Autonomy Corporation PLC Announces Results for the Third Quarter and Nine Months Ended September 30, 2007

Strong Organic Growth Delivers Record Q3 Results with Highest Q3 and Nine Month Revenues and Profits in Autonomy's History

München, (PresseBox) - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the third quarter and nine months ended September 30, 2007.

Nine Month 2007 Highlights
Record nine months revenues, up 29% from 2006 including strong organic growth and the contribution from ZANTAZ Record profit from operations (IFRS) up 62% from 2006 Record profit before tax (IFRS), up 70% from 2006 Record EPS (adjusted) at $0.24, up 53% from 2006 Gross margins (adjusted) at 89%
Positive cash flow generated by operations of $59.2 million (2006: $36.2 million), up 63%

Third quarter 2007 Highlights
Completed acquisition of ZANTAZ, Inc. for approximately $375 million Record quarterly revenue, up 49% from Q3 2006 Strong organic IDOL growth of 20% Licence revenue up 24% from organic growth Record profit before tax (IFRS), up 38% from Q3 2006 18th consecutive quarter of year-on-year growth Gross margins (adjusted) at 85% Average selling price for meaning-based technologies at $375,000 (Q2 2007: $385,000) Blue chip third quarter wins include Boeing, InfoUSA, International Monetary Fund, Oracle, Shell, U.K. Patent Office, Northrop Grumman, Wolters Kluwer, Edgar Online, Toyota.com, Bank of Canada, Norsk Hydro, NYSE, Canon, Dell, News Corp. and Osaka Gas, as well as new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the U.S., including the US Marine Corps, US Navy, US Department of Defense and US Department of Energy, Italy, UK, Singapore, Colombia and the Netherlands.
13 OEM deals signed including new deals and extensions with Oracle, CaseCentral, Kana, Cisco and FatWire Positive cash flow generated by operations of $20.1 million (Q3 2006: $14.9 million), up 35% 31st consecutive quarter of profitability Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are pleased to announce our record third quarter and nine month 2007 results which show strong year-on-year growth in all metrics. These results are in line with consensus revenue and profit estimates, despite Q3 seasonally being our quietest quarter and the considerable amount of work involved in integrating the ZANTAZ acquisition. These record results once again bear testament to our unmatched market leadership position."

Dr. Lynch concluded, "Autonomy's dominance in this space is being demonstrated by our almost complete ownership of the OEM market and enterprise-level procurements. The regulatory drivers of FRCP are convincing our customers of the need for integrated operational and information risk management systems. The success of the ZANTAZ acquisition, the integration of which is mainly complete ahead of schedule, continues to demonstrate the fundamental nature of issues relating to unstructured information and the growth opportunities in the marketplace. Autonomy remains extremely well positioned to capitalize on these market opportunities and continue growth."

Third Quarter and Nine Month Financial Highlights
Revenues for the third quarter of 2007 totalled $89.6 million, up 49% from $60.2 million for the third quarter of 2006 including strong organic growth and the contribution from ZANTAZ. In the third quarter of 2007, Americas revenues of $65.5 million represented 73% of total revenues, and Rest of World revenues of $24.1 million represented 27% of total revenues. Revenues for the nine months ended September 30, 2007, totalled $228.3 million, up 29% from $177.3 million for the nine months ended September 30, 2006.

Gross profits (adjusted) for the third quarter of 2007 were $76.4 million, up 40% from $54.5 million in the third quarter of 2006. Gross margins (adjusted) were 85% in the third quarter of 2007, versus 91% in the third quarter of 2006. Gross profits (IFRS) for the third quarter of 2007 were $72.8 million, up 38% from $52.6 million in the third quarter of 2006. Gross margins (IFRS) for the third quarter of 2007 were 81%, compared to 87% in the third quarter of 2006. Gross profits (adjusted) for the nine months ended September 30, 2007, were $203.5 million, up 27% from $160.6 million for the nine months ended September 30, 2006. Gross margins (adjusted) were 89% in the nine months ended September 30, 2007, versus 91% for the nine months ended September 30, 2006. Gross profits (IFRS) for the nine months ended September 30, 2007 were $196.0 million, up 27% from $154.5 million for the nine months ended September 30, 2006. Gross margins (IFRS) for the nine months ended September 30, 2007 were 86%, compared to 87% for the nine months ended September 30, 2006.

Net profit (adjusted) for the third quarter of 2007 was $16.6 million, or $0.08 per diluted share, compared to net profit (adjusted) of $10.7 million, or $0.06 per diluted share, for the third quarter of 2006. Net profit (IFRS) for the third quarter of 2007 was $12.2 million, or $0.06 per diluted share, compared to net profit (IFRS) of $8.9 million, or $0.05 per diluted share, for the third quarter of 2006.

Net profit (adjusted) for the nine months ended September 30, 2007 was $48.8 million, or $0.24 per diluted share, compared to net profit (adjusted) of $29.5 million, or $0.16 per diluted share, for the nine months ended September 30, 2006. Net profit (IFRS) for the nine months ended September 30, 2007 was $39.7 million, or $0.20 per diluted share, compared to net profit (IFRS) of $23.2 million, or $0.12 per diluted share, for the nine months ended September 30, 2006.

Cash balances were $87.6 million at September 30, 2007, a decrease of $33.5 million from $121.1 million at December 31, 2006. Movements in cash flow during the nine months reflect a combination of good cash generation from operating activities and proceeds from the share placing and exercise of share options, offset by the payment for the acquisition of ZANTAZ and quarterly repayments of Autonomy's bank loan. Autonomy has no net debt.

Receivables for the third quarter of 2007 were $93.0 million, compared to $77.3 million at December 31, 2006. Accounts receivable days sales outstanding were 89 days for the third quarter of 2007, compared to 92 days at December 31, 2006. Deferred revenues were $89.2 million at September 30, 2007 compared with $52.5m at December 31, 2006.

Although IFRS disclosure provides investors and management with an overall view of Autonomy's financial performance, Autonomy believes that it is important for investors to also understand the performance of Autonomy's fundamental business without giving effect to certain specific, non-recurring and non-cash charges. Consequently, the non-IFRS (adjusted) results exclude post-acquisition restructuring costs, share of loss of associates and non-cash charges for the amortization of purchased intangibles, share-based compensation, foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's operational business activities.

Q3 Product Sales
Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data formats and sources. During the third quarter of 2007, major customer wins included: Boeing, InfoUSA, Dell, News Corp., Visible, International Monetary Fund, Oracle, Perceptive Software, Shell, U.K. Patent Office, Northrop Grumman, Cox Communications, Wolters Kluwer, Edgar Online, Toyota.com, Bank of Canada, Norsk Hydro, NYSE, Canon, and Osaka Gas. Q3 2007 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe such as the U.S., including the US Marine Corps, US Navy, US Department of Defense and US Department of Energy, Italy, UK, Singapore, Colombia and the Netherlands. Repeat business from existing customers accounted for approximately 38% of revenue for the quarter.

Strategic Partnerships and OEMs
Autonomy's OEM Program continued to grow during Q3 2007. Agreements were signed with 13 customers during the quarter, including new and extended agreements with Oracle, CaseCentral, Kana, Cisco and FatWire.

Corporate Developments
During the third quarter of 2007 Autonomy announced and completed the acquisition of ZANTAZ, Inc., a global leader in content archiving and electronic discovery solutions and software as a service, for a purchase price of approximately $375 million in cash after certain deductions. Integration is mainly complete ahead of schedule, and expected costs synergies of approximately $25 million per annum remain on target. Development of new versions of the ZANTAZ products based on IDOL7 have been completed and are now available. The combination of the two companies will redefine information risk management by proactively automating the full spectrum of consolidated archiving, e-discovery, analytics and real-time policy management uniquely in one system. Customers' information will simultaneously be available in operational systems and consolidated archives, allowing rapid e-discovery and analytics to be run seamlessly across all information sources using advanced methods such as conceptual search, clustering and alerting.

During the third quarter of 2007 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. During the quarter ZANTAZ unveiled its plans for the next generation of Digital Safe, its consolidated archiving Software as a Service solution, powered by Autonomy's advanced IDOL and IDOL Speech technologies to provide a full spectrum of Proactive Information Management capabilities. Autonomy announced the immediate availability of the Autonomy Business Console, an intuitive and easy-to-use interface to the company's IDOL platform for e-Commerce. Autonomy etalk announced it is revolutionizing the ability to analyze contact center interactions through a unique combination of innovative speech technology and multi-channel interaction analysis software, the expansion of its advanced call and computer screen recording security features to exceed the highest industry standards, and the availability of an off-site hosted archiving solution for storing, managing, and retrieving critical customer call recordings.

During the third quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Recognition during the quarter included: Industry analyst group Gartner, Inc. positioned Autonomy in the Leaders Quadrant of its 2007 Information Access Technology Magic Quadrant Report based on Autonomy's "Ability to Execute" and "Completeness of Vision"; KMWorld magazine selected Autonomy's IDOL Enterprise Desktop Search technology as a "2007 Trendsetter"; Gartner, Inc. awarded Autonomy etalk a "Strong Positive" rating in the 2007 MarketScope for Contact Center Quality Management report, the highest ranking possible; Speech Technology Magazine recognized Autonomy etalk as a Market Leader in speech analytics; and Technology Marketing Corporation's Customer Interaction Solutions magazine named Autonomy etalk's Qfiniti VoIP recording technology as a recipient of a 2007 IP Contact Center Technology Pioneer Award.

Autonomy

Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology forms a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, BI, CRM, KM, call center solutions, rich media management, information risk management solutions and security applications, and is recognized by industry analysts as the clear leader in enterprise search.

Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. More than 350 companies OEM Autonomy technology, including Business Objects, Citrix, EDS, H-P, Novell, Oracle, Sybase and TIBCO, and the company has over 400 VARs and Systems Integrators. The company has offices worldwide. For more information on Autonomy, please visit www.autonomy.com.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

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