Autonomy profit halves

July 26, 2001 Posted: 0819 GMT

LONDON (CNN) -- High-profile UK software maker Autonomy saw second-quarter net income more than halve as orders were delayed.

Autonomy, which makes software to manage data on the Web, said net income for the quarter to June 30 fell to $1.5 million, or $0.01 per share, compared with $3.4 million, or $0.03 per share, in line with company forecasts.

The earnings compared badly with the first quarter's net income of $5.7 million, or $0.04 per share.

Revenues for the second quarter totalled $14.2 million, down 3 percent from $14.6 million in the second quarter a year ago, and 3 percent lower than the $14.7 million posted in the first quarter.

"Our visibility is improving, but at the same time still remains low," said Autonomy founder and Chief Executive Mike Lynch, who has expressed concern several times this year about orders being affected by the U.S. economic slowdown.

Autonomy makes software which understands context in unstructured human text and speech – helping companies and large organisations sift through mountains of information. It is designed to be an integral part of the software needed to drive Internet portals.

During the past quarter, contracts were concluded with companies like Boeing and Eastman Kodak, as well as the U.S. Department of Labor,  Autonomy said.

Shares in Autonomy (AUTN) rose 1.6 percent to 260.22 pence in early London trading. Autonomy had been valued at £5.2 billion ($7.4 billion) at its peak in October last year. At its current price the company is valued at about £325 million.

The company halved in value on April 6 after it became the second European software company to issue a revenue warning, saying a slowdown in U.S. demand had now spread to Europe.

In its latest earnings report, Autonomy (AUTN: Research, Estimates) also announced the appointment of a new chief financial officer following the departure from the post of Ralph Harms.

The company said Sushovan Hussain, formerly with oil exploration company Lasmo, would take up the post with immediate effect.

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