CAMBRIDGE, England , April 24 /PRNewswire-FirstCall/ -- Autonomy's first quarter conference call will be available live at http://www.autonomy.com on April 24, 2008 , at 9:30 a.m. BST / 4:30 a.m. EDT / 1:30 a.m. PDT .
Autonomy Corporation plc (LSE: AU.or AU.L), a global leader in infrastructure software, today reported financial results for the first quarter ended March 31, 2008 .
Financial Highlights Three Months Ended (unaudited) March March 31, 31, 2008 2007 Results in US$ ($'000s except per share) $'000 $'000 105,088 65,475 Revenues Gross profit 93,464 60,010 (adjusted)* Gross profit margin 89% 92% (adjusted)* Profit from operations 31,069 18,539 (adjusted)* Profit before tax 31,136 19,518 (adjusted)* Net profit 21,684 13,340 (adjusted)*. Gross profit 88,184 58,110 (IFRS) Gross profit margin 84% 89% (IFRS) Profit from operations 24,236 15,450 (IFRS) Profit before tax 23,613 16,080 (IFRS) Net profit 16,445 10,990 (IFRS). EPS - basic $ 0.10 $ 0.07 (adjusted)*. - diluted $ 0.10 $ 0.07 (adjusted)* - basic $ 0.08 $ 0.06 (IFRS) - diluted $ 0.08 $ 0.06 (IFRS)-----------
* 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.
First Quarter 2008 Highlights - Record revenues, up 61% from Q1 2007 including strong organic growth and contribution from acquisitions - 20th consecutive quarter of year-on-year growth - Organic IDOL growth of 16% from Q1 2007 - Licence revenue up 21% from Q1 2007 - Profit before tax (IFRS) up 47% from Q1 2007 to $23.6 million - Net profit (IFRS) up 50% from Q1 2007 to $16.4 million - Operational gearing sees operating margins (adjusted) at 30%, from 28% in Q1 2007 - Average selling price for meaning-based computing at $380,000 (Q1 2007: $385,000) - 12 OEM deals signed including new deals and extensions with Oracle, Symantec, Tumbleweed and Openwave - Gross margins (adjusted) at 89%, up from 88% in Q4 2007 - Fully-diluted EPS (adjusted) up 43% from Q1 2007 - Blue chip first quarter wins include MetLife, JC Penney, Reuters, Dow Jones, Costco, Wolters Kluwer, Fortis Investments, Michelin, Danske Bank, T Rowe Price, Barclays Capital, Johnson Controls, Connecting for Health, Allstate, Pepsi, JP Morgan Chase and Dupont - Positive cashflow generated from operations of $25.1 million, up from $20.0 million in Q1 2007 - Cash balance of $95.5 million at quarter end and no net debtCommenting on the results, Dr. Mike Lynch , Group CEO of Autonomy said today: "We are witnessing continued strength as the momentum of the unstructured information revolution continues. Recent analyst reports acknowledge this development, placing Autonomy in the number one slot across a range of seemingly distinct software sectors, which are all united by the value of Autonomy's ability to understand meaning."
Dr. Lynch continued: "Q1 unfolded as expected with its usual seasonality. At the same time various sectors shifted spending from general IT to regulatory and litigation-related purchases, making the direct effect of the sub-prime crisis a net positive for our business. Our regulatory, compliance and government-driven prospects, which account for the significant majority of our revenues, are proving robust."
Dr. Lynch concluded, "We have decided to maintain our conservative view on prospects, which we will review if, as expected, current strength continues. While the current economic conditions bring a degree of uncertainty to businesses, we have seen no negative changes from the model outlined at the beginning of 2008. We will continue to monitor the situation closely as the year unfolds, although currently our strong fundamental market dynamics suggest that we have good reason to be confident in the current outlook for the business."
First Quarter Financial Highlights
Revenues for the first quarter of 2008 totalled
Gross profits (adjusted) for the first quarter of 2008 were
Net profit (adjusted) for the first quarter of 2008 was
Cash balances were
Receivables at March 31, 2008 , 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 share of loss of associates, post-acquisition restructuring costs 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.
Q1 Product Sales
Autonomy's infrastructure technology continued to be adopted by enterprises around the globe to process information across all internal and external data formats and sources, in virtually every vertical market. During the first quarter of 2008, major customer wins included: Costco, Allstate, Wolters Kluwer , Dow Jones, Fortis Investments, HBO, Michelin, Danske Bank, Logitech, MetLife, JP Morgan Chase, Jane's, JC Penney, T.Rowe Price , Barclays Capital, ABB, Dupont, TNT, Ernst & Young, Statoil, Pepsi, Mazda, Ameriprise and Linklaters. Q1 2008 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the US Army, US Marines, US DOJ, UK Land Registry, UK Home Office and the Northern Ireland Police, and in countries as diverse as the Netherlands , Singapore , Hungary , Germany , Spain , Mexico , Canada and South Africa . Repeat business from existing customers accounted for approximately 45% of revenue for the quarter.
Strategic Partnerships and OEMs
Autonomy's OEM Program continued to grow during Q1 2008. Agreements were signed with 12 customers during the quarter, including new and extended agreements with Oracle, Symantec, Tumbleweed, Filetech and Openwave.
Q1 Corporate Developments
During the first quarter of 2008 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies, including:
- New advanced features for Autonomy's IDOL Pan-Enterprise Search platform - the first unified platform to transcend all file types, operating systems, and language barriers for business and legal search - such as Drag and Drop Personalization; IDOL Deep Video Indexing Advanced Features; Geo-Cluster Maps; Intent-Based Ranking; Interlinking; Multi-Dimensional Index & Query Throttling; and Quantum Clustering. - The industry's first electronic discovery of VMware virtual environments, extending Autonomy ZANTAZ's lead in discovering over 1,000 types of electronically stored information. - Compliance with the newly-released EDRM XML standards for electronic discovery, supporting interoperability and faster, more efficient e-discovery. - Autonomy etalk's Qfiniti Web Access, an enhanced secure and robust thin-client user interface for accessing the etalk Intelligent Contact Center solutions suite, eliminating time-consuming installation and extending customer service compliance and quality management to globally distributed offices and external business partners in the most cost-effective manner. During the first quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology, including: - Dr Mike Lynch, Autonomy's founder and CEO, being named the winner of the highly coveted Innovator of the Year award for pioneering new approaches to search and information processing technology at The European Business Leaders Awards 2008. - Being named leader in the February 2008 Forrester Wave(TM): Message Archiving Hosted Services, Q1 2008 report, wherein "[Forrester] found that Autonomy ZANTAZ leads the pack with strong search functionality and vision for its services." - Being named a leader in the February 2008 Forrester Wave(TM): Message Archiving Software, Q1 2008 report, and thus the only leader in both of Forrester's two main reports on the sector. - Autonomy etalk's Qfiniti Enterprise receiving a 2007 Product of the Year Award from Technology Marketing Corporation (TMC) Customer Interaction Solutions magazine. - Being selected as one of the "100 Companies that Matter in Knowledge Management" by KMWorld, a leading industry publication, for the eighth consecutive year. - Recognition from Ovum, the independent analyst and consulting company, as the leader in the enterprise information access market, ranked by its market position and breadth of functional scope and appropriateness for the enterprise.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, Lloyds 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 350 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, Virage, a visionary in rich media management and security and surveillance technology and Meridio, a leading provider of records management software.
Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.
AUTONOMY CORPORATION plc CONSOLIDATED INCOME STATEMENTS (in thousands, except per share amounts) Three Months Ended (unaudited) March March 31, 2008 31, 2007 $'000 $'000 Revenues (see note 2) 105,088 65,475 Cost of revenues (excl. amortisation) (11,624) (5,465) Amortization of purchased intangibles (5,280) (1,900) Total cost of revenues (16,904) (7,365) Gross profit 88,184 58,110 Operating expenses: Research and development (19,788) (13,606) Sales and marketing (33,043) (22,562) General and administrative (11,145) (6,080) Other costs Post-acquisition restructuring costs (300) - Profit (loss) on foreign exchange 328 (412) Total operating expenses (63,948) (42,660) Profit from operations 24,236 15,450 Share of loss of associate (690) (349) Interest receivable 723 1,503 Interest payable (656) (524) Profit before income taxes 23,613 16,080 Income taxes (see note 3) (7,168) (5,090) Net profit 16,445 10,990 Basic earnings per share $ 0.08 $ 0.06 Diluted earnings per share $ 0.08 $ 0.06 Weighted average number of ordinary shares outstanding 213,431 188,866 Weighted average number of ordinary shares outstanding, assuming dilution 217,541 191,986 Reconciliation of Adjusted Financial Measures $'000 $'000 Gross profit ............................................. 88,184 58,110 Amortization of purchased intangibles.................................. 5,280 1,900 Gross profit (adjusted)................................... 93,464 60,010 Profit before income taxes.................... .................. 23,613 16,080 (Profit) loss on foreign exchange..................................... (328) 412 Amortization of purchased intangibles.................................. 5,280 1,900 Share of loss of associate.................................... 690 349 Share-based compensation (see note 4)....................... ............ 1,581 777 Post-acquisition restructuring costs......................................... 300 - Profit before tax (adjusted)................................... 31,136 19,518 Provision for income taxes........................................ (9,452) (6,178) Net profit (adjusted)................. ................. 21,684 13,340 Profit from operations................................... 24,236 15,450 (Profit) loss on foreign exchange..................................... (328) 412 Amortization of purchased intangibles.................................. 5,280 1,900 Share-based compensation (see note 4)...................................... 1,581 777 Post-acquisition restructuring costs........................................ 300 - Profit from operations (adjusted)................ ................ 31,069 18,539 AUTONOMY CORPORATION plc CONSOLIDATED BALANCE SHEETS (in thousands, except share data) As at (unaudited) March 31, December 2008 31, 2007 $'000 $'000 ASSETS Non-current assets: Goodwill....................................... 821,700 820,147 Other intangible assets........................................ 110,950 113,956 Property and equipment, net........................................... 28,935 28,788 Equity and other investments ............................................... 13,390 20,010 Deferred tax asset......................................... 8,112 8,862 Total non-current assets........................................ 983,087 991,763 Current assets: Trade receivables, net.......................... ................ 111,771 110,468 Other receivables................................... 22,694 21,019 Total trade and other receivables................................... 134,465 131,487 Inventory..... 514 583 Cash and cash equivalents.................................... 95,486 92,571 Total current assets......................................... 230,465 224,641 TOTAL ASSETS...................... ................. 1,213,552 1,216,404 CURRENT LIABILITIES Trade payables...................................... (12,676) (11,595) Other payables...................................... (19,492) (29,374) Total trade and other payables...................................... (32,168) (40,969) Bank loan.......................................... (10,637) (10,638) Tax liabilities.................................... (12,917) (20,118) Deferred revenue....................................... (80,213) (77,491) Provisions................. ................. (995) (1,099) Total current liabilities................................... (136,930) (150,315) Net current assets.......................................... 93,535 74,326 NON-CURRENT LIABILITIES Bank loan......................................... (34,572) (37,231) Deferred revenue....................................... (13,351) (20,389) Other payables...................................... (11,107) (9,899) Provisions....................................... (109) (257) Total non-current liabilities................................... (59,139) (67,776) Total liabilities................................... (196,069) (218,091) NET ASSETS.........................................1,017,483 998,313 Shareholders' equity: Ordinary shares (1)............................................... 1,201 1,196 Share premium account........................................ 785,444 780,888 Capital redemption reserve............................................ 135 135 Own shares......................................... (943) (981) Merger reserve..................... ................. 27,589 27,589 Stock compensation reserve....................... ............... 10,981 9,438 Revaluation reserve....................................... 3,566 10,163 Translation reserve....................... ............... 25,101 23,801 Retained earnings...................................... 164,409 146,084 TOTAL EQUITY........................................ 1,017,483 998,313------------
(1) At March 31, 2008 , 600,000,000 ordinary shares of nominal value
The accompanying quarterly consolidated financial statements of Autonomy Corporation plc have been prepared in conformity with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS") as adopted by the EU. The accounting policies applied are consistent in all material respects with those applied in the Company's Annual Report for the year ended December 31, 2007 . Whilst the financial information included in this quarterly announcement has been computed in accordance with International Financial Reporting Standards (IFRSs) and IAS 34 Interim financial reporting, this announcement does not itself contain all of the disclosures required by IFRSs and IAS 34.
Quarterly 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 ended March 31, 2008 , are not necessarily indicative of the operating results for future operating periods. The quarterly 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, 2007 . These have been delivered to the Registrar of Companies and the auditor's report thereon was unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s237(2) or (3) Companies Act 1985.
These financial statements for the three months ended March 31, 2008 , 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 April 24, 2008 . The financial information for the year ended December 31, 2007 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s237(2) or (3) Companies Act 1985.
2. Geographical information
The following table provides an analysis of the group's sales by geographical market based upon the location of the Group's customers:
Three Months Ended (unaudited) March March 31, 31,2007 2008 $'000 $'000 Revenue by region: (restated) 63,902 38,555 Americas..................... Rest of 41,186 26,920 World............. 105,088 65,475 Total...... The quarterly report in Q1 2007 presented the above on the basis of the
location of the Group's assets. As noted in the 2007 annual report the
directors have changed the presentation as they believe the revised
presentation to be more appropriate under IAS 14. The financial impact of
this restatement has been to reallocate approximately
Share based compensation charges have been charged in the income statement within the following functional areas:
Three Months Ended (unaudited) March March 31, 31, 2008 2007 $'000 $'000 Research and 522 256 development................................................................... Sales and 854 420 marketing..................................................................... General and administrative 205 101 .......................................................................... Total share based compensation 1,581 777 charge..................................................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 March 31, 2008 , 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.
Directors' responsibilities
The quarterly financial report is the responsibility of, and has been approved by, the directors.
As disclosed in note 1, the annual financial statements of the company are prepared in accordance with the recognition and measurement criteria of 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
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 quarterly 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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying quarterly financial information is not prepared, in all material respects, in accordance with the recognition and measurement criteria of IFRSs as adopted for use in the EU and the basis set out in note 1.
Deloitte & Touche LLP Chartered Accountants and Registered Auditor April 24, 2008 Cambridge, UK Financial Media Contacts: Analyst and Investor Contacts: Edward Bridges/Haya Chelhot Sushovan Hussain, Chief Financial Officer Financial Dynamics Autonomy Corporation plc +44(0)20-7831-3113 +44(0)1223-448-000SOURCE Autonomy Corporation plc
