Financial Results
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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2007

Record Q1 results ahead of consensus, driven by strong organic growth, with highest Q1 revenues and profits in Autonomy's history; Revenues up 17%; Profit Before Tax (adjusted)* up 89% to $19.5 million.

Autonomy's first quarter conference call will be available live at www.autonomy.com on April 25, 2007, at 9:30 a.m. GMT/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - April 25, 2007 - 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, 2007.

Financial Highlights

  Three Months Ended
  (unaudited)
  March 31, 2007 March 31, 2006
Results in US$ ($'000s except per share) $'000 $'000
Revenues 65,475 56,141
Gross profit (adjusted)* 60,010 50,588
Gross profit margin (adjusted)* 92% 90%
Profit from operations (adjusted)* 18,539 10,221
Profit before tax (adjusted)* 19,518 10,308
Net profit (adjusted)* 13,340 7,009
     
Gross profit (IFRS) 58,110 48,565
Gross profit margin (IFRS) 89% 87%
Profit from operations (IFRS) 15,450 7,005
Profit before tax (IFRS) 16,080 7,092
Net profit (IFRS) 10,990 4,823
     
EPS    
- basic (adjusted)* $ 0.07 $ 0.04
- diluted (adjusted)* $ 0.07 $ 0.04
     
- basic (IFRS) $ 0.06 $ 0.03
- diluted (IFRS) $ 0.06 $ 0.03

* Adjusted results exclude the share of loss of associates 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 2007 Highlights

Revenue up 17% from Q1 2006 from organic growth (16% pre-FX effect)
16th consecutive quarter of year-on-year growth
Strong organic growth in IDOL business of 21%
Licence revenue up 22%
Net profit (IFRS) up 128% from Q1 2006 to $11.0 million
Operational gearing sees operating margins (adjusted) at 28%, from 18% in 2006
Average selling price for meaning-based computing at $385,000 (Q1 2006: $309,000)
15 OEM deals signed include new deals and extensions with Oracle, IBM, Symantec, HP, Iron Mountain and Tibco
Particularly strong showing in e-commerce and media markets
Convera Federal sales team joins Autonomy
Gross margins (adjusted) at 92%
Fully-diluted EPS (IFRS) up 100% from Q1 2006
Blue chip first quarter wins include Credit Suisse, Nissan Alcatel, Vodafone, SFR, Shanghai Stock Exchange, Wolters Kluwer, UK National Archives, UK Competition Commission, Reed Business, BP, CNN and Dow Jones
Positive cashflow from operations of $20.0 million, up from $10.9 million in Q1 2006.
Cash balance of $145.1 million at quarter end and no net debt

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are extremely proud to once again announce record results, with record first quarter revenue and profits driven by strong organic growth. Once again our Q1 2007 results broke all company records for the quarter, with top line revenues, operating profits, bottom line profit before tax and EPS all up significantly from Q1 2006. The combination of strong organic revenue growth and operational gearing, achieved through our indirect sales model, resulted in continued growth in operating margins and bottom line profitability."

Dr. Lynch continued: "Our success over the years has allowed us to invest heavily in research and development, and has enabled us to maintain our sector leading position. Today we're pleased to announce the results of that investment. In a separate release this morning we announced that Autonomy will be floating to shareholders a significant new division to exploit our technology in the consumer space. We wish the team running the new venture every success and look forward to it fully exploiting the potential of the technology and its markets."

First Quarter Financial Highlights

Revenues for the first quarter of 2007 totalled $65.5 million, up 17% from $56.1 million for the first quarter of 2006 driven by strong organic growth. In the first quarter of 2007, North American revenues of $41.3 million represented 63% of total revenues and Rest of World revenues of $24.2 million represented 37% of total.

Gross profits (adjusted) for the first quarter of 2007 were $60.0 million, up 19% from $50.6 million in the first quarter of 2006. Gross margins (adjusted) were 92% in the first quarter of 2007, versus 90% in the first quarter of 2006. Gross profits (IFRS) for the first quarter of 2007 were $58.1 million, up 20% from $48.6 million in the first quarter of 2006. Gross margins (IFRS) for the first quarter of 2007 were 89%, compared to 87% in the first quarter of 2006.

Net profit (adjusted) for the first quarter of 2007 was $13.3 million, or $0.07 per diluted share, compared to net profit (adjusted) of $7.0 million, or $0.04 per diluted share, for the first quarter of 2006. Net profit (IFRS) for the first quarter of 2007 was $11.0 million, or $0.06 per diluted share, compared to net profit (IFRS) of $4.8 million, or $0.03 per diluted share, for the first quarter of 2006.

Cash balances were $145.1 million at March 31, 2007, an increase of $24.0 million from the prior quarter. Movements in cash flow during the quarter reflect a combination of record cash generation from operating activities and proceeds from exercise of share options, offset by the quarterly repayment of Autonomy's bank loan. Cash collection during the first quarter of 2007 was approximately $70 million, a company record. As of March 31, 2007, Autonomy had no net debt.

Trade receivables for the first quarter of 2007 were $69.5 million, compared to $77.3 million for the prior quarter. Deferred revenues were $48.2 million at March 31, 2007, compared with $52.5 million at December 31, 2006. The decrease is a result of a seasonality in timing of maintenance release and invoicing.

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 core business, such as the sale of its software products and services and operating profits without giving effect to certain specific, often non-recurring and non-cash charges. Consequently, the non-IFRS (adjusted) results exclude share of loss of associates and non-cash charges for the amortization of purchased intangibles, share-based compensation and foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's core business.

Q1 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 first quarter of 2007, major new wins included: SFR, Shanghai Stock Exchange, Viessmann Werke, UK Competition Commission, Telos and Weatherford. Repeat business from existing customers accounted for approximately 48% of revenue for the quarter, and included Credit Suisse, Alcatel, Schneider, BASF, CommerzBank, Vodafone, Wolters Kluwer, Swedish Parliament, UK National Archives, Reed Business, BP, Harper Collins, HMRC, Novartis, McAfee, Mercedes Benz, Conde Nast, Rio Tinto, Standard & Poors, Boeing, CNN, Dow Jones, BlueCross/BlueShield, BestBuy, EMC, GE, UK National Archives, Metropolitan Police and Nissan. Q1 2007 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe including in the U.S., U.K., Singapore, Belgium, Italy, Ireland, Sweden and the Netherlands.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q1 2007. Agreements were signed with 15 customers during the quarter, including new and extended agreements with Oracle, IBM, Symantec, HP, Iron Mountain and Tibco.

During the first quarter Autonomy announced that it has been chosen as the preferred partner for enterprise search and meaning-based technologies by Satyam Computer Services Ltd, (NYSE:SAY) a global IT consulting and services provider with acknowledged expertise in the ECM space. Autonomy also announced an expansion of its existing relationship with strategic business and technology consultants, Morse Plc. Morse has chosen Autonomy as its preferred vendor for the provision of meaning-based computing technologies and information infrastructure software for the enterprise.

Q1 Corporate Developments

During the first quarter of 2007 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies, including the introduction of the Intelligent Contact Center. The Intelligent Contact Center provides the ability to capture, share and analyze the critical structured and unstructured data that flows through the contact center, no matter what the format - be it text, email, IM, audio or video. It then enables data to be shared with the rest of the enterprise, providing multi-channel interaction analysis and real-time agent support. The result is enhanced operational performance, better customer support and actionable business insight.

During the quarter Autonomy also announced its Meaning Analytics Warehouse, a new IDOL module and the first data warehouse to perform bulk analysis and mining of the vast amounts of information contained in the enterprise including video, voice, email, applications, databases and hundreds of other file types by understanding the concepts, context and patterns contained in the information. Finally during the quarter Autonomy's Cardiff division announced the availability of the TeleForm Intelligent Document Classification Module, which automates high-volume scanned document classification by leveraging the power of Autonomy's IDOL to understand the meaning of the documents based on the concepts they contain.

During the first quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Autonomy was once again selected as one of the "100 Companies that Matter in Knowledge Management" by KMWorld, a leading industry publication, for the seventh consecutive year. Also during the quarter Dr. Michael Lynch, Autonomy's CEO and founder, was awarded the Technology Entrepreneur of the Year Award by the UK Technology Innovation and Growth Forum. Finally, the International Customer Management Institute's (ICMI) Call Center Magazine recognized Autonomy etalk's Intelligent Contact Center with the Product of the Year Award. Autonomy etalk also received a 2006 Product of the Year Award from Technology Marketing Corporation's (TMCR) Customer Inter@ction Solutions magazine (www.cismag.com).

About Autonomy Corporation plc

Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise. Autonomy's technology powers applications dependent upon unstructured information including call center, customer relationship management, knowledge management, enterprise portals, enterprise resource planning, online publishing and security applications.

Autonomy's customer base comprises more than 16,000 global companies and organizations including, among others, BAE Systems, Ford, Ericsson, Shell, Nestle, AOL, BBC, Reuters, Hutchison 3G, Royal Sun Alliance, Sun Microsystems, Philips, Boeing, Schneider Electric, Coca Cola, GlaxoSmithKline, Citigroup, ABN AMRO, Deutsche Bank, Nomura, the New York Stock Exchange, Daimler Chrysler, Kraft Foods, Lloyds TSB, the U.S. Department of Homeland Security, the U.S. Securities and Exchange Commission, NASA and the U.S. Department of Energy. Strategic reseller and OEM partners include leading companies such as BEA, Business Objects, Citrix, EDS, IBM, Novell, Veritas, Vignette, Supportsoft and Sybase. The company has offices worldwide.

The Autonomy Group includes: Aungate, a leader in technology for Real-Time Enterprise Governance; Virage, a leading supplier and visionary in Rich Media Management technology; etalk, a leading provider of enterprise-class contact center products, and Cardiff, a leader in content capture and business process management solutions.

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:
Edward Bridges/Haya Chelhot
Financial Dynamics
+44 (0)20 7831 3113
Sushovan Hussain, Chief Financial Officer
Autonomy Corporation plc
+44 (0)1223 448 000

Download the full PDF version of the Autonomy 2007 Q1 Financial Results.pdf (PDF)

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