PARIS--(BUSINESS WIRE)--Regulatory News:
InfoVista (Paris:IFV), global leader of service performance assurance, today announced financial results for its second quarter, ended December 31, 2011.
Total revenues for the quarter were €11.2 million, compared to €12 million in the second quarter of the prior year which represents a 6% decline. The operating loss was €0.2 million for the quarter, including a €1.9 million non-recurring transaction cost, compared to an operating profit of €1.1 million for the comparable quarter of the prior year. The net loss reached €0.2 million for the quarter as compared to €0.9 million of net income for the comparable quarter of the prior year.
“With the recent announcement of the Thoma Bravo acquisition, we remain focused on the successful completion of this project.” said Philippe Ozanian, InfoVista’s CEO. “With Thoma Bravo’s support, InfoVista shall be able to achieve its goals of delivering industry leading innovation in the network management market and unparalleled customer support, while providing an attractive value to our shareholders through the upcoming tender offer.”
Thoma Bravo Acquires Control of InfoVista
On December 20, 2011, InfoVista announced that Thoma Bravo and many of InfoVista’s largest shareholders have simultaneously signed an agreement and completed a transaction, under which Thoma Bravo acquired, through an acquisition vehicle (“Project Metro Acquco SAS”), 10,827,692 InfoVista shares, representing 67.24% of the outstanding share capital and voting rights. Each InfoVista share was acquired at a purchase price per share of €5.05, representing a 44% premium to InfoVista’s closing share price of €3.50 on December 9, 2011, the last full trading day before InfoVista publicly requested a trading suspension of its shares from Euronext Paris.
In connection with the acquisition, a shareholders’ meeting of the Company has been convened for February 8, 2012 to approve an exceptional distribution of €1.40 per share. As the majority shareholder of the Company, Project Metro Acquco SAS has undertaken to vote in favor of this exceptional distribution. As required by applicable regulations, Project Metro Acquco SAS will file a simplified all-cash public tender offer with the Autorité des marchés financiers (AMF) at a price of €5.05 per share on the shares it has not already acquired. However, if the €1.40 per share exceptional distribution is approved and paid before the opening of the simplified tender offer, the price per share will be adjusted accordingly to €3.65.
Revenues by Region |
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In thousands |
Q2 FY12 | Q2 FY11 | % Change | H1 FY12 | H1 FY11 | % Change | ||||||||||||||||||||
EMEA | €6,075 | €7,215 | -16 | % | €11,097 | €12,797 | -13 | % | ||||||||||||||||||
Americas | 4,132 | 3,521 | 17 | % | 7,381 | 7,333 | 1 | % | ||||||||||||||||||
Asia-Pacific | 1,015 | 1,224 | -17 | % | 2,375 | 2,714 | -12 | % | ||||||||||||||||||
Total |
€11,222 | €11,960 | -6 | % | €20,853 | €22,844 | -9 | % |
In the second quarter, Americas’ region topline performance was boosted by sizable software deals with both existing and new customers. In Europe, challenging macroeconomic conditions led to continued delays in the sales cycles, especially on large deals.
Operating Expenses |
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In thousands |
Q2 |
% |
Q2 |
% |
H1 |
% |
H1 |
% |
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Sales & Marketing | €3,470 | 31% | €4,280 | 36% | € 7,200 | 35% | € 8,318 | 36% | ||||||||||||||||||||||||
Research & Development | 2,083 | 19% | 2,382 | 20% | 3,861 | 19% | 4,716 | 21% | ||||||||||||||||||||||||
General & Administrative | 1,260 | 11% | 1,435 | 12% | 2,619 | 13% | 2,747 | 12% | ||||||||||||||||||||||||
Total | €6,813 | €8,097 | €13,680 | €15,781 |
Sales and marketing along with research and development primarily decreased from lower personnel costs as a result of headcount reductions. General & administrative costs declined from lower professional fees. As at December 31, 2011, InfoVista had 206 employees.
Balance Sheet
As at December 31, 2011, the Company’s cash, cash equivalents and short-term deposits amounted to €27 million, as compared to €25.7 million as at June 30, 2011 and €25 million as at September 30, 2011. Days Sales Outstanding (DSO) stood at 79 days for the second quarter, as compared to 79 days in the comparable quarter of the prior year. As at December 31, 2011, InfoVista had a total of 16,480,037 and 16,101,008 shares issued and outstanding, respectively.
About InfoVista
InfoVista is the leading provider of service performance assurance software solutions for IP-based network and application services. We empower communication service providers and large IT enterprise organizations to transform their IT infrastructure into a distinctive asset for revenue generation, customer loyalty and business agility by adopting a quality centric approach to expedite the launch of innovative, differentiated and performing services ahead of the competition. InfoVista’s unified network performance management and application performance management platform equips 80% of the world’s largest operators and a roster of global enterprises with the actionable visibility they need to ensure a high-quality user experience end-to-end, by holistically and effectively assuring the performance and quality of their converged network and IT services, while keeping operational costs as low as possible. 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. The consolidated semi-annual accounts for the period ended December 31, 2011 are currently being audited and are subject to approval by the Board of Directors anticipated for February 8, 2012.
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 |
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2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
(unaudited) | (audited) | (unaudited) | (audited) | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Software products |
€ |
6,982 |
€ |
9,046 |
€ |
3,914 |
€ |
4,955 |
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Maintenance services | 10,807 | 10,941 | 5,457 | 5,462 | ||||||||||||||||||||
Professional services | 3,064 | 2,857 | 1,851 | 1,543 | ||||||||||||||||||||
Total | 20,853 | 22,844 | 11,222 | 11,960 | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||
Cost of software products | 914 | 918 | 504 | 562 | ||||||||||||||||||||
Cost of services | 4,204 | 4,328 | 2,147 | 2,043 | ||||||||||||||||||||
Total | 5,118 | 5,246 | 2,651 | 2,605 | ||||||||||||||||||||
Gross profit | 15,735 | 17,598 | 8,571 | 9,355 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Sales and marketing expenses | 7,200 | 8,319 | 3,470 | 4,280 | ||||||||||||||||||||
Research and development expenses | 3,861 | 4,716 | 2,083 | 2,382 | ||||||||||||||||||||
General and administrative expenses | 2,619 | 2,747 | 1,260 | 1,435 | ||||||||||||||||||||
Amortization of acquired intangible assets | 191 | 229 | 76 | 114 | ||||||||||||||||||||
Non-recuring transaction costs | 1,875 | - | 1,875 | - | ||||||||||||||||||||
Total | 15,746 | 16,011 | 8,764 | 8,211 | ||||||||||||||||||||
Operating (loss) profit | (11 | ) | 1,587 | (193 | ) | 1,144 | ||||||||||||||||||
Financial revenues | 154 | 90 | 80 | 51 | ||||||||||||||||||||
Financial costs | (11 | ) | (11 | ) | (11 | ) | (1 | ) | ||||||||||||||||
Net foreign currency transaction gains (losses) | 205 | (236 | ) | 30 | (141 | ) | ||||||||||||||||||
Net financial profit (loss) | 348 | (157 | ) | 99 | (91 | ) | ||||||||||||||||||
Profit (loss) before income taxes | 337 | 1,430 | (94 | ) | 1,053 | |||||||||||||||||||
Income tax expense | (283 | ) | (256 | ) | (149 | ) | (135 | ) | ||||||||||||||||
Net profit (loss) |
€ |
54 |
€ |
1,174 |
€ |
(243 |
) |
€ |
918 |
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Basic profit (loss) per share |
€ |
0.00 |
€ |
0.07 |
€ |
(0.02 |
) |
€ |
0.06 |
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Diluted profit (loss) per share |
€ |
0.00 |
€ |
0.07 |
€ |
(0.02 |
) |
€ |
0.05 |
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Basic weighted average shares outstanding | 16,093,426 | 16,507,196 | 16,100,245 | 16,501,750 | ||||||||||||||||||||
Diluted weighted average shares outstanding | 16,351,164 | 16,868,646 | 16,315,201 | 16,986,216 | ||||||||||||||||||||
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, | |||||||||||
2011 | 2011 | |||||||||||
(unaudited) | (audited) | |||||||||||
ASSETS | ||||||||||||
Goodwill |
€ |
9,668 |
€ |
9,668 |
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Other intangible assets, net | 1,781 | 1,243 | ||||||||||
Tangible assets, net | 899 | 950 | ||||||||||
Deferred tax asset | 2,186 | 2,210 | ||||||||||
Other non-current assets | 766 | 544 | ||||||||||
Total non-current assets | 15,300 | 14,615 | ||||||||||
Accounts receivables, net | 9,872 | 12,327 | ||||||||||
Other current assets | 2,569 | 3,285 | ||||||||||
Financial assets - current | 9,555 | 14,057 | ||||||||||
Cash and cash equivalents | 17,451 | 11,642 | ||||||||||
Total current assets | 39,447 | 41,311 | ||||||||||
Total assets |
€ |
54,747 |
€ |
55,926 |
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EQUITY | ||||||||||||
Issued capital |
€ |
8,899 |
€ |
8,877 |
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Share premiums and other reserves | 31,456 | 31,216 | ||||||||||
Treasury shares | (1,850 | ) | (1,842 | ) | ||||||||
Total equity | 38,505 | 38,251 | ||||||||||
LIABILITIES | ||||||||||||
Deferred revenues - non-current | 1,304 | 1,282 | ||||||||||
Other non-current liabilities | 296 | 280 | ||||||||||
Total non-current liabilities | 1,600 | 1,562 | ||||||||||
Accounts payables | 3,774 | 1,863 | ||||||||||
Accrued salaries and commissions | 1,540 | 2,132 | ||||||||||
Accrued social security and payroll taxes | 1,278 | 916 | ||||||||||
Deferred revenues - current | 6,674 | 9,876 | ||||||||||
Other current liabilities | 1,376 | 1,326 | ||||||||||
Total current liabilities | 14,642 | 16,113 | ||||||||||
Total liabilities and equity |
€ |
54,747 |
€ |
55,926 |