3rd quarter results.
Third quarter highlights
Continued strong adoption of next generation combined Autonomy and Interwoven technologies
Record Q3 revenues, up 51% from Q3 2008 including strong organic growth and full quarter post-Interwoven integration
Launched IDOL SPE with stronger than expected response to Quick Start program
Fully diluted EPS (adj.) of $0.20, up 16% from Q3 2008
Deferred revenue stable at $169m as compared to Q2 2009 (Q3 2008: $106m)
Very strong cash collection and conversion; Q3 cash conversion of 131% (Q3 CFFO / Q3 adj EBITDA) LTM conversion of 86% (LTM CFFO / LTM adj EBITDA)
Strong organic growth of 15%
Operating margins (adjusted) at 34% despite product launch expenses higher than announced expectations (Q3 2008: 42%); Operating margins excluding new product effects at 43%
Positive cash flow generated from operations of $97.8 million (Q3 2008: $59.6 million); cash balances at $200.7 million at quarter-end
Record Q3 net profit (IFRS), up 10% from Q3 2008
26th consecutive quarter of year-on-year growth
Average selling price for meaning-based technologies at $436,000 (Q3 2008: $395,000)
Blue chip third quarter wins include Alstom, Arcelor Mittal, American Medical Association, AT&T, Avid, Bank of America, BBC, Butterfields, Boeing, Citi, CVR Energy, Eli Lilly, Fidelity, Hammonds, Ikea, Lockheed Martin, Morgan Stanley, Nikon, Pfizer, Qwest, Sprint, Staples, Target and Wolters Kluwer, as well as significant deals with multiple government, defence and intelligence agencies around the globe including in the U.S., U.K., European Commission, New Zealand, South Africa and the U.A.E.
11 OEM deals signed including new deals and extensions with Adobe, Kana, Axway and Websense
Gross margins (adjusted) at 86% (Q3 2008: 92%)
DSOs at 97 days for Q3 2009 (Q2 2009: 89 days)