CAMBRIDGE, England, October 23 /PRNewswire-FirstCall/ --
- Autonomy's third quarter conference call will be available live at http://www.autonomy.com on October 23, 2007 , at 9:30 a.m. BST / 4:30 a.m. EST / 1:30 a.m. PST .
Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the third quarter and nine months ended September 30, 2007 .
* Adjusted results exclude the share of loss of associates, post-acquisition restructuring costs and non-cash charges, namely the amortization of purchased intangibles, share-based compensation and non-cash translational foreign exchange gains and losses and associated tax effects. See reconciliations on page 5.
Nine Month 2007 Highlights
- Record nine months revenues, up 29% from 2006 including strong organic growth and the contribution from ZANTAZ
- Positive cash flow generated by operations of
- Average selling price for meaning-based technologies at
- Blue chip third quarter wins include Boeing, InfoUSA, International Monetary Fund, Oracle, Shell, U.K. Patent Office, Northrop Grumman, Wolters Kluwer, Edgar Online, Toyota.com, Bank of Canada , Norsk Hydro, NYSE, Canon, Dell, News Corp. and Osaka Gas, as well as new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the U.S., including the US Marine Corps, US Navy, US Department of Defense and US Department of Energy, Italy , UK, Singapore , Colombia and the Netherlands .
- 13 OEM deals signed including new deals and extensions with Oracle, CaseCentral, Kana, Cisco and FatWire
- Positive cash flow generated by operations of
- 31st consecutive quarter of profitability
Commenting on the results, Dr. Mike Lynch , Group CEO of Autonomy said today: "We are pleased to announce our record third quarter and nine month 2007 results which show strong year-on-year growth in all metrics. These results are in line with consensus revenue and profit estimates, despite Q3 seasonally being our quietest quarter and the considerable amount of work involved in integrating the ZANTAZ acquisition. These record results once again bear testament to our unmatched market leadership position."
Dr. Lynch concluded, "Autonomy's dominance in this space is being demonstrated by our almost complete ownership of the OEM market and enterprise-level procurements. The regulatory drivers of FRCP are convincing our customers of the need for integrated operational and information risk management systems. The success of the ZANTAZ acquisition, the integration of which is mainly complete ahead of schedule, continues to demonstrate the fundamental nature of issues relating to unstructured information and the growth opportunities in the marketplace. Autonomy remains extremely well positioned to capitalize on these market opportunities and continue growth."
Third Quarter and Nine Month Financial Highlights
Revenues for the third quarter of 2007 totalled
Gross profits (adjusted) for the third quarter of 2007 were
Net profit (adjusted) for the third quarter of 2007 was
Net profit (adjusted) for the nine months ended September 30, 2007 was
Cash balances were
Receivables for the third quarter of 2007 were
Although IFRS disclosure provides investors and management with an overall view of Autonomy's financial performance, Autonomy believes that it is important for investors to also understand the performance of Autonomy's fundamental business without giving effect to certain specific, non-recurring and non-cash charges. Consequently, the non-IFRS (adjusted) results exclude post-acquisition restructuring costs, share of loss of associates and non-cash charges for the amortization of purchased intangibles, share-based compensation, foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's operational business activities.
Q3 Product Sales
Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data formats and sources. During the third quarter of 2007, major customer wins included: Boeing, InfoUSA, Dell, News Corp., Visible, International Monetary Fund, Oracle, Perceptive Software, Shell, U.K. Patent Office, Northrop Grumman, Cox Communications, Wolters Kluwer, Edgar Online, Toyota.com, Bank of Canada , Norsk Hydro, NYSE, Canon, and Osaka Gas. Q3 2007 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the U.S., including the US Marine Corps, US Navy, US Department of Defense and US Department of Energy, Italy , UK, Singapore , Colombia and the Netherlands . Repeat business from existing customers accounted for approximately 38% of revenue for the quarter.
Strategic Partnerships and OEMs
Autonomy's OEM Program continued to grow during Q3 2007. Agreements were signed with 13 customers during the quarter, including new and extended agreements with Oracle, CaseCentral, Kana, Cisco and FatWire.
During the third quarter of 2007 Autonomy announced and completed the
acquisition of ZANTAZ, Inc., a global leader in content archiving and
electronic discovery solutions and software as a service, for a purchase
price of approximately
During the third quarter of 2007 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. During the quarter ZANTAZ unveiled its plans for the next generation of Digital Safe, its consolidated archiving Software as a Service solution, powered by Autonomy's advanced IDOL and IDOL Speech technologies to provide a full spectrum of Proactive Information Management capabilities. Autonomy announced the immediate availability of the Autonomy Business Console, an intuitive and easy-to-use interface to the company's IDOL platform for e-Commerce. Autonomy etalk announced it is revolutionizing the ability to analyze contact center interactions through a unique combination of innovative speech technology and multi-channel interaction analysis software, the expansion of its advanced call and computer screen recording security features to exceed the highest industry standards, and the availability of an off-site hosted archiving solution for storing, managing, and retrieving critical customer call recordings.
During the third quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Recognition during the quarter included: Industry analyst group Gartner, Inc. positioned Autonomy in the Leaders Quadrant of its 2007 Information Access Technology Magic Quadrant Report based on Autonomy's "Ability to Execute" and "Completeness of Vision"; KMWorld magazine selected Autonomy's IDOL Enterprise Desktop Search technology as a "2007 Trendsetter"; Gartner, Inc. awarded Autonomy etalk a "Strong Positive" rating in the 2007 MarketScope for Contact Center Quality Management report, the highest ranking possible; Speech Technology Magazine recognized Autonomy etalk as a Market Leader in speech analytics; and Technology Marketing Corporation's Customer Interaction Solutions magazine named Autonomy etalk's Qfiniti VoIP recording technology as a recipient of a 2007 IP Contact Center Technology Pioneer Award.
About Autonomy Corporation plc
Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology forms a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, BI, CRM, KM, call center solutions, rich media management, information risk management solutions and security applications, and is recognized by industry analysts as the clear leader in enterprise search.
Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Kraft Foods, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. Autonomy also has over 300 OEM partners and more than 400 VARs and Integrators, numbering among them leading companies such as BEA, Business Objects, Citrix, EDS, IBM Global Services, Novell, Satyam, Sybase, Symantec, TIBCO, Vignette and Wipro. The company has offices worldwide.
The Autonomy Group includes: ZANTAZ, the leader in the archiving, e-Discovery and Proactive Information Risk Management (IRM) markets; Cardiff , a leading provider of Intelligent Document solutions; etalk, award-winning provider of enterprise-class contact center products and Virage, a visionary in rich media management and security and surveillance technology.
(1) The allocation of intangible assets arising on the ZANTAZ acquisition
has been provisionally determined as
(2) At September 30, 2007 , 600,000,000 ordinary shares of nominal value 1/3 pence each authorized, 210,597,655 issued and outstanding; as of December 31, 2006 , 600,000,000 ordinary shares of nominal value 1/3 pence each authorized, 187,836,204 issued and outstanding.
The accompanying quarterly and nine month consolidated financial statements of Autonomy Corporation plc have been prepared in conformity with International Financial Reporting Standards ("IFRS") as adopted for use in the EU. The quarterly and nine month consolidated financial statements have been prepared using accounting policies consistent in all material respects with those applied in the Company's Annual Report for the year ended December 31, 2006 . Whilst the financial information included in this interim announcement has been computed in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs.
Quarterly and nine month information is unaudited, but reflects all normal adjustments which are, in the opinion of management, necessary to provide a fair statement of results and the company's financial position for and as at the periods presented. The results of operations for the three months and nine months ended September 30, 2007 , are not necessarily indicative of the operating results for future operating periods. The information for the year ended 31 December 2006 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The quarterly and nine month financial statements should be read in connection with the company's audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2006 . These have been delivered to the Registrar of Companies, contained an unqualified audit report and did not contain statements under s237(2) or (3) Companies Act 1985.
These financial statements for the three and nine months ended September 30, 2007 , are unaudited and do not constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985. This announcement was approved by the Board of Directors on October 22, 2007 .
Share based compensation charges have been charged in the consolidated income statement within the following functional areas:
Independent Review Report to Autonomy Corporation Plc
We have been engaged by the company to review the condensed set of financial statements in the quarterly financial report for the three months ended September 30, 2007 which comprises the income statement, the balance sheet, the statement of changes in equity, the cash flow statement and related notes 1 to 4. We have read the other information contained in the quarterly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with International Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.
The quarterly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the quarterly financial report in accordance with the Listing Rules of the United Kingdoms' Financial Services Authority.
As disclosed in note 1, the annual financial statements of the company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this quarterly financial report have been prepared in accordance with the accounting policies the group intends to use in preparing its next annual financial statements.
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the quarterly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland ) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom . A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland ) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with the Listing Rules of the United Kingdom's Financial Services Authority.
SOURCE Autonomy Corporation plc