PARIS--(BUSINESS WIRE)--InfoVista (Euronext: IFV)(ISIN: FR0004031649):
- 38% YoY Software product revenue growth
- Operating income doubled compared to last year
InfoVista (Euronext: IFV)(ISIN: FR0004031649), global leader of service performance assurance, today announced financial results for its second quarter, ended December 31, 2010.
Total revenues for the quarter were €12 million, compared to €10.7 million in the second quarter last year. Operating income was €1.1 million or 10% for the quarter, compared to €0.6 million or 5% a year ago. Net income reached €0.9 million for the quarter as compared to €0.5 million last year.
“We are on the right track. Not only do we show this quarter a strong growth in license sales but we also demonstrate the profitability of our business model with a remarkable jump in our operating income” said Philippe Ozanian, InfoVista’s CEO. “These results confirm the relevance of our solutions and a sound execution. With a solid performance achieved in the first half of our fiscal year we are well positioned to achieve the goals we set ourselves for this year both in terms of total revenues and operating margin”
Revenues by Region
In thousands |
Q2 FY11 | Q2 FY10 | % Change | H1 FY11 | H1 FY10 | % Change | ||||||
EMEA | €7,215 | €5,851 | 23% | €12,797 | €11,623 | 10% | ||||||
Americas | 3,521 | 2,642 | 33% | 7,333 | 5,240 | 40% | ||||||
Asia-Pacific | 1,224 | 2,158 | -43% | 2,714 | 3,366 | -19% | ||||||
Total |
€11,960 | €10,651 | 12% | €22,844 | €20,229 | 13% | ||||||
- In the second quarter, EMEA benefited from a good mixture of emerging market revenues and large repeat orders from service provider customers in mature countries. A large deal with the US government along with orders from LATAM service providers enhanced Americas’ revenues for the second quarter. Asia-Pacific total revenues decreased as compared to an exceptional professional services revenue recorded a year ago, coupled with a revenue recognition delay of a €0.5 million software order.
- In the second quarter, InfoVista derived 36% of total revenues from its indirect sales channel. The service provider market generated 69% of total revenues for the quarter.
Operating Expenses
In thousands |
Q2 | % | Q2 | % | H1 | % |
H1 |
% | ||||||||
FY11 | revenues | FY10 | revenues | FY11 | revenues |
FY10 |
revenues | |||||||||
Sales & Marketing | €4,280 | 36% | €3,707 | 35% | €8,318 | 36% | €7,138 | 35% | ||||||||
Research & Development | 2,382 | 20% | 2,406 | 23% | 4,716 | 21% | 4,711 | 23% | ||||||||
General & Administrative | 1,435 | 12% | 1,407 | 13% | 2,747 | 12% | 2,718 | 13% | ||||||||
Total | €8,097 | €7,520 | €15,781 | €14,567 | ||||||||||||
- Sales & marketing costs increased from higher personnel costs linked to software revenue growth. Research & development costs primarily decreased from higher R&D tax credits in France for the second quarter. General & administrative costs remained unchanged.
- As at December 31, 2010, InfoVista had 231 employees.
Balance Sheet
- Days Sales Outstanding (DSO) stood at 79 days for the second quarter, as compared to 78 days in the comparable quarter last year.
- As at December 31, 2010, the Company’s cash, cash equivalents and short-term deposits amounted to €25.7 million, as compared to €25.8 million as at June 30, 2010 and €24.9 million as at September 30, 2010. For the quarter, €0.8 million of cash was generated mainly from operating activities.
- As at December 31, 2010, InfoVista had a total of 17,711,804 and 16,530,661 shares issued and outstanding, respectively. On December 15, 2010, the Board of Directors cancelled 340,000 shares in treasury, representing 2% of the issued capital.
Conference call
InfoVista will host an investor conference call on January 27, 2011 at 9.00 a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental Europe). The call will be available by dialing France +33 (0)1 70 99 42 87 North America +1 212 444 0895 and +44 (0)20 7138 0844 in the UK. In each case, the access code is 9469935. A replay will be available shortly after the end of the call at the following numbers: France: +33 (0)1 74 20 28 00 UK: +44 (0)20 7111 1244 North America: +1 347 366 9565 – all with access code 9469935#.
About InfoVista
InfoVista enables managed service providers, mobile operators, broadband operators and enterprise IT organizations to ensure the availability and quality of the services they deliver at the lowest possible cost, empowering these organizations to successfully make the transformation from infrastructure providers to service providers. Our customers rely on InfoVista’s proven solutions for service and infrastructure performance management to successfully launch new and high performance services, foresee potential service issues before they impact end users, reduce customer churn, and invest appropriately. Sample customers include Bell Canada, Bharti, BNP Paribas, Cable & Wireless, Citigroup, Deutsche Telekom, KPN International, Microsoft, SFR, SingTel, T-Mobile, Telefonica, Telstra, and Wells Fargo. InfoVista is traded on the Euronext Paris (FR0004031649) and can be found online at www.infovista.com.
Except for historical information contained herein, the matters discussed in this news release are "forward looking statements." These statements involve risks and uncertainties which could cause actual results to differ materially from those in such forward-looking statements; including, without limitation, risks and uncertainties arising from the rapid evolution of our markets, competition, market acceptance of our products, our dependence upon spending by the telecommunications industry and our ability to develop and protect new technologies. For a description of other factors which might affect our actual results, please see the "Risk Factors" section and other disclosures in InfoVista's public filings with the French Autorité des Marchés Financiers. Readers of this news release are cautioned not to put undue reliance on any forward-looking statement. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
INFOVISTA | ||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||
(In thousands, except for share and per share data) | ||||||||
The table presented below represents the consolidated income statements in accordance with IFRS | ||||||||
For the six months ended | For the three months ended | |||||||
December 31, | December 31, | |||||||
2010 | 2009 | 2010 | 2009 | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
Revenues | ||||||||
Software products | € 9,046 | € 6,709 | € 4,955 | € 3,588 | ||||
Maintenance services | 10,941 | 10,605 | 5,462 | 5,440 | ||||
Professional services | 2,857 | 2,915 | 1,543 | 1,623 | ||||
Total | 22,844 | 20,229 | 11,960 | 10,651 | ||||
Cost of revenues | ||||||||
Cost of software products | 918 | 500 | 562 | 338 | ||||
Cost of services | 4,328 | 4,245 | 2,043 | 2,120 | ||||
Total | 5,246 | 4,745 | 2,605 | 2,458 | ||||
Gross profit | 17,598 | 15,484 | 9,355 | 8,193 | ||||
Operating expenses | ||||||||
Sales and marketing expenses | 8,319 | 7,138 | 4,280 | 3,707 | ||||
Research and development expenses | 4,716 | 4,711 | 2,382 | 2,406 | ||||
General and administrative expenses | 2,747 | 2,718 | 1,435 | 1,407 | ||||
Amortization of acquired intangible assets | 229 | 229 | 114 | 114 | ||||
Total | 16,011 | 14,796 | 8,211 | 7,634 | ||||
Operating profit | 1,587 | 688 | 1,144 | 559 | ||||
Financial revenues | 90 | 113 | 51 | 55 | ||||
Financial costs | (11) | (13) | (1) | (8) | ||||
Net foreign currency transaction losses | (236) | (97) | (141) | (87) | ||||
Net financial (loss) profit | (157) | 3 | (91) | (40) | ||||
Profit before income taxes | 1,430 | 691 | 1,053 | 519 | ||||
Income tax expense | (256) | (92) | (135) | (5) | ||||
Net profit | € 1,174 | € 599 | € 918 | € 514 | ||||
Basic profit per share | € 0.07 | € 0.03 | € 0.06 | € 0.03 | ||||
Diluted profit per share | € 0.07 | € 0.03 | € 0.05 | € 0.03 | ||||
Basic weighted average shares outstanding | 16,507,196 | 17,238,559 | 16,501,750 | 17,089,818 | ||||
Diluted weighted average shares outstanding | 16,868,646 | 17,359,099 | 16,986,216 | 17,243,985 |
INFOVISTA | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
The table presented below represents the consolidated balance sheets in accordance with IFRS | ||||
As of | ||||
December 31, | June 30, | |||
2010 | 2010 | |||
(unaudited) | ||||
ASSETS | ||||
Goodwill | € 9,268 | € 9,268 | ||
Other intangible assets, net | 1,186 | 1,379 | ||
Tangible assets, net | 1,189 | 1,202 | ||
Deferred tax asset | 928 | 894 | ||
Other non-current assets | 547 | 619 | ||
Total non-current assets | 13,118 | 13,362 | ||
Accounts receivables, net | 10,554 | 13,207 | ||
Other current assets | 2,599 | 2,071 | ||
Financial assets - current | 8,029 | 11,538 | ||
Cash and cash equivalents | 17,683 | 14,215 | ||
Total current assets | 38,865 | 41,031 | ||
Total assets | € 51,983 | € 54,393 | ||
EQUITY | ||||
Issued capital | € 9,564 | € 9,728 | ||
Share premiums and other reserves | 31,725 | 30,962 | ||
Treasury shares | (3,754) | (4,164) | ||
Total equity | 37,535 | 36,525 | ||
LIABILITIES | ||||
Deferred revenues - non-current | 1,390 | 262 | ||
Other non-current liabilities | 241 | 270 | ||
Total non-current liabilities | 1,631 | 532 | ||
Accounts payables | 1,694 | 2,904 | ||
Accrued salaries and commissions | 2,141 | 2,820 | ||
Accrued social security and payroll taxes | 928 | 1,932 | ||
Deferred revenues - current | 7,139 | 8,716 | ||
Other current liabilities | 915 | 964 | ||
Total current liabilities | 12,817 | 17,336 | ||
Total liabilities and equity | € 51,983 | € 54,393 |