AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR
THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2004
Record Nine Month Revenues up 22% Year-on-Year; Third Quarter Revenues up 11% Year-on-Year; Nine Month Net Profit (adjusted) up 27% Year-on-Year
Autonomy's third quarter conference call will be available live on the World Wide Web at www.autonomy.com on Wednesday, October 20, 2004 at 9:30 a.m. BST/4:30 a.m. EDT/1:30 a.m. PDT
SAN FRANCISCO, California and CAMBRIDGE, England – October 20, 2004 – Autonomy Corporation plc (Nasdaq: AUTN, LSE: AU.), a global leader in infrastructure software for the extended enterprise, today reported financial results for the third quarter and nine months ended September 30, 2004.
Financial Highlights
| Three Months Ended | | Nine Months Ended |
| (unaudited) | | (unaudited) |
|
| |
|
| Sept. 30,
2004 | | Sept. 30,
2003 | | Sept. 30,
2004 | | Sept. 30,
2003 |
|
| |
| |
| |
|
Results in US$ | | | | | | | | | | | |
($000's except per share) | | | | | | | | | | | |
Revenues | $ 14,483 | | | $ 13,012 | | | $ 46,136 | | | $ 37,921 | |
Gross profit (adjusted)* | 13,815 | | | 12,425 | | | 43,913 | | | 36,478 | |
Gross profit margin (adjusted)* | 95% | | | 95% | | | 95% | | | 96% | |
Profit before tax (adjusted)* | 1,335 | | | 1,295 | | | 5,712 | | | 4,611 | |
Net profit (adjusted)* | $ 1,100 | | | $ 1,086 | | | $ 4,569 | | | $ 3,590 | |
| | | | | | | | | | | | |
Gross profit (GAAP) | 13,588 | | | 12,425 | | | 43,217 | | | 36,478 | |
Gross profit margin (GAAP) | 94% | | | 95% | | | 94% | | | 96% | |
Profit before tax (GAAP) | 1,539 | | | 1,605 | | | 4,763 | | | 5,312 | |
Net profit (GAAP) | $ 1,175 | | | $ 1,303 | | | $ 3,664 | | | $ 4,081 | |
| | | | | | | | | | | | |
EPS | | | | | | | | | | | |
- basic (adjusted)* | $ 0.01 | | | $ 0.01 | | | $ 0.04 | | | $ 0.03 | |
- diluted (adjusted)* | $ 0.01 | | | $ 0.01 | | | $ 0.04 | | | $ 0.03 | |
| | | | | | | | | | | | |
- basic (GAAP) | $ 0.01 | | | $ 0.01 | | | $ 0.03 | | | $ 0.04 | |
- diluted (GAAP) | $ 0.01 | | | $ 0.01 | | | $ 0.03 | | | $ 0.03 | |
––––––––––––
| * | Adjusted results exclude certain specific translational foreign exchange gains and losses and associated tax effects, as well as non-cash charges for amortization of purchased intangibles and share-based compensation arising in connection with the acquisition of Virage, Inc. in Q3 2003. See page 5 for further details. |
Nine Month 2004 Corporate Highlights
Record nine month revenues, up 22% from 2003
Gross margins (adjusted) remain high at 95%
Profit before tax (adjusted) up 24% from 2003
Net profit (adjusted) up 27% from 2003
R&D investment continues with spending up 25% from 2003
Operating margins (adjusted) at 6.7% up 50% from 2003
Third Quarter 2004 Corporate Highlights
Strong performance in traditionally seasonally weak quarter
Q3 revenues up 11% year-on-year
Second highest third quarter revenues in Autonomy's history
OEM-derived revenues up 35% from Q3 2003
Nineteenth consecutive quarter of profitability
Blue chip third quarter wins include: IBM, Boeing, Sysco Foods, A&E Television, Shanghai Department for Public Relations, Entergy, Morgan Stanley, Credit Mutuel and the U.K. Department of Trade and Industry, as well as various U.S. Federal government agencies, such as the Federal Election Commission, National Geospatial Institute and the U.S. Army.
Aungate, Autonomy's division specializing in electronic communications management technology, completes rapid implementation at the New York Stock Exchange to solve immediate investigation requirements.
Four new OEM agreements
Average selling price remains stable at $322,000
R&D investment continues with spending up 13% year-on-year
Positive cashflow from operations, with cash balance at $101.3 million after share repurchase of $4.0 million during the quarter
Page 1
Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are pleased to announce Autonomy's continued good performance with record nine month revenues and a strong third quarter with increased revenues and profits (adjusted). These results are in the middle of the range of analyst consensus forecasts discussed during the company's second quarter 2004 conference call of revenues of $13.5 million to $16 million. We've achieved these results despite usual Q3 seasonal weakness. Of particular note, the first nine months have seen us produce record revenues and strong growth in core earnings. Once again we've seen success across all vertical markets, with new and repeat customers in sectors such as finance, telecommunications, technology, manufacturing, entertainment, traditional and electronic commerce, regulatory, government, intelligence and homeland security. During Q3 Autonomy invested significantly in new technology resulting in increased R&D spend. With significant investment in sales and marketing in the first half of 2004 and increased R&D spend we remain confident in our long-term outlook."
Third Quarter and Nine Month 2004 Financial Highlights
Revenues for the third quarter totalled $14.5 million, up 11.3% from $13.0 million for the third quarter of 2003. U.S./Asia Pac revenues of $8.3 million were 58% of total revenues and U.K./European revenues totalling $6.2 million were 42% of total revenues in the third quarter of 2004. Revenues for the nine months ended September 30, 2004 totalled $46.1 million, up 21.6% from $37.9 million for the nine months ended September 30, 2003.
Gross profits (adjusted) for the quarter were $13.8 million, up 11.2% from $12.4 million in the third quarter of 2003. Third quarter gross margins (adjusted) were 95%, consistent with the third quarter of 2003. Gross profits (GAAP) for the quarter were $13.6 million, up 9.4% from $12.4 million in the third quarter of 2003. Third quarter gross margins (GAAP) were 94%, compared to 95% in the third quarter of 2003.
Gross profits (adjusted) for the nine months ended September 30, 2004 were $43.9 million, up 20.4% from $36.5 million for the nine months ended September 30, 2003. Gross margins (adjusted) for the nine months ended September 30, 2004, were 95%, compared to 96% for the nine months ended September 30, 2003. Gross profits (GAAP) for the nine months ended September 30, 2004, were $43.2 million, up 18.5% from $36.5 million for the nine months ended September 30, 2003. Gross margins (GAAP) for the nine months ended September 30, 2004, were 94%, compared to 96% for the nine months ended September 30, 2003.
Compared to Q3 2003, the weaker U.S. dollar had a detrimental effect of approximately $0.5 million on operating profits. Net profit (adjusted) for the third quarter of 2004 was $1.1 million, or $0.01 per diluted share, consistent with net profit (adjusted) of $1.1 million, or $0.01 per diluted share, for the third quarter of 2003. Net profit (GAAP) for the third quarter of 2004 was $1.2 million, or $0.01 per diluted share, compared to net profit (GAAP) of $1.3 million, or $0.01 per diluted share, for the third quarter of 2003. Net profit (adjusted) for the nine months ended September 30, 2004, was $4.6 million, or $0.04 per diluted share, compared to net profit (adjusted) of $3.6 million, or $0.03 per diluted share, for the nine months ended September 30, 2003. Net profit (GAAP) for the nine months ended September 30, 2004, was $3.7 million, or $0.03 per diluted share, compared to net profit (GAAP) of $4.1 million, or $0.03 per diluted share, for the nine months ended September 30, 2003.
Cash balances were $101.3 million at September 30, 2004, a decrease of $2.0 million from the prior quarter reflecting a combination of operational cash inflow offset by share repurchases. During the quarter Autonomy continued its share repurchase program, purchasing for cancellation 1.27 million shares at an average price of @pound;1.69 per share. In total, Autonomy has purchased for cancellation 19.6 million shares at an average price of @pound;1.63 per share. Accounts receivable days sales outstanding decreased from 140 days for the third quarter of 2003 to 110 days for the third quarter of 2004. DSOs would have been approximately 90 days had significant sales to a Southern European government customer and a U.S. corporate transaction been collected. We have assessed the need for a provision against this risk, are actively pursuing these amounts and have concluded that no provision is required at present. Receivables for the third quarter of 2004 were $17.6 million, compared to $20.2 million for the third quarter of 2003. Deferred revenues were $5.6 million net at September 30, 2004, compared with $5.9 million net at September 30, 2003. Deferred revenues in the third quarter of 2003 included Virage services, and the decrease in deferred revenues from 2003 reflects the planned discontinuance in these services during the past twelve months.
Page 2
Although GAAP 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 core business, such as the sale of its software products and services and operating profits without giving effect to certain specific charges. Consequently, the non-GAAP results exclude charges not reflective of Autonomy's core ongoing operational business, namely the periods Q3 2004 and the nine months ended September 30, 2004, exclude amortization of purchased intangibles and share-based compensation arising in connection with the acquisition of Virage, Inc. in Q3 2003 and all periods exclude non-cash translational foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's core business.
Product Sales
Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data sources. During the quarter, major new wins included: Swiss Life, Sysco Foods, American Electric, A&E Television, Morgan Stanley, Banco Credito Commerciale, Botswana Police, Shanghai Department for Public Relations, the Church of Latter Day Saints, Union Pacific Railway and the Federal Election Commission. Repeat business from existing customers accounted for approximately 31% of revenue for the quarter, and included customers such as IBM, Boeing, Entergy, Sun Microsystems, Lafarge, Credit Mutuel, France 2, the Irish Revenue Commissioner, and the U.K. Department of Trade and Industry, as well as various U.S. Federal government agencies, such as the National Geospatial Institute and the U.S. Army.
Importantly, following the Aungate contract win with the U.S. Securities and Exchange Commission in 2003, Autonomy is pleased to announce that Q3 2004 saw the rapid implementation of Aungate's award-winning compliance solution by the New York Stock Exchange to solve immediate investigation requirements, and the launch of ABN's global compliance platform Galileo, connecting lawyers and compliance officers world-wide in real-time. With these wins Aungate, Autonomy's division specializing in electronic communications management technology, is demonstrating its leadership in both post-event compliance investigation with world's largest regulators and exchanges and real-time compliance with the world's top investment banks using core technology that sets the benchmark in speed, accuracy, scalability security and automated real-time interactions.
Strategic Partnerships and OEMs
During Q3 2004 Autonomy signed four new contracts. OEM-derived revenues for the third quarter of 2004 of $2.7 million accounted for approximately 19% of revenues, compared to $2.0 million for the third quarter of 2003.
Q3 Corporate Developments
During the third quarter of 2004 Autonomy announced the launch of Audentify's Intelligent IVR System, an Interactive Voice Response system that allows organizations to effectively automate customer service operations in the contact center. Intelligent IVR forms an accurate understanding of a caller's query in real-time and automatically acts upon this information, providing an intelligent and dynamic response. Also during the third quarter Autonomy's Virage division launched the next generation of its VS Archive, VS Webcasting, VS News Monitoring and SmartEncode products, providing advanced security, customization and flexibility for managing rich media content.
Page 3
Also during the third quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. During the period Autonomy's Directed Navigation, the Autonomy module which enables users to easily integrate structured and unstructured information across the enterprise, was selected by KMWorld Magazine as one of the "Trend-Setting Products of 2004." Autonomy's Aungate division, specializing in electronic communications management technology, was also honoured by Butler Group for its "impressive" compliance solution. Butler Group concluded that Aungate "dramatically improves the overall business process." During Q3 Autonomy was also named to Software Magazine's Software 500 for the fifth year in a row, highlighting Autonomy's position as one of the world's largest software companies.
Autonomy is also pleased to announce the expansion of operations in the Australia and New Zealand region, including the appointment of a new, more senior sales and technical personnel in Sydney.
Finally, Mark Opzoomer, a member of Autonomy's board of directors, has informed the company that he will be stepping down from his position on the Autonomy board as he expects to shortly commence a role with an Autonomy partner. Mark has made this decision to avoid any appearance of a conflict of interest.
About Autonomy Corporation plc
Autonomy Corporation plc (Nasdaq: AUTN; LSE: AU.) is a global leader in infrastructure software for the enterprise. Autonomy's technology powers applications dependent upon unstructured information including call center, customer relationship management, knowledge management, enterprise portals, enterprise resource planning, online publishing and security applications. Autonomy's customer base includes more than 1,000 global companies including BAE Systems, Ford, Ericsson, Royal Sun Alliance, Sun Microsystems and public sector agencies including the U.S. Department of Defense, NASA and the U.S. Department of Energy. Strategic reseller and OEM partners include leading companies such as ATG, BEA, Business Objects, Citrix, Computer Associates, EDS, IBM Global Services, Novell, Novient, Veritas, Vignette, Supportsoft and Sybase. The company has offices worldwide.
The Autonomy Group includes: Aungate, a leading supplier of electronic communications management technology for regulatory compliance in the enterprise; Audentify, a leading supplier of next-generation contact center technology; and Virage, a leading provider of rich media communication and content management software.
Caution Concerning Forward-Looking Statements
With the exception of historical information, the matters set forth in this news release are forward-looking statements that involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, among others, technology risks, including dependence on core technology; fluctuations in quarterly results; dependence on new product development; rapid technological and market change; reliance on sales by others; management of growth; dependence on key personnel; rapid expansion; growth of the Internet; financial risk management; and future growth subject to risks. These factors and other factors which could cause actual results to differ materially are also discussed in the company's filings with the United States Securities and Exchange Commission, including Autonomy's latest Annual Report on Form 20-F.
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
Financial Dynamics
+44 (0)20 7831 3113 | Sushovan Hussain, Chief Financial Officer
Autonomy Corporation plc
+44 (0)1223 448 000 |
Page 4
AUTONOMY CORPORATION PLC
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| Three Months Ended | | Nine Months Ended |
| (unaudited) | | (unaudited) |
|
| |
|
| Sept. 30,
2004 | | Sept. 30,
2003 | | Sept. 30,
2004 | | Sept. 30,
2003 |
|
| |
| |
| |
|
Revenues | $ 14,483 | | | $ 13,012 | | | $ 46,136 | | | $ 37,921 | |
Cost of revenues | (668) | | | (587) | | | (2,223) | | | (1,443) | |
Amortization of purchased intangibles | (227) | | | – | | | (696) | | | – | |
|
| | |
| | |
| | |
| |
Gross profit | 13,588 | | | 12,425 | | | 43,217 | | | 36,478 | |
Operating expenses: | | | | | | | | | | | |
| Research and development | (3,155) | | | (2,804) | | | (9,947) | | | (7,951) | |
| Sales and marketing | (8,261) | | | (6,922) | | | (24,875) | | | (20,915) | |
| General and administrative | (2,019) | | | (2,137) | | | (5,994) | | | (5,906) | |
| Share-based compensation | – | | | – | | | (109) | | | – | |
|
| | |
| | |
| | |
| |
Total operating expenses | (13,435) | | | (11,863) | | | (40,925) | | | (34,772) | |
|
| | |
| | |
| | |
| |
Profit from operations | 153 | | | 562 | | | 2,292 | | | 1,706 | |
Interest income | 955 | | | 733 | | | 2,615 | | | 2,905 | |
Gain (loss) on foreign exchange | 431 | | | 310 | | | (144) | | | 701 | |
|
| | |
| | |
| | |
| |
Profit before benefit for income taxes and share
of profit (loss) of associated company
and minority interest |
1,539
| | |
1,605
| | |
4,763
| | |
5,312
| |
Provision for income taxes | (364) | | | (342) | | | (1,099) | | | (1,153) | |
Share of profit (loss) of associated company
and minority interest |
–
| | |
40
| | |
–
| | |
(78)
| |
|
| | |
| | |
| | |
| |
Net profit | $ 1,175 | | | $ 1,303 | | | $ 3,664 | | | $ 4,081 | |
|
| | |
| | |
| | |
| |
Basic earnings per share | $ 0.01 | | | $ 0.01 | | | $ 0.03 | | | $ 0.04 | |
|
| | |
| | |
| | |
| |
Diluted earnings per share | $ 0.01 | | | $ 0.01 | | | $ 0.03 | | | $ 0.03 | |
|
| | |
| | |
| | |
| |
Weighted average ordinary shares outstanding | 109,234 | | | 111,866 | | | 110,315 | | | 115,734 | |
Weighted average ordinary shares outstanding, assuming dilution | 111,026 | | | 113,322 | | | 112,357 | | | 117,048 | |
Reconciliation of Non-GAAP Financial Measures
| Three Months Ended | | Nine Months Ended |
| (unaudited) | | (unaudited) |
|
| |
|
| | Sept. 30,
2004 | | Sept. 30,
2003 | | Sept. 30,
2004 | | Sept. 30,
2003 |
|
| |
| |
| |
|
Gross profit | $ 13,588 | | | $ 12,425 | | | $ 43,217 | | | $ 36,478 | |
Amortization of purchased intangibles | 227 | | | – | | | 696 | | | – | |
|
| | |
| | |
| | |
| |
Gross profit (adjusted) | $ 13,815 | | | $ 12,425 | | | $ 43,913 | | | $ 36,478 | |
|
| | |
| | |
| | |
| |
| | | | | | | | | | | | |
Profit before tax | $ 1,539 | | | $ 1,605 | | | $ 4,763 | | | $ 5,312 | |
Amortization of purchased intangibles | 227 | | | – | | | 696 | | | – | |
Share-based compensation | – | | | – | | | 109 | | | – | |
(Gain) loss on foreign exchange | (431) | | | (310) | | | 144 | | | (701) | |
|
| | |
| | |
| | |
| |
Profit before tax (adjusted) | $ 1,335 | | | $ 1,295 | | | $ 5,712 | | | $ 4,611 | |
|
| | |
| | |
| | |
| |
| | | | | | | | | | | | |
Net profit | $ 1,175 | | | $ 1,303 | | | $ 3,664 | | | $ 4,081 | |
Amortization of purchased intangibles | 227 | | | – | | | 696 | | | – | |
Share-based compensation | – | | | – | | | 109 | | | – | |
Gain (loss) on foreign exchange | (431) | | | (310) | | | 144 | | | (701) | |
Tax effect of (gain) loss on foreign exchange | 129 | | | 93 | | | (44) | | | 210 | |
|
| | |
| | |
| | |
| |
Net profit (adjusted) | $ 1,100 | | | $ 1,086 | | | $ 4,569 | | | $ 3,590 | |
|
| | |
| | |
| | |
| |
The accompanying notes are an integral part of these consolidated financial statements
Page 5
AUTONOMY CORPORATION PLC
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except share data)
| As at | |
| (unaudited) | |
|
| |
| Sept. 30,
2004 | | Sept. 30,
2003 | |
|
| |
| |
| ASSETS | | | | | | |
Current assets: | | | | | | |
| Cash and cash equivalents | $ 101,345 | | | $ 102,222 | | |
Accounts receivable, net of allowances for doubtful accounts
of $3,079 and $3,683 as of September 30, 2004
and September 30, 2003, respectively |
17,628
| | |
20,217
| | |
| Prepaid expenses and other current assets | 6,399 | | | 4,423 | | |
| Deferred tax asset | 5,207 | | | 785 | | |
|
| | |
| | |
Total current assets | 130,579 | | | 127,647 | | |
Non-current assets: | | | | | | |
Property and equipment | 2,662 | | | 2,187 | | |
Intangible assets, net | 4,760 | | | 2,190 | | |
Goodwill, net | 29,125 | | | 30,780 | | |
Other investments, cost | 2,551 | | | 1,447 | | |
Deferred tax asset | 454 | | | 477 | | |
|
| | |
| | |
TOTAL ASSETS | 170,131 | | | $ 164,728 | | |
|
| | |
| | |
| | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
Current liabilities: | | | | | | |
| Accounts payable | $ 1,308 | | | $ 2,986 | | |
| Accrued expenses | 5,054 | | | 11,213 | | |
| Deferred revenue | 5,557 | | | 5,903 | | |
|
| | |
| | |
Total current liabilities | 11,919 | | | 20,102 | | |
Shareholders' equity: | | | | | | |
| Ordinary shares (1) | 562 | | | 575 | | |
| Additional paid-in capital | 65,390 | | | 119,394 | | |
| Treasury stock, at cost | (1,775) | | | (1,775) | | |
| Retained earnings | 71,029 | | | 13,403 | | |
| Other accumulated comprehensive income | 23,005 | | | 13,029 | | |
|
| | |
| | |
Total shareholders' equity | 158,211 | | | 144,626 | | |
|
| | |
| | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 170,130 | | | $ 164,728 | | |
|
| | |
| | |
––––––––
| (1) | At September 30, 2004, 600,000,000 ordinary shares of nominal value 1/3 pence each authorized, 108,802,039 issued and outstanding; as of September 30, 2003, 600,000,000 ordinary shares of nominal value 1/3 pence each authorized, 111,069,784 issued and outstanding. |
The accompanying notes are an integral part of these consolidated financial statements
Page 6
AUTONOMY CORPORATION PLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
| Three Months Ended | | Nine Months Ended |
| (unaudited) | | (unaudited) |
|
| |
|
| | Sept. 30,
2004 | | Sept. 30,
2003 | | Sept. 30,
2004 | | Sept. 30,
2003 |
|
| |
| |
| |
|
Cash flows from operating activities: | | | | | | | | | | | |
Net profit | $ 1,175 | | | $ 1,303 | | | $ 3,664 | | | $ 4,081 | |
Adjustments to reconcile net profit to net cash, provided by operating activities: | | | | | | | | | | | |
| Depreciation and amortization | 594 | | | 491 | | | 1,723 | | | 1,114 | |
| Share of (profit) loss of associated company and minority interest | – | | | (40) | | | – | | | 78 | |
| Non-cash income tax on stock options | – | | | – | | | 164 | | | – | |
| Deferred tax | 44 | | | 2 | | | (52) | | | 174 | |
| Share based compensation | – | | | – | | | 109 | | | – | |
| Foreign currency movements | (431) | | | (310) | | | 144 | | | (701) | |
| Changes in operating assets and liabilities: | | | | | | | | | | | |
| Accounts receivable | 1,910 | | | 117 | | | 1,781 | | | (4,391) | |
| Prepaid expenses and other current assets | 1,534 | | | 542 | | | 834 | | | 277 | |
| Deferred revenues | (700) | | | (1,002) | | | (341) | | | (1,108) | |
| Accounts payable | (1,470) | | | 371 | | | (1,661) | | | (497) | |
| Accrued expenses | 198 | | | (975) | | | (112) | | | (2,690) | |
|
| | |
| | |
| | |
| |
Net cash provided by (used in) operating activities | 2,854 | | | 499 | | | 6,253 | | | (3,663) | |
|
| | |
| | |
| | |
| |
| | | | | | | | | | | | |
Cash flows from investment activities: | | | | | | | | | | | |
Purchase of equipment | (727) | | | (111) | | | (1,630) | | | (365) | |
Purchase of intangibles | (354) | | | – | | | (354) | | | (426) | |
Purchase of investments, net of cash acquired | (362) | | | (14,568) | | | (362) | | | (14,575) | |
Disposal of intangibles | – | | | – | | | 459 | �� | | – | |
|
| | |
| | |
| | |
| |
Net cash used in investing activities | (1,443) | | | (14,679) | | | (1,887) | | | (15,366) | |
|
| | |
| | |
| | |
| |
| | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | |
Proceeds from issuance of shares, net of issuance costs | 115 | | | 152 | | | 1,653 | | | 161 | |
Purchase of company shares | (3,959) | | | (4,526) | | | (8,128) | | | (30,347) | |
|
| | |
| | |
| | |
| |
Net cash used in financing activities | (3,844) | | | (4,374) | | | (6,475) | | | (30,186) | |
|
| | |
| | |
| | |
| |
Effect of foreign exchange on cash and cash equivalents | 464 | | | 431 | | | 1,204 | | | 3,965 | |
|
| | |
| | |
| | |
| |
Net decrease in cash and cash equivalents | (1,969) | | | (18,123) | | | (905) | | | (45,250) | |
Beginning cash and cash equivalents | 103,314 | | | 120,345 | | | 102,250 | | | 147,472 | |
|
| | |
| | |
| | |
| |
Ending cash and cash equivalents | $ 101,345 | | | $ 102,222 | | | $ 101,345 | | | $ 102,222 | |
|
| | |
| | |
| | |
| |
| | | | | | | | | | | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | |
Income taxes paid | $ – | | | $ (253) | | | $ – | | | $ (533) | |
The accompanying notes are an integral part of these consolidated financial statements
Page 7
AUTONOMY CORPORATION PLC
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS - UNAUDITED
The accompanying consolidated condensed financial statements of Autonomy Corporation plc ("Autonomy" or the "Company") have been prepared in conformity with United States generally accepted accounting principles, consistent in all material respects with those applied in the Company's financial statements for the year ended December 31, 2003, included in the Company's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission although the consolidated condensed financial statements do not include all information and footnotes required by US GAAP. All information is unaudited, but reflects all normal adjustments which are, in the opinion of management, necessary to provide a fair statement of results and the Company's financial position for and as at the periods presented. The results of operations for the three and nine months ended September 30, 2004, are not necessarily indicative of the operating results for future operating periods. The interim financial statements should be read in connection with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2003, and the risk factors as set forth in the Form 20-F.
| 2. | Geographical information | | | | | | |
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| | Three months ended | |
| | (Unaudited) | |
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| Revenue by region: | Sept. 30,
2004 | | Sept. 30,
2003 | |
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| | US | $ 7,741 | | | $ 7,550 | | |
| UK/Europe | 6,155 | | | 5,181 | | |
| | Rest of World | 587 | | | 281 | | |
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| | |
| Total | $ 14,483 | | | $ 13,012 | | |
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