InfoVista announced results for its fiscal year 2006 third quarter, ended March 31, 2006

April 27, 2006

2 Min Read

PARIS -- InfoVista (Euronext: IFV, ISIN: FR0004031649, NASDAQ: IVTA), the leading service-centric performance management software company, today announced results for its fiscal year 2006 third quarter, ended March 31, 2006.

Total revenues rose by 21% year over year to EUR10.3 million. Net income for the quarter amounted to EUR51 thousand, after a stock-based compensation charge of EUR294 thousand.

Reflecting on InfoVista's Q3 performance, Gad Tobaly, Chief Executive Officer, commented: "We have completed a tremendous quarter and we're particularly pleased to have done this in what is traditionally a seasonally slow period. We owe our record license growth to the success of our new solutions in highly competitive situations, as well as to our growing market profile, as recognised in recent key research reports. We are particularly pleased by our performance in North America in Q3. With continuing favourable prospects in this region coupled with a fast-growing pipeline in Europe and Asia, I am confident of our ability to achieve our targets of approximately 20% revenue growth and positive net income for the full fiscal year."

Financial Highlights

Revenues

- Total revenues in the quarter rose by 21% to EUR10.3 million, reflecting strong sales performance in North America.

- License revenues grew by 27% to EUR6.1 million in the quarter, while service revenues increased by 13% to EUR4.2 million. Thanks to a sharp improvement in the quarter, license revenues contributed approximately 59% of total revenues, ahead of its performance in the prior year.

Expenses

- With a 19% year-on-year increase in gross profit to EUR8.3 million in the third quarter, InfoVista had a gross margin of 80.4% of total revenues.

- Operating expenses for the third quarter totalled EUR8.4 million as compared to EUR6.8 million in the comparable period last year. Net of stock-based compensation charges, operating expenses increased by EUR1.2 million, due to higher sales and marketing spending along with several one-off charges primarily within general and administrative.

Earnings

- Net income for the third quarter was EUR51 thousand. Excluding stock-based compensation, net income for the third quarter would have been EUR0.3 million.

Balance Sheet

- Days Sales Outstanding (DSO) stood at 97 days, fairly stable as compared to the same period last year.

- The Company's balance sheet remains strong, with no debt and with cash, cash equivalents and marketable securities of EUR34.5 million.

- There were a total of 19,446,890 and 18,317,057 InfoVista shares issued and outstanding respectively, as at March 31, 2006.

InfoVista SA

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