PARIS, France and HERNDON, Virginia, April 26
/PRNewswire-FirstCall/ -- InfoVista (Euronext: IFV, ISIN:
FR0004031649), the leading service-centric performance management
software company, today announced financial results for its third
quarter ended March 31, 2007. Total revenues amounted to EUR9.6
million, a 7% decline over the same period last year. Net loss for
the quarter stood at EUR 1.3 million, compared to break even in the
same quarter last year. Commenting on InfoVista's performance in
the period, Alain Tingaud, Chairman & Chief Executive Officer,
noted: "Our poor performance in Q3 stemmed from significant
weakness in license revenues in North America, which offset a
satisfactory performance in Europe and Asia. During the quarter, we
took decisive steps to rectify the situation by strengthening the
way in which we market ourselves to service providers and large
enterprises. We also took actions to reduce costs, the benefits of
which will begin to flow in Q4. I am confident in the commitment of
all our employees and I am convinced that we will be updating you
on our positive progress in due course." Financial Highlights
Revenues - Total revenues in the third quarter declined 7% to
EUR9.6 million. License revenues declined by 24% year-on-year to
EUR4.6 million, representing 48% of total revenues. Service
revenues grew 19% to EUR5.0 million for the third quarter. Expenses
- Gross margin in the third quarter stood at 79.9% of total
revenues, compared to 80.4% in the comparable quarter of the
previous year. Despite the large drop in license revenues, the
decline in overall gross margin remained limited, reflecting solid
margins in service activities. - Third quarter operating expenses
excluding one-off items were flat at EUR8.4 million. Research and
development costs rose by nearly EUR0.2 million, while sales and
marketing costs declined slightly. General and administrative
(G&A) costs remained flat. - In the third quarter, InfoVista
incurred one-off charges for a total of approximately EUR0.7
million, primarily due to EUR0.5 million in severance and
stock-based compensation charges related to the termination of
employees, including the former CEO. During the quarter, the
Company announced its decision to delist from NASDAQ, resulting in
charges of approximately EUR0.2 million. Going forward, the Company
expects G&A savings of nearly EUR0.3 million per quarter as a
result of these measures. - The Company had 231 employees at the
end of March 2007, as compared to 219 employees a year ago.
Earnings - In Q3, InfoVista had a net loss of EUR1.3 million, as
compared to net income of EUR51 thousand in Q3 of the previous
year. Balance Sheet as of March 31, 2007 - Days Sales Outstanding
(DSOs) stood at 93 days as compared to 90 days at the end of
December 2006. - Deferred revenue stood at EUR6.9 million. - Total
cash and marketable securities stood at EUR36.4 million as compared
to EUR33.5 million a quarter ago. The increase in the cash position
is primarily due to stock options that have been exercised during
the quarter. - The Company remains debt free. - There were a total
of 18,603,486 InfoVista shares outstanding at March 31, 2007.
Operational Highlights Satisfactory performance in Europe and Asia
offset by poor results in North America - In America, total third
quarter revenues declined by 31% year-on-year to EUR3.8 million.
InfoVista sales strategy in North America was poorly executed and
this was the primary reason for the year-on-year decline. During
the quarter, the Company took the necessary steps by refocusing the
appropriate resources on InfoVista's core business markets: service
providers, MSPs and large enterprises. - In the EMEA region, total
revenues rose by 6% year-on-year to EUR4.2 million in the quarter.
The Company extended its business in South Africa and Italy, and
gained traction in Germany. - In Asia Pacific, total revenues more
than doubled year-on-year to EUR1.6 million in the quarter.
InfoVista confirmed its leading position in Australia as it secured
a EUR0.7 million win with one of the leading service providers in
the region. - EMEA, America and Asia-Pacific contributed 44%, 40%
and 16%, respectively, to the third quarter's total revenues. -
Revenues from the direct sales channel totaled EUR5.8 million in
the third quarter, accounting for 61% of the total. Indirect
revenues, generated through partners such as Dimension Data and
ONE-ANS, rose by 34% to EUR3.8 million and contributed 39% of total
revenues for the quarter. Major Wins in the Third Quarter: -
InfoVista's service provider revenues stood at EUR5.7 million for
the third quarter and represented 60% of total revenues. InfoVista
won new service provider accounts such as MTN and Transtel in South
Africa and Sirti in Italy. The Company also received numerous
repeat orders from existing customers such as Optus and AAPT in
Australia and Vodafone Italy. - InfoVista's enterprise revenues
increased 83% year-on-year to EUR3.9 million in the third quarter,
including EUR1.5 million from the multi-million dollar deal signed
with Microsoft. During the quarter, InfoVista also secured deals
from various financial institutions, including Bank of Japan, JP
Morgan and Credit Agricole. Expanding InfoVista's Research and
Development - Recently, InfoVista announced the release of
VistaInsight for IP Telephony 3.0, the newest version of its
award-winning performance management solution for IP telephony. The
Company also announced the release of VistaWatch 2.2, the next
version of InfoVista's end-to-end monitoring solution, expanding
the suite's range to include Session Initiation Protocol
(SIP)-based applications such as integrated instant messaging, IP
voice, IP video and web-conferencing. - Also this quarter,
InfoVista announced VistaInsight(R) for Networks 2.2 Service
Provider Edition, an end-to-end performance management solution
with enhanced capabilities for cable providers targeting two key
markets: triple play consumer and commercial services. The new
solution helps Cable Multiple System Operators (MSOs)
simultaneously manage competitive broadband, Voice over IP (VoIP)
and digital video services to a growing number of residential and
commercial customers. Frost & Sullivan's 2006 Global Award -
InfoVista received Frost & Sullivan's 2006 Global Award for
Product Differentiation Innovation and was named the market leader
in this award category for the network performance management and
monitoring market. Cancellation of shares - Following an
authorization from the shareholders meeting held on December 15,
2006, the Board has decided, on April 25, 2007, to cancel 700,000
shares in treasury stock, in order to favor an accretive effect for
the shareholders. Outlook In line with the previously announced
guidance, InfoVista's management continues to expect total revenues
for the year ending June 30, 2007 to be at EUR40 million with a net
loss of EUR1 million. In the fourth quarter, InfoVista expects a
breakeven position on total revenues of between EUR10 million to
EUR10.5 million. Conference call details InfoVista will host an
investor conference call today, Thursday 26 April 2007 at 8.30 a.m.
(EST) / 1.30 p.m. (UK) / 2.30 p.m. (Continental Europe). The call
will be available by dialing +33-(0)1-70-99-42-70 in France, +44-
(0)20-7138-0824 in the UK, or +1-718-354-1158 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. The replay
passcode is: 8123942#. In order to ensure that a line is available
for you, please register by clicking on the following link
(InfoVista Q3 2006/2007) Please note that InfoVista will be holding
a SFAF meeting in Paris on the morning of June 6th 2007. Please
save the date and more details will follow in due course. Thank
you. 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 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 press release 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 French Autorite
des Marches Financiers, including the "Risk Factors" section in our
Annual Report. 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 nine months ended For
the three months March 31, ended March 31, 2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited) Revenues License
EUR 14,816 EUR 16,638 EUR 4,622 EUR 6,101 revenues Service 15,325
12,690 5,019 4,218 revenues Total revenues 30,141 29,328 9,641
10,319 Cost of revenues Cost of 587 548 222 199 licenses Cost of
5,196 5,255 1,717 1,822 services Total cost of 5,783 5,803 1,939
2,021 revenues Gross profit 24,358 23,525 7,702 8,298 Operating
expenses Sales and 13,235 13,430 4,457 4,719 marketing expenses
Research and 5,971 5,529 2,097 1,839 development expenses General
and 5,728 5,104 1,808 1,807 administrative expenses Restructuring
722 - 722 - costs Total operating 25,656 24,063 9,084 8,365
expenses Operating loss (1,298) (538) (1,382) (67) Other income
(expense): Financial 785 477 273 209 income Net foreign (259) (52)
(189) (43) currency transaction losses (Loss) income before (772)
(113) (1,298) 99 income taxes Income tax expense (162) (205) (46)
(48) Net (loss) income EUR (934) EUR (318) EUR (1,344) EUR 51 Basic
net (loss) EUR (0.05) EUR (0.02) EUR (0.07) EUR 0.00 income per
share Diluted net (loss) EUR (0.05) EUR (0.02) EUR (0.07) EUR 0.00
income per share Basic weighted 18,085,785 17,559,998 18,309,145
17,728,965 average shares outstanding Diluted weighted 18,085,785
17,559,998 18,309,145 19,258,867 average shares outstanding
INFOVISTA CONSOLIDATED BALANCE SHEETS (In thousands) As of March
31, June 30, 2007 2006 (unaudited) ASSETS Cash and cash equivalents
EUR 12,218 EUR 12,034 Marketable securities 24,185 26,170 Trade
receivables, net 9,939 10,914 Prepaid expenses and other current
assets 1,959 2,005 Total current assets 48,301 51,123 Fixed assets,
net 2,260 2,109 Intangible assets, net 1,218 1,569 Investment in
equity securities 1,340 1,340 Deposits and other assets 745 811
Total long-term assets 5,563 5,829 Total assets EUR 53,864 EUR
56,952 LIABILITIES & STOCKHOLDERS' EQUITY Trade payables EUR
2,341 EUR 2,183 Accrued salaries and commissions 1,560 2,495
Accrued social security and other payroll 1,367 1,469 taxes
Deferred revenue 6,867 7,929 Accrued VAT 1,085 1,658 Other current
liabilities 487 220 Total current liabilities 13,707 15,954 Other
long term liabilities 163 225 Total long-term liabilities 163 225
Stockholders' equity Common stock 11,014 10,545 Capital in excess
of par value of stock 91,731 88,784 Accumulated deficit (52,603)
(51,669) Accumulated other comprehensive loss (1,523) (1,466) Less
common stock in treasury, at cost (8,625) (5,421) Total
stockholders' equity 39,994 40,773 Total liabilities and
stockholders' EUR 53,864 EUR 56,952 equity For Immediate Contact:
Karena D'Arcy Release 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,
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