PARIS, France and HERNDON, Virginia, October 26
/PRNewswire-FirstCall/ -- InfoVista (Euronext: IFV, ISIN:
FR0004031649, NASDAQ: IVTA), the leading service-centric
performance management software company, today announced financial
results for the quarter ended September 30, 2006. Total revenues
for the quarter stood at EUR9.2 million as compared to EUR9.1
million a year ago. The net loss for the quarter was EUR0.1
million, an improvement as compared to last year's EUR0.5 million.
Commenting on the first quarter results, InfoVista's Chief
Executive Officer Gad Tobaly said: "I am very satisfied with the
good performance of our European operations in a seasonally weak
period. However, revenues from America declined disappointedly, but
we are strengthening our efforts to get back on track in that
region by Q2. Based on our current sales pipeline, I am confident
that our European and Asian operations will continue to post strong
revenue growth. Thus, we are anticipating a profitable second
quarter with revenues between EUR10.8 and EUR11.5 million, and
continue to project double-digit growth over the fiscal year."
Financial Highlights Top line Revenues - Total revenues for the
first quarter increased to EUR9.2 million. - License revenues for
the first quarter stood at EUR4.1 million, contributing 45% to
total revenues. Service revenues contributed the remaining 55% to
total revenues, increasing to EUR5.1 million. Expenses - The gross
margin in the first quarter improved to 80.4% of revenues, as
compared to 79.3% the same quarter the previous year. A good
performance due to a significant increase in gross margin generated
from our service activities. - Operating expenses for the first
quarter totaled EUR7.7 million, unchanged from the comparable
quarter last year. - Sales & marketing expenses represented 55%
of total operating expenses while research & development and
general & administrative expenses represented 23% and 22%,
respectively. - Total headcount at the end of September stood at
216 employees, a slight increase as compared to 207 employees at
the end of September 2005. Earnings - Net loss for the first
quarter was EUR0.1 million. Balance Sheet - Days Sales Outstanding
(DSO) stood at 96 days for the first quarter, an improvement as
compared to 108 days in the same quarter of last year. - As at
September 30, 2006, the Company's balance sheet remains strong,
with no debt and with cash, cash equivalents and marketable
securities at EUR34.7 million. During the quarter, the Company
dedicated EUR3.3 million to purchase 700,000 shares of its shares
as part of its share re-purchase program. - As at September 30,
2006, there were a total of 19,594,464 and 17,767,544 InfoVista
shares issued and outstanding, respectively. Operational Highlights
First Quarter's Geographical Revenue Breakdown - The first quarter
was characterized by impressive growth in Europe. Total revenues in
Europe amounted to EUR5.5 million, the region's highest sales
performance ever, and accounted for 59% of total revenues in the
quarter - In America, total revenues declined 33% year-on-year to
EUR2.8 million. This disappointing performance was partially
anticipated as the American team focused on regenerating the
pipeline as well as reinvigorating marketing efforts. The
indications are that this renewed focus will positively contribute
to the results in Q2 FY07. America represented 31% of total
revenues in Q1. - Total revenues in Asia totaled EUR0.9 million,
representing 10% of the first quarter's total revenues. Other
Revenue Drivers and Major Wins in the First Quarter - With the
softer performance from the American operations, revenues from
licenses fell by 16% year-on-year to EUR4.1 million. - Revenues
from services increased by 21% year-on-year to EUR5.1 million. -
Another quarter of high renewal rate resulted in a 16% year-on-year
growth in maintenance revenues to EUR3.9 million. - In line with
the Company's strategy, professional services revenues increased by
43% to EUR1.1 million from previous year's first quarter. -
Revenues from the direct sales channel totaled EUR4.9 million in
the quarter, accounting for 53% of total revenues. Indirect
revenues increased 20% over the same period last year to contribute
47% of total revenues for the quarter. - InfoVista's service
provider revenues increased by 18% over the same period last year
and represented 74% of total revenues. Once again, the Company
demonstrated its leading position in this segment, affirming itself
as the de facto standard performance assurance solution for the
service provider market. InfoVista secured several large deals in
the quarter, including : - A deal worth over EUR1 million with the
leading cable company in Germany. InfoVista was able to displace
the incumbent after demonstrating a superior flexible solution,
which could quickly be adapted in an environment that required a
service management solution for heterogeneous Triple Play. - The
Company also was awarded repeat contracts with three different
divisions of Telefonica, including Telefonica in Spain and Peru and
the mobile division of Telefonica, that contributed to total
revenues of about EUR1.1 million with Telefonica during the first
quarter. - In the UK, ntl /Telewest, the leading provider of
digital cable TV services returned to the Company to provide them
with even more performance monitoring solutions that contributed to
total revenues of EUR0.5 million with ntl/Telewest during the first
quarter. - The Company also won competitive deals from Omantel, the
telecommunication service provider of the Sultanate of Oman;
Cricket communication, a market leader providing wireless services
in the US; Telekom Malaysia and Indosat, the telecommunication
incumbent in Malaysia and Indonesia, respectively; and Telecom
Organization of Thailand. Multi-Vendor Metro Ethernet Initiative
Launched - Customers including Telekom Malaysia, ntl /Telewest and
Uecomm are turning to InfoVista to help them deliver Metro Ethernet
services to their customers while maintaining stringent SLAs.
InfoVista is committed to playing a key role in turning the
potential of Metro Ethernet into a competitive advantage for
service providers and a practical and cost-effective transport
technology for enterprises. InfoVista's objective is to provide the
most comprehensive Metro Ethernet performance and service
management solution and forge partnerships to help customers
recognize the unprecedented value of Ethernet-based business
services. - During the quarter, InfoVista and ADVA Optical
Networking announced a global partnership through which InfoVista's
industry-leading performance-management solution, VistaInsight for
Networks, will be paired with ADVA's Etherjack-enabled FSP 150
product family. Used in tandem, the joint solution enables service
providers to offer exact service level agreements with their
intelligent Ethernet offerings and deliver customers real-time
access to information on the performance of those services. -
InfoVista also announced that it has received certification to
integrate with Alcatel's 5620 Service Aware Manager (SAM) 4.0, the
latest version of its industry-leading management application.
Through InfoVista's L2/L3 VPN Services Module for Alcatel 5620 SAM
2.1, service providers can deploy truly carrier-grade Metro
Ethernet services and meet high customer expectations. New
Independent Director InfoVista appointed the former Chief Executive
Officer of Bouygues Telecom and of a French cable service provider
Noos, Patrick Leleu, to its Board of Directors. Currently, he
serves as Directeur Général Délégué of Netsize, a global operator
of SMS and IP services for mobile devices. His extensive expertise
and knowledge that he gained from performing such roles in these
large telecommunication service providers will certainly benefit
InfoVista. Outlook With an expected recovery from its American
operations and maintained momentum in its European and Asian
operations, InfoVista's management expects revenues to grow
sequentially and annually. Second quarter performance is expected
to be between EUR10.8 million and EUR11.5 million in total revenues
combined with a positive net result. 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 5569 5751 in France, +44(0) 20 7190
1595 in the UK, or + 1 480 629 9564 in North America. A replay will
be available shortly after the end of the call at the following
numbers: France: +33(0) 1 7099 3295 - Pin code 134117#, UK: +44(0)
20 8515 2499 - Pin code 444258#, North America: +1 303 590 3030 -
Pin code 3614258#. 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 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. 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 three months For the three months ended
September 30, ended September 30, 2006 2005 2006 (1) 2005
(unaudited) (unaudited) (unaudited) Revenues License revenues EUR
4,109 EUR 4,890 EUR 6,048 EUR 5,584 Service revenues 5,062 4,169
5,235 3,987 Total revenues 9,171 9,059 11,283 9,571 Cost of
revenues Cost of licenses 175 139 248 289 Cost of services 1,626
1,740 1,843 1,703 Total cost of revenues 1,801 1,879 2,091 1,992
Gross profit 7,370 7,180 9,192 7,579 Operating expenses Sales and
marketing expenses 4,200 4,246 4,700 4,233 Research and development
expenses 1,796 1,796 2,089 1,734 General and administrative
expenses 1,696 1,614 1,758 1,450 Total operating expenses 7,692
7,656 8,547 7,417 Operating loss (322) (476) 645 162 Other income
(expense): Financial income 281 123 224 61 Net foreign currency
transaction (losses) gains (1) 10 (38) 217 Loss before income taxes
(42) (343) 831 440 Income tax expense (93) (110) 7 (26) Net loss
EUR (135) EUR (453) EUR 838 EUR 414 EBITDA EUR 800 EUR 742 EUR -
EUR 742 Adjusted net income (loss) EUR 135 EUR 199 EUR - EUR 199
Basic net loss per share EUR (0.01) EUR (0.03) EUR 0.05 EUR 0.02
Diluted net loss per share EUR (0.01) EUR (0.03) EUR 0.04 EUR 0.02
Adjusted basic net income (loss) per share EUR 0.01 EUR 0.01 EUR -
EUR 0.01 Adjusted diluted net income (loss) per share EUR 0.01 EUR
0.01 EUR - EUR 0.01 Basic weighted average shares outstanding
18,055,494 17,371,831 18,248,266 17,371,645 Diluted weighted
average shares outstanding 18,055,494 17,371,831 19,579,865
21,074,410 INFOVISTA CONSOLIDATED BALANCE SHEETS (In thousands) As
of September 30, June 30, 2006 2006 (unaudited) ASSETS Cash and
cash equivalents EUR 11,081 EUR 12,034 Marketable securities 23,638
26,170 Trade receivables, net 9,786 10,914 Prepaid expenses and
other 1,966 2,005 current assets Total current assets 46,471 51,123
Fixed assets, net 2,048 2,109 Intangible assets, net 1,414 1,569
Investment in equity securities 1,340 1,340 Deposits and other
assets 777 811 Total long-term assets 5,579 5,829 Total assets EUR
52,050 EUR 56,952 LIABILITIES & STOCKHOLDERS' EQUITY Trade
payables EUR 2,223 EUR 2,183 Accrued salaries and commissions 1,507
2,495 Accrued social security and other 1,465 1,469 payroll taxes
Deferred revenue 7,222 7,929 Accrued VAT 1,023 1,658 Other current
liabilities 341 220 Total current liabilities 13,781 15,954 Other
long term liabilities 305 225 Total long-term liabilities 305 225
Stockholders' equity Common stock 10,581 10,545 Capital in excess
of par value of 89,268 88,784 stock Accumulated deficit (51,804)
(51,669) Cumulative translation adjustment (1,445) (1,466) Less
common stock in treasury, at cost (8,636) (5,421) Total
stockholders' equity 37,964 40,773 Total liabilities and EUR 52,050
EUR 56,952 stockholders' equity DATASOURCE: InfoVista CONTACT:
Contact: Karena D'Arcy, Investor Relations Manager, InfoVista,
+33-1-64-86-85-65,
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