Financial Results
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News AUTONOMY CORPORATION... | AUTONOMY CORPORATION... | AUTONOMY CORPORATION...

AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2002 SHOWING SIGNIFICANT PROFIT GROWTH

Revenues and earnings increase from Q4 2001; EPS is $0.03 per share from $0.01 per share in Q4 2001

Autonomy's first quarter conference call will be available live on the World Wide Web at www.autonomy.com on Thursday, April 25, 2002 at 9:30 a.m. BST/4:30 a.m. EDT/1:30 a.m. PDT

SAN FRANCISCO, California and CAMBRIDGE, England - April 25, 2002 - Autonomy Corporation plc (Nasdaq: AUTN, LSE: AU., Nasdaq Europe: AUTN), a global leader in infrastructure software for the extended enterprise, today reported financial results for the first quarter ended March 31, 2002.

Financial Highlights

 Three Months Ended
Results in US$March 31, 2002 (unaudited)Dec. 31, 2001March 31, 2001
($000's except per share)
Revenues$14,076$13,480$14,658
Gross profit13,90012,85213,944
Gross profit margin99%95%95%
Adjusted net profit$3,210$1,829$1,570
Adjusted earnings per share*
- basic$ 0.03$ 0.01$ 0.01
- diluted$ 0.03$ 0.01$ 0.01

* Adjusted net profit and EPS excludes translational foreign exchange gains and losses and associated tax effects for all periods.

First Quarter 2002 Corporate Highlights

Commenting on the results, Dr. Mike Lynch, group CEO of Autonomy said, "We are pleased to announce today a significant increase in profits coupled with revenue growth. We have performed well in difficult sector conditions and in a traditionally seasonally weak quarter. The company is in a strong position to take advantage of the upturn, as we were strongly cash generative in the quarter and ended the quarter with a cash balance of $145.4 million. Our OEM business performed particularly well, and we were pleased to see the technology broadly applied over many areas such as e-learning, security, product life cycle management, sales automation, human resources and customer relationship management. In the first quarter our award-winning technology was selected by new and existing blue chip customers in a wide variety of industries throughout the world including the BBC, GM, Philip Morris, Sun Microsystems, McGraw Hill, AT&T, British Tourist Authority, the US Navy and the US Department of Labor. Our average contract size remained stable at $343,000 as companies continue to recognize the business benefits of our automated infrastructure."

Dr. Lynch continued, "Our global customer base continued to increase to more than 525 customers, ranging from major governments to many of the leading Fortune 500 companies. This success is built on the value proposition we bring to our clients, namely a rapid return on investment through automation. We enable enterprises to operate more efficiently, while providing our OEM and indirect channel partners with a solution to a fundamental problem - making sense and use of unstructured information in an efficient and effective manner."

First Quarter 2002 Financial Highlights

Revenues for the first quarter totalled $14.1 million, up 4% from $13.5 million for the fourth quarter of 2001, and down 4% from $14.7 million for the first quarter of 2001. U.S. revenues of $6.2 million were 44% of total revenues, European revenues totalling $7.8 million were 55% of total revenues and Asia Pacific revenues of $0.1 million were 1% of total revenues in the first quarter of 2002.

Gross profits for the quarter were $13.9 million, up 8% from $12.9 million in the fourth quarter of 2001, and unchanged from $13.9 million in the first quarter of 2001. First quarter gross margins were 99%, compared to 95% in both the fourth and first quarters of 2001.

Adjusted net income for the first quarter of 2002 was $3.2 million, or $0.03 per diluted share, compared to adjusted net income of $1.8 million, or $0.01 per diluted share, for the fourth quarter of 2001 and compared to adjusted net income of $1.6 million, or $0.01 per diluted share, for the first quarter of 2001. Adjusted net income excludes translational foreign exchange gains and losses and associated tax effects for all periods. Net income for the first quarter of 2002 was $3.4 million, or $0.03 per diluted share, compared to net income of $2.0 million, or $0.02 per diluted share, for the fourth quarter of 2001 and compared to net income of $5.7 million or $0.04 per diluted share, for the first quarter of 2001.

Cash increased in the quarter to $145.4 million, compared to a balance of $143.6 million at the end of 2001, and compared to $143.8 million at the end of the first quarter of 2001.

Accounts receivable days sales outstanding fell to 90 days for the first quarter of 2002, compared to 95 days for the fourth quarter of 2001. Receivables for the first quarter were $13.9 million compared to $14.2 million for the fourth quarter of 2001 and were $14.1 million at the end of the first quarter of 2001. Deferred revenues were $9.7 million gross ($3.5 million net) at March 31, 2002, compared with $9.1 million gross ($3.2 million net) at December 31, 2001, and compared with $8.8 million gross ($5.1 million net) at March 31, 2001.

Product Sales

Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data sources. During the quarter, major wins included: Blue Cross Blue Shield, PacifiCorp, Lafarge Edifixio, the British Tourist Authority, the Greek Army and the Dutch Government. Repeat business from existing customers, such as the BBC, Sun Microsystems, AT&T, GM, Philip Morris, Siemens, McGraw Hill, the UK Ministry of Defense and the US Department of Labor accounted for approximately 30% of revenue for the quarter.

Increasingly detailed ROI and business case studies are assisting the sales process in a number of unexpected ways. In the face of such stringent scrutiny, potential competitors are challenged to defend technologies that continue to require significant manual support. Conversely, while Autonomy's technology is able to provide significant return on investment in basic areas such as support and maintenance and reduced manualization, the scrutiny of ROI and thorough business case proposals is ensuring that the technology is deployed in sophisticated and innovative ways that further prove Autonomy's market leader status.

Strategic Partnerships and OEMs

Autonomy's OEM Program continues to progress according to plans with the addition of six new OEMs, including EDS for product life-cycle management, and others for sales automation, e-learning, security, storage, voice and video. OEM-derived revenues for the first quarter of 2002 accounted for approximately 21% of revenues, increasing to $3.0 million, up 36% from $2.2 million for the fourth quarter of 2001, and up 76% from $1.7 million in the first quarter of 2001. OEM-derived revenues included $1.2 million of pre-paid royalties in the first quarter of 2002 and ongoing OEM royalties of $0.8 million, compared with pre-paid royalties of $0.5 million for the fourth quarter of 2001 and ongoing OEM royalties of $0.6 million.

Q1 Corporate Developments

During the first quarter of 2002, Autonomy shipped its first PODS products, bringing Autonomy functionality seamlessly and easily into third-party applications. To further the development of the PODS Autonomy continued to hire new R&D personnel in to the new dedicated division. In addition, during the quarter Autonomy strengthened its U.S. management team with the appointment of two new senior managers to manage sales and operations, and appointed a new country manager for Germany.

About Autonomy Corporation plc

Autonomy Corporation plc (Nasdaq: AUTN; Nasdaq Europe: AUTN; LSE: AU.) is a global leader in infrastructure software for the enterprise. Autonomy's Intelligent Data Operating Layer (IDOL) powers applications dependent upon unstructured information including: e-commerce, customer relationship management, knowledge management, enterprise information portals, enterprise resource planning and online publishing. Autonomy's customer base includes more than 550 global companies, including Astra Zeneca, BAE Systems, Deutsche Bank, Ericsson, General Motors, Lucent, Royal SunAlliance, Sun Microsystems and public sector agencies including the United States Department of Defense, NASA and the United States Department of Energy. Strategic reseller and OEM partners include leading companies such as BEA, Business Objects, Computer Associates, Hewlett Packard, IBM Global Services, Oracle, Sybase and Vignette. Autonomy has offices in North America, Europe, Asia and Australia and is on the Web at http://www.autonomy.com.

Caution Concerning Forward-Looking Statements

With the exception of historical information, the matters set forth in this news release are forward-looking statements that involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, among others, technology risks, including dependence on core technology; fluctuations in quarterly results; dependence on new product development; rapid technological and market change; reliance on sales by others; management of growth; dependence on key personnel; rapid expansion; growth of the Internet; financial risk management; and future growth subject to risks. These factors and other factors which could cause actual results to differ materially are also discussed in the company's filings with the United States Securities and Exchange Commission, including Autonomy's Annual Report on Form 20-F.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

Financial Media Contacts: Analyst and Investor Contacts:
Ian Black, Director of Corporate Communications
Autonomy Corporation plc
+44 (0)1223 448 000
Sushovan Hussain, Chief Financial Officer
Autonomy Corporation plc
+44 (0)1223 448 000
Edward Bridges
Financial Dynamics
+44 (0)20 7831 3113
Edward Bridges
Financial Dynamics
+44 (0)20 7831 3113

Download the Adobe Acrobat version of the Q1 2002 Report (PDF)

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