Computeruser.com
Latest News

Autonomy Corporation plc Announced Results for the Year Ended December 31, 2010

CAMBRIDGE, England February 1, 2011 December 31, 2010

    Highlights      - Record full year revenues of $870 million, up 18% from 2009      - All 2010 financial metrics in line with analyst consensus       estimates (Bloomberg as at 1/11/2011)      - Revenues $870 million (consensus $868 million)      - PBT(adj.) $379 million (consensus $360 million)      - Op margin (adj.) 43% (consensus 41%)      - Strong growth in core IDOL business, including IDOL OEM       growth of 32% and strong growth in IDOL Cloud revenues (Q4 up 12%       year-on-year) with increasing contracts reflected in our "commit"       number      - Full year organic growth in core business of 17% (2009: 22%)      - Rise in deferred revenue from last quarter, up to $178       million (Q3 2010: $168 million)      - Operating margins (adj.) in Q4 at 45%; up significantly from       40% in Q3 2010      - Full year diluted EPS (adj. IFRS) at $1.20* up 24% from 2009       (IFRS: $0.89, up 12%)      - Cash conversion for 2010 at 87%, up significantly from 80%       in 2009      - 94 seven figure deals in 2010, up 42% from last year      - Average selling price for 2010 rises to $790,000      - Strong investment in business with R&D up 16% from 2009      - Positive cash flow generated by operations of $363 million       (2009: $287 million), up 27%      - Gross cash of $1,061 million at year end and no net debt      -----      * on the basis that if the share price were to be above     GBP20.63 in February 2015 the convert would generate extra shares giving     diluted EPS (adj.) at $1.11. See note 6.  

Adjusted income statements are included on page 8, which reconcile IFRS to the adjusted measures above.

Chief Executive’s Review

Mike Lynch

"2010 was a year of transition for us. During the year Autonomy’s technology and its ability to extract meaning from human friendly information has spearheaded the Meaning Based Computing movement forward with new applications of the technology and mission critical usages by our customers. Human friendly information and the need to process it has continued to grow rapidly with applications in customer interaction, legal, regulatory and, as a result of new smart phone technology, mobile leading the way.

This year we have seen Autonomy become one of the leading players in cloud computing as our customers, who can choose to take up our core functionality by traditional licence, IDOL OEM or IDOL Cloud offering, have transitioned to the private cloud model faster than expected. This trend can be seen in the unexpected rise in our ‘commit’ metric (contracts entered into by the customer with an expected minimum spend). The IDOL OEM and IDOL Cloud routes are highly attractive to us as they turn one-off sales into multi-year committed annuity streams, and these new fast growing routes have become the dominant usage models for our technology. However there is a short-term effect of depressing growth rates as those one-off sales which were recognised immediately are replaced by longer-term but more valuable annuity streams.

Autonomy continues to be chosen to handle the world’s most complex legal cases and regulatory issues, for both corporates and regulators, including the largest lawsuits in the world such as BP and as reported by industry analysts has continued to gain market share in areas such as legal and archiving. We are particularly pleased to see the very high growth rates in IDOL OEM, which is now seeing IDOL used by most major software companies across almost all sectors of the software industry.

Latin America

Unlike others in the sector, Autonomy’s business thrived during the downturn resulting in Autonomy reporting growth on growth unlike others who are now seeing growth as a return to normal levels. In light of these tougher comparative periods due to our strong growth in 2009, and the transition to longer-term value revenue models, Autonomy continues to perform well.

In 2010 we saw transitions in the business and significant investments for which we expect to reap the rewards in coming years. We also saw in Q3 2010 volatility in customer assessment of the macro environment, which now seems to have reduced.

During the course of 2010 we saw the balance of our business shift towards IDOL Cloud and IDOL OEM being the key drivers of our business. We believe the growth rates seen across our business lines in Q4 2010 projected forward provide a solid baseline on top of which our current record pipeline and "commit" imply that current market expectations are conservative."

Operations Review

Progress Towards Strategic Goals. During 2010 we made significant progress on our strategic goals, including in the following areas:

     - New standardisation agreements further cementing IDOL within       the enterprise as the core platform for processing unstructured       information, including Amgen, Bank of America, BNP Paribas, BP,       Cigna, Philip Morris International and Play.com, and continued strong       conversion of law firm customers from other suppliers.      - 57% of sales during the year were from existing customers       extending their investment in IDOL in new business areas.      - Many more third party software products are now built on       IDOL with 42 new and extended relationships with major software       providers including: Nuance, Xerox and Cisco. Growth in this area       accelerated to 32% during 2010.      - Strong growth in the IDOL Cloud business, Q4 2010 up 12%       year-on-year, increasing the level of recurring revenue and securing       lifetime customer relationships.      - Autonomy's market position remained strong with the Average       Selling Price (ASP) for IDOL technology rises to $790,000 during FY       2010 and 94 deals in excess of $1 million signed.      - $115 million invested in R&D resulting in a significant new       product offering to the Healthcare sector.      - Rated number one across multiple industry analyst reports       and segments, as discussed below.  

Sales and Customers. As expected, the adoption of our technology for "Protect" usages continued strongly throughout the year driven by a whole series of new regulations coming into effect which is driving our business. We are still seeing very large deals in this area and expect this to continue for the foreseeable future across most industry sectors. We have also seen strong take-up of our technology for "Promote" usages, with customers such as Allstate, AT&T, Belgacom, Blackrock, BNP Paribas, Canadian Broadcasting Corporation, Euronews, Health Care Services Corporation, Safeway and Verizon during the year. Our multi-channel offerings including optimisation and real-time analytics have proven extremely attractive, leading to the company’s largest ever deal in this area. At the close of the year, Autonomy was pleased to count virtually the entire Fortune 1000 group of companies as customers.

R&D. We continued to invest heavily in R&D during the year resulting in the launch of a major new initiative targeted at Healthcare during 2010 and another major launch imminent. The net impact of R&D capitalisation on the operating margin was in the order of 2%, the same as in 2009.

Market Position and Penetration. Autonomy’s market leadership position strengthened during 2010. We saw a continuation of the "chaining" effect as customers deploy IDOL across functional areas that have traditionally been isolated and served by different software vendors. Ultimately this leads to a growing number of enterprise-wide standardisation customers. Competition during the year also became slightly more benign with major players pulling out of our market.

Amongst industry analysts we elevated our positions, being rated number one across multiple industry analyst reports and segments, including IDC’s Worldwide Search and Discovery Software 2010-2014 forecast, and the Forrester Wave 2010 for Online Testing. Other accolades included:

     - Rated by IDC as fastest-growing archiving software company       and the leading provider of search and discovery software      - Rated "Strong Positive" in Gartner's 2010 eDiscovery market       report      - Positioned as leader in Gartner's 2010 Magic Quadrant for       Web Content Management      - Achieved the highest score in the Forrester Wave 2010 for       Online Testing, based on current offering, product strategy, corporate       strategy and market presence 

Brazil

Jonathan Bloomer Frank Kelly

Financial Review

In 2010 Autonomy commenced providing supplemental metrics as part of its financial results to assist in the understanding and analysis of Autonomy’s business.

Revenue

$870 million $740 million

$1.0 million $592 million $278 million

Autonomy’s strategy to deepen the penetration of IDOL across all areas of the enterprise is proving successful, as the high level of repeat business demonstrates, with 57% of 2010 revenues from existing customers (2009: 48%). As customers return for additional technology, the scale of projects increases, with greater levels of functionality and connectivity.

January 1, 2010

Sales during 2010 and Q4 2010 were as follows, with the trends as discussed above:

$251 million $84 million

$190 million $370 million $347 million $51 million

$132 million $34 million $27 million

$255 million $212 million $66 million $61 million

$10 million to $11 million $9 million to $11 million

Q4 Customers

Australia Canada Italy Kuwait Singapore Slovakia U.S.A.

Organic Growth

In analysing organic growth Autonomy considers organic IDOL growth to be the most meaningful performance metric for understanding the momentum within the business. This excludes the contribution from acquisitions, foreign exchange impact, services revenue (not a goal of the business) and deferred revenue release (primarily maintenance income).

     Table 1: Core Business Organic Revenue Growth Calculation(1)      Revenue ($ millions)               2010    2009    Q4'10   Q4'09      Core IDOL reported revenues(2)      574     491     169     153     IWOV stub revenues(3)                 -       4       -       -     Microlink/CA non-service revenue(4)   -       -       -       -     FX                                    4       -       3       -                                         578     495     172     153      Growth                               17%             12%      1 Autonomy's Core Business above excludes services and deferred revenue.      2 Core IDOL is made up of IDOL Product, IDOL Cloud and IDOL OEM       categories, discussed above.      3 Interwoven stub revenues are for licence for the period January 1, 2009       through to March 16, 2009.      4 Microlink did not have its own product lines but only services. CA unit       original product not sold by Autonomy.  

Gross Profits and Gross Margins

$759 million $652 million $702 million $602 million

$211 million $199 million $197 million $185 million

Operating Expenses

Brazil

$385 million $330 million $3.5 million

Profit from Operations and Operating Margins

$377 million $329 million $316 million $272 million

During the year we did significant work on one specific acquisition target and during the fourth quarter we expensed the costs relating to this work. The transaction was delayed due to changes in the targeted asset; this asset has not transacted with any other party.

$109 million $113 million $99 million $97 million

Interest payable

$41.3 million $7.0 million $35.2 million March 2010

Taxation

The effective tax rate for 2010 was as forecast at 23%, down from 28% for 2009. The decrease from 2009 is the result of changes in the profit mix between the UK and overseas, as well as the completion of tax studies resulting in the recognition of additional tax losses. The effective tax rate for 2011 will likely be in the range of 27-29% as the one-off benefit in 2010 in relation to the utilisation of tax losses will not be repeated.

Foreign Exchange Impact on Revenues

$4 million $4 million $874 million $1.55 $1.57

$3 million $1.58 $1.63

Net Profits

$292 million $233 million $88 million $80 million

$217 million $192 million $70 million $69 million

IAS 38 Charges and Capitalization

$115 million $99 million $39 million $25 million $13 million $6 million $17 million $9 million $5 million $3 million

$21 million $16 million

EPS

$1.20 $0.97 $0.36 $0.33 $1.11 $0.97 $0.33 $0.33 $0.89 $0.80 $0.29 $0.29

This result was achieved against the unusually strong performance a year ago, and after the substantial discretionary investment in sales and marketing, research and development and new product launches.

Balance Sheet and Cash Flows

$1.1 billion $145 million $198 million $682 million

    Movements. Movements of note in cash flow during 2010 included:      - Positive cash flow from operating activities of $302 million, up 21%       from $250 million in 2009.      - Capital expenditure of $60 million during 2010, up from $34 million in       2009. This represents the continued investment of the company in areas       of expected growth for future years.      - Expenditure on product development, resulting in a cash outflow of $39       million (2009: $25 million), as discussed above.      - Acquisition of Microlink and CA's Information Governance assets for       aggregate consideration of approximately $79 million.      - Proceeds of approximately $762 million through the issuance of       convertible loan notes in March 2010, offset by interest payments of       $13 million during 2010 representing the first semi-annual payment of       the coupon rate of 3.25%.      - Scheduled bank loan repayments of $54 million (2009: $37 million).  

Cash Conversion. On a twelve month basis, which accounts for the seasonality of the business, cash conversion improved to 87% (2009: 80%). Given the growth profile of the Company 87% approximates to the theoretical maximum that should be achievable. Cash conversion was 84% in Q4 (Q4 2009: 58%), and within the company’s target range.

Receivables. In Q4 2010 DSOs were 94 days (Q4 2009: 88 days), just above the top end of the company’s target 80-90 day range but in line with normal historic fluctuations The bad debt write off was below 1% of sales and accrued income remained below 5% of revenue.

$178 million $174 million

    Five Year Financial Summary      Table 2: Five Year Financial Summary      ($'000s)                 2010    2009    2008    2007    2006      Revenue                   870     740     503     343     251     Profit before tax         379     323     209     113      69     (adj.)     Net cash generation       363     287     179      83      47      Operating margin           43%     44%     41%     32%     27%     (adj.)*     Diluted EPS (adj.       $1.20   $0.97   $0.68   $0.38   $0.26     IFRS)**      * See adjusted measures as calculated on page 8      ** Diluted EPS (adj.) at $1.11, see note 6 

Scheduling of Conference Call and Further Information

http://www.autonomy.com February 1, 2011 9:00 a.m. GMT 4:00 a.m. EST 1:00 a.m. PST

http://www.autonomy.com/investors/questions

Financial Calendar

www.autonomy.com/content/Investors/calendar/index.en.html

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. IDC recently recognized Autonomy as having the largest market share and fastest growth in the worldwide search and discovery market. 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.

www.autonomy.com

     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)                                        Twelve Months Ended  Three Months Ended                                       (unaudited)          (unaudited)                                        Dec 31,    Dec 31,   Dec 31,   Dec 31,                                         2010       2009      2010      2009      Continuing operations               $'000      $'000     $'000     $'000     Revenues (see note 3)             870,366    739,688   244,505   223,111     Cost of revenues (excl.     amortization)                    (111,513)   (87,747)  (33,518)  (23,686)     Amortization of purchased     intangibles                       (57,280)   (49,650)  (13,793)  (14,601)     Total cost of revenues           (168,793)  (137,397)  (47,311)  (38,287)     Gross profit                      701,573    602,291   197,194   184,824     Operating expenses:     Research and development         (114,752)   (98,785)  (29,776)  (26,141)     Sales and marketing              (204,109)  (170,797)  (56,828)  (45,621)     General and administrative        (69,405)   (60,627)  (17,617)  (17,046)     Other costs     Post-acquisition restructuring     (3,468)      (846)   (1,353)        -     costs     Gain on foreign exchange            6,576        942     7,097       852     Total operating expenses         (385,158)  (330,113)  (98,477)  (87,956)     Profit from operations            316,415    272,178    98,717    96,868     Share of (loss) profit of     associate                          (1,816)      (273)     (891)      457     Profit on disposal of investment      436          -       436         -     Interest receivable                 8,458      1,205     2,776       230     Interest payable                  (41,299)    (7,044)  (12,683)   (1,798)     Profit before income taxes        282,194    266,066    88,355    95,757     Income taxes (see note 4)         (64,901)   (74,515)  (17,956)  (26,363)     Net profit                        217,293    191,551    70,399    69,394     Basic earnings per share (see     note 6)                              0.90       0.81      0.29      0.29     Diluted earnings per share (see     note 6)                              0.89       0.80      0.29      0.29                   Reconciliation of Adjusted Financial Measures                                        Twelve Months Ended  Three Months Ended                                       (unaudited)          (unaudited)                                        Dec 31,    Dec 31,   Dec 31,   Dec 31,                                       2010       2009      2010      2009                                          $'000      $'000     $'000     $'000     Gross profit                      701,573    602,291   197,194   184,824     Amortization of purchased     intangibles                        57,280     49,650    13,793    14,601     Gross profit (adj.)               758,853    651,941   210,987   199,425      Profit before income taxes        282,194    266,066    88,355    95,757     Amortization of purchased     intangibles                        57,280     49,650    13,793    14,601     Share based compensation (see     note 5)                             5,979      7,173     2,044     1,994     Post-acquisition restructuring      3,468        846     1,353         -     costs     Gain on foreign exchange           (6,576)      (942)   (7,097)     (852)     Profit on disposal of investment     (436)         -      (436)        -     Interest charge on convertible     loan notes                         35,196          -    11,038         -     Share of loss (profit) of     associate                           1,816        273       891      (457)     Profit before tax (adj.)          378,921    323,066   109,941   111,043     Provision for income taxes        (86,705)   (90,268)  (22,122)  (30,571)     Net profit (adj.)                 292,216    232,798    87,819    80,472      Profit from operations            316,415    272,178    98,717    96,868     Amortization of purchased     intangibles                        57,280     49,650    13,793    14,601     Share based compensation (see     note 5)                             5,979      7,173     2,044     1,994     Post-acquisition restructuring     costs                               3,468        846     1,353         -     Gain on foreign exchange           (6,576)      (942)   (7,097)     (852)     Profit from operations (adj.)     376,566    328,905   108,810   112,611                                 Autonomy Corporation plc                         Condensed Consolidated Balance Sheet                                                     As at                                                    (unaudited)                                                     Dec 31,     Dec 31,                                                    2010        2009                                                       $'000       $'000     ASSETS     Non-current assets:     Goodwill                                     1,361,900   1,287,042     Other intangible assets                        400,372     399,277     Property and equipment, net                     42,554      33,886     Equity and other investments                    68,600      16,608     Deferred tax asset                              16,263      24,015     Total non-current assets                     1,889,689   1,760,828     Current assets:     Trade receivables, net                         267,646     230,219     Other receivables                               62,471      45,231     Total trade and other receivables              330,117     275,450     Inventory                                          116         486     Cash and cash equivalents                    1,060,600     242,791     Total current assets                         1,390,833     518,727     TOTAL ASSETS                                 3,280,522   2,279,555      CURRENT LIABILITIES     Trade payable                                  (23,443)    (14,926)     Other payables                                 (51,968)    (54,517)     Total trade and other payables                 (75,411)    (69,443)     Bank loan                                      (78,745)    (52,375)     Tax liabilities                                (33,210)    (43,338)     Deferred revenue                              (170,256)   (164,931)     Provisions                                      (1,661)     (2,731)     Total current liabilities                     (359,283)   (332,818)     Net current assets                           1,031,550     185,909      NON-CURRENT LIABILITIES     Bank loan                                      (66,407)   (145,152)     Convertible loan notes                        (681,791)          -     Deferred tax liabilities                       (91,072)    (85,087)     Deferred revenue                                (7,421)     (8,576)     Other payables                                  (3,702)     (1,020)     Provisions                                      (3,597)     (5,123)     Total non-current liabilities                 (853,990)   (244,958)     Total liabilities                           (1,213,273)   (577,776)     NET ASSETS                                   2,067,249   1,701,779      Shareholders' equity:     Ordinary shares (1)                              1,344       1,333     Share premium account                        1,247,907   1,130,767     Capital redemption reserve                         135         135     Own shares                                        (788)       (845)     Merger reserve                                  27,589      27,589     Stock compensation reserve                      27,881      21,959     Revaluation reserve                             47,415       4,499     Translation reserve                            (30,161)    (12,032)     Retained earnings                              745,927     528,374     TOTAL EQUITY                                 2,067,249   1,701,779      ------------      (1) At December 31, 2010, 600,000,000 ordinary shares of     nominal value 1/3 pence each authorized, 242,562,584 issued and     outstanding; as of December 31, 2009, 600,000,000 ordinary shares of     nominal value 1/3 pence each authorized, 240,574,304 issued and     outstanding.                               Autonomy Corporation plc                  Condensed Consolidated Statements of Cash Flows                                         Twelve Months Ended  Three Months Ended                                           (unaudited)          (unaudited)                                        Dec 31,    Dec 31,   Dec 31,    Dec 31,                                       2010       2009      2010       2009                                         $'000      $'000     $'000      $'000     Cash flows from operating     activities:     Profit from operations           316,415    272,178    98,717     96,868     Adjustments for:     Depreciation and amortization     99,610     81,083    24,757     25,490     Share based compensation           5,979      7,173     2,044      1,994     Foreign currency movements        (6,576)      (942)   (7,097)      (852)     Post-acquisition restructuring       698        846     costs                                                       -        250     Other non-cash items                   -        128         -          1     Operating cash flows before     movements in working cap         416,126    360,466   118,421    123,751     Changes in operating assets and     liabilities:     Receivables                      (60,983)   (78,396)  (54,007)   (13,021)     Inventories                          369        235        89        (33)     Payables                           7,718      4,267    35,165    (38,503)     Cash generated by operations     363,230    286,572    99,668     72,194     Income taxes paid                (60,902)   (36,551)  (11,985)   (10,368)     Net cash provided by operating   302,328    250,021    87,683     61,826     activities      Cash flows from investment     activities:     Interest received                  7,789      1,127     2,776        152     Purchase of fixed assets         (59,624)   (34,429)  (19,261)   (11,031)     Proceeds on disposal of              467          -       467          -     investments     Purchase of investments          (10,676)    (6,449)   (8,176)    (4,297)     Expenditure on product           (38,542)   (24,722)  (12,696)    (5,574)     development     Acquisition of subsidiaries, net (79,460)  (630,052)     (658)    (1,522)     of cash acquired     Net cash used in investing      (180,046)  (694,525)  (37,548)   (22,272)     activities      Cash flows from financing     activities:     Proceeds from issuance of shares, 18,735     24,668      2,382    7,472     net of issuance costs     Proceeds from share placing, net       -    308,512     of issuance costs                                            -        -     Proceeds from convertible loan     notes, net of issuance costs                                      761,781          -          -        -     Interest on convertible loan     (12,527)         -          -        -     notes     Interest on bank loan             (4,501)    (5,340)    (1,204)  (1,380)     Repayment of bank loan           (53,906)   (37,450)         -        -     Drawdown of bank loan                  -    200,000          -        -     Payment of arrangement fee             -     (3,846)         -        -     Net cash provided by financing   709,582    486,544      1,178    6,092     activities      Net increase in cash and cash    831,864     42,040     51,313   45,646     equivalents     Beginning cash and cash          242,791    199,218  1,027,739  200,732     equivalents     Effect of foreign exchange on    (14,055)     1,533    (18,452)  (3,587)     cash and cash equivalents     Ending cash and cash     equivalents                    1,060,600    242,791  1,060,600  242,791                              Autonomy Corporation plc          Condensed Consolidated Statement of Comprehensive Income                                         Twelve Months       Three Months Ended                                        Ended                                        (unaudited)         (unaudited)                                         Dec 31,    Dec 31,  Dec 31,    Dec 31,                                        2010       2009     2010       2009                                         $'000      $'000    $'000      $'000     Net profit                       217,293    191,551   70,399     69,394      Revaluation of equity     investment                        42,916      1,512      298       (967)     Translation of overseas     operations                       (18,129)     6,229  (15,332)    (3,995)     Other comprehensive income        24,787      7,741  (15,034)    (4,962)     Total comprehensive income       242,080    199,292   55,365     64,432                                    Autonomy Corporation plc                   Condensed Consolidated Statement of Changes in Equity                                             Capital                       Ordinary   Share   redemption  Own   Merger                        shares   premium   reserve   shares reserve  Sub-total                        $'000     $'000       $'000    $'000   $'000     $'000      At January 1,     2009             1,214    798,279         135     (905) 27,589   826,312     Retained profit      -          -           -        -       -         -     Other     comprehensive     income               -          -           -        -       -         -     Stock     compensation         -          -           -        -       -         -     Share placing      103    308,409           -        -       -   308,512     Share options     exercised           16     24,079           -        -       -    24,095     EBT options     exercised            -          -           -       60       -        60     Deferred tax on     stock options.....   -          -           -        -       -         -     At Dec 31, 2009  1,333  1,130,767         135     (845) 27,589 1,158,979                                Stock  Revaluation                   Sub-total  comp'n             Translation Retained                   Forwarded reserve   reserve    reserve    earnings    Total                       $'000     $'000   $'000      $'000      $'000      $'000      At January 1,  826,312    14,846   2,987    (18,261)   294,016  1,119,900     2009     Retained     profit               -         -       -          -    191,551    191,551     Other     comprehensive     income               -         -   1,512      6,229          -      7,741     Stock     compensation         -     7,173       -          -          -      7,173     Share placing  308,512         -       -          -          -    308,512     Share options     exercised       24,095         -       -          -          -     24,095     EBT options     exercised           60       (60)      -          -          -          -     Deferred tax     on stock     options              -         -       -          -     42,807     42,807     At Dec 31,     2009         1,158,979    21,959   4,499    (12,032)   528,374  1,701,779                                              Capital                      Ordinary    Share   redemption  Own    Merger                       shares    premium   reserve   shares  reserve Sub-total                        $'000     $'000     $'000      $'000   $'000      $'000      At January 1,     2010              1,333 1,130,767       135       (845) 27,589  1,158,979     Retained profit       -         -         -          -       -          -     Other     comprehensive     income                -         -         -          -       -         -     Stock compensation    -         -         -          -       -         -     Share options     exercised            11    19,325         -          -       -    19,336     EBT options     exercised             -         -         -         57       -        57     Equity element of     convertible loan     notes                 -    97,815         -          -       -    97,815     Deferred tax on     stock options         -         -         -          -       -         -     At Dec 31, 2010   1,344 1,247,907       135       (788) 27,589 1,276,187                     Sub-total  Stock  Revaluation                             comp'n              Translation Retained                   Forwarded reserve   reserve     reserve   earnings   Total                       $'000   $'000   $'000       $'000       $'000     $'000      At     January 1,     2010         1,158,979  21,959   4,499     (12,032)    528,374 1,701,779     Retained     profit               -       -       -           -     217,293   217,293     Other     comprehensive     income               -       -  42,916     (18,129)          -    24,787     Stock     compensation         -   5,979       -           -           -     5,979     Share options     exercised       19,336       -       -           -           -    19,336     EBT options     exercised           57     (57)      -           -           -         -     Equity     element of     convertible     loan notes      97,815       -       -           -           -    97,815     Deferred tax     on stock     options              -       -       -           -         260       260     At Dec 31,     2010         1,276,187  27,881  47,415     (30,161)    745,927 2,067,249 

AUTONOMY CORPORATION plc

DECEMBER 31, 2010

1. General information

December 31, 2010 December 31, 2009 February 2011

December 31, 2010 December 31, 2010 December 31, 2009 December 31, 2009 December 31, 2010 February 1, 2011

2. Accounting policies

Whilst the financial information included in this quarterly and twelve month announcement has been computed in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain all of the disclosures required by IFRSs.

Basis of preparation

The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the group’s 2009 Annual Report, except for as described below.

Adoption of new and current standards

December 31, 2009

Going Concern

December 31, 2010 $1,061 million $827 million

After making enquiries and considering the cash flow forecasts of the group 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 twelve month and quarterly consolidated financial statements.

2. Accounting policies (continued)

Adjusted Results

Although IFRS disclosure provides investors and management with an overall view of the Company’s financial performance, Autonomy believes that it is important for investors to also understand the performance of the Company’s fundamental business without giving effect to certain specific, non-recurring and non-cash charges.

Consequently, the non-IFRS (adj.) results exclude share of profit/loss of associates, profit on disposal of investment, interest on convertible loan notes, post-acquisition restructuring costs and non-cash charges for the amortization of purchased intangibles, share-based compensation, non-cash translational foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of the Company’s operational business activities.

See reconciliations on page 8.

3. Segmental information

The Company is organized internally along group function lines with each line reporting to the group’s chief operating decision maker, the Chief Executive Officer. The primary group function lines include: finance; operations, including legal, HR, and operations, marketing, sales and technology. Each of these functions supports the overall business activities, however they do not engage in activities from which they earn revenues or incur expenditure in their operations with each other. No discrete financial information is produced for these function lines. The Company integrates acquired businesses and products into the Autonomy model such that separate financial data on these entities is not maintained post acquisition.

The group has operations in various geographic locations however no discrete financial information is maintained on a regional basis. Decisions around the allocation of resources are not determined on a regional basis and the chief operating decision maker does not assess the group’s performance on a geographic basis.

The group is a software business that utilises its single technology in a set of standard products to address unique business problems associated with unstructured data. The group offers over 500 different functions and connectors to over 400 different data repositories as part of its product suite. Each customer selects from a list of options, but underneath from a single unit of the proprietary core technology platform. As a result, no analysis of revenues by product type can be provided.

Each of the group’s virtual brands is founded on the group’s unique Intelligent Data Operating Layer (IDOL), the group’s core infrastructure for automating the handling of all forms of unstructured information. Separate financial information is not prepared for each virtual brand to assess its performance for the purpose of resource allocation decisions. The pervasive nature of the group’s technology across each brand requires decisions to be taken at the group level and financial information is prepared on that basis.

A significant proportion of the group’s cost base is fixed and represents payroll and property costs which relate to the multiple function lines of the group. As a result the business model drives enhanced performance though growing sales and accordingly group wide revenue generation is the key performance metric that is monitored by the chief operating decision maker. The revenue financial data used to monitor performance is prepared and compiled on a group wide basis. No separate revenue financial analysis is maintained on revenues from any of the virtual brands.

The Company’s chief operating decision maker is the group’s Chief Executive Officer, who evaluates the performance of the Company on a group wide basis and any elements within it on the basis of information from junior executives and group financial information and is ultimately responsible for entity-wide resource allocation decisions.

As a consequence of the above factors the group has one operating segment in accordance with IFRS 8 "Operating Segments". IFRS 8 also requires information on a geographic basis and that information is shown below.

3. Segmental information (continued)

United Kingdom Canada

Leave a comment

seks shop - izolasyon
basic theory test book basic theory test