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AUTONOMY CORPORATION...

AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2009

Record quarterly and half year results with strong organic growth; Highest revenues and profits in Autonomy's history; Q2 revenues up 55%; Q2 profit before tax (adjusted)* up 76% to $89.6 million; EPS (diluted and undiluted) ahead of expectations

Autonomy's second quarter conference call will be available live at www.autonomy.com on July 16, 2009, at 9:30 a.m. BST/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - July 16, 2009 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the second quarter and six months ended June 30, 2009.

Financial Highlights

* 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 6.

QUARTERLY REPORT AND INTERIM MANAGEMENT STATEMENT

Second Quarter 2009 Highlights

Six Month 2009 Highlights

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are pleased to announce another strong set of quarterly results, with strong revenue, profit growth and cash collection, and performance by Interwoven in line with expectations, and with our backlog increasing slightly. During the quarter top line revenues, operating profits, bottom line profit before tax, EPS and deferred revenue all increased significantly, resulting in continued strong cash generation enabling the early repayment of outstanding debt. Autonomy's performance was delivered despite the continued uncertain economic environment and the considerable integration work around the Interwoven acquisition, which is now essentially complete."

Dr. Lynch concluded, "Despite the continued uncertainty in the markets, we remain cautiously optimistic. We are seeing, for example with our recent significant legal hold license deal, the second of the three waves of regulatory technology investment. With the restructuring of the Interwoven business, we expect both Interwoven and Autonomy to show our traditional seasonality in Q3. This quarter's early wins lead us to believe that the new Meaning Based Marketing technologies will be a strong performer in the period immediately following any macro upturn."

Second Quarter and Six Month Financial Highlights

Revenues for the second quarter of 2009 totalled $195.2 million, up 55% from $125.6 million for the second quarter of 2008 due to strong organic growth and the contribution from acquisitions. In the second quarter of 2009, Americas revenues of $133.9 million represented 69% of total revenues, and Rest of World revenues of $61.3 million represented 31% of total revenues. Revenues for the six months ended June 30, 2009, totalled $325.0 million, up 41% from $230.7 million for the six months ended June 30, 2008.

Gross profits (adjusted) for the second quarter of 2009 were $171.6 million, up 50% from $114.3 million in the second quarter of 2008. Gross margins (adjusted) were 88% in the second quarter of 2009, versus 91% in the second quarter of 2008. Gross profits (IFRS) for the second quarter of 2009 were $156.5 million, up 43% from $109.2 million in the second quarter of 2008. Gross margins (IFRS) for the second quarter of 2009 were 80%, compared to 87% in the second quarter of 2008. Gross profits (adjusted) for the six months ended June 30, 2009 were $288.6 million, up 39% from $207.8 million for the six months ended June 30, 2008. Gross margins (adjusted) were 89% in the six months ended June 30, 2009, versus 90% for the six months ended June 30, 2008. Gross profits (IFRS) for the six months ended June 30, 2009 were $268.1 million, up 36% from $197.4 million for the six months ended June 30, 2008. Gross margins (IFRS) for the six months ended June 30, 2009 were 82%, compared to 86% for the six months ended June 30, 2008.

Net profit (adjusted) for the second quarter of 2009 was $63.6 million, or $0.26 per diluted share, compared to net profit (adjusted) of $35.4 million, or $0.16 per diluted share, for the second quarter of 2008. Net profit (IFRS) for the second quarter of 2009 was $50.9 million, or $0.21 per diluted share, compared to net profit (IFRS) of $30.5 million, or $0.14 per diluted share, for the second quarter of 2008.

Net profit (adjusted) for the six months ended June 30, 2009 was $103.7 million, or $0.43 per diluted share, compared to net profit (adjusted) of $57.1 million, or $0.26 per diluted share, for the six months ended June 30, 2008. Net profit (IFRS) for the six months ended June 30, 2009 was $85.4 million, or $0.36 per diluted share, compared to net profit (IFRS) of $46.9 million, or $0.22 per diluted share, for the six months ended June 30, 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 second quarter of 2009 was $4.1 million. Q2 2009 R&D capitalization is offset by amortization charges of $1.9 million arising from historical R&D capitalization. This results in a net credit (before tax) in the quarter of $2.2 million, and a net margin impact of 1%. R&D capitalization for the six months ended June 30, 2009 was $7.4 million, offset by amortization charges of $3.5 million during the period arising from historical R&D capitalization, resulting in a net credit (before tax) in the period of $3.9 million, and a net margin impact of 1%.

Cash balances were $152.5 million at June 30, 2009, a decrease of $46.7 million from $199.2 million at December 31, 2008. Movements in cash flow during the half year reflect a combination of good cash generation from operating activities, equity and debt financing for the Interwoven acquisition, and proceeds from exercise of share options, offset by the completion of the Interwoven acquisition, scheduled and early repayment of debt, capital expenditure and instalment tax payments.

Trade receivables at June 30, 2009, were $202.0 million, compared to $141.3 million at December 31, 2008. Accounts receivable days sales outstanding were 89 days for the second quarter of 2009, compared to 84 days at December 31, 2008. Deferred revenues were $170.2 million at June 30, 2009, compared with $99.2 million at December 31, 2008.

Intangible assets have increased to $407.1 million from $270.2 million at March 31, 2009. The increase from Q1 2009 to Q2 2009 is a result of a change in the provisional purchase price allocation for the Interwoven acquisition following the issuance of a draft report from the company's independent valuers.

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, nonrecurring 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.

Q2 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 second quarter of 2009, major customer wins included: Barclays Bank, Burgess Salmon, Commerzbank, Akin Gump, Standard Chartered Bank, Tesco, Shell, Novell, Kaiser Foundation, AT&T, Morgan Stanley, Johnson & Johnson, EDF, Wolters Kluwer, General Electric, Banco do Brasil, Bayer, Deloitte and eBay. Q2 2009 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe including in the U.S., the U.K., Singapore, Croatia, Malaysia and Japan. Repeat business from existing customers accounted for approximately 50% of revenue for the quarter.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q2 2009. Agreements were signed with 12 customers during the quarter, including new and extended agreements with Cisco, CCI, VMS and Siemens.

Q2 Corporate Developments

During the second quarter of 2009 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies, including:

During the second quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology, including:

Six Month Important Events

During the first half of 2009 the key events in the company's development have been the implementation of the company's business plan and successful announcement, completion and integration of the Interwoven acquisition. As expected, market drivers of regulatory changes such as the U.S. Federal Rules of Civil Procedure have resulted in a convergence of legal and operational information systems, driving growth in the company's historical and new business areas.

Risk Factors as Required by DTR 4.2.7(2)

As with all businesses, the Group is affected by certain risks, not wholly within our control, which could have a material impact on the Group's long term performance and could cause actual results to differ materially from forecast and historic results.

The principal risks and uncertainties facing the Group have not changed from those set out in the company's most recent prospectus, which does not form part of these interim statements. These include: dependence on our core technology; competition; levels of operational spending versus revenues; average selling price; economic and market conditions; reliance on value added resellers; continued service of our executive directors; hiring and retention of qualified personnel; product errors or defects; problems encountered in connection with potential acquisitions; and intellectual property claims.

In addition to the foregoing, the primary risk and uncertainty related to the Group's performance for the remainder of the year is the challenging macro economic environment, which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. This effect has been offset during the first six months of the year to some extent by the legal, regulatory and compliance issues which have arisen for enterprises in connection with the current economic environment.

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.

Download the full PDF version of the Autonomy 2009 Q2 Financial Results (PDF)

Q2 2009 Presentation Slides (PDF)