Fourth Quarter and FY Revenues Increased 18% Year-on-Year PARIS,
and HERNDON, Virginia, July 27 /PRNewswire-FirstCall/ -- InfoVista
(Euronext: IFV, ISIN: FR0004031649, NASDAQ: IVTA), the leading
service-centric performance management software company, today
announced financial results for the quarter and full year ended
June 30, 2006. Total revenues for the quarter increased to EUR11.3
million, up 18% over the comparable period last year. InfoVista
achieved positive net income in the quarter, totaling EUR0.8
million, an improvement from EUR0.4 million in the comparable
quarter last year. For the year ended June 30, 2006, total revenues
amounted to EUR40.6 million, an 18% increase over the previous
year. Net income improved to EUR0.5 million for fiscal year 2006
from EUR0.1 million in fiscal year 2005. Reflecting on InfoVista's
fourth quarter performance, Gad Tobaly, Chief Executive Officer,
commented: "The fourth quarter was the best quarter ever in our
company's history. Fiscal year 2006 is another year of
profitability and double-digit revenue growth. In an environment
where IT functionalities are increasingly delivered as services,
performance assurance is becoming more and more critical. This
transformation is a key success factor for us. We are growing
faster than our markets, confirming InfoVista's leading position in
its segment." Financial Highlights Revenues - Revenues for the
fourth quarter increased 18% to EUR11.3 million. - Revenues for
fiscal year 2006 increased 18% to EUR40.6 million. Expenses - For
the fourth quarter, the gross margin was 81.5% of revenues as
compared to 79.2% the same quarter the previous year. Gross margin
for the fiscal year improved to 80.6%. - Operating expenses for the
fourth quarter totaled EUR8.5 million (including EUR0.2 million of
stock-based compensation charges), compared to EUR7.4 million in
the comparable period last year. - Fiscal year 2006 operating
expenses stood at EUR32.6 million (including EUR1.1 million of
stock-based compensation charges), as compared to EUR27.8 million
in the comparable period last year Earnings - Net income for the
fourth quarter was EUR0.8 million, including EUR0.2 million of
stock-based compensation. - Fiscal year 2006 net income was EUR0.5
million, including EUR1.1 million of stock-based compensation
charges, as compared to EUR0.1 million in fiscal year 2005. Balance
Sheet - Days Sales Outstanding (DSO) stood at 87 days for the
fourth quarter, a significant improvement compared to 97 days for
fiscal year 2006's third quarter and 106 days for the previous
fiscal year's fourth quarter. - Deferred revenue was EUR7.9 million
up from EUR7.2 million one year ago. - The Company's balance sheet
remains strong, with no debt and with cash, cash equivalents and
marketable securities at EUR38.2 million, which is an increase of
EUR4.5 million from June 30, 2005. - As at June 30, 2006, there
were a total of 19,527,564 and 18,343,443 InfoVista shares issued
and outstanding, respectively. Largest Single Quarter in Company
History Europe and Asia leads the Growth in the Fourth Quarter -
InfoVista's European operations rebound in the fourth quarter, with
total revenues of EUR5.6 million that represent a 38% year-on-year
increase. This quarters' strong contribution from the European
operations, which accounted for 50% to the fourth quarter's total
revenues, is set to continue in the coming quarters. - The Company
witnessed a remarkable turnaround in Asia, paving the path for
stronger growth in the near future. Asian operations contributed
17% to the fourth quarter's total revenues, rising 167% to EUR1.9
million. - Following cumulative growth of 31% in the first nine
months of the 2006 fiscal year, revenues from InfoVista's American
operations dropped by 22% in the fourth quarter to EUR3.7 million.
Service Revenues Pulled Ahead in the Fourth Quarter - Revenues from
services increased by 31% year-on year to EUR5.2 million. - High
maintenance renewal rate generated a 31% year-on-year growth in
maintenance revenues. - Several large project implementations
boosted consulting and training revenues by 33%. - Revenues from
licenses also grew soundly, amounting to EUR6.0 million, in the
quarter, up from a high base in the comparable quarter last year.
Major Wins in the Quarter InfoVista has demonstrated its leading
position within the Service Provider arena, with the fourth
quarter's revenues increasing 57% year-on-year. This included one
single transaction over EUR1 million and four over EUR0.5 million.
- During the quarter, InfoVista secured a deal over EUR1 million
with Telstra, Australia's telecommunications incumbent. In the
framework of its strategic OSS Transformation initiative, launched
in January 2006 to consolidate its operational support systems and
accompany the deployment of its Next Generation Network, Telstra
selected InfoVista's VistaInsight for Network as its new
Performance Management solution - In the fourth quarter, four
leading telecommunications service providers, including BT,
T-Mobile, Telmex, and Telefonica returned to InfoVista's for
additional solutions. Each of these deals was more than EUR0.5
million. InfoVista Continues to Innovate in High Growth Market
Opportunities - The Company also announced that its IP telephony
solution garnered a second industry award for product excellence.
InfoVista received Communication Solutions Magazine's 2005 Product
of the Year award for VistaInsight for IP Telephony 2.0, a
management solution for assuring delivery of Internet Protocol (IP)
telephony services across the enterprise. - The Company's
VistaInsight for IP Telephony 2.0 was upgraded with an add-on that
enables advanced call quality management for enterprises and
managed service providers. This add-on utilizes sophisticated
algorithms to give an accurate assessment of voice quality,
providing the base for complete proactive management of voice
applications. A Solid Year Double Digit Growth in All Regions -
American operations had a good performance in fiscal year 2006,
with total revenues increasing 14% to EUR17.4 million. The Company
secured nine separate deals in excess of US$0.5 million, including
BellSouth, Bell Canada and MCI. Total Service Provider revenues in
the Americas increased 21% over the comparable period last year.
The American operations also continued with their penetration of
the Enterprise segment, with marked wins in both the Financial and
the Government sectors. - After a slow start to the fiscal year,
the Company's European operations ended well, with total revenues
up 11% to EUR18.4 million. InfoVista witnessed great traction from
the European Service Providers including most of Europe's leading
telecommunication incumbents. European Enterprise revenues rose 30%
year-on-year with breakthroughs made in new territories such as
Russia, Africa and the Czech Republic. Riding upon this success,
InfoVista's Enterprise revenues increased 15% over the fiscal year
to EUR11.1 million. - The Company's Asian operations saw a strong
comeback, with an outstanding 86% revenue growth over the previous
fiscal year. Repeat business with incumbents such as SingTel, Optus
and Malaysia Telecom coupled with new large deals such as Telstra,
Reliance and Bharti brought Asia's revenues to EUR4.8 million or
12% of InfoVista's total revenues over the fiscal year. Double
Digit Growth in License and Service Revenues - License revenues
increased 19% over fiscal year 2005 to EUR22.7 million. - Service
revenues increased 17% with strong contributions from maintenance
renewals. Flow of Innovative Solutions Praised by Market and
Customers Alike During the fiscal year, InfoVista launched new
upgrades to its three core solutions: - VistaInsight for Networks
for Service Providers, version 2.0 released in March 2006, is a
next-generation performance management solution that enables
service providers to effectively meet performance and service
requirements for today's advanced communications technologies
including Metro Ethernet. - VistaInsight(TM) for Servers 2.0 is the
latest version of InfoVista's performance management solution for
maximizing server and system infrastructure investments in
enterprise data centers. The upgrades were developed to support IT
departments and Managed Service Providers (MSPs) in their efforts
to increase server utilization rates, lower the cost of
infrastructure resources while leveraging current investments in
native host and external agent software. - VistaInsight for IP
Telephony 2.0 is the latest version of InfoVista's performance
management solution for assuring delivery of Internet Protocol (IP)
telephony services across the enterprise. The solution has been
recognized by the market and customers as the leading solution for
IP Telephony as it received two industry awards as well as numerous
industry analyst favourable reviews. Outlook Looking ahead, Mr.
Tobaly noted: "The current positive trends seen in our European and
Asian operations give us the confidence to forecast double-digit
growth for fiscal year 2007 and continued improvement in our net
profitability. However, in the first quarter, due to traditional
unfavorable seasonality, we expect revenues to increase by 5% to
approximately EUR9.5 million, and we do not expect to be
profitable." The Company will hold an analyst conference to present
its fiscal year 2007 business and product strategy, along with
disclosing full year guidance. The conference will be held in Paris
on 19th September, 2006. Details will be available shortly.
Conference call InfoVista will host an investor conference call
today at 9:00 a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental
Europe). The call will be available by dialing +33(0)1-71-23-04-15
in France, +44(0)20-7806-1968 in the UK, or +1-718-354-1391 in
North America. A replay will be available shortly after the end of
the call at the following numbers: France: +33(0)-1-71-23-02-48,
UK: +44(0)20-7806-1970, North America: +1-718-354-1112, Passcode:
3427179#. About InfoVista InfoVista is the Service-Centric
Performance Management Software Company that assures the optimal
delivery of business-critical IT services. Driven by a uniquely
adaptive and real-time technology foundation, InfoVista solutions
improve business effectiveness, reduce operating risk, lower cost
of operations, increase agility and create competitive advantage.
Eighty percent of the world's largest service providers as ranked
by Fortune(R), as well as leading Global 2000 enterprises, rely on
InfoVista to enhance the business value of their technology assets.
Representative customers include ABN AMRO, Allstream, Banques
Populaires, AXA, Banque de France, Bell Canada, British Telecom,
Broadwing Communications, Cable & Wireless, Com Hem, Defense
Information Systems Agency (DISA), Deloitte, Deutsche Telekom,
France Telecom, Savvis Corporation, SingTel, Telefonica, and US
Cellular. A Software Magazine 500 company, InfoVista stock is
traded on the NASDAQ (IVTA) and on Eurolist by Euronext
(FR0004031649). For more information about the company, please
visit http://www.infovista.com/. Cautionary Statement for Purposes
of the "Safe Harbor" Provisions of the Private Securities
Litigation Reform Act of 1995: 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 US Securities
& Exchange Commission and French Autorite des Marches
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, VistaInsight and VistaWatch are the
registered trademark of InfoVista, S.A INFOVISTA CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except for share and per
share data) For the twelve months For the three months ended June
30, ended June 30, 2006 (1) 2005 2006 (1) 2005 (unaudited)
(unaudited) (unaudited) Revenues License EUR 22,686 EUR 19,049 EUR
6,048 EUR 5,584 revenues Service 17,925 15,292 5,235 3,987 revenues
Total revenues 40,611 34,341 11,283 9,571 Cost of revenues Cost of
796 857 248 289 licenses Cost of 7,098 5,917 1,843 1,703 services
Total cost of 7,894 6,774 2,091 1,992 revenues Gross profit 32,717
27,567 9,192 7,579 Operating expenses Sales and 18,130 15,400 4,700
4,233 marketing expenses Research and 7,618 6,651 2,089 1,734
development expenses General and 6,862 5,574 1,758 1,450
administrative expenses Amortization - 158 - - of acquired
intangibles Total operating 32,610 27,783 8,547 7,417 expenses
Operating income 107 (216) 645 162 (loss) Other income (expense):
Financial 701 422 224 61 income Net foreign (91) (46) (38) 217
currency transaction (losses) gains Income before income 717 160
831 440 taxes Income tax (expense) (197) (36) 7 (26) benefit Net
income EUR 520 EUR 124 EUR 838 EUR 414 Basic net income per EUR
0.03 EUR 0.01 EUR 0.05 EUR 0.02 share Diluted net income EUR 0.03
EUR 0.01 EUR 0.04 EUR 0.02 per share Basic weighted 17,810,281
17,271,717 18,248,266 17,371,645 average shares outstanding Diluted
weighted 19,315,017 20,936,182 19,579,865 21,074,410 average shares
outstanding (1)As a result of adopting Statement 123(R) on July 1,
2005, the Group's net income for the three and twelve months ended
June 30, 2006 are EUR 223 thousand and EUR 1,069 thousand lower,
respectively, than if it had continued to account for share-based
compensation under Opinion 25. INFOVISTA CONSOLIDATED BALANCE
SHEETS (In thousands, except for share data) As of June 30, June
30, 2006 2005 (unaudited) ASSETS Cash and cash equivalents EUR
12,034 EUR 8,781 Marketable securities 26,170 24,965 Trade
receivables, net 10,914 11,310 Prepaid expenses and other 2,005
2,071 current assets Total current assets 51,123 47,127 Fixed
assets, net 2,109 2,200 Intangible assets, net 1,569 1,158
Investment in equity 1,340 1,027 securities Deposits and other
assets 811 717 Total long-term assets 5,829 5,102 Total assets EUR
56,952 EUR 52,229 LIABILITIES & STOCKHOLDERS' EQUITY Trade
payables EUR 2,183 EUR 2,465 Accrued salaries and 2,495 2,523
commissions Accrued social security 1,469 1,026 and other payroll
taxes Deferred revenue 7,929 7,202 Accrued VAT 1,658 1,541 Other
current liabilities 220 363 Total current liabilities 15,954 15,120
Other long term 225 113 liabilities Total long-term 225 113
liabilities Stockholders' equity Common stock 10,545 10,003 Capital
in excess of par 88,784 84,893 value of stock Accumulated deficit
(51,669) (52,189) Unrealized loss on - (33) available for sale
securities Cumulative translation (1,466) (1,200) adjustment Less
common stock in (5,421) (4,478) treasury, at cost Total
stockholders' equity 40,773 36,996 Total liabilities and EUR 56,952
EUR 52,229 stockholders' equity DATASOURCE: Infovista CONTACT:
Contact: Karena D'Arcy, Investor Relations Manager,, InfoVista
+33-1-64-86-85 65,
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