InfoVista publie ses résultats pour le troisième trimestre clos au 31 mars 2005
(BW)(VA-INFOVISTA)(IVTA) InfoVista Reports Third Quarter Financial Results
Business Editors/Technology Editors
PARIS & HERNDON, Virginia--(BUSINESS WIRE)--April 28, 2005--InfoVista (Euronext Paris: FR0004031649, NASDAQ: IVTA), the leading service-centric performance management software company, today announced financial results for its third quarter ended March 31, 2005.
Total revenues for the quarter amounted to EUR 8.5 million, up more than 8% over the comparable quarter last year.
InfoVista also achieved positive net income in the quarter, totaling EUR 0.2 million, or EUR 0.01 per share, as compared to a loss of EUR 0.5 million, or EUR 0.03 per share, in the comparable quarter last year.
Commenting on the quarter, Gad Tobaly, Chief Executive Officer of InfoVista, said: "Thanks to close monitoring of our operations on a global basis, we have delivered another profitable quarter.
This was achieved despite an unexpected drop in sales in Asia, which caused our total revenues to be slightly short of our guidance."
In order to address the underperformance of the Asian operations, the Company took corrective actions by hiring in mid March, a new Vice President of Asia Pacific Sales with strong software background and a successful track record in managing sales organizations.
To further strengthen its indirect channel, InfoVista hired a new Director of Channels for the Americas and introduced a new global Partner Program with dedicated resources for high-end VARS and systems integrators, to enter new markets, increase revenue potential and deliver rapid time-to-value.
Looking ahead, Mr. Tobaly noted: "We are confident that recently announced developments in our industry will benefit InfoVista, validating the market and unlocking new opportunities for partnerships.
Nevertheless, our guidance must remain cautious in the short term.
For the fourth quarter of our fiscal year, we expect total revenues to be roughly unchanged sequentially, and to achieve net result at or near breakeven."
Financial Highlights
-- Total revenues in the quarter were EUR 8.5 million, representing an increase of 8% year-on-year.
On a constant currency basis, total revenues would have risen by 11% year-on-year.
-- License revenues in the third quarter stood at EUR 4.8 million, representing 56% of total revenues.
-- InfoVista's gross margin stood at 81.7%, compared to 81.3% in the comparable quarter last year.
-- Net income was EUR 0.2 million, or EUR 0.01 per share, versus a net loss of EUR 0.5 million, or EUR 0.03 per share, in the comparable quarter last year.
-- As of March 31, 2005, cash and marketable securities stood at EUR 32.5 million, or EUR 1.87 per outstanding share.
-- As of March 31, 2005, InfoVista had a total of 17,355,206 shares outstanding.
Operational Review
Commented Mr. Tobaly: "Though the quarter was challenging, we once again secured a number of large and competitive deals both in the Service Provider and the Enterprise segments.
In the US, for example, we booked a deal in excess of one million dollars with a global service provider, and expanded our presence on the enterprise side with two large Wall Street financial institutions."
In January, InfoVista introduced the concept of Service-Centric Performance Management and launched new offerings designed to simplify the complexity of communications convergence and assure carrier-class services across the Enterprise.
The company has seen immediate success of the new IP Telephony solution.
For example, InfoVista is currently providing the IT outsourcing organization of a major systems integrator with a next generation end-to-end service-centric IP Telephony management solution that ensures optimal delivery of Voice over IP services.
-- The American, European and Asian markets contributed 51%, 45% and 4% of total revenues, respectively.
European revenues were EUR 3.8 million in the quarter, with customers such as Cable & Wireless, Vodafone in the Service Provider segment and Caisse Nationale Assurance Maladie ('CNAM') in the Enterprise arena.
American revenues increased 10% from the same quarter last year to EUR 4.3 million with repeat orders from customers such as Nextel, Bell Canada, EDS and Telmex.
Asia-Pacific revenues were at EUR 0.4 million, or a decrease of 45% as compared to the same quarter last year.
-- Revenues from Service Providers such as Deutsche Telekom, Telefonica and Wind totaled EUR 6.7 million.
Enterprise customers, with particular strength from customers in the financial and government sectors, contributed revenues of EUR 1.8 million.
-- Revenues from indirect channels and in particular from partners such as ATOS, Alcatel, Accenture and Dimension Data stood at EUR 3.0 million, or 35% of total revenues while direct sales contributed the remaining 65%.
-- Based on demonstrated success with joint customers, one of the largest system integrators has entered into an agreement with InfoVista to provide preferred performance management solutions for service provider and enterprise network initiatives.
SFAF Meeting
InfoVista will host a SFAF (Societe Francaise d'Analystes Financiers) meeting in Paris on 29th April at 9.00am for investors and analysts.
If you are interested in attending, please contact Cubitt Consulting (London) at +44 (0)20 7367 5100.
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 Allstream, Banques Populaires, Banque de France, Broadwing Communications, Defense Information Systems Agency (DISA), Deloitte & Touche, Deutsche Telecom, France Telecom, Savvis Corporation, SingTel, US Cellular and Verio Inc.
InfoVista stock is traded on the NASDAQ (IVTA) and the Nouveau Marche (FR0004031649).
For more information about the company, please visit 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 is a registered trademark of InfoVista, S.A.
RECONCILIATION BETWEEN NET INCOME (LOSS) AND EBITDA CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data)
| ended March 31, | ended March 31, | |||
| 2005 | 2004 | 2005 | 2004 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Revenues | ||||
| License revenues | EUR 13,465 | EUR 11,512 | EUR 4,787 | EUR 5,019 |
| Service revenues | 11,305 | 9,13 | 3,736 | 2,867 |
| Total revenues | 24,77 | 20,642 | 8,523 | 7,886 |
| Cost of revenues | ||||
| Cost of licenses | 567 | 529 | 199 | 83 |
| Cost of services | 4,214 | 4,329 | 1,357 | 1,395 |
| Total cost of revenues | 4,781 | 4,858 | 1,556 | 1,478 |
| Gross profit | 19,989 | 15,784 | 6,967 | 6,408 |
| Operating expenses | ||||
| Sales and marketing expenses | 11,163 | 10,762 | 3,798 | 4,083 |
| Research and development | ||||
| expenses | 4,917 | 4,492 | 1,648 | 1,596 |
| General and administrative | ||||
| expenses | 4,124 | 3,196 | 1,403 | 1,059 |
| Restructuring costs | - | 2,496 | - | - |
| Amortization of intangible assets | 158 | 285 | - | 95 |
| Total operating expenses | 20,362 | 21,231 | 6,849 | 6,833 |
| Operating (loss) income | -373 | -5,447 | 118 | -425 |
| Other income (expense): | ||||
| Interest income | 360 | 499 | 119 | 148 |
| Net foreign currency | ||||
| transaction losses | -263 | -164 | -1 | -32 |
| Impairment of fixed assets | -4 | -571 | - | -77 |
| (Loss) Income before | ||||
| income taxes | -280 | -5,684 | 236 | -386 |
| Income tax benefit (expense) | -10 | -127 | -20 | -89 |
| Net (loss) income | EUR (290) | EUR (5,811) | EUR 216 | EUR (475) |
| EBITDA | EUR 800 | EUR (4,711) | EUR 549 | EUR 16 |
| Adjusted net (loss) income | EUR 135 | EUR (2,295) | EUR 217 | EUR (271) |
| Basic net (loss) income per share | EUR (0.02) | EUR (0.32) | EUR 0.01 | EUR (0.03) |
| Diluted net (loss) income per share | EUR (0.02) | EUR (0.32) | EUR 0.01 | EUR (0.03) |
| Adjusted basic net (loss) income | ||||
| per share | EUR 0.01 | EUR (0.13) | EUR 0.01 | EUR (0.02) |
| Adjusted diluted net (loss) | ||||
| income per share | EUR 0.01 | EUR (0.13) | EUR 0.01 | EUR (0.02) |
| Basic weighted average shares | ||||
| Outstanding | 17,238,557 | 18,009,764 | 17,305,845 | 17,932,136 |
| Diluted weighted average shares | ||||
| Outstanding | 17,238,557 | 18,009,764 | 21,221,195 | 17,932,136 |
INFOVISTA RECONCILIATION BETWEEN NET INCOME (LOSS) AND EBITDA (In thousands, except for share and per share data)
The Company provides EBITDA data to assist investors in their analysis of our operating results.
These adjustments are not in accordance with, or an alternative for, generally accepted accounting principles in the United States of Americas (US GAAP) and may be different from the presentation of financial information provided by other companies.
EBITDA as well as US GAAP net income are presented in the consolidated statements of operations that accompany this press release.
EBITDA is calculated as net income (loss) less depreciation and amortization, interest expense and income tax expense.
| ended March 31, | ended March 31, | |||
| 2005 | 2004 | 2005 | 2004 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Net (loss) income | EUR (290) | EUR (5,811) | EUR 216 | EUR (475) |
| EBITDA is exclusive of the following items : | ||||
| Income tax (benefit) expense | 10 | 127 | 20 | 89 |
| Depreciation and amortization | 1,08 | 967 | 313 | 396 |
| Interest expense | - | 6 | - | 6 |
| EBITDA | EUR 800 | EUR (4,711) | EUR 549 | EUR 16 |
RECONCILIATION BETWEEN NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) (In thousands, except for share and per share data)
The Company provides adjusted net income (loss) and adjusted net income (loss) per share data to assist investors in their analysis of our operating results.
These adjustments are not in accordance with, or an alternative for, generally accepted accounting principles in the United States of Americas (US GAAP) and may be different from the presentation of financial information provided by other companies.
Adjusted net income and earnings per share as well as US GAAP net income and earnings per share are presented in the consolidated statements of operations that accompany this press release.
| ended March 31, | ended March 31, | |||
| 2005 | 2004 | 2005 | 2004 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Net (loss) income | EUR (290) | EUR (5,811) | EUR 216 | EUR (475) |
| As adjusted net income (loss) is exclusive of the following charges: | ||||
| Restructuring costs | - | 2,496 | - | - |
| Amortization of intangible assets | 158 | 285 | - | 95 |
| Net foreign currency | ||||
| transaction losses | 263 | 164 | 1 | 32 |
| Impairment of fixed assets | 4 | 571 | - | 77 |
| Adjusted net (loss) income | EUR 135 | EUR (2,295) | EUR 217 | EUR (271) |
INFOVISTA CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data)
| March 31, | June 30, | |
| 2005 | 2004 | |
| (unaudited) | ||
| ASSETS | ||
| Cash and cash equivalent | EUR 26,546 | EUR 26,772 |
| Marketable securities | 5,937 | 5,904 |
| Trade receivables, net of | ||
| allowance of | EUR 123 and | EUR 387, respectively |
| 8,986 | 8,367 | |
| Prepaid expenses and other | ||
| current assets | 1,355 | 2,399 |
| Total current assets | 42,824 | 43,442 |
| Fixed assets, net | 2,219 | 2,449 |
| Licensed technology and | ||
| advances, net | 803 | 850 |
| Investment in affiliate | 1,027 | 1,027 |
| Deposits and other assets | 915 | 1,085 |
| Total non current assets | 4,964 | 5,411 |
| Total assets | EUR 47,788 | EUR 48,853 |
| LIABILITIES & STOCKHOLDERS' EQUITY | ||
| Trade payables | EUR 2,295 | EUR 2,614 |
| Accrued salaries and commissions | 1,678 | 1,68 |
| Accrued social security and | ||
| other payroll taxes | 959 | 818 |
| Deferred revenue | 5,62 | 5,453 |
| Accrued VAT | 537 | 1,384 |
| Other current liabilities | 311 | 537 |
| Total current liabilities | 11,4 | 12,486 |
| Other long term liabilities | 73 | 113 |
| Total non-current liabilities | 73 | 113 |
| Stockholders' equity | ||
| Common stock (18,495,046 and 18,950,920 shares authorized | 9,987 | 10,233 |
| and issued, and 17,355,206 and 17,115,466 shares outstanding) | ||
| Capital in excess of par value | ||
| of stock | 84,786 | 84,982 |
| Accumulated deficit | -52,603 | -52,313 |
| Unrealized losses on available | ||
| for sale securities | -63 | -96 |
| Cumulative translation adjustment | -1,429 | -1,236 |
| Less common stock in treasury, | ||
| at cost | -4,363 | -5,316 |
| Total stockholders' equity | 36,315 | 36,254 |
| Total liabilities and stockholders' | ||
| Equity | EUR 47,788 | EUR 48,853 |
CONTACT: InfoVista
Investor Relations
Karena D'Arcy, +33 1 64 86 85 65
kdarcy@infovista.com
or
Cubitt Consulting (London)
Kirsten Hendrie, +44 (0)20 7367 5100
kirsten.hendrie@cubitt.com
o
Cubitt (New York)
Tom Rozycki, +1 212 279 3115
tom@cjpcom.com
or
www.infovista.com
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