Witness Systems Completes Acquisition of Optimis Group

Witness Systems acquired Optimis Group Limited, a reseller of Blue Pumpkin's enterprise workforce management solutions in the U.K. The total purchase price was approximately $5 million.  

Optimis is a provider of workforce management solutions in the U.K. contact center market.  This acquisition enables Witness Systems to position its workforce optimization software solutions in this market.  Witness Systems will be adding approximately 15 employees from Optimis, which will extend the breadth and depth of its U.K.-based services offering in workforce optimization.  As part of employment offers to join Witness Systems, the Compensation Committee of the Board of Directors has approved an award of options to acquire, in the aggregate, up to 50,000 shares of common stock to those Optimis employees who join the company.  The stock option awards will be made as promptly as possible following the closing, subject to the commencement of employment of the individuals.*

As a result of this acquisition, the company is increasing its annual revenue and earnings guidance.  For the year 2005, Witness Systems is increasing its estimate of adjusted revenue to a range of $180 to $182 million, and is also increasing its estimate of non-GAAP adjusted earnings to a range of $0.60 to $0.63 per share.  Adjusted revenue excludes hardware revenue, but includes the full value of maintenance contracts.  Adjusted earnings exclude the impact of in-process RandD, merger costs and amortization of intangibles arising from acquisitions, but include a pro forma tax expense.