WebMethods Inc. / WEBM

About WebMethods Inc.

3877 Fairfax Ridge Rd., South Tower, Fairfax, Va. 22030
www.webmethods.com | 703-460-2500 | Founded: 1996

Industry: Information Technology | Category: Public Companies

WebMethods, once a darling of the dot-com era, recently announced that it had agreed to be bought by German software company Software AG for about $546 million.
The deal is expected to close this spring. The sale followed a tough year for the firm, which struggled to meet Wall Street's expectations and experienced more turnover among its top executives.
In July, earnings came in lower than analysts had estimated, and WebMethods' stock lost nearly one-third of its value. Chief executive David Mitchell described the company's performance as "unacceptable." WebMethods improved its financial results in the latter part of 2006, increasing revenue and turning its net loss into a profit, but the stock never fully recovered from the July hit.
Chief operating officer Richard Chiarello, who also served as head of global sales, left the firm in November. WebMethods' chief financial officer, Mark L. Wabschall, stepped down at the end of the year and was replaced by Ken Sexton, who has worked as finance chief at several other private and publicly traded software firms.
WebMethods acquired two smaller firms and is trying to cut $2 million in costs to improve earnings. In September, WebMethods bought a privately held firm called Infravio, which developed software that fits with WebMethods' product offerings. The deal was valued at $38 million. Although Infravio was based in California, most of its 65 employees work in India and will remain there. WebMethods also bought privately held Cerebra in August for an undisclosed price.

President and CEO: David Mitchell

2006 Financial Data

Revenues: $208,818,000 | Net Income: $18,022,000
Asssets: $302,811,000 | Earnings Per Share: $0.33
Total employees: 923 | Local employees: 260