Strong growth boosts Autonomy

Growth was strong during the third quarter of 2000

Software company Autonomy's share price rose sharply in early trade on Friday after posting an upbeat trading update.

We have not experienced a slowdown in our overall revenue growth during the fourth quarter of 2000 and we have seen strong growth from the third quarter

Michael Lynch
Autonomy

The stock rose 17.2% to £15.35p, before slipping back to £14.80 at about 0830 GMT, still a rise of 12.6% compared to its £1310 opening price.

The company said it had experienced strong growth during the third quarter of 2000, and suggested the figures may be even stronger for the fourth quarter.

Chief executive and founder of the company, Michael Lynch, believes the long-running slide in the company's share price is unjustified.

"We have not experienced a slowdown in our overall revenue growth during the fourth quarter of 2000 and we have seen strong growth from the third quarter," he said.

Low stock

Investors have hammered the share in recent months, ever since its debut on the London Stock Exchange a couple of months ahead of Christmas.

More than half its £4bn value has been wiped away in a matter of weeks, with its share price falling from £31 in the middle of December to just over £13 on Friday.

Analysts divided

Some analysts agree that a major reason for the slide in Autonomy's share price is the overall concern about the internet infrastructure sector, rather than actual problems within Autonomy itself.

Other analysts disagree. They say the stock remains overvalued and believe City analysts have pointed to concerns about the internet infrastructure sector as being behind the fall rather than any problems about the company itself.