InfoVista Reports Flat Q2

Total revenues were €11.3M, flat from the comparable quarter last year; net income of €0.5M was also flat

January 29, 2008

4 Min Read

PARIS -- InfoVista (Euronext: IFV, ISIN: FR0004031649), the leading Proactive Service Assurance management software company, today announced financial results for the second quarter, ended December 31, 2007.

Total revenues for the quarter were €11.3 million, flat from the comparable quarter last year and up 11% sequentially. On a constant exchange rate basis, total revenues would have risen 5% to the equivalent of €11.8 million as compared to the same period last year.InfoVista reported a positive operating profit of €0.5 million and net income of €0.5 million, as compared to €0.4 million and €0.5 million in the comparable quarter last year.

Commenting on the quarter, Chief Executive Officer Alain Tingaud said: "The past quarter demonstrates that the corrective measures we took a few quarters ago to get InfoVista back on track are starting to work. Our performance is encouraging as we have achieved these results despite the decline of the US dollar against the Euro and a further write-down of our money market funds impacted by the subprime market crisis. There is still much to be done to build on our current growth and profit momentum. During the past quarter, we also completed the acquisition of Accellent, consolidating one month of its activities into our December quarter, and we are very pleased with the pace of integration within our offering."

Q2 Financial Highlights

Revenues

  • Total revenues for the second quarter stood at €11.3 million virtually unchanged as compared to the comparable quarter last year. On a constant exchange rate basis, total revenues for the quarter would have increased by 5% to the equivalent of €11.8 million as compared to the same quarter last year.

  • Total revenues included €0.3 million of revenues generated by Accellent during the month of December 2007, as the acquisition was completed at the end of November.

  • License revenues for the second quarter rose to €6.0 million, representing 53% of total revenues. On a constant exchange rate basis, total license revenues would have increased by 3% as compared to the same quarter last year, to the equivalent of €6.2 million.

  • Service revenues, at €5.3 million, contributed 47% of the total for the second quarter. On a constant exchange rate basis, total service revenues would have increased 8% year-on-year to the equivalent of €5.6 million.Expenses

  • Gross margin in the second quarter stood at 79.9% of revenues in line with InfoVista's expectations and guidance, as compared to reported gross margin of 81.9% for the same quarter the previous year.

  • Operating expenses for the second quarter totaled €8.6 million, declining a slight 3% year-on-year despite a significant increase in research & development expenditures.

    • Sales & marketing expenses stood at €4.1 million, representing 36% of total revenues as compared to €4.6 million or 41% of total revenues, a year ago.

    • General & administrative expenses totaled €1.7 million, or 15% of total revenues as compared to €2.2 million or 20% of total revenues, a year ago.

    • Research & development expenditure totaled €2.7 million or 24% of total revenues, increasing 32% year-on-year, which is in line with the previously announced investment program in the Company's product management group, along with its Extended Development Center in Bangalore that was launched in 2007. This increase in R&D expenditure underscores InfoVista's commitment to product development and innovation.

  • As at December 31, 2007, InfoVista had 250 employees, including 18 from Accellent.



Earnings

  • InfoVista achieved operating profit of €0.5 million, versus €0.4 million in the second quarter of the previous fiscal year. Net income stood at €0.5 million, unchanged from the comparable quarter of the prior year. During the quarter, InfoVista incurred additional financial losses due to further write-down in its financial assets in money market funds affected by the US subprime market.



Balance Sheet

  • Following the November 2007 acquisition of Accellent, InfoVista generated €9.4 million of goodwill, after an initial purchase price allocation exercise.

  • Days Sales Outstanding (DSO) stood at 92 days for the second quarter, a slight increase from last comparable quarter of 90 days.

  • As at December 31, 2007, the Company' cash, short-term deposits and current financial assets amounted to €17.2 million. In addition, InfoVista held financial assets in money market funds affected by the US subprime market for €6.6 million, which are still exposed to valuation and liquidity risk. The Company has no debt.

  • As at December 31, 2007, there were a total of 19,833,829 and 18,753,521 InfoVista shares issued and outstanding, respectively.



InfoVista SA

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