News

AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2002

First Half Adjusted Profits* Increase 21% from First Half of 2001, but Challenging European Trading Conditions Affect Q2 2002 Revenues

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

SAN FRANCISCO, California and CAMBRIDGE, England - July 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 second quarter and six months ended June 30, 2002.

Financial Highlights

	Three Months Ended			Six Months Ended
Results in US$	(unaudited)			(unaudited)
Results in US$	June 30, 2002	March 31, 2002	June 30, 2001	June 30, 2002	June 30, 2001
($000's except per share)
Revenues	$ 12,171	$ 14,076	$ 14,192	$ 26,247	$ 28,850
Gross profit	$ 11,886	$ 13,900	$ 13,839	$ 25,786	$ 27,783
Gross profit margin	98%	99%	98%	98%	96%
Adjusted net profit*	$ 1,200	$ 3,211	$ 2,069	$ 4,410	$ 3,639
Adjusted EPS*
- basic	$ 0.01	$ 0.03	$ 0.02	$ 0.03	$ 0.03
- diluted	$ 0.01	$ 0.03	$ 0.02	$ 0.03	$ 0.03

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

Second Quarter 2002 Corporate Highlights

First half adjusted profits increase 21% from first half of 2001
Profit before tax for Q2 2002 is $0.2 million
Gross margins remain high at 98%
U.S. business performed well
Blue chip second quarter wins include Omnitel Vodafone, Hewitt Associates, EnCana, Verizon, Astra Zeneca, General Motors, Sun Microsystems, the U.S. Department of Treasury Law Enforcement and the U.S. Department of Defense
Autonomy OEM program on track with four new agreements, including Art Technology Group, and an expanded relationship with Vignette for its next generation product
Average contract size increases to approximately $400,000 from $343,000 in Q1 2002
Strong balance sheet with $148.0 million in cash
Tenth consecutive quarter of profitability

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "Autonomy today announced results in-line with its revised guidance. We are able to report today that Autonomy's first half adjusted profits have increased 21% from 2001, leading Autonomy to its tenth consecutive quarter of profitability. We've achieved this despite the difficult conditions in the software markets, and an unexpected return of weakness in Europe's economy that impacted our European revenues."

Dr. Lynch continued, "We remain positive about our prospects, are encouraged by the performance in the U.S., and continue to monitor the situation in Europe. Our ability to remain profitable demonstrates the resilience and flexibility of our business model. Our OEM business continues to be strong, and our demonstrable ROI enables us to perform well relative to the sector. We have taken the opportunity afforded us by the favourable hiring market to increase our R&D and sales and marketing efforts. At the same time, the company remains focused on exploiting the underlying strength of our business, underpinned by profitability, our cash balance of $148 million, and the ROI-based demand for our products."

Second Quarter and Six Month 2002 Financial Highlights

Revenues for the second quarter totalled $12.2 million, down 14% from $14.1 million for the first quarter of 2002, and down 14% from $14.2 million for the second quarter of 2001. U.S./Asia Pac revenues of $7.9 million were 65% of total revenues and U.K./European revenues totalling $4.3 million were 35% of total revenues in the second quarter of 2002. Revenues for the six months ended June 30, 2002 totalled $26.2 million, down 9% from $28.9 million for the six months ended June 30, 2001.

Gross profits for the quarter were $11.9 million, down 14% from $13.9 million in the first quarter of 2002, and down 14% from $13.8 million in the second quarter of 2001. Second quarter gross margins were 98%, compared to 99% in the first quarter of 2002 and compared to 98% in the second quarter of 2001. Gross profits for six months ended June 30, 2002, were $25.8 million, down 7% from $27.8 million for the six months ended June 30, 2001. Gross margins for the six months ended June 30, 2002, were 98%, compared to 96% for the six months ended June 30, 2001.

Adjusted net income for the second quarter of 2002 was $1.2 million, or $0.01 per diluted share, compared to adjusted net income of $3.2 million, or $0.03 per diluted share, for the first quarter of 2002 and compared to adjusted net income of $2.1 million or $0.02 per diluted share, for the second quarter of 2001. Adjusted net income for the six months ended June 30, 2002, was $4.4 million, or $0.03 per diluted share, compared to adjusted net income of $3.6 million, or $0.03 per diluted share, for the six months ended June 30, 2001. Adjusted net income and earnings per share excludes translational foreign exchange gains and losses and associated tax effects for all periods. Net income for the second quarter of 2002 was $1.2 million, or $0.01 per diluted share, compared to net income of $3.4 million, or $0.03 per diluted share, for the first quarter of 2002 and compared to net income of $1.5 million or $0.01 per diluted share, for the second quarter of 2001. Net income for the six months ended June 30, 2002, was $4.6 million, or $0.04 per diluted share, compared to net income of $7.3 million, or $0.05 per diluted share, for the six months ended June 30, 2001.

Cash increased in the quarter to $148.0 million, compared to a balance of $145.4 million at the end of the first quarter of 2002, and compared to $137.3 million at the end of the second quarter of 2001.

Accounts receivable days sales outstanding rose to 126 days for the second quarter of 2002, compared to 90 days for the first quarter of 2002. Receivables for the second quarter were $16.8 million compared to $13.9 million for the first quarter of 2002, and compared to $15.3 million for the second quarter of 2001. Deferred revenues were $7.6 million gross ($3.2 million net) at June 30, 2002, compared with $9.7 million gross ($3.5 million net) at March 31, 2002, and compared with $8.2 million gross ($3.6 million net) at June 30, 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 Omnitel Vodafone, Hewitt Associates, the Port Authority of Singapore, the Belgian Federal Government, EnCana, Verizon and the U.S. Department of Treasury Law Enforcement. Repeat business from existing customers, such as Astra Zeneca, General Motors, AT&T, Ericsson, Credit Lyonnais, the British Tourist Authority, Philips, Sun Microsystems, the U.S. Department of Defense and a number of U.S. intelligence agencies, accounted for approximately 32% of revenue for the quarter.

Strategic Partnerships and OEMs

Autonomy's OEM Program continues to progress according to plans with four new OEM agreements, including Art Technology Group for online customer relationship management, and an expanded OEM agreement with Vignette for its next generation product. OEM-derived revenues for the second quarter of 2002 of $2.7 million accounted for approximately 22% of revenues, down 10% from $3.0 million for the first quarter of 2002, and up 4% from $2.6 million in the second quarter of 2001. OEM-derived revenues included $1.6 million of pre-paid royalties in the second quarter of 2002, up 33% from $1.2 million for the first quarter of 2002, with ongoing OEM royalties of $0.8 million in each of the first and second quarters of 2002.

Q2 Corporate Developments

During the second quarter of 2002, Autonomy's infrastructure technology was highlighted by Giga Information Group in research entitled "Finding Value in Context", for its ability to find context in unstructured information, allowing for more accurate delivery of information and significant return on investments.

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 technology 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 Hutchison 3G, Channel 4, Deutsche Bank, AT&T, AstraZeneca, BAE Systems, Ford, Ericsson, General Motors, Lucent, Royal Sun Alliance, Sun Microsystems and public sector agencies including the UK Government's Department of Trade and Industry, NASA, the US Department of Defense and the US Department of Energy. Strategic reseller and OEM partners include leading companies such as BEA, Business Objects, Computer Associates, Hewlett Packard, IBM Global Services, Vignette and Sybase. The company 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 and Registration Statements on Form F-1.

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

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