Autonomy hits second quarter targets

Autonomy: meets targets but outlook remains unclear

Autonomy, the UK intelligent software developer, sees some improvement in the European markets, but stressed that future prospects remain unclear.

The company has reported second quarter results that were in line with City forecasts.

Pre-tax profits for the quarter came in at £2.23m ($3.17m) down from £5.09m ($7.23m) in the same quarter last year.

Autonomy also announced that its chief financial officer Ralph Harms would stand down.

The company's shares closed up 1p at 256p.

Europe strengthens

In April this year, Autonomy's share price lost nearly half its value when the company issued a profits warning.

The company was suffering from the slowdown in IT spending by US companies.

The continental European market strengthened during the second quarter, and the US remains stable

Mike Lynch
Autonomy

But Autonomy's chief executive Mike Lynch now believes the situation could be improving.

"The continental European market strengthened during the second quarter, and the US remains stable," he said.

"On this basis, our visibility is improving, but at the same time remains low," he added.

And Mr Lynch said Autonomy was better placed than other companies in the current climate.

"Our cash-rich balance sheet, profitability and efficient business model provides us with the financial flexibility to expand our operations while others are scaling back," he said.

Autonomy announced the appointment of a new chief financial officer Sushovan Hussain who is joining the company from Lasmo.