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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2009
Record Q1 results ahead of consensus, with strong organic growth; Highest Q1 revenues and profits in Autonomy's history; Revenues up 23%; Profit Before Tax (adjusted)* up 87% to $58 million
Autonomy's first quarter conference call will be available live at www.autonomy.com on April 23, 2009, at 9:30 a.m. BST/4:30 a.m. EDT/1:30 a.m. PDT.
Cambridge, England - April 23, 2009 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the first quarter ended March 31, 2009.
Financial Highlights
| Three Months Ended | |||
| (unaudited) | |||
| March 31, 2009 | March 31, 2008 | ||
| Results in US$ ($'000s except per share) | $'000 | $'000 | |
| Revenues | 129,779 | 105,088 | |
| Gross profit (adjusted)* | 116,990 | 93,464 | |
| Gross profit margin (adjusted)* | 90% | 89% | |
| Profit from operations (adjusted)* | 58,056 | 31,069 | |
| Profit before tax (adjusted)* | 58,175 | 31,136 | |
| Net profit (adjusted)* | 40,178 | 21,684 | |
| Gross profit (IFRS) | 111,636 | 88,184 | |
| Gross profit margin (IFRS) | 86% | 84% | |
| Profit from operations (IFRS) | 50,299 | 24,236 | |
| Profit before tax (IFRS) | 49,977 | 23,613 | |
| Net profit (IFRS) | 34,516 | 16,445 | |
| EPS | |||
| - basic (adjusted)* | $ 0.17 | $ 0.10 | |
| - diluted (adjusted)* | $ 0.17 | $ 0.10 | |
| - basic (IFRS) | $ 0.15 | $ 0.08 | |
| - diluted (IFRS) | $ 0.15 | $ 0.08 | |
* 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 2009 Highlights
Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are delighted to announce another set of record quarterly results, with profits doubling, seeing strength in all areas including strong organic growth and performance by Interwoven in line with expectations. Once again, top line revenues, operating profits, bottom line profit before tax and EPS are all up significantly, ahead of consensus expectations. Overall Q1 unfolded as expected with its usual seasonality, despite the uncertain economic environment and our announcement and completion of a major corporate transaction in the quarter."
Dr. Lynch continued: "Our pipeline remains strong and our backlog remains stable. We continue to innovate through R&D, an example of which is our ICE product which is targeted at compliance applications, such as protecting personal information in enterprises and call centres."
Dr. Lynch continued: "I am also pleased to report that the integration of Interwoven is progressing ahead of our plans and exceeding our expectations. We have made a number of key announcements in these areas over the past few weeks."
Dr. Lynch concluded, "Given the evolving situation in the markets, we remain cautiously optimistic, and given our strong organic growth we expect to be discussing with analysts upgrades to their 2009 models at our analyst conference call. We will continue to monitor the situation throughout Q2."
First Quarter Financial Highlights
Revenues for the first quarter of 2009 totalled $129.8 million, up 23% from $105.1 million for the first quarter of 2008 driven by strong organic growth and the contribution from Interwoven during the stub period between completion on March 17, 2009 and the end of the quarter. In the first quarter of 2009, Americas revenues of $85.2 million represented 66% of total revenues and Rest of World revenues of $44.6 million represented 34% of total revenues (see note 2). The quarter demonstrated its traditional seasonal effects in revenue, profitability and deferred revenue movements.
Gross profits (adjusted) for the first quarter of 2009 were $117.0 million, up 25% from $93.5 million in the first quarter of 2008. Gross margins (adjusted) were 90% in the first quarter of 2009, versus 89% in the first quarter of 2008. Gross profits (IFRS) for the first quarter of 2009 were $111.6 million, up 27% from $88.2 million in the first quarter of 2008. Gross margins (IFRS) for the first quarter of 2009 were 86%, compared to 84% in the first quarter of 2008.
Net profit (adjusted) for the first quarter of 2009 was $40.2 million, or $0.17 per diluted share, compared to net profit (adjusted) of $21.7 million, or $0.10 per diluted share, for the first quarter of 2008. Net profit (IFRS) for the first quarter of 2009 was $34.5 million, or $0.15 per diluted share, compared to net profit (IFRS) of $16.4 million, or $0.08 per diluted share, for the first quarter of 2008.
Under IAS 38 the company is required to capitalize certain aspects of its research and development activities. The amount of R&D that was capitalized in first quarter of 2009 was $3.3 million. Q1 2009 R&D capitalization is offset by amortisation charges of $1.8 million arising from historical R&D capitalization. This results in a net credit (before tax) in the quarter of $1.5 million, and a net margin impact of 1%.
Cash balances were $132.3 million at March 31, 2009, a decrease of $66.9 million from the prior quarter as a result of the Interwoven acquisition. The aggregate Interwoven purchase price of approximately $790 million (including exercised options) was funded through a placing of shares, raising net proceeds of $308.5 million, a new loan facility of $200 million, and the two companies' existing cash balances. Cash outflow to Interwoven shareholders was approximately $600 million. At March 31, 2009, the company had net debt of $101.2 million. The remaining movements in cash flow during the quarter reflect a combination of strong cash generation from operating activities, proceeds from exercise of share options, instalment tax payments and payments in relation to purchases of property, plant and equipment.
Receivables at March 31, 2009, were $164.3 million, compared to $141.3 million for the prior quarter. Accounts receivable days sales outstanding - adjusting for Interwoven balances - were 88 days at March 31, 2009, compared to 84 days at December 31, 2008. Deferred revenues were $163.7 million at March 31, 2009, compared with $99.2 million at December 31, 2008.
The purchase price allocation for the Interwoven acquisition has not yet been finalized. A preliminary allocation of approximately $550 million has been attributed to goodwill and approximately $175 million to other intangible assets. During 2009 the formal valuation exercise will be completed and hence these balances remain subject to change.
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 has been adopted by enterprises to process information across all internal and external data formats and sources. During the first quarter of 2009, major customer wins included: Telecom Italia, Play.com, NetApp, Society of Petroleum Engineers, Toyota, Barclaycard, MetLife, Oxford Press, Lockheed Martin, Genentech, Telmex, T-Mobile, Sky, Bank of America, Bank of Thailand, Deutsche Bank, CMS Cameron McKenna, Singapore Airlines, Lloyds TSB, JPMC and Nikon. Q1 2009 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe, including in the United States, the United Kingdom, the Netherlands, Singapore, France, Australia, Canada, Malaysia, Mexico and South Africa. Repeat business from existing customers accounted for approximately 54% of revenue for the quarter.
Strategic Partnerships and OEMs
Autonomy's OEM Program continued to grow during Q1 2009. Agreements were signed with 12 customers during the quarter, including new and extended agreements with Symantec, Proof Point and Verdasys.
Q1 Corporate Developments
During the quarter Autonomy announced and completed the acquisition of Interwoven, Inc. The combination of the two companies will redefine how global 2000 corporations, leading law firms and government regulators will discover, analyze and manage information and interactions.
During the first quarter of 2009 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies, including:
During the first quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology, including:
About Autonomy Corporation plc
Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software for the enterprise, spearheads the Meaning Based Computing movement. It was recently ranked by IDC as the clear leader in enterprise search revenues, with market share nearly double that of its nearest competitor. Autonomy's technology allows computers to harness the full richness of human information, forming a conceptual and contextual understanding of any piece of electronic data, including unstructured information, such as text, email, web pages, voice, or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimization, rich media management and video and audio analysis.
Autonomy's customer base is comprised of more than 20,000 global companies, law firms and federal agencies including: AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler AG, Deutsche Bank, DLA Piper, Ericsson, FedEx, Ford, GlaxoSmithKline, Lloyds TSB, NASA, Nestlé, the New York Stock Exchange, Reuters, Shell, Tesco, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. More than 400 companies OEM Autonomy technology, including Symantec, Citrix, HP, Novell, Oracle, Sybase and TIBCO. The company has offices worldwide. Please visit www.autonomy.com to find out more.
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: |
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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 Q1 2009 Report (PDF)





















