GAAP financial measures used in this press release exclude the impact of charges related to amortization of certain intangible assets, deferred stock-based compensation and restructuring charges. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial

measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company’s management refers to these non-GAAP financial measures, such as non-GAAP net income and diluted earnings per share, in making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance.

In addition, these non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency to the supplemental information used by management in its financial and operational decision-making. In addition, we have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in the reporting of our financial information at this time. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measure as provided with the financial statements attached to this press release.

About Documentum

Documentum provides enterprise content management (ECM) solutions that enable organizations to unite teams, content and associated business processes. Documentum’s integrated set of content, compliance and collaboration solutions support the way people work, from initial discussion and planning through design, production, marketing, sales, service and corporate administration. With a single platform, Documentum enables people to collaboratively create, manage, deliver and archive the content that drives business operations, from documents and discussions to email, Web pages, records and rich media. The Documentum platform makes it possible for companies to distribute all of this content in multiple languages, across internal and external systems, applications and user communities. As a result, Documentum’s customers, which include thousands of the world’s most successful organizations, harness corporate knowledge, accelerate time to market, increase customer satisfaction, enhance supply chain efficiencies and reduce operating costs, improving their overall competitive advantage. For more information, visit Documentum on the Web at www.documentum.com

###

Documentum and the Documentum logo are trademarks or registered trademarks of Documentum, Inc. in the United States and throughout the world. All other company and product names are used for identification purposes only and may be trademarks of their respective owners. Documentum cannot guarantee completion of any future products or product features mentioned in this document, and no reliance should be placed on their availability. Printed in the United States.

In addition to historical information contained herein, this presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements relating to the company’s financial results and optimism about further momentum. The company’s future actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risks associated with the software market, risks associated with development and release of new versions and new products, fluctuations in customer demand for our products, risks associated with rapid technological change, concentration of a large percentage of our quarterly revenue with a few customers, the financial, economic and political conditions in the United States and abroad, the risk that the company will not be able to integrate its products, operations and business with acquired entities effectively, that the company’s customers, suppliers and employees will not support its acquisitions, and the other general risks of acquisitions. Such factors also include those discussed from time to time in the company’s public reports filed with the Securities and Exchange Commission, such as those under “Risk Factors” included in the company’s annual report on Form 10-K for the fiscal year ended December 31, 2002, quarterly report on Form 10-Q for the quarter ended March 31, 2003, as well as the company’s other filings with the Securities and Exchange Commission, which are available at www.sec.gov. A reconciliation of all GAAP and non-GAAP numbers contained herein is attached at the end of the accompanying press release, which is available at www.documentum.com/news_events/news/. The company undertakes no obligation to update or revise these forward-looking statements.

Documentum, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)*

			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2003			2002			2003			2002
			unaudited						unaudited
Revenue:
	License		$	32,669		$	26,997		$	67,113		$	52,129
	Service			35,508			26,975			68,101			52,441
		Total revenue		68,177			53,972			135,214			104,570
Cost of revenue:
	License			2,247			1,959			4,489			3,708
	Amortization of purchased intangibles			2,555			118			5,110			231
	Service			13,748			12,374			28,066			25,225
		Total cost of revenue		18,550			14,451			37,665			29,164
Gross profit				49,627			39,521			97,549			75,406
Operating expense:
	Sales and marketing			28,625			22,866			56,832			46,631
	Research and development			11,799			9,783			23,261			18,783
	General and administrative			7,432			6,233			14,874			12,134
	Restructuring costs			(20	)		1,043			11,979			1,043
	Amortization of purchased intangibles			605			75			1,211			149
		Total operating expense		48,441			40,000			108,157			78,740
Income (loss) from operations				1,186			(479	)		(10,608	)		(3,334	)
Interest income				1,428			1,301			2,773			1,905
Interest expense				(1,593	)		(1,521	)		(3,193	)		(1,570	)
Other income (expense), net				(121	)		23			(240	)		(88	)
Income (loss) before income taxes				900			(676	)		(11,268	)		(3,087	)
Provision for (benefit from) income taxes				325			(203	)		(6,884	)		(926	)
Net income (loss)			$	575		$	(473	)	$	(4,384	)	$	(2,161	)
Basic income (loss) per share			$	0.01		$	(0.01	)	$	(0.09	)	$	(0.05	)
Diluted income (loss) per share			$	0.01		$	(0.01	)	$	(0.09	)	$	(0.05	)
Shares used to compute income (loss) per share:
Basic				49,107			39,556			48,776			39,408
Diluted				52,164			39,556			48,776			39,408

* Certain prior year amounts have been reclassified to conform to current year’s presentation

Documentum, Inc.
Condensed Consolidated Statement of Operations
GAAP to Non-GAAP Reconciliation
(in thousands, except per share data)

			Three months ended June 30, 2003
						Non-GAAP
			GAAP			Adjustments			Non-GAAP
						unaudited
Revenue:
	License		$	32,669		$	—		$	32,669
	Service			35,508			—			35,508
		Total revenue		68,177			—			68,177
Cost of revenue:
	License			2,247			—			2,247
	Amortization of purchased intangibles			2,555			(2,555	)		—
	Service			13,748			(193	)*		13,555
		Total cost of revenue		18,550			(2,748	)		15,802
Gross profit				49,627			2,748			52,375
Operating expense:
	Sales and marketing			28,625			(318	)*		28,307
	Research and development			11,799			(318	)*		11,481
	General and administrative			7,432			(50	)*		7,382
	Restructuring costs			(20	)		20			—
	Amortization of purchased intangibles			605			(605	)		—
		Total operating expense		48,441			(1,271	)		47,170
Income from operations				1,186			4,019			5,205
Interest income				1,428			—			1,428
Interest expense				(1,593	)		—			(1,593	)
Other expense, net				(121	)		—			(121	)
Income before income taxes				900			4,019			4,919
Provision for income taxes				325			1,003			1,328
Net income			$	575		$	3,016		$	3,591
Basic income per share			$	0.01					$	0.07
Diluted income per share			$	0.01					$	0.07
Shares used to compute income per share
Basic				49,107						49,107
Diluted				52,164						52,164

* Represents amortization of deferred stock-based compensation

Documentum, Inc.
Condensed Consolidated Balance Sheet
(in thousands, unaudited)*

			June 30,		December 31,
			2003		2002
ASSETS
Current assets:
	Cash and cash equivalents		$	113,249	$	112,069
	Marketable securities			153,272		141,056
	Accounts receivable, net of allowances			51,532		50,803
	Other current assets			24,498		25,707
		Total current assets		342,551		329,635
Property and equipment, net				22,136		25,949
Goodwill				93,405		93,481
Identifiable purchased intangibles, net				18,256		24,818
Other assets				18,185		18,226
			$	494,533	$	492,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable		$	4,509	$	2,782
	Accrued liabilities			43,956		71,472
	Deferred revenue			45,489		37,463
	Current portion of capital lease obligation			25		48
		Total current liabilities		93,979		111,765
Long-term convertible debt				125,000		125,000
Other long-term liabilities				7,234		109
		Total liabilities		226,213		236,874
Stockholders’ equity				268,320		255,235
			$	494,533	$	492,109

* Certain prior year balances have been reclassified to conform to current year’s presentation

EX-99.2 4 f91554exv99w2.htm EXHIBIT 99.2

Exhibit 99.2

FOR IMMEDIATE RELEASE April 17, 2003

Documentum Public Relations Contact:
Bonnie Harris
B3 Communications
(415) 332-5816
bharris@b3communications.com Documentum Investor Relations Contact:
Patricia Menchaca
Documentum
(925) 600-5593
patm@documentum.com

DOCUMENTUM REPORTS RECORD REVENUE RESULTS
YEAR OVER YEAR TOTAL REVENUE GROWTH OF 32 PERCENT

— Exceeds Wall Street’s Highest Non-GAAP Earnings Per Share Estimate —

PLEASANTON, Calif. – April 17, 2003 - Documentum, Inc. (NASDAQ: DCTM), the leading provider of enterprise content management (ECM), today announced financial results for the first quarter ended March 31, 2003. Total revenue for the first quarter 2003 was $67.0 million, representing a 32 percent increase over the same period last year and a $1.0 million sequential increase over the fourth quarter of 2002. On a non-GAAP basis, diluted earnings per share for the first quarter 2003 were $0.06 as compared to a loss per share of $0.04 for the same period last year, and earnings per share of $0.12 in the fourth quarter of 2002. On a GAAP basis, loss per share for the first quarter 2003 was $0.10 as compared to a loss per share of $0.04 for the same period last year, and a loss per share of $0.03 in the fourth quarter of 2002.

The difference between GAAP and non-GAAP earnings per share primarily relates to a one-time restructuring charge of approximately $12 million as well as charges of approximately $4 million related to the amortization of certain intangible assets and deferred stock-based compensation.

On a non-GAAP basis, net income for the first quarter 2003 was $2.9 million as compared to net loss of $1.7 million for the same period last year, and net income of $5.2 million in the fourth quarter of 2002. On a GAAP basis, net loss for the first quarter 2003 was $5.0 million,

compared to a net loss of $1.7 million for the same period last year and a net loss of $1.1 million for the fourth quarter of 2002. A reconciliation of all non-GAAP and GAAP numbers is attached at the end of this news release.

“Today we are pleased to report record total revenue, record number of transactions, record number of new customers, and record deferred revenue — all within a seasonally challenging quarter as well as a difficult global economic and political environment. We believe this level of consistent performance clearly validates our position as the leader in Enterprise Content Management,” said Dave DeWalt, president and chief executive officer of Documentum.

DeWalt concluded, “We continue to execute on our strategy to expand the Documentum ECM Platform by bringing to market products that our customers can deploy today to achieve a rapid return on their investment. This quarter represents a clear example of that strategy with the on-time integration of eRoom and TrueArc technologies and we look forward to continued successes as a result of these acquisitions.”

Highlights

•     Five orders over $1 million

•     Record total revenue of $67 million

•     Record number of new customers – 107

•     Record number of transactions – 394 up 26 percent sequentially

•     Record deferred revenue of $48 million

•     Reported Non-GAAP EPS of $0.06 – above guidance and Wall Street estimates

•     Six year low Days Sales Outstanding of 58

•     First shipment of eRoom Enterprise, integrating eRoom’s market-leading collaboration product with the Documentum ECM platform – within 90 days of eRoom acquisition

•     First shipment of government certified Enterprise Records Management Edition and government certified Records Services for Email, both integrating TrueArc’s records management technology – within 90 days of TrueArc acquisition

•     Added 21 new partners – a mixture of service and technology providers – and continued to execute a partner strategy to go deep with key market makers in a continuous expansion of relationships with IBM Business Consulting Services, Fujitsu, Adobe, BEA and EMC... to name a few

•     Named Jeffrey Beir, formerly CEO of eRoom, to executive vice president of Worldwide Products organization

•     Launched Toronto Customer Support Center

•     Earned three awards at AIIM 2003: Best of Show, Best Enterprise Content Management Suite, and Best Practices with Corporate Express (NYSE: BUH)

First Quarter 2003 Results Conference Call and Webcast

Investors can listen to a teleconference of Documentum’s First Quarter financial results on Thursday, April 17, 2003, at 2:00 p.m. PDT (5:00 p.m. EDT) by calling 1-719-457-2727 (pass code 476398). The accompanying slide presentation (no audio) will be webcast simultaneous with the live teleconference at http://documentumevents.webex.com or may be accessed on Documentum’s investor relations web page at — www.documentum.com/news_events/investor

The dial-in number for the audio-only replay is 719-457-0820 (pass code 476398). A replay of the webcast may also be found on the company’s investor relations web page. Replays of the audio-only and webcast will be available for a limited time, beginning at approximately 6:00 p.m. PDT on April 18.

About Documentum
Documentum provides enterprise content management (ECM) solutions that enable organizations to unite teams, content and associated business processes. Documentum’s integrated set of content, compliance and collaboration solutions support the way people work, from initial discussion and planning through design, production, marketing, sales, service and corporate administration. With a single platform, Documentum enables people to collaboratively create, manage, deliver and archive the content that drives business operations, from documents and discussions to email, Web pages, records and rich media. The Documentum platform makes it possible for companies to distribute all of this content in multiple languages, across internal and external systems, applications and user communities. As a result, Documentum’s customers, which include thousands of the world’s most successful organizations, harness corporate knowledge, accelerate time to market, increase customer satisfaction, enhance supply chain efficiencies and reduce operating costs, improving their overall competitive advantage.

###

Documentum and the Documentum logo are trademarks or registered trademarks of Documentum, Inc. in the US and throughout the world. All other company and product names are used for identification purposes only and may be trademarks of their respective owners. Documentum cannot guarantee completion of any future products or product features mentioned in this document, and no reliance should be placed on their availability. Printed in the U.S.A.

In addition to historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements relating to the company’s momentum and continued expansion of its product offerings, diversification of its sales model, expanded global presence, increased market share, expanded revenue stream, increased cross-sell opportunities and strong execution. The company’s future actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risks associated with the software market, risks associated with development and release of new versions and new products, fluctuations in customer demand for our products, risks associated with rapid technological change, concentration of a large percentage of our quarterly revenue with a few customers, the financial, economic, political and other uncertainties caused or exacerbated by the current hostilities involving the United States and Iraq, the risk that the company will not be able to integrate its products, operations and business with acquired entities effectively, that the companies’ customers, suppliers and employees will not support its acquisitions, and the other general risks of acquisitions. Such factors also include those discussed from time to time in the company’s public reports filed with the Securities and Exchange Commission, such as those under “Risk Factors” included in the company’s annual report on Form 10-K for the fiscal year ended December 31, 2002, as well as the company’s other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The company undertakes no obligation to update or revise these forward-looking statements.

Documentum, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)

			Three Months Ended
			March 31,
			2003			2002
Revenue:
	License		$	34,444		$	25,132
	Service			32,593			25,466
		Total revenue		67,037			50,598
Cost of revenue:
	License			2,242			1,749
	Amortization of purchased intangibles			2,555			113
	Service			14,318			12,851
		Total cost of revenue		19,115			14,713
Gross profit				47,922			35,885
Operating expense:
	Sales and marketing			28,207			23,765
	Research and development			11,462			9,000
	General and administrative			7,442			5,901
	Restructuring costs			11,999			—
	Amortization of purchased intangibles			606			74
		Total operating expense		59,716			38,740
Loss from operations				(11,794	)		(2,855	)
Interest and other income (expense), net				(374	)		444
Loss before income taxes				(12,168	)		(2,411	)
Benefit from income taxes				(7,209	)		(723	)
Net loss			$	(4,959	)	$	(1,688	)
Basic loss per share			$	(0.10	)	$	(0.04	)
Diluted loss per share			$	(0.10	)	$	(0.04	)
Shares used to compute loss per share
Basic				48,441			39,259
Diluted				48,441			39,259

Documentum, Inc.
Condensed Consolidated Statement of Operations
GAAP to Non-GAAP Reconciliation
(in thousands, except per share data)

			Three months ended March 31, 2003
						Non-GAAP
			GAAP			Adjustments			Non-GAAP
Revenue:
	License		$	34,444		$	—		$	34,444
	Service			32,593			—			32,593
		Total revenue		67,037			—			67,037
Cost of revenue:
	License			2,242			—			2,242
	Amortization of purchased intangibles			2,555			(2,555	)		—
	Service			14,318			(190	)*		14,128
		Total cost of revenue		19,115			(2,745	)		16,370
Gross profit				47,922			2,745			50,667
Operating expense:
	Sales and marketing			28,207			(316	)*		27,891
	Research and development			11,462			(328	)*		11,134
	General and administrative			7,442			(107	)*		7,335
	Restructuring costs			11,999			(11,999	)		—
	Amortization of purchased intangibles			606			(606	)		—
		Total operating expense		59,716			(13,356	)		46,360
Income (loss) from operations				(11,794	)		16,101			4,307
Interest and other expense, net				(374	)		—			(374	)
Income (loss) before income taxes				(12,168	)		16,101			3,933
Provision for (benefit from) income taxes				(7,209	)		8,271			1,062
Net income (loss)			$	(4,959	)	$	7,830		$	2,871
Basic income (loss) per share			$	(0.10	)				$	0.06
Diluted income (loss) per share			$	(0.10	)				$	0.06
Shares used to compute income (loss) per share
Basic				48,441						48,441
Diluted				48,441						50,881

* Represents amortization of deferred stock-based compensation

Documentum, Inc.
Condensed Consolidated Balance Sheet
(in thousands)

					March 31,		December 31,
					2003		2002
				ASSETS
Current assets:
	Cash and cash equivalents				$	120,174	$	112,069
	Marketable securities					142,647		141,056
	Accounts receivable, net of allowances					42,852		50,803
	Other current assets					23,774		25,707
		Total current assets				329,447		329,635
Property and equipment, net						23,718		25,949
Goodwill						93,290		93,481
Identifiable purchased intangibles						21,417		24,818
Other assets						18,564		18,226
					$	486,436	$	492,109
			LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable				$	3,857	$	2,782
	Accrued liabilities					42,938		71,472
	Deferred revenue					48,244		37,463
	Current portion of capital lease obligation					37		48
		Total current liabilities				95,076		111,765
Long-term convertible debt						125,000		125,000
Other long-term liabilities						7,598		109
		Total liabilities				227,674		236,874
Stockholders’ equity						258,762		255,235
					$	486,436	$	492,109

* Certain prior year balances have been reclassified to conform to current year’s presentation

EX-99.1

Documentum, Inc., Exhibit 99.1

EX-99.2

Documentum, Inc., Exhibit 99.2

EX-99.3

First Quarter 2003 Financial Results Quarterly Conference Call April 17, 2003 Dave DeWalt President & Chief Executive Officer Mark Garrett EVP & Chief Financial Officer

Safe Harbor Statement In addition to historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements relating to the company's momentum and continued expansion of its product offerings, diversification of its sales model, expanded global presence, increased market share, expanded revenue stream, increased cross-sell opportunities and strong execution. The company's future actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risks associated with the software market, risks associated with development and release of new versions and new products, fluctuations in customer demand for our products, risks associated with rapid technological change, concentration of a large percentage of our quarterly revenue with a few customers, the financial, economic, political and other uncertainties caused or exacerbated by the current hostilities involving the United States and Iraq, the risk that the company will not be able to integrate its products, operations and business with acquired entities effectively, that the companies' customers, suppliers and employees will not support its acquisitions, and the other general risks of acquisitions. Such factors also include those discussed from time to time in the company's public reports filed with the Securities and Exchange Commission, such as those under "Risk Factors" included in the company's annual report on Form 10-K for the fiscal year ended December 31, 2002, as well as the company's other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The company undertakes no obligation to update or revise these forward-looking statements.

Q103: Gaining Momentum Continuing to Deliver Record Results Financial Results & Guidance Quarter Highlights Questions and Answers

Q103: Consistent Execution Pays Off Record revenue 6 consecutive quarters of growth & meeting guidance Surpassed company-provided EPS guidance Exceeded all Wall St. EPS estimates Record number of new customers Record number of transactions Record deferred revenue Six-year low DSOs Record high cash position Record high customer satisfaction ratings Our strategy continues to yield positive results Diversification across markets, regions, products, solidifies our ECM leadership position Documentum - The Leader in Enterprise Content Management

Gaining Momentum Continuing to Deliver Record Results Financial Results & Guidance Quarter Highlights Questions and Answers

Quarterly Total Revenue $45.8M $46.1M $45.3M $50.7M $50.6M $54.0M $56.3M $66.0M $67.0M *Six consecutive quarters of growth, excluding Q4 2001 reimbursable travel adjustment. Q1'03 Record Six Consecutive Quarters of Growth

2002 and 2003 Quarterly Non-GAAP EPS Q1'02

Quarterly Product Revenue by Region $20.8M $21.4M $19.8M $24.8M $25.1M $27.0M $28.9M $36.0M $34.4M

Quarterly Trend Number of New Customers Q1'03 Record

Quarterly Average Order Size

Quarterly Trend Number of Employees

Quarterly Cash and Investment Chart Q1'03 Record

Quarterly Total Deferred Revenue Q1'03 Record

Quarterly DSO T a r g e t 6 -Year Low

2003 Revenue/EPS Guidance (Non-GAAP) Raising Guidance $.03 to $.38

2003 Revenue/EPS Guidance by Quarter (Non-GAAP) Raising Q2 Guidance from $.06 - $.07 to $.07 - $.09

Gaining Momentum Continuing to Deliver Record Results Financial Results & Guidance Quarter Highlights Questions and Answers

Enterprise Content Management EDM WCM DAM ERM CCM Documents Web Rich Media Fixed Content Documents Spreadsheets Contracts Drawings HTML SGML WML XML Code Forms Images Sound Video Presentations Reports Records Scanning Imaging Final Form Storage eMail Project Discussions Desktop Sharing Online Meetings eMail IM Collaboration Content Corporate Strategy... Own The Market For Unstructured Content Documentum Universal Content Repository

Diversification Yields Strong Results Balance Across Channels Diversified Markets Broad Range of Solutions Strong Cross-Selling Results Named Accounts Geo Accounts TeleSales / Telemarketing Indirect Channels (Partner, ASP, OEM) Government Product Offerings Industry Segments Sales Channels Collaboration Enterprise Document Mgmt Web / Portal Content Mgmt Digital Asset Mgmt Records Mgmt / Email Archiving Content Services for ERP Compliance Financial Services High Tech Life Sciences Retail Business & Gov't Services Media/Entertainment & Publishing Oil & Gas

Quarter Customer Highlights 5 Deals over $1M: Office Depot, Houghton Mifflin, BBC, SCT, Wal*mart Many significant new deals: American Red Cross, Safeway, Cott Corporation, Wharton School of Business, Westinghouse, Purdue Pharmaceutical, TRW, Adecco, Adobe Significant email records management deal: Home Depot Strongest digital asset management (DAM) quarter Two deals over $1M: BBC & Houghton Mifflin Record quarter for AsiaPac, 11% of license revenue: Samsung, Chartered Semiconductor, BHP Billiton Significant penetration into retail sector Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot Benetton, Office Depot, Wal*mart, Home Depot

Additional Highlights Enterprise-wide standardization on the Documentum platform Strong maintenance renewals All time high customer satisfaction ratings Shipped 14 products in 7 languages on 29 platforms Shipped integrated eRoom and TrueArc products Significant increase in partner activity Major campaigns with Accenture, Adobe, BEA, IBM Global Services, Fujitsu, EMC, Bearing Point, Cap Gemini Ernst & Young Recent Awards AIIM 2003 Best of Show AIIM 2003 Best Enterprise Content Management Suite AIIM 2003 Best Practices with Corporate Express

Summary - Q1 2003 - A Very Strong Quarter Record Revenue, 5 transactions >$1M Record Number of new customers Exceeded Wall Street estimates for EPS Record Deferred Revenue Low DSOs Positive cash from operations Gaining market share Remain very optimistic about our future Raising EPS guidance

Gaining Momentum Continuing to Deliver Results Financial Results & Guidance Q103 Highlights Questions and Answers

Uniting The World Through Content