Total Revenues up 14% year-on-year PARIS, France and HERNDON,
Virginia, January 23 /PRNewswire-FirstCall/ -- InfoVista (Euronext:
IFV, ISIN: FR0004031649, NASDAQ: IVTA), the leading service-centric
performance management software company, today announced financial
results for its second quarter ended December 31, 2006. Total
revenues amounted to EUR11.3 million, a 14% increase over the same
period last year. Net results for the quarter were EUR0.5 million,
an improvement as compared to EUR0.1 million in the same quarter
last year. Commenting on InfoVista's performance in the period, Gad
Tobaly, Chief Executive Officer, noted: "The large deals that we
have closed during the second quarter of our fiscal year, including
a deal signed with Microsoft, bring us to the top of our revenue
guidance with a significant improvement for our bottom line."
Financial Highlights Revenues - Total revenues in the second
quarter rose 14% to EUR11.3 million. License revenues increased 8%
year-on-year to EUR6.1 million, or 54% of total revenues. Service
revenues went up by 22% to EUR5.2 million. - For the first six
months of fiscal 2007, total revenues increased by 8% year-on-year
to EUR20.5 million. License revenues stood at EUR10.2 million which
represents 50% of total revenues, while service revenues increased
by 22% to EUR10.3 million. Expenses - Gross margin in the second
quarter improved to 82.0% of total revenues, as compared to 80.9%
in the comparable quarter of the previous year. This good
performance resulted from the continuous improvement of the
profitability of our services activities. - Second quarter
operating expenses totaled EUR8.9 million as compared to EUR8.0
million in the comparable period last year. The increase was
primarily due to additional personnel expenses at all operating
lines for EUR0.6 million. We also recorded additional costs of
EUR0.3 million in general and administration expenses associated
with legal fees and consulting fees related to the implementation
of section 404 of the Sarbanes Oxley Act, as well as a provision
for bad debt. - Total headcount at the end of December, 2006 stood
at 223 employees, as compared to 214 employees a year ago Earnings
- Net income for the second quarter improved to EUR0.5 million as
compared to EUR0.1 million in Q2 of the previous year. Balance
Sheet as of December 31, 2006 - Days Sales Outstanding (DSOs) stood
at 90 days. - Deferred revenue stood at EUR5.7 million. - Total
cash and marketable securities stood at EUR33.5 million and the
Company remains debt free. - There were a total of 18,027,602
InfoVista shares outstanding. Operational Highlights Main Revenue
Drivers: Growth driven by InfoVista's two main regions - In Europe,
total revenues increased to EUR5.8 million for the second quarter,
representing a 15% year-on-year growth. - In America, total
revenues increased to EUR4.6 million for the second quarter,
representing a 17% growth. The initial payment of a major
multi-year contract was the principal contributor to revenues for
the quarter. - In Asia, total revenues amounted to EUR0.9 million
for the second quarter, representing a 6% year-on-year decrease. -
Europe, America and Asia-Pacific contributed 51%, 41% and 8%,
respectively, to the second quarter's total revenues. - Revenues
from the direct sales channel totaled EUR8.2 million in the second
quarter, accounting for 72% of total revenues. Indirect revenues by
partners such as Dimension Data and PT Datacom stood at EUR3.1
million for the second quarter, contributing 28% of total revenues
for the quarter. Major Wins in the Second Quarter: - InfoVista's
service provider revenues grew 10% over the same period last year
to EUR7.5 million for the second quarter and represented 66% of
total revenues. The major wins in that segment included: - Cable
and Wireless for more than EUR1 million; InfoVista's software was
selected to cover C&W's new NGN (Next Generation Network) that
is being implemented throughout the UK. - Three new service
providers; Alpi Telecommunications in Spain, Telecom Montenegro and
Telecom Namibia - Several repeat orders; Telefonica, the leading
telecommunications operator in the Spanish and Portuguese-speaking
world, France Telecom the French incumbent, and Telekom Malaysia,
the Malaysian incumbent. - Numerous international mobile operators
who have selected InfoVista's solutions to manage performance of
their international or external networks and for data center
operations; Telkomsel, the leading operator of cellular
telecommunications services in Indonesia, SFR the leading mobile
operator in France, innovative Cricket Communications in the USA
and T-Mobile in Germany. - Revenues from the Enterprise market
increased by 22% year-on-year to EUR3.8 million in the second
quarter, contributing 34% to total revenues. The Company secured a
notable multi-year deal of US$15 million with Microsoft who
selected InfoVista's suite of software solutions. This deal
resulted in EUR1.6 million of revenues in the second quarter.
Revenue from this deal will continue to be recognized as payments
become due over the next two and a half years. During the quarter,
InfoVista also booked orders from the Moscow City Governmental and
several different financial institutions in Europe and America,
including BNP Paribas. Furthering InfoVista's Multi-Vendor Metro
Ethernet Initiative - During the quarter, InfoVista joined the
Metro Ethernet Forum (MEF), bringing welcome news to the
fast-growing Carrier Ethernet community with its increasing need
for robust performance management for Service Level Agreements
(SLAs). The Company manages Carrier Ethernet networks for many of
the world's leading service providers including Cable &
Wireless, Telefonica and ntl: Telewest. As a MEF member, the
company will play an active role in shaping Carrier Ethernet
standards, helping drive equipment and service certification, and
will further strengthen its relationships with service providers. -
As proof of the strength of the Company's Carrier Ethernet
solution, InfoVista has been winning numerous deals against all of
its main competitors including at SFR in France, Bell Aliant in
Canada, Telemar in Brasil and Telekom Malaysia in Malaysia.
Expanding InfoVista's Research and Development - During the
quarter, InfoVista signed a multi-year offshore development
contract with Ness Technologies, a global provider of IT service
and solution. Under the terms of contract, Ness Technologies will
establish an R&D center for InfoVista at Ness Technologies
offshore facility in Bangalore, India. InfoVista's Bangalore
Development Centre will provide developmental, maintenance and
testing services and is expected to help the Company speed
time-to-market and optimize development costs. Outlook InfoVista's
management expects total revenue for its third quarter to be in the
range of EUR10.5 million to EUR11 million with a positive net
result. Conference call details InfoVista will host an investor
conference call tomorrow, January 24th 2007 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 )1-7099-4295 in France,
+44(0)-20-7806-1966 in the UK, or +1-718-354-1390 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 - Replay pass code:
4314426#. In order to ensure that a line is available for you,
please register by clicking on the following link (InfoVista Q2
2006/2007). 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 & Touche, Deutsche
Telecom, 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 Remarks Regarding
Forward-looking Statements Except for information regarding
historical facts, the matters discussed in this presentation are
"forward looking statements." These statements reflect management's
beliefs and best judgment based on currently available information
and expectations. However, the forward-looking statements involve
risks and uncertainties which could cause actual results to differ
materially from those anticipated by such forward-looking
statements. In particular, statements of management's outlook
assume that overall market demand for our products will remain
approximately at recent levels and that we will maintain our market
position despite intense competition; statements of management's
outlook also do not take into account fluctuations which may occur
in currency exchange rates, particularly as between the euro and
the U.S. dollar. In addition, actual results may differ from those
presented in the forward-looking statements due to other risks and
uncertainties involved in our business, including, without
limitation, the rapid evolution of our markets, our ability to
attract new customers for our products, our dependence upon
spending by the telecommunications industry, the technical success
and reliability of our products and our ability to develop and
protect new technologies. For more information regarding the
factors which may affect our results and operations, see the
disclosures in InfoVista's public filings with the US Securities
& Exchange Commission and the French Autorite des Marches
Financiers, including the "Risk Factors" section in our Annual
Report on Form 20-F. Undue reliance should not be placed on any
forward-looking statement included in this presentation. InfoVista
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. InfoVista is a registered trademark of InfoVista,
S.A. INFOVISTA CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except for share and per share data) For the six months For the
three months ended endedDecember 31, December 31, 2006 2005 2006
2005 (unaudited) (unaudited) (unaudited) (unaudited) Revenues
License revenues EUR10,194 EUR10,538 EUR6,086 EUR5,648 Service
revenues 10,306 8,473 5,243 4,303 Total revenues 20,500 19,011
11,329 9,951 Cost of revenues Cost of licenses 365 349 190 210 Cost
of services 3,479 3,433 1,853 1,693 Total cost of revenues 3,844
3,782 2,043 1,903 Gross profit 16,656 15,229 9,286 8,048 Operating
expenses Sales and marketing expenses 8,778 8,711 4,577 4,465
Research and development expenses 3,874 3,690 2,078 1,894 General
and administrative expenses 3,920 3,297 2,224 1,683 Total operating
expenses 16,572 15,698 8,879 8,042 Operating income (loss) 84 (469)
407 6 Other income (expense): Financial income 512 267 231 143 Net
foreign currency transaction losses (70) (9) (69) (18) Income
(Loss) before income taxes 526 (211) 569 131 Income tax expense
(115) (156) (23) (46) Net income (loss) EUR411 EUR(367) EUR546
EUR85 EBITDA EUR800 EUR742 EUR - EUR742 Adjusted net income (loss)
EUR135 EUR199 EUR - EUR199 Basic net income (loss) per share
EUR0.02 EUR(0.02) EUR0.03 EUR0.00 Diluted net income (loss) per
share EUR0.02 EUR(0.02) EUR0.03 EUR0.00 Adjusted basic net income
(loss) per share EUR0.01 EUR0.01 EUR- EUR0.01 Adjusted diluted net
income (loss) per share EUR0.01 EUR0.01 EUR- EUR0.01 Basic weighted
average shares outstanding 17,976,533 17,477,352 17,897,573
17,587,631 Diluted weighted average shares outstanding 19,072,480
17,477,352 18,987,110 18,966,581 INFOVISTA CONSOLIDATED BALANCE
SHEETS (In thousands) As of December 31, June 30, 2006 2006
(unaudited) ASSETS Cash and cash equivalents EUR 6,909 EUR 12,034
Marketable securities 26,635 26,170 Trade receivables, net 11,358
10,914 Prepaid expenses and other 2,132 2,005 current assets Total
current assets 47,034 51,123 Fixed assets, net 2,166 2,109
Intangible assets, net 1,303 1,569 Investment in equity securities
1,340 1,340 Deposits and other assets 763 811 Total long-term
assets 5,572 5,829 Total assets EUR 52,606 EUR 56,952 LIABILITIES
& STOCKHOLDERS' EQUITY Trade payables EUR 2,676 EUR 2,183
Accrued salaries and commissions 1,798 2,495 Accrued social
security and other 1,493 1,469 payroll taxes Deferred revenue 5,710
7,929 Accrued VAT 1,346 1,658 Other current liabilities 147 220
Total current liabilities 13,170 15,954 Other long term liabilities
156 225 Total long-term liabilities 156 225 Stockholders' equity
Common stock 10,730 10,545 Capital in excess of par value of 90,176
88,784 stock Accumulated deficit (51,258) (51,669) Accumulated
other comprehensive (1,549) (1,466) loss Less common stock in
treasury, at cost (8,819) (5,421) Total stockholders' equity 39,280
40,773 Total liabilities and EUR 52,606 EUR 56,952 stockholders'
equity Contact: Karena D'Arcy Investor Relations Manager, InfoVista
+33-1-64-86-85-65 - or - Kirsten Molyneux Gavin Anderson &
Company +44-(0)207-554-1400 DATASOURCE: Infovista CONTACT: Contact:
Karena D'Arcy, Investor Relations Manager, InfoVista,
+33-1-64-86-85-65, , or Kirsten Molyneux, Gavin Anderson &
Company, +44-(0)207-554-1400,
Copyright