Autonomy warns of sales shortfall

12 April 2012

SOFTWARE stock Autonomy has dealt its investors another blow, warning that its sales were flagging and would miss their target. Shares in the group, a former member of the blue-chip FTSE 100, plunged 40% in early trade to fresh lows.

Sales for the second quarter ended June would be around $12-$13m, Autonomy said, from $14.1m in the first three months. It blamed weaker European markets. The City had been looking for $15m. Autonomy said profits for the quarter would come in at 1 cent a share.

'We are disappointed by the unexpected return of weakness in Europe's economy that has impacted our European revenues,' said chief executive Mike Lynch. 'As a result, we will not now show the modest sequential growth hoped for at the beginning of the quarter.'

Autonomy was one of the first in the software industry to say in January that the worst was over for its battered market after identifying the third quarter of last year as the trough.

Shares in Autonomy fell 82p to 123p, valuing the business at around £160m. The stock peaked at nearly 4200p soon after the firm's listing in November 2000.

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