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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009

Record Q3 results with strong organic growth; Highest Q3 revenues and profits in Autonomy's history; Q3 revenues up 51%; Q3 profit before tax (adjusted)* up 20% to $64.3 million

Autonomy's third quarter conference call will be available live at www.autonomy.com on October 20, 2009, at 9:30 a.m. BST/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - October 20, 2009 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the third quarter and nine months ended September 30, 2009.

Financial Highlights

	Three Months Ended		Nine Months Ended
	(unaudited)		(unaudited)
	Sept 30, 2009	Sept 30, 2008	Sept 30, 2009	Sept 30, 2008
Results in US$ ($'000s except per share)	$'000	$'000	$'000	$'000
Revenues	191,606	127,105	516,577	357,842
Gross profit (adjusted)*	163,962	117,310	452,516	325,061
Gross profit margin (adjusted)*	86%	92%	88%	91%
Profit from operations (adjusted)*	66,066	53,243	216,294	134,694
Profit before tax (adjusted)*	64,265	53,667	212,023	135,581
Net profit (adjusted)*	48,577	37,495	152,326	94,551

Gross profit (IFRS)	149,372	112,642	417,467	309,996
Gross profit margin (IFRS)	78%	89%	81%	87%
Profit from operations (IFRS)	50,645	47,459	175,310	115,562
Profit before tax (IFRS)	48,640	47,860	170,309	115,215
Net profit (IFRS)	36,766	33,438	122,157	80,354

EPS
- basic (adjusted)*	$0.20	$0.17	$0.64	$0.44
- diluted (adjusted)*	$0.20	$0.17	$0.63	$0.44

- basic (IFRS)	$0.15	$0.16	$0.52	$0.38
- diluted (IFRS)	$0.15	$0.15	$0.51	$0.37

* 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.

Third Quarter Highlights

Continued strong adoption of next generation combined Autonomy and Interwoven technologies

Record Q3 revenues, up 51% from Q3 2008 including strong organic growth and full quarter post-Interwoven integration

Launched IDOL SPE with stronger than expected response to Quick Start program

Fully diluted EPS (adj.) of $0.20, up 16% from Q3 2008

Deferred revenue stable at $169m as compared to Q2 2009 (Q3 2008: $106m)

Very strong cash collection and conversion; Q3 cash conversion of 131% (Q3 CFFO / Q3 adj EBITDA) LTM conversion of 86% (LTM CFFO / LTM adj EBITDA)

Strong organic growth of 15%

Operating margins (adjusted) at 34% despite product launch expenses higher than announced expectations (Q3 2008: 42%); Operating margins excluding new product effects at 43%

Positive cash flow generated from operations of $97.8 million (Q3 2008: $59.6 million); cash balances at $200.7 million at quarter-end

Record Q3 net profit (IFRS), up 10% from Q3 2008

26th consecutive quarter of year-on-year growth

Average selling price for meaning-based technologies at $436,000 (Q3 2008: $395,000)

Blue chip third quarter wins include Alstom, Arcelor Mittal, American Medical Association, AT&T, Avid, Bank of America, BBC, Butterfields, Boeing, Citi, CVR Energy, Eli Lilly, Fidelity, Hammonds, Ikea, Lockheed Martin, Morgan Stanley, Nikon, Pfizer, Qwest, Sprint, Staples, Target and Wolters Kluwer, as well as significant deals with multiple government, defence and intelligence agencies around the globe including in the U.S., U.K., European Commission, New Zealand, South Africa and the U.A.E.

11 OEM deals signed including new deals and extensions with Adobe, Kana, Axway and Websense

Gross margins (adjusted) at 86% (Q3 2008: 92%)

DSOs at 97 days for Q3 2009 (Q2 2009: 89 days)

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "I am pleased to announce strong Q3 results in line with the recent preannouncement that reported results would exceed the then current estimates. We delivered strong growth despite the usual seasonality and challenging comparatives against the strong performance in Q3 2008. These results give us confidence in maintaining our view of the full year. Autonomy was very busy in the quarter preparing for 2010. We successfully launched IDOL SPE, which was very positively received by the industry, and generated a stronger than expected demand on our Quick Start program. We have also invested in our data centre capacity to allow future growth in the Meaning Based Marketing (MBM) side of the business, which has already begun to show good traction. During the quarter we saw some of our large customers promote Autonomy to strategic supplier status. This has led them to adopt a broader set of our solutions in a number of significant deals. We were pleased to note that the cash generation of the business since the beginning of the year has been so strong that our cash balance already covers the remaining part of the debt we took out just six months ago to fund the Interwoven acquisition. We feel that should an upturn start to materialise we are extremely well positioned to accelerate our growth."

Third Quarter and Nine Month Financial Highlights

Revenues

Revenues for the third quarter of 2009 totalled $191.6 million, up 51% from $127.1 million for the third quarter of 2008 including strong organic growth. The effect on revenue in the third quarter of 2009 of movements in foreign exchange rates was a negative impact of approximately 1% compared to the third quarter of 2008. The net impact of foreign exchange movements on operating profit was de minimis. In the third quarter of 2009 the U.S. Dollar strengthened versus Sterling to an average of $1.64 versus $1.90 in the third quarter of 2008.

During the third quarter of 2009 there were 13 license transactions over $1.0 million, compared to 8 for the third quarter of 2008. In the third quarter of 2009, Americas revenues of $135.7 million represented 71% of total revenues, and Rest of World revenues of $55.9 million represented 29% of total revenues.

Revenues for the nine months ended September 30, 2009, totalled $516.6 million, up 44% from $357.8 million for the nine months ended September 30, 2008.

Gross Profits and Gross Margins

Gross profits (adjusted) for the third quarter of 2009 were $164.0 million, up 40% from $117.3 million in the third quarter of 2008. Gross margins (adjusted) were 86% in the third quarter of 2009, versus 92% in the third quarter of 2008. The unexpected demand for our new product programs had a small depressing effect on gross margins. We do not expect this to be a trend. Gross profits (IFRS) for the third quarter of 2009 were $149.4 million, up 33% from $112.6 million in the third quarter of 2008. Gross margins (IFRS) for the third quarter of 2009 were 78%, compared to 89% in the third quarter of 2008.

Gross profits (adjusted) for the nine months ended September 30, 2009 were $452.5 million, up 39% from $325.1 million for the nine months ended September 30, 2008. Gross margins (adjusted) were 88% in the nine months ended September 30, 2009, versus 91% for the nine months ended September 30, 2008. Gross profits (IFRS) for the nine months ended September 30, 2009 were $417.5 million, up 35% from $310.0 million for the nine months ended September 30, 2008. Gross margins (IFRS) for the nine months ended September 30, 2009 were 81%, compared to 87% for the nine months ended September 30, 2008.

Taxes

The effective tax rate in the third quarter of 2009 was 24%, down from 30% in the third quarter of 2008. The decrease is a result of the utilisation of newly available losses in the US based on final determination of losses combined with additional research and development credits as a result of agreement with the relevant tax authorities. The full year tax rate is expected to be between 28% and 30%.

Net Profits

Net profit (adjusted) for the third quarter of 2009 was $48.6 million, or $0.20 per diluted share, compared to net profit (adjusted) of $37.5 million, or $0.17 per diluted share, for the third quarter of 2008. Net profit (IFRS) for the third quarter of 2009 was $36.8 million, or $0.15 per diluted share, compared to net profit (IFRS) of $33.4 million, or $0.15 per diluted share, for the third quarter of 2008.

Net profit (adjusted) for the nine months ended September 30, 2009 was $152.3 million, or $0.63 per diluted share, compared to net profit (adjusted) of $94.6 million, or $0.44 per diluted share, for the nine months ended September 30, 2008. Net profit (IFRS) for the nine months ended September 30, 2009 was $122.2 million, or $0.51 per diluted share, compared to net profit (IFRS) of $80.4 million, or $0.37 per diluted share, for the nine months ended September 30, 2008.

IAS 38 Charges

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 third quarter of 2009 was $11.7 million (Q3 2008: $3.0 million), increasing year-on-year primarily due to the new IDOL SPE product reaching commercial exploitation phase, but is expected to return to historical levels in the fourth quarter. Q3 2009 R&D capitalization is offset by amortization charges of $2.2 million (Q3 2008: $1.4 million) arising from historical R&D capitalization. This results in a net credit (before tax) in the quarter of $9.5 million (Q3 2008: $1.6 million). R&D capitalization for the nine months ended September 30, 2009 was $19.1 million (2008: $8.7 million), offset by amortization charges of $5.7 million (2008: $3.3 million) during the period arising from historical R&D capitalization, resulting in a net credit (before tax) in the period of $13.4 million (2008: $5.4 million).

Balance Sheet and Cash Flow

Cash balances were $200.7 million at September 30, 2009, an increase of $35.0 million from $165.7 million at September 30, 2008, and an increase of $1.5 million from $199.2 million at December 31, 2008 (prior to the Interwoven acquisition). Movements in cash flow during the nine months 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. In addition, during the quarter the company incurred capital expenditures of approximately $19 million relating primarily to data centre expansion in preparation for 2010.

Trade receivables at September 30, 2009, were $218.5 million, compared to $141.3 million at December 31, 2008. Accounts receivable days sales outstanding were 97 days for the third quarter of 2009, compared to 84 days at December 31, 2008. Significant extra revenues, not originally in our forecast for the quarter, arrived on the last day of the quarter, and late payment of one day by a large debtor gave rise to the movement. We expect DSOs to return to normal levels. Deferred revenues were $169 million at September 30, 2009, compared with $99 million at December 31, 2008, displaying usual seasonality.

Accrued income at September 30, 2009 was not material, at under 5% of revenues. Provision for doubtful accounts at September 30, 2009 was not material, at well under 10% of debtors, our flagging range.

Comments

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.

Supplemental Metrics

Autonomy is supplying supplemental metrics to assist in the understanding and analysis of Autonomy's business.

Three Months Ended Sept. 30, 2009
Product including hosted and OEM*	$125m
Service revenues*	$9m
Deferred revenue release (primarily maintenance)*	$58m
OEM derived revenues*	$24m
Organic Growth*	15%
Deals over $1 million	13
Tax rate	24%
Available tax losses*	$218m
Cash conversion (Q3 CFFO/Q3 adj EBITDA**)	131%
Cash conversion (lagged to account for growth and seasonality of the business)	99%

Twelve Months Ended Sept. 30, 2009
Cash conversion (LTM CFFO/LTM adj EBITDA**)	86%
Cash conversion (lagged to account for growth and seasonality of the business)	91%
Cash conversion as a percentage of the theoretical maximum (90%)	96%

LTM revenue with terms >365 days in normal range (<2% of revenues)

Accrued income in normal range (<5% of revenues)

* The above items are provided for background information and may include qualitative estimates.

** Adj EBITDA is defined as operating cashflow before movements in working capital.

Q3 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 third quarter of 2009, major customer wins included: Alstom, Arcelor Mittal, American Medical Association, AT&T, Avid, Bank of America, BBC, Butterfields, Boeing, Citi, Coffeyville Resources, Eli Lilly, Fidelity, Hammonds, Ikea, Lockheed Martin, Morgan Stanley, Nikon, Pfizer, Qwest, Sprint, Staples, Target, Virgin Media and Wolters Kluwer. Q3 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., European Commission, Australia, The Netherlands, New Zealand, South Africa and the U.A.E. Repeat business from existing customers accounted for approximately 45% of revenue for the quarter.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q3 2009. Agreements were signed with 11 customers during the quarter, including new and extended agreements with Adobe, Kana, Axway and Websense.

Q3 Corporate Developments

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

IDOL SPE, ushering the $18 billion database market into the era of Meaning Based Computing;

The world's first hosted web landing page solution, enabling online marketers to rapidly build and optimize landing pages in a secure, private cloud;

The first cloud-based archiving solution tailored for law firms, enabling law firms to reduce costs and rapidly respond to eDiscovery requests; and

Autonomy's Automatic Spoken Language Identification (ASLI) module, enabling call centres, media organizations and global enterprises to instantly recognize the spoken language in media files and live calls.

During the third quarter Autonomy was recognised in multiple ways for its market leadership and unmatched technology, including being:

Identified by IDC as the fastest growing of the top three Search and Discovery vendors with the largest market share by far;

Positioned as leader in Gartner's 2009 Information Access Technology Magic Quadrant;

Presented with the "Best Innovation Award" 2009 for its ground-breaking MBM solutions portfolio;

Recognised as a "2009 Trend-Setter" by KMWorld Magazine;

Ranked as one of the world's largest software companies by Software Magazine; and

Bestowed the outstanding achievement of the year award by Cambridge Business Magazine.

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:
Edward Bridges / Haya Chelhot Financial Dynamics +44 (0)20 7831 3113	Marc Geall, Head of IR and Corporate Strategy Autonomy Corporation plc +44 (0)1223 448 000

Download the full PDF version of the Q3 2009 Report (PDF)

Q3 2009 Presentation Slides (PDF)