AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2007
Record Quarterly and Annual Results Ahead of Expectations with Highest Revenues and Profits in Autonomy's History; Full Year Revenues up 37% to record $343 million; Full Year Profit from Operations (adjusted)* up 60% to record $109 million
Autonomy's fourth quarter conference call will be available live at www.autonomy.com on January 29, 2008, at 9:30 a.m. BST/4:30 a.m. EST/1:30 a.m. PST.
Cambridge, England - January 29, 2008 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the fourth quarter and twelve months ended December 31, 2007 ahead of analyst consensus estimates.
Financial Highlights
| Three Months Ended | Twelve months Ended | |||
| (unaudited) | (unaudited) | |||
| Dec. 31, 2007 |
Dec. 31, 2006 |
Dec. 31, 2007 |
Dec. 31, 2006 |
|
| Results in US$ ($'000s except per share) | $'000 | $'000 | $'000 | $'000 |
| Revenues | 115,110 | 73,352 | 343,409 | 250,682 |
| Gross profit (adjusted)* | 100,829 | 66,465 | 304,302 | 227,054 |
| Gross profit margin (adjusted)* | 88% | 91% | 89% | 91% |
| Profit from operations (adjusted)* | 41,099 | 24,531 | 108,774 | 68,111 |
| Profit before tax (adjusted)* | 41,332 | 25,279 | 113,245 | 69,148 |
| Net profit (adjusted)* | 28,483 | 18,392 | 77,237 | 47,919 |
| Gross profit (IFRS) | 95,298 | 64,547 | 291,347 | 219,093 |
| Gross profit margin (IFRS) | 83% | 88% | 85% | 87% |
| Profit from operations (IFRS) | 33,128 | 21,301 | 88,649 | 55,540 |
| Profit before tax (IFRS) | 32,906 | 21,791 | 91,447 | 56,319 |
| Net profit (IFRS) | 22,743 | 15,854 | 62,465 | 39,085 |
| EPS | ||||
| - basic (adjusted)* | 0.13 | 0.10 | 0.38 | 0.26 |
| - diluted (adjusted)* | 0.13 | 0.10 | 0.38 | 0.26 |
| - basic (IFRS) | 0.11 | 0.08 | 0.31 | 0.21 |
| - diluted (IFRS) | 0.11 | 0.08 | 0.30 | 0.21 |
* 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, impairment of investments and non-cash translational foreign exchange gains and losses and associated tax effects. See reconciliations on page 6.
Twelve Month 2007 Highlights
Fourth Quarter 2007 Highlights
Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "2007 was another amazing year for Autonomy by every measure, driven by our strong organic growth and the ZANTAZ acquisition. Top line revenues, operating profits, bottom line profit before tax and EPS are all up significantly, ahead of analyst consensus expectations, with strong organic growth and the ZANTAZ acquisition performing well. Throughout 2007 we consolidated our industry leadership position, and finished 2007 as the undisputed leader in pan-enterprise search and meaning-based computing."
Dr. Lynch continued: "2007 was a transformational year for our markets driven by the fundamental change of the IT world to the usage of unstructured information and the secondary drivers of regulatory changes such as the U.S. Federal Rules of Civil Procedure resulting in a convergence of legal and operational information systems, this factor is key to most commercial sales. The elevation of unstructured information issues to prime-time status also drives growth in our OEM business, where we remain the de facto standard."
Dr. Lynch concluded: "We are seeing continuing strength as the momentum of the revolution towards unstructured information gathers pace. Even the effect of the sub-prime crisis appears now to be a positive for our business, as our recent $70 million contract with a global bank demonstrated, as organizations accelerate their plans in order to be prepared for the consequences engendered by recent events. Our regulatory, compliance and government-driven prospects, which account for a significant majority of our revenues, are robust as are other areas of the business. While the current economic conditions bring a degree of uncertainty to any business, we have seen no change in trading conditions although we will continue monitor the situation closely as the year unfolds. Our strong fundamental market dynamics together with a record sales pipeline suggest that we have reasons to be confident in the current outlook for the business."
Fourth Quarter and Twelve Month Financial Highlights
Revenues for the fourth quarter of 2007 totalled $115.1 million, up 57% from $73.4 million for the fourth quarter of 2006 including strong organic growth and the contribution from ZANTAZ. In the fourth quarter of 2007, Americas revenues of $70.5 million represented 61% of total revenues, and Rest of World revenues of $44.6 million represented 39% of total revenues (see note 2). Revenues for the twelve months ended December 31, 2007, totalled $343.4 million, up 37% from $250.7 million for the twelve months ended December 31, 2006.
Gross profits (adjusted) for the fourth quarter of 2007 were $100.8 million, up 52% from $66.5 million in the fourth quarter of 2006. Gross margins (adjusted) were 88% in the fourth quarter of 2007, versus 91% in the fourth quarter of 2006. Gross profits (IFRS) for the fourth quarter of 2007 were $95.3 million, up 48% from $64.6 million in the fourth quarter of 2006. Gross margins (IFRS) for the fourth quarter of 2007 were 83%, compared to 88% in the fourth quarter of 2006. Gross profits (adjusted) for the twelve months ended December 31, 2007, were $304.3 million, up 34% from $227.1 million for the twelve months ended December 31, 2006. Gross margins (adjusted) were 89% in the twelve months ended December 31, 2007, versus 91% for the twelve months ended December 31, 2006. Gross profits (IFRS) for the twelve months ended December 31, 2007 were $291.3 million, up 33% from $219.1 million for the twelve months ended December 31, 2006. Gross margins (IFRS) for the twelve months ended December 31, 2007 were 85%, compared to 87% for the twelve months ended December 31, 2006. Gross margins decreased in the third quarter of 2007 following the acquisition of ZANTAZ in July 2007, but increased as planned following the completion of the integration of ZANTAZ and the transition of the core ZANTAZ business to higher margin sales.
Net profit (adjusted) for the fourth quarter of 2007 was $28.5 million, or $0.13 per diluted share, compared to net profit (adjusted) of $18.4 million, or $0.10 per diluted share, for the fourth quarter of 2006. Net profit (IFRS) for the fourth quarter of 2007 was $22.7 million, or $0.11 per diluted share, compared to net profit (IFRS) of $15.9 million, or $0.08 per diluted share, for the fourth quarter of 2006.
Net profit (adjusted) for the twelve months ended December 31, 2007 was $77.2 million, or $0.38 per diluted share, compared to net profit (adjusted) of $47.9 million, or $0.26 per diluted share, for the twelve months ended December 31, 2006. Net profit (IFRS) for the twelve months ended December 31, 2007 was $62.5 million, or $0.30 per diluted share, compared to net profit (IFRS) of $39.1 million, or $0.21 per diluted share, for the twelve months ended December 31, 2006.
Cash balances were $92.6 million at December 31, 2007, a decrease of $28.5 million from $121.1 million at December 31, 2006. Movements in cash flow during the twelve months reflect a combination of excellent cash generation from operating activities and proceeds from share placings and exercise of share options, offset by payments for the acquisitions of ZANTAZ and Meridio and quarterly repayments of Autonomy's bank loan. Autonomy has no net debt.
Receivables at December 31, 2007 were $110.5 million, compared to $77.3 million at December 31, 2006. Accounts receivable days sales outstanding were 83 days at December 31, 2007, compared to 91 days at December 31, 2006. Deferred revenues were $97.9 million at December 31, 2007 compared with $52.5 million at December 31, 2006.
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 post-acquisition restructuring costs, share of loss of associates and non-cash charges for the amortization of purchased intangibles, share-based compensation, impairment of investments, 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.
Q4 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 fourth quarter of 2007, major customer wins included: PNC Bank, Costco, KPMG, Sullivan & Cromwell, China Mobile, Lloyds TSB, Ernst & Young, Energy Solutions, AT&T, Morgan Stanley, Telecom Italia, BHP Billiton, Gruppo Santander, Union Pacific, Bayer, Countrywide, Cox Communications, Nordea, Wachovia, T Mobile, Dupont and Mayer Brown. Q4 2007 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the U.S. Air Force, NASA and the U.S. House of Representatives, and in Italy, the UK, Spain, Colombia, Singapore, Mexico and Canada, as well as the International Atomic Energy Agency, the World Trade Organization, the Red Cross and NATO. 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 Q4 2007. Agreements were signed with 13 customers during the quarter, including new and extended agreements with Vignette, Adobe, Oracle, EMC Tablus, Xerox, Sybase and Symantec.
Corporate Developments
During the fourth quarter of 2007 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. In October, Autonomy ZANTAZ introduced the newest releases of its industry-leading Enterprise Archive Solution version 6 (EAS 6) and its eDiscovery application Introspect 6, each giving companies the first and only consolidated archive for all information sources in more than 1,000 different data formats, including voice and videos, and across 100 languages stored in more than 400 different content repositories, including business applications such as SAP and Oracle. Autonomy also launched Desktop Legal Hold, the industry's first comprehensive solution that enables corporate legal and IT departments to remotely enforce legal hold across desktops and laptops. During the quarter Autonomy also announced the availability of the Autonomy Business Console, an intuitive and easy-to-use business user application built on the company's award-winning Intelligent Data Operating Layer (IDOL) platform.
During the fourth quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Recognition during the quarter included:
About Autonomy Corporation plc
Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology forms a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, BI, CRM, KM, call center solutions, rich media management, information risk management solutions and security applications, and is recognized by industry analysts as the clear leader in enterprise search.
Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. Autonomy also has over 300 OEM partners and more than 400 VARs and Integrators, numbering among them leading companies such as BEA, Business Objects, Citrix, EDS, IBM Global Services, Novell, Satyam, Sybase, Symantec, TIBCO, Vignette and Wipro. The company has offices worldwide.
The Autonomy Group includes: ZANTAZ, the leader in the arch











