Record License and Total Revenues PARIS and HERNDON, Virginia,
April 27 /PRNewswire-FirstCall/ -- 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. Operational Highlights Good Execution in All Regions with
America Leading the Growth - InfoVista's American revenues rose
sharply, up 28% to EUR5.6 million over the comparable quarter last
year, including two deals of over EUR1 million each, one from
BellSouth and the other from Verizon Business on behalf of a large
multinational financial group. European revenues were up 5% over
the comparable quarter last year, to EUR4.0 million. Revenues in
the Asia-Pacific region doubled in the quarter, to EUR0.7 million.
America, Europe and Asia-Pacific contributed 54%, 39% and 7%,
respectively, of the third quarter's total revenues. - Revenues
from the direct sales channel totalled EUR7.5 million in the third
quarter, as compared to EUR5.5 million in the same quarter last
year. This strong growth is primarily due to the large deals closed
by the direct sales force in the US. Consequently, revenues from
the direct sales channel accounted for 73% of total revenues in the
quarter, ahead of historical levels. Increased Momentum across All
Addressed Market Sectors - Service Provider revenues, consisting of
revenue from both Communication Service Providers (CSPs) and
Managed Service Providers (MSPs), increased 22% over the same
period last year to EUR8.2 million. Six CSPs and MSPs purchased
solutions for over EUR250 thousand each during the quarter. CSPs
that selected InfoVista included leading telecommunication
incumbents in the US, UK, Spain, Malaysia and Singapore, and Tier 1
providers such as BellSouth and Cable & Wireless. The company's
technology was also adopted by Uecomm, the first deal completed in
partnership with Dimension Data in Australia. Five wireless
operators, including SFR and Vodafone, also selected InfoVista. In
addition to Verizon Business, MSPs that selected InfoVista during
the quarter include Internet Solution aimed at providing new IP
services to customers throughout Africa. This win marks the second
deal of the quarter in conjunction with Dimension Data. - Revenues
from the Enterprise market continued to grow, increasing 19% to
EUR2.1 million in the quarter, or 21% of total revenues. InfoVista
booked its first financial services sector deal in Malaysia with
Bank Rayat and also received an order from Fair Isaac, a provider
of decision management solutions in the US. During the quarter,
Governmental organisations, such as the City of Moscow and France's
Ministry of Defense also adopted InfoVista solutions. In addition,
Motorola's Government & Enterprise Mobility Solutions (GEMS)
procured InfoVista solutions. Finally, LVMH also selected InfoVista
to manage its communications network. Continued Success Delivering
Innovative Solutions - During the quarter, InfoVista released
VistaWatch 2.0, which enables enterprise IT managers and MSPs to
ensure delivery to committed service levels for business-critical
web applications and IP services, such as online banking and online
retail. - The Company also announced VistaInsight for Networks for
Service Providers 2.0, a next-generation performance management
solution that enables service providers to effectively meet and
exceed performance and service requirements for today's advanced
communications technologies, including Metro Ethernet. - The
Company realised rapid market adoption of VistaInsight for Servers
2.0, announced last quarter, with customers including SFR, Fair
Isaac and others selecting VIS 2.0 to maximise server and system
infrastructure investments in enterprise data centres. Ongoing
Recognition in the Marketplace - Two recent industry reports
recognised InfoVista's growth and leadership position in the
market. In March, the OSS Observer Market Review on Service
Assurance ranked InfoVista among the top suppliers in IT
Performance Monitoring, while a report issued this month by
Enterprise Management Associates recognised InfoVista's strong
position in the Service Level Management market. - InfoVista also
continues to win deals in the highly competitive environment.
During the quarter, InfoVista was selected to replace its
competitors by no less than four Service Providers in deals each
worth at least EUR250 thousand and also by BellSouth, who will
deploy InfoVista in their Broadband Transformation division in the
management of their converged IP network. Outlook InfoVista enters
the fourth quarter with a robust pipeline, and expects to meet its
full-year target of approximately 20% growth in fiscal 2006. The
Company also expects net results to be positive for both Q4 and the
fiscal year. 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 dialling
+33-1-71-23-04-15 in France, +44-207-806-1968 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:
+33-1-71-23-02-48 , UK: +44-207-806-1970, 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 per cent 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 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 nine months For the three months ended ended
March 31, March 31, 2006 (1) 2005 2006 (1) 2005 (unaudited)
(unaudited) (unaudited) (unaudited) Revenues License EUR 16,638 EUR
13,465 EUR 6,101 EUR 4,787 revenues Service 12,690 11,305 4,218
3,736 revenues Total revenues 29,328 24,770 10,319 8,523 Cost of
revenues Cost of 548 567 199 199 licenses Cost of 5,255 4,214 1,822
1,357 services Total cost of 5,803 4,781 2,021 1,556 revenues Gross
profit 23,525 19,989 8,298 6,967 Operating expenses Sales and
13,430 11,167 4,719 3,798 marketing expenses Research and 5,529
4,917 1,839 1,648 development expenses General and 5,104 4,124
1,807 1,403 administrative expenses Amortization - 158 - - of
acquired intangibles Total operating 24,063 20,366 8,365 6,849
expenses Operating (loss) (538) (377) (67) 118 income Other income
(expense): Financial 477 360 209 119 income Net foreign (52) (263)
(43) (1) currency transaction losses (Loss) Income before (113)
(280) 99 236 income taxes Income tax expense (205) (10) (48) (20)
Net (loss) income EUR (318) EUR (290) EUR 51 EUR 216 Basic net
(loss) EUR (0.02) EUR (0.02) EUR 0.00 EUR 0.01 income per share
Diluted net (loss) EUR (0.02) EUR (0.02) EUR 0.00 EUR 0.01 income
per share Basic weighted 17,559,998 17,238,557 17,728,965
17,305,845 average shares outstanding Diluted weighted 17,559,998
17,238,557 19,258,867 21,221,195 average shares outstanding (1) For
the three and nine months ended March 31, 2006, the operating
expenses and cost of services include a stock-based compensation
charge of EUR 294 thousand and EUR 846 thousand, reflecting the
adoption of FAS123(R). Excluding this charge, the Group would have
recorded net income of EUR 345 thousand and EUR 528 thousand,
respectively, for the three and nine months ended March 31, 2006.
INFOVISTA CONSOLIDATED BALANCE SHEETS (In thousands, except for
share data) As of March 31, June 30, 2006 2005 (unaudited) ASSETS
Cash and cash equivalents EUR 8,524 EUR 8,781 Marketable securities
26,015 24,965 Trade receivables, net 11,149 11,310 Prepaid expenses
and other current 1,693 2,071 assets Total current assets 47,381
47,127 Fixed assets, net 2,207 2,200 Intangible assets, net 1,600
1,158 Investment in equity securities 1,027 1,027 Deposits and
other assets 830 717 Total long-term assets 5,664 5,102 Total
assets EUR 53,045 EUR 52,229 LIABILITIES & STOCKHOLDERS' EQUITY
Trade payables EUR 1,873 EUR 2,465 Accrued salaries and commissions
2,278 2,523 Accrued social security and other 1,400 1,026 payroll
taxes Deferred revenue 6,131 7,202 Accrued VAT 651 1,541 Other
current liabilities 430 363 Total current liabilities 12,763 15,120
Other long term liabilities 179 113 Total long-term liabilities 179
113 Stockholders' equity Common stock 10,501 10,003 Capital in
excess of par value of stock 88,199 84,893 Accumulated deficit
(52,507) (52,189) Unrealized loss on available for sale - (33)
securities Cumulative translation adjustment (1,175) (1,200) Less
common stock in treasury, at cost (4,915) (4,478) Total
stockholders' equity 40,103 36,996 Total liabilities and
stockholders' EUR 53,045 EUR 52,229 equity DATASOURCE: InfoVista
CONTACT: Contact: Karena D'Arcy, Investor Relations Manager,
InfoVista, +33-1-64-86-85-65,
Copyright