News

Autonomy Corporation Announces Record Second Quarter 2000 Results

Quarterly Revenues and Gross Profits Increase 174% and 168%, respectively, versus 2Q99

Gross Margins Remain High at 90%

Second Quarter Net Income Improves to $3.4 million

Autonomy's second quarter conference call will be available live on the Internet at www.autonomy.com or www.streetfusion.com at 3:00 PM BST/10:00 AM EST/7:00 AM PST.

Please note: full financials are downloadable as a PDF file here.

SAN FRANCISCO, California and CAMBRIDGE, England - August 3, 2000 - Autonomy Corporation plc (NASDAQ: AUTN, EASDAQ: AUTN), a leading provider of infrastructure technology that automatically operates on vast amounts of unstructured information for Web, Commerce and Enterprise applications, today reported record financial results for the second fiscal quarter ended June 30, 2000. Autonomy listed on the Nasdaq in May 2000 after having listed on the Easdaq in July 1998.

KEY FEATURES

	Three Months Ended			Six Months Ended
Results in USD ($000's except per share)	June 30 2000	March 31 2000	June 30 1999	June 30 2000	June 30 1999
Revenue	14,624	11,702	5,334	26,326	8,730
Gross Profit Margin	13,226	10,926	4,933	24,152	7,692
Gross Profit %	90%	93%	92%	92%	88%
Net Income (loss)	$3,385	$346	$(18)	$3,731	$(939)
Earnings (loss) per share*
basic	$0.03	$0.00	($0.00)	$0.03	($0.01)
diluted	$0.03	$0.00	($0.00)	$0.03	($0.01)

*All share information reflects a 3-for-1 stock split effective as of August 1, 2000.

Second Quarter Corporate Highlights Include:

Autonomy signs agreements with blue-chip clients including Hewlett Packard, PepsiCo, Deutsche Bank, Compaq Computer, Sun Microsystems
Indirect channel strategy drives forward with new, high profile OEM & VAR relationships
Major strategic contract in Asia Pacific
Senior management team strengthened with new hires

Commenting on the results, Autonomy CEO Dr Mike Lynch, said: "The second quarter of 2000 was one of focused execution and strong performance for Autonomy world-wide. We enhanced profitability for the second consecutive quarter due to excellent revenue growth and continued high gross margins, in line with our focus on being a leading provider of core infrastructure technology.

"During the quarter we secured significant wins across all of our core markets, with Autonomy's client list continuing to grow with the addition of blue chip clients across a broad group of industries and government sectors. In addition, we continue to drive our international expansion, securing a significant contract with Hutchison Whampoa's Tom.com, the largest portal site in China. Finally, our commitment to expand Autonomy's indirect channel model also proved successful during the quarter, with further extensions of our partnership network to include several new OEMs and VARs in both the US and Europe.

"Going forward, we will continue to execute our strategy of driving our business into new markets, business sectors and industries, as well as leveraging our technology into new applications via indirect distribution channels."

Second Quarter Operating Highlights

Financial Results

Revenues for the quarter totaled $14.6 million, up 174% from $5.3 million for the second quarter of 1999 and up 25% from $11.7 million for the first quarter of 2000. US and Asia Pacific revenues totaling $7.5 million were 51% of total second quarter revenues, up 427% from the second quarter of 1999 and 15% from the first quarter of 2000.

Gross profits for the quarter were $13.2 million, up 168% from $4.9 million in the second quarter of 1999 and up 21% from $10.9 million in the first quarter of 2000. Second quarter gross margins are consistently high at 90%, compared to 92% in the second quarter of 1999, and compared to 93% in the first quarter of 2000.

Net income for the second quarter was $3.4 million, $0.03 per share, compared to a net loss of $18,000, ($0.00) per share, for the second quarter of 1999, and compared to net income of $346,000, or $0.00 per share, for the first quarter of 2000. Excluding foreign exchange gains and UK National Insurance cost, net income was $1.3 million, $0.01 per share.

Enterprise Wins

Autonomy's technology has attracted important new clients in the enterprise information market, with significant sales across sectors including consumer products, finance and banking, technology and construction. Autonomy's second-quarter enterprise wins include:

PepsiCo, Inc. - One of the most successful consumer products companies in the world, PepsiCo, has employed the Autonomy Server™ as the foundation for its on-line customer community and its global selling resource applications. These Intranet applications manage the relationships of the top 15 PepsiCo vendors in order to manage distribution, inventory and on-line customer community. This deal was facilitated through Navigator Software, a leading E-Services technology consultancy and solutions developer in the Dallas/Ft. Worth area.
Deutsche Bank - The biggest bank in the euro zone, with over 1,500 branches, Deutsche Bank has adopted Portal-in-a-Box™ to leverage the activities of its sales staff in its Institutional Client Group, by automatically delivering personalized market information, according to users' interests and expertise. The product integrates with a Siebel CRM solution to provide an end-to-end customer-focused sales solution. This project was managed through Morse, a leading European technology integrator.
Sun Microsystems - One of the leading providers of hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet, Sun Microsystems has selected Autonomy's technology as a foundation for its sales force automation portal and its distance learning portal. Autonomy enables Sun personnel to connect with critical information including external Web content and internal proposals, RFIs, RFPs, competitive analysis, announcements, as well as training materials in a highly personalized environment. This deal was facilitated by MarchFirst, formerly known as USWeb/CKS, one of the premier E-Business consulting groups in the world.
Razorfish - One of the leading technology consultancies for building and deploying E-Business solutions, Razorfish, uses Portal-in-a-Box™ internally as the foundation for a global knowledge management application. With over 1500 users, Razorfish is consolidating, categorizing, personalizing and delivering vast amounts of information in multiple languages brought into the corporate knowledge base through the company's rapid growth and expansion. In addition, Razorfish is also using the Autonomy community function to easily identify individuals with specific domain expertise, regardless of their location.
Imation - Spun-out of 3M's data storage and imaging businesses, Imation is the global leader in data storage, information management, imaging, and color management technologies and products. Using Autonomy Server™, Autonomy Update™, and Autonomy Builder™, Imation is enabling its employees to access a wealth of information stored in the enterprise's document archives. This sale was implemented with Agency.com, a leading E-Business services provider.
US Department of Energy - One of the largest Federal agencies, the US Department of Energy (DOE), is using Autonomy's technology as a critical component of its Nuclear Waste Disposal program. Using Autonomy Server™, the DOE is able to automatically categorize, hyperlink and retrieve terabytes of research reports, environmental studies, Senate committee transcripts and Government regulations. This sale was effected through GRC International Inc., a leading technology reseller for the public sector.
Clerical Medical - A leading UK investment company, Clerical Medical, has adopted Autonomy's Portal-in-a-Box™ to automatically alert researchers and fund managers to relevant market information. Portal-in-a-Box™ takes information from sources, such as the Web, and specialist business information services, such as Reuters, and automatically personalizes it to each fund manager's specialties and interests, sending real-time e-mail messages as soon as relevant information becomes available.
Keyware Technologies - Boston and Benelux-based Keyware Technologies, a specialist in biometric smart card technology, has adopted Autonomy's technology to automatically deliver strategic competitive information to personnel across its global marketing operations, from multiple Internet sites.
Kenniscentrum CIBIT - A leading Netherlands professional services company, Kenniscentrum CIBIT, has adopted Autonomy's technology to add value to the internal and external information sources used by its expert consultants to supervise IT projects for international industries and governments. Kenniscentrum's recent clients include banking and insurance corporations as well as government bodies such as the European Commission.

New Media Wins

The New Media applications of Autonomy's technology continue to grow as content providers and other Internet facing enterprises realise the cost implications of manually maintaining a Web presence. During the second quarter, Autonomy added the following major customers:

Tom.com - Using Autonomy's technology, Asian telecommunications giant Hutchison Whampoa has set up the first series of portals designed specifically for the Chinese community. The portals, which will represent Chinese interests throughout Asia Pacific, will automatically personalize content to users' interests and needs, in Chinese, Japanese, Korean and, for the international non-Chinese audience, English, Spanish, German and French. The portals will make extensive use of Autonomy's technology infrastructure to turn the users' interaction with the site into a productive and interest-focused experience. This is Autonomy's first significant contract in the Asia Pacific market and one which also provides for Tom.com to become an authorized reseller and integrator of Autonomy's technology throughout China.
Bauer Verlag - The leading German publishing house, Bauer Verlag, with 93 titles and a readership of over 20 million, has adopted Autonomy's technology to automatically personalize the content of its Bravo publication, in order to offer the reader a more productive online experience and turn one-time visitors into regular users. This sale was effected through Hamburg-based VAR consultancy Ponton Group AG, an Autonomy partner.
XMSatellite Radio - XMSatellite Radio is developing a new system for delivering digital radio broadcasts via satellite. With both General Motors Corporation and Honda America as key backers, XMSatellite Radio will be delivering up to 100 channels of digital music, news, sports, and children's programming. Using Autonomy's Portal-in-a-Box™, XMSatellite is building an application for its DJ's and Programming Managers.
aOnline - aOnline is a leading provider of news and information services to the Asian American community. Using Autonomy Server™, Autonomy Update™, and Autonomy Builder™, aOnline is delivering a comprehensive on-line information portal, incorporating a wealth of content automated by Autonomy and featuring Autonomy community services, designed to be the single-source on-line service for Asian Americans.
J & S Dialog Media - Dialog Media has implemented Autonomy's technology to create an automatically personalized portal for one-to-one Internet marketing. This sale was effected through CH 850, an Autonomy New Media VAR in Germany.

Strategic Partnerships and OEMs

Autonomy's indirect channel model continued to expand during the second quarter, with new strategic relationships and OEM agreements having been signed with the following organizations:

Hewlett Packard - Hewlett Packard, a global leader in hardware, systems and office equipment, with over 85,000 employees, has included Autonomy's technology within its enterprise-wide HP Corporate Portal offering. Incorporating Autonomy in the portal enables the automatic personalization, categorization and delivery of business-critical corporate content in the form of Web pages, intranet pages, e-mails and office documents.
Compaq Computer Corporation - The largest supplier of computing systems in the world, Compaq Computer, selected Autonomy as a key technology provider for its new Global Knowledge Management Solutions product on a worldwide basis. Compaq will implement Autonomy's Portal-in-a-Box™ for customers looking to rapidly deploy automated solutions for enterprise portals, knowledge management and a variety of other solutions that require mastering and delivering unstructured information both within and outside the corporate firewall.
Agency.com - Agency.com, a leading international Internet professional services firm, selected Autonomy as a core technology platform for delivering turnkey systems that automate unstructured information for a wealth of E-Business solutions. Agency.com provides an integrated set of strategy, branding and technology services that take clients from concept to launch and operation of their interactive businesses.
BioQ.com - BioQ.com is a software provider creating internet based solutions to help life science companies navigate the FDA regulatory maze. Its software tools are designed to enable companies to shorten the new drug development cycle, improve the quality of regulatory submissions and ensure compliance with federal regulations. BioQ.com has embedded Autonomy technology as part of its suite of products.
Ping Pong.com - Ping Pong.com, an e-commerce company, has embedded Autonomy's technology within its forthcoming browser-based product. Delivering highly relevant and personalized content, PingPong.com aims to provide a more user-friendly and relevant web experience for business and consumer users. PingPong.com is a spinout of Kingston Technology, the leading provider of memory products for electronic devices.
Rubus - Formerly known as NVision, Rubus has embedded Autonomy's technology within its MyContentAnywhere solution, to create a fully personalized information service via SMS, WAP, Web and interactive TV. The MyContentAnywhere solution was developed at Rubus' Innovation Centre, where further products are currently also being developed.
Europstat - The first European specialist entirely devoted to Business Intelligence technologies, Europstat has entered into an integrator relationship with Autonomy. The company, which offers a range of services in e-commerce, customer relationship management (CRM), knowledge management, economic intelligence and risk analysis, will integrate Autonomy on a project-by-project basis.
Athena 2000 - The Internet branch of the Italian Fininvest corporation, whose clients include Dun & Bradstreet, Mondadori, and Versace, has become an Autonomy reseller, facilitating the company's transformation from new media agency to "cross media factory" - a digital services provider addressing the whole portfolio of needs for businesses who want to take their activities online. Athena 2000 will resell Autonomy's solutions to a fast-growing B2B and B2C portal market in Italy.

Industry Recognition.

IDT Software Product of the Year - Portal-in-a-Box™ was named Software Product of the Year (Info-Logiciel de l'annxe) in May 2000 at the 17th Salon IDT event, France's major IT products and services showcase. Portal-in-a-Box™ was previously voted Product of the Year at the UK Information Management Awards 1999 and Crossroads 2000 in the US.

Strengthened Management Team

Autonomy is pleased to announce the addition of two key individuals who will be instrumental in helping Autonomy manage and sustain its growth.

Vatche Kalaidjian, 32, formerly of the Deutsche Bank Technology Group, has been appointed Director of Business Development for Autonomy's new Business Development Unit. Mr. Kalaidjian was a key member of the Deutsche Bank Technology Group since 1998 and specialized in both mergers and acquisitions (Mx) and equity offerings for technology companies in Europe. Mr. Kalaidjian was instrumental in managing Autonomy's NASDAQ listing in May 2000. Mr. Kalaidjian is a graduate of Harvard Business School and holds a BEng from the University of Bristol and a M.S. in Electrical Engineering from the University of Southern California. Previously, he worked with Venrock Associates, the venture capital arm of the Rockefeller Family. Prior to this, he worked as VP Technology for Media Circus and was a founding member of two technology companies, Rev Entertainment and Eidolon.

Ian Black, 37, has joined Autonomy as Head of Corporate Communications from BAE Systems (formerly British Aerospace), where he held a similar post. Mr. Black brings over 20 years of internal and external communications and management experience to Autonomy. Over the last eleven years, he established and integrated the internal, public affairs and marketing communication departments throughout BAE Systems before more recently leading its extranet and Internet deployment strategy and implementing Europe's first corporate intranet portal, now used by 44,000 intranet users worldwide at BAE. In addition, Mr. Black brings extensive product launch and corporate identity experience to his new role.

Safe Harbor/Forward-looking Statements

This press release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including, without limitation, any statements as to future events or future financial results of Autonomy Corporation plc, may be significantly and materially impacted by risks and uncertainties. In evaluating such statements, readers should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation, factors described in the Company's reports and documents filed from time to time with the Securities and Exchange Commission, including its registration statement on Form F-1, File no. 333-11804.

Financial Media Contacts:	Analyst and Investor Contacts:
Dominic Johnson, Marketing Director Autonomy Corporation plc (44) 1223 421 220 Edward Bridges/Alastair Hetherington Financial Dynamics (44) 020 7831 3113 Ann Travers Brainerd Communicators, Inc. 212 986 6667	Ralph Harms, Chief Financial Officer Autonomy Corporation plc 415-243-9955 John Buckley Brainerd Communicators, Inc. 212-986-6667