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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 $89.6 Million; EPS (Diluted and Undiluted) Ahead of Expectations
- Autonomy's second quarter conference call will be available live at
http://www.autonomy.com on
Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in
infrastructure software, today reported financial results for the second
quarter and six months ended
Financial Highlights
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Results in US$ ($'000s except per
share) $'000 $'000 $'000 $'000
Revenues 195,192 125,649 324,971 230,737
Gross profit (adjusted)* 171,564 114,287 288,554 207,751
Gross profit margin (adjusted)* 88% 91% 89% 90%
Profit from operations (adjusted)* 92,172 50,382 150,228 81,451
Profit before tax (adjusted)* 89,583 50,778 147,758 81,914
Net profit (adjusted)* 63,571 35,372 103,749 57,056
Gross profit (IFRS) 156,459 109,170 268,095 197,354
Gross profit margin (IFRS) 80% 87% 82% 86%
Profit from operations (IFRS) 74,366 43,867 124,665 68,103
Profit before tax (IFRS) 71,692 43,742 121,669 67,355
Net profit (IFRS) 50,875 30,471 85,391 46,916
EPS
- basic (adjusted)* $ 0.27 $0.17 $ 0.44 $0.27
- diluted (adjusted)* $ 0.26 $0.16 $ 0.43 $0.26
- basic (IFRS) $ 0.21 $0.14 $ 0.36 $0.22
- diluted (IFRS) $ 0.21 $0.14 $ 0.36 $0.22
* 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
- Strong adoption of next generation combined Autonomy and Interwoven
technologies
- Record revenues, up 55% from Q2 2008 including strong organic growth
and full quarter post-Interwoven integration
- Fully diluted EPS (adj.) of $0.26, up 61% from Q2'08
- Integration of Interwoven essentially complete
- Interwoven support and maintenance renewal rates resume strong levels
after acquisition disruption, leading to predicted deferred revenue
levels
- Very strong cash collection and conversion; Q2 cash conversion of 104%,
LTM conversion of 92%
- Strong organic IDOL growth of 18%
- Operational gearing sees operating margins (adj.) at Q2 record of 47%,
up from 40% in Q2 2008
- Cash balances hit $190.0 million in quarter, enabling optional early
repayment of Barclays' loan of $37.5 million; cash balance at $152.5
million at quarter-end following early repayment
- Record profit before tax (IFRS), up 64% from Q2 2008
- 25th consecutive quarter of year-on-year growth
- FX changes gave approximately 2% headwind on revenue
- Average selling price for meaning-based technologies at $400,000 (Q2
2008: $397,000)
- Autonomy now offers powerful analytics capability in social media
environments such as Twitter, YouTube and Facebook
- Blue chip second quarter wins include Barclays Bank, Burgess Salmon,
Commerzbank, Aiken 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, as well as significant deals with multiple government, defence
and intelligence agencies around the globe including in the U.S., U.K.,
Singapore, Croatia, Malaysia and Japan.
- 12 OEM deals signed including new deals and extensions with Cisco, CCI,
VMS and Siemens
- Positive cash flow generated from operations of $65.4 million (Q2 2008:
$36.1 million)
- Gross margins (adjusted) at 88% (Q2 2008: 91%), at expected levels
following Interwoven acquisition
- DSOs at 89 days for Q2 2009 (Q1 2009: 88 days)
- Deferred revenue at record levels of $170.2 million, sharply up
year-on-year and up from Q1 2009
Six Month 2009 Highlights
- Record six months revenues, up 41% from 2008 driven by strong organic
growth and contribution from acquisitions
- Announced and completed Interwoven acquisition
- Record profit from operations (adjusted) up 84% from 2008
- Record profit before tax (IFRS), up 81% from 2008
- Gross margins (adjusted) at 89%
- Positive cash flow generated from operations of $116.5 million (2008:
$61.2 million), up 90%
Commenting on the results, Dr.
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
Gross profits (adjusted) for the second quarter of 2009 were
Net profit (adjusted) for the second quarter of 2009 was
Net profit (adjusted) for the six months ended
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
Cash balances were
Trade receivables at
Intangible assets have increased to
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, Aiken Gump, Standard Chartered
Bank, Tesco, Shell, Novell, Kaiser Foundation, AT&T, Morgan Stanley, Johnson
& Johnson, EDF,
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:
- The world's first meaning based social media analytics, which
connects to popular social networks like Facebook, Twitter, and YouTube
allowing organizations to automatically listen, understand, and act on
social sentiment;
- Intelligent recommendation and navigation for eCommerce, which
automatically understands the meaning behind product catalogs and
builds implicit customer profiles in order to increase online
conversions and revenue;
- Multichannel optimisation for customer interactions, combining
market-leading Web Content Management, contact center and advanced
analytics software to improve customer experience across all touch
points;
- First ever rich media management that understands meaning to
automatically retrieve, analyze, and process audio, video and graphic
content;
- World's first cloud based web content compliance solution,
which combines the largest data archive with Autonomy's leading Web
Content Management solution to help businesses meet increasing global
regulatory requirements; and
- The most advanced audio eDiscovery processing solution for law
firms, which provides lawyers with unprecedented access to voicemails,
depositions, digital dictations, and other audio recordings to improve
effectiveness.
During the second quarter Autonomy was recognized in multiple
ways for its market leadership and unmatched technology, including:
- Being ranked as fastest growing of the top four ECM vendors in
Gartner's "Market Share: Content Management Software, Worldwide, 2006 -
2008" report, based on performance in document management, web content
management, records management, imaging, document-based collaboration,
and workflow;
- Being named a leader in the June 2009 Forrester Wave(TM) report
on Web Content Management for external sites, receiving the highest
overall rating for strategy and product direction;
- Being named a leader in the June 2009 Forrester Wave(TM) for
Records Management;
- Reaching a major milestone for the world's largest managed data
archive with 10 Petabytes under management; and
- Being described by Information Week as: "The world's hottest
enterprise software company".
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, Nestle, 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 http://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.
Autonomy Corporation plc
Condensed Consolidated Income Statement
(in thousands, except per share amounts)
Three Months Ended S ix Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Continuing operations $'000 $'000 $'000 $'000
Revenues (see note 4) 195,192 125,649 324,971 230,737
Cost of revenues (excl.
amortization) (23,628) (11,362) (36,417) (22,986)
Amortization of purchased
intangibles (15,105) (5,117) (20,459) (10,397)
Total cost of revenues (38,733) (16,479) (56,876) (33,383)
Gross profit 156,459 109,170 268,095 197,354
Operating expenses:
Research and development (28,781) (19,778) (48,791) (39,566)
Sales and marketing (37,110) (34,507) (65,870) (67,550)
General and administrative (15,508) (11,003) (26,796) (22,148)
Other costs
Post-acquisition restructuring
costs - (601) (846) (901)
Loss (gain) on foreign exchange (694) 586 (1,127) 914
Total operating expenses (82,093) (65,303) (143,430) (129,251)
Profit from operations 74,366 43,867 124,665 68,103
Share of loss of associate (85) (521) (526) (1,211)
Interest receivable 168 772 791 1,495
Interest payable (2,757) (376) (3,261) (1,032)
Profit before income taxes 71,692 43,742 121,669 67,355
Income taxes (see note 5) (20,817) (13,271) (36,278) (20,439)
Net profit 50,875 30,471 85,391 46,916
Basic earnings per share (see note
7) $ 0.21 $0.14 $ 0.36 $0.22
Diluted earnings per share (see
note 7) $ 0.21 $0.14 $ 0.36 $0.22
Weighted average number of
ordinary shares outstanding 238,815 213,962 235,279 213,697
Weighted average number of
ordinary shares outstanding,
assuming dilution 242,909 217,577 238,986 217,367
Reconciliation of Adjusted Financial Measures
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
$'000 $'000 $'000 $'000
Gross profit 156,459 109,170 268,095 197,354
Amortization of purchased
intangibles 15,105 5,117 20,459 10,397
Gross profit (adjusted) 171,564 114,287 288,554 207,751
Profit before income taxes 71,692 43,742 121,669 67,355
Post-acquisition restructuring costs - 601 846 901
Loss (gain) on foreign exchange 694 (586) 1,127 (914)
Amortization of purchased
intangibles 15,105 5,117 20,459 10,397
Share of loss of associate 85 521 526 1,211
Share-based compensation (see note 6) 2,007 1,383 3,131 2,964
Profit before tax (adjusted) 89,583 50,778 147,758 81,914
Provision for income taxes (26,012) (15,406) (44,009) (24,858)
Net profit (adjusted) 63,571 35,372 103,749 57,056
Profit from operations 74,366 43,867 124,665 68,103
Loss (gain) on foreign exchange 694 (586) 1,127 (914)
Amortization of purchased
intangibles 15,105 5,117 20,459 10,397
Share-based compensation (see note 6) 2,007 1,383 3,131 2,964
Post-acquisition restructuring costs - 601 846 901
Profit from operations (adjusted) 92,172 50,382 150,228 81,451
The accompanying notes are an integral part of these consolidated
financial statements.
AUTONOMY CORPORATION plc
CONDENSED CONSOLIDATED BALANCE SHEET
As at
(unaudited)
June 30, Dec 31,
2009 2008
$'000 $'000
ASSETS
Non-current assets:
Goodwill 1,252,482 796,632
Other intangible assets 407,121 98,694
Property and equipment, net 33,376 27,350
Equity and other investments 11,680 7,441
Deferred tax asset 22,179 13,467
Total non-current assets 1,726,838 943,584
Current assets:
Trade receivables, net 201,952 141,252
Other receivables 40,670 35,554
Total trade and other receivables 242,622 176,806
Inventory 553 715
Cash and cash equivalents 152,549 199,218
Total current assets 395,724 376,739
TOTAL ASSETS 2,122,562 1,320,323
CURRENT LIABILITIES
Trade payable (18,702) (12,434)
Other payables (61,225) (19,511)
Total trade and other payables (79,927) (31,945)
Bank loan (62,054) (10,637)
Tax liabilities (41,016) (27,905)
Deferred revenue (160,893) (89,794)
Provisions (3,661) (426)
Total current liabilities (347,551) (160,707)
Net current assets 48,173 216,032
NON-CURRENT LIABILITIES
Bank loan (134,505) (26,594)
Deferred tax liabilities (60,235) (2,537)
Deferred revenue (9,325) (9,414)
Other payables (1,153) (1,171)
Provisions (7,041) -
Total non-current liabilities (212,259) (39,716)
Total liabilities (559,810) (200,423)
NET ASSETS 1,562,752 1,119,900
Shareholders' equity:
Ordinary shares (1) 1,325 1,214
Share premium account 1,119,289 798,279
Capital redemption reserve 135 135
Own shares (903) (905)
Merger reserve 27,589 27,589
Stock compensation reserve 17,975 14,846
Revaluation reserve 3,571 2,987
Translation reserve (3,927) (18,261)
Retained earnings 397,698 294,016
TOTAL EQUITY 1,562,752 1,119,900
(1) At
The accompanying notes are an integral part of these consolidated financial statements
Autonomy Corporation plc
Condensed Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
$'000 $'000 $'000 $'000
Cash flows from operating
activities:
Profit from operations 74,366 43,867 124,665 68,103
Adjustments for:
Depreciation and amortization 22,081 9,494 32,624 19,190
Share based compensation 2,007 1,383 3,131 2,964
Foreign currency movements 694 (586) 1,127 (914)
Post-acquisition restructuring
costs - - 596 -
Other non-cash items - - 126 -
Operating cash flows before
movements in working capital 99,148 54,158 162,269 89,343
Changes in operating assets and
liabilities (net of impact of
acquisitions):
Receivables (36,349) (30,471) (44,841) (33,492)
Inventories (77) (449) 170 (380)
Payables 2,671 12,885 (1,064) 5,765
Cash generated by operations 65,393 36,123 116,534 61,236
Income taxes paid (2,370) (4,262) (13,151) (15,716)
Net cash provided by operating
activities 63,023 31,861 103,383 45,520
Cash flows from investment
activities:
Interest received 168 740 791 1,463
Purchase of property, plant and
equipment (291) (4,979) (4,364) (8,817)
Purchase of investments (1,172) (688) (2,152) (1,338)
Expenditure on product development (4,115) (2,736) (7,399) (5,751)
Acquisition of subsidiaries, net of
cash acquired (10,160) (283) (620,923) (5,705)
Net cash used in investing
activities (15,570) (7,946) (634,047) (20,148)
Cash flows from financing
activities:
Proceeds from issuance of shares,
net of issuance costs 5,106 4,203 12,861 8,637
Proceeds from share placing, net of
issuance costs - - 308,512 -
Interest on bank loan (2,297) (376) (2,498) (1,032)
Repayment of bank loan (37,450) (2,675) (37,450) (5,350)
Drawdown of bank loan - - 200,000 -
Payment of arrangement fee (346) - (3,846) -
Net cash provided by financing
activities (34,987) 1,152 477,579 2,255
Net increase in cash and cash
equivalents 12,466 25,067 (53,085) 27,627
Beginning cash and cash equivalents 132,315 95,486 199,218 92,571
Effect of foreign exchange on cash
and cash equivalents 7,768 848 6,416 1,203
Ending cash and cash equivalents 152,549 121,401 152,549 121,401
The accompanying notes are an integral part of these consolidated financial statements
Condensed Consolidated Statement of Changes in Equity
Capital
Ordinary Share Redemption Own Merger Sub-
shares premium reserve shares reserve total
$'000 $'000 $'000 $'000 $'000 $'000
At January 1, 2008 1,196 780,888 135 (981) 27,589 808,827
Retained profit - - - - - -
Stock compensation - - - - - -
Share options
exercised 8 8,433 - - - 8,441
EBT options exercised - - - 57 - 57
Deferred tax on stock
options - - - - - -
Revaluation of equity
investment - - - - - -
Translation of
overseas ops - - - - - -
At June 30, 2008 1,204 789,321 135 (924) 27,589 817,325
Stock
Sub-total comp'n Revaluation Translation Retained
Forwarded reserve reserve reserve earnings Total
$'000 $'000 $'000 $'000 $'000 $'000
At January 1,
2008 808,827 9,438 10,163 23,801 146,084 998,313
Retained
profit - - - - 46,916 46,916
Stock
compensation - 2,964 - - - 2,964
Share options
exercised 8,441 - - - - 8,441
EBT options
exercised 57 (57) - - - -
Deferred tax
on stock
options - - - - 8,670 8,670
Revaluation
of equity
investment - - (6,462) - - (6,462)
Translation
of overseas
ops - - - 1,624 - 1,624
At June 30,
2008 817,325 12,345 3,701 25,425 201,670 1,060,466
Capital
Ordinary Share Redemption Own Merger Sub-
shares premium reserve shares reserve total
$'000 $'000 $'000 $'000 $'000 $'000
At January 1, 2009 1,214 798,279 135 (905) 27,589 826,312
Retained profit - - - - - -
Stock compensation - - - - - -
Issuance of shares 111 321,010 - - - 21,121
EBT options
exercised - - - 2 - 2
Deferred tax
movement - - - - - -
Revaluation of
equity investment - - - - - -
Translation of
overseas ops - - - - - -
At June 30, 2009 1,325 1,119,289 135 (903) 27,589 1,147,435
Stock
Sub-total comp'n Revaluation Translation Retained
Forwarded reserve reserve reserve earnings Total
$'000 $'000 $'000 $'000 $'000 $'000
At January 1,
2009 826,312 14,846 2,987 (18,261) 294,016 1,119,900
Retained
profit - - - - 85,391 85,391
Stock
compensation - 3,131 - - - 3,131
Issuance of
shares 321,121 - - - - 321,121
EBT options
exercised 2 (2) - - - -
Deferred tax
movement - - - - 18,291 18,291
Revaluation
of equity
investment - - 584 - - 584
Translation
of overseas
ops - - - 14,334 - 14,334
At June 30,
2009 1,147,435 17,975 3,571 (3,927) 397,698 1,562,752
The accompanying notes are an integral part of these consolidated financial statements
Autonomy Corporation plc
Notes to the Condensed Set of Consolidated Financial Statements for the
Three and Six Months Ended
1. General information
The information for the year ended
The results of operations for the three and six months ended
The group has considerable financial resources together with contracts with a number of customers across different geographic areas and industries. As a consequence, the directors believe that the group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the quarterly consolidated financial statements.
2. Accounting policies
The annual financial statements of Autonomy Corporation plc are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half yearly report has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The same accounting policies, presentation methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements.
3. Acquisition of Interwoven
On
Interwoven Fair value
book value adjustments Fair value
$'000 $'000 $'000
Net assets acquired:
Purchased intangibles - 311,300 311,300
Other assets 26,942 - 26,942
Cash and cash equivalents 184,349 - 184,349
Trade and other payables (116,010) - (116,010)
Deferred tax liability - (53,595) (53,595)
95,281 257,705 352,986
Goodwill 450,485
Total consideration 803,471
Satisfied by:
Cash 790,589
Directly attributable costs 12,882
803,471
Net cash outflow arising on acquisition
Cash consideration, including costs of
acquisition 803,471
Cash and cash equivalents acquired (184,349)
619,122
The purchase price allocation has not yet been finalised although we
expect the independent valuation report to be completed during Q3 2009.
Management's provisional purchase price allocation has attributed a value of
It is not practicable to determine the effect of the Interwoven acquisition for the period from acquisition to the end of the financial period. The company's core products and those of the acquired entity have been integrated and the operations merged such that it is not practicable to determine the portion of the result that specifically relates to Interwoven on a stand-alone basis.
4. Segmental information
Whilst the group currently operates under a number of different
divisions, the group's core technology, types of revenue and associated costs
and returns are comparable. Each of these divisions is founded on the group's
unique Intelligent Data Operating Layer, the group's core infrastructure for
automating the handling of all forms of unstructured information. As a
result, the group maintains only one reportable business segment. The group's
operations are located primarily in the
The following table provides an analysis of the group's sales by
geographical market based upon the location of the Group's customers for all
periods.
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Revenue by region: $'000 $'000 $'000 $'000
Americas 133,928 81,517 219,111 145,419
Rest of World 61,264 44,132 105,860 85,318
Total 195,192 125,649 324,971 230,737
Segment information about these geographical segments is presented below:
Three Months Ended
June 30, 2009 June 30, 2008
Americas ROW Total Americas ROW Total
$'000 $'000 $'000 $'000 $'000 $'000
Segment result 57,930 17,130 75,060 34,749 9,133 43,882
Post-acq'n
restruct. costs - (601)
(Loss) gain on
foreign exch. (694) 586
Operating profit 74,366 43,867
Share of loss of
associate (85) (521)
Interest receivable 168 772
Interest payable (2,757) (376)
Profit before tax 71,692 43,742
Tax (20,817) (13,271)
Profit for the
period 50,875 30,471
Six Months Ended
June 30, 2009 June 30, 2008
Americas ROW Total Americas ROW Total
$'000 $'000 $'000 $'000 $'000 $'000
Segment result 96,459 30,179 126,638 52,747 15,343 68,090
Post-acq'n
restruct. costs (846) (901)
(Loss) gain on
foreign exch. (1,127) 914
Operating profit 124,665 68,103
Share of loss of
associate (526) (1,211)
Interest receivable 791 1,495
Interest payable (3,261) (1,032)
Profit before tax 121,669 67,355
Tax (36,278) (20,439)
Profit for the
period 85,391 46,916
5. Income taxes
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Tax charge by region: $'000 $'000 $'000 $'000
UK 12,901 10,354 20,344 15,112
Foreign 7,916 2,917 15,934 5,327
Total 20,817 13,271 36,278 20,439
6. Share based compensation
Share based compensation charges have been charged in the consolidated income statement within the following functional areas:
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
$'000 $'000 $'000 $'000
Research and development 539 430 841 952
Sales and marketing 984 653 1,535 1,507
General and administrative 484 300 755 505
Total share based compensation
charge 2,007 1,383 3,131 2,964
7. Earnings per share
The calculation of the basic and diluted earnings per share is based on
the following data:
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
$'000 $'000 $'000 $'000
Earnings for the purposes of basic
and diluted earnings per share being
net profit 50,875 30,471 85,391 46,916
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 238,815 213,962 235,279 213,697
Effect of dilutive potential
ordinary shares:
Share options 4,094 3,615 3,707 3,670
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 242,909 217,577 238,986 217,367
Earnings per share (adjusted) is calculated by dividing the net profit (adjusted) amounts shown on page 6 by the share denominators shown above.
8. Related Party Transactions
There have been no related party transactions or changes in related party transactions described in the latest annual report that could have a material effect on the financial position or performance of the Group in the first six months of the financial year.
Statement of Directors' Responsibility
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting";
(b) the interim management report includes a fair review of the information required by DTR 4.2.7 (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
(c) the interim management report includes a fair review of the information required by DTR 4.2.8 (disclosure of related parties' transactions and changes therein).
By order of the Board
Dr Michael R Lynch Sushovan T Hussain
Chief Executive Officer Chief Financial Officer
July 16, 2009 July 16, 2009
Independent Review Report to Autonomy Corporation plc
We have been engaged by the company to review the condensed set of
financial statements in the interim financial report for the three and six
months ended
This report is made solely to the company in accordance with International Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the Disclosure and Transparency Rules of the United Kingdoms' Financial Services Authority.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on
Review Engagements (UK and
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the three and six months ended
Deloitte LLP
Chartered Accountants and Statutory Auditors
July 16, 2009
Cambridge, UK
Financial Media Contacts:
Edward Bridges / Haya Chelhot
Financial Dynamics
+44-207-831-3113
Analyst and Investor Contacts:
Peter Goodman, Investor Relations Officer
Autonomy Corporation plc
+44-1223-448-000
SOURCE Autonomy Corporation plc
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