Paris, France – November 16, 2011 – InfoVista (Euronext: IFV, ISIN: FR0004031649), a global leader of service performance assurance, today announced financial results for its first quarter ended September 30, 2011.

Total revenues were €9.6 million for the first quarter, compared to €10.9 million in the comparable quarter last year. Operating income was €0.2 million or 2% margin for the quarter, compared to €0.4 million a year ago.  Net income reached €0.3 million for the quarter, which is stable from the same quarter last year.

“The first quarter was a slow start to our fiscal year. Continued delays of customer purchase decisions, especially in EMEA, along with a weaker US dollar negatively impacted our operational performance for the quarter,” said Philippe Ozanian, InfoVista’s CEO. “Although we remain confident in achieving our annual objectives of €47 to 49 million of total revenues and €5.2 to 6.2 million of operating income, we currently see InfoVista reaching the lower end of these ranges. Our second quarter is expected to have moderate revenue growth as compared to last year. As such, we expect to rebound in Q2 with at least 25% growth in our operating income, as compared to a year ago.”  

Revenues by Region

• Revenues declined year-over-year across the regions primarily from lower software product sales that resulted from delayed sales cycles.  In addition, revenues were adversely impacted from a weakened US dollar as compared to the same quarter last year.  Approximately half of the Company’s total revenues are invoiced in US dollars.
• In the first quarter, InfoVista derived 42% of total revenues from its indirect sales channel. The service provider market generated 71% of total revenues for the quarter.

Operating Expenses

• For the first quarter, sales & marketing costs decreased as a result of reduced headcount and decreased commission expenses. Research & development costs declined primarily from €0.3 million of higher capitalized software costs along with lower personnel and subcontractor costs. General & administrative costs remained stable.
• As at September 30, 2011, InfoVista had 215 employees.  

Balance Sheet

• Days Sales Outstanding (DSO) stood at 114 days for the first quarter, as compared to 111 days in the comparable quarter last year. InfoVista’s first quarter typically experiences cash collection delays from the summer period.

• As at September 30, 2011, the Company’s cash, cash equivalents and short-term deposits (“cash”) amounted to €25.0 million, as compared to €25.7 million as at June 30, 2011. For the first quarter, cash was mainly used on operating and investing activities
• As at September 30, 2011, InfoVista had a total of 16,480,037 and 16,099,481 shares issued and outstanding, respectively.

Conference call

InfoVista will host an investor conference call on November 16, 2011 at 9.00 a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental Europe). The call will be available by dialing France +33 (0)176 742 428, North America +1 631 510 7498 and +44 (0) 1452 555 566 in the UK. In each case, the access code is 22263791. A replay will be available shortly after the end of the call at the following numbers: France: +33 (0)176 700 244, UK: +44 (0) 1452 55 00 00, North America: +1 631 510 7499– all with access code 22263791#.

Download the INCOME STATEMENTS and CONSOLIDATED BALANCE SHEETS (pdf)