Autonomy Q1 Revenue Jumps 50%, Looking for New Takeover Targets

2 minute read
David Roe avatar

After record breaking revenues in 2009, Autonomy (news, site) has continued its charge by reporting first quarter revenues of US $194.2 million, up 50% on the same quarter last year with 19 sales contracts worth over US $1 million as opposed to 10 in the same quarter last year.

Speaking about the results, Chief Executive Mike Lynch said the group is growing more confident about a possible recovery following a sharp increase in earnings and new blue chip customer deals.

[Whilst the first quarter of 2010] reflected the expected seasonality as one of our traditionally weaker quarters, the stronger pipeline and improved closure rates mean that we are growing more confident about a possible recovery," he said in a statement.

Customers have resumed planning for larger projects, the main effects of which we expect to see in the second half.”

Compliance pressures requiring extensive information recording and retrieval has boosted demand for Autonomy's products substantially and there is also the possibility that it will do well out of the current SEC investigation in Goldman SACs with banks looking for compliance software.

Takeover On The Way?

Lynch also confirmed that Autonomy is in discussions about possible acquisitions in the US later this year. It will help that the company raised US $910.9 million in February with a new bonds issue following a nine-year peak in its share price.

Learning Opportunities

However, he stressed that they were only in talks and that nothing definite was on the cards. Some analysts are predicting thepurchase will be in the US $2bn range andpossibly even into a new line of software. Autonomy has a strong track record in integrating and improving its purchases, such as Interwoven.

Last year, its revenues increased by 47 percent -- the highest in the company’s history. It sealed 66 new deals over US$ 1million in 2009 and 47 new original equipment manufacturer (OEM) agreements.