InfoVista Announces Financial Results for Third Quarter FY11

Regulatory News:

InfoVista (Paris:IFV) (Euronext: IFV, ISIN: FR0004031649), global leader of service performance assurance, today announced financial results for its third quarter, ended March 31, 2011.

Total revenues for the quarter were €11.6 million, compared to €10.6 million in the third quarter last year. Operating income was €1.0 million or 9% for the quarter, compared to €0.6 million or 5% a year ago. Net income reached €0.8 million for the quarter as compared to €0.7 million in the comparable quarter last year.

"Our third quarter performance demonstrated that InfoVista is clearly on the path of profitable growth. The 15% year-on-year growth in software revenues demonstrates the positive adoption by our customers of the innovation that we have recently launched on the market. Maintenance revenues grew 9% year-on-year, which underscores the recurrence of solid business coming from our install base. Last but not least, the remarkable 83% year-on-year improvement in our operating income reveals the solid execution toward this financial objective,” said Philippe Ozanian, InfoVista’s CEO. "As a result, we continue to confirm our fiscal year 2011 objectives of providing €47 million of total revenues with at least 7% operating margin.”

Revenues by Region

• EMEA continues to experience solid growth mainly driven by continued success in emerging countries. InfoVista booked software revenues from customers in three different African countries in the third quarter. For the third quarter, Americas was behind last year’s performance, due to less large software deals, however, the performance of that region remains remarkable for the 9 months ended March 31, 2011. Asia-Pacific revenues bounced back in the third quarter benefiting from a significant software deal booked with an incumbent service provider in Southeast Asia.
• In the third quarter, InfoVista derived 36% of total revenues from its indirect sales channel. The service provider market generated 76% of total revenues for the quarter.

Operating Expenses

• Sales & marketing costs increased from higher personnel costs linked to software revenue growth. Research & development costs slightly increased primarily from higher personnel and subcontractor costs. General & administrative costs remained stable.
• As at March 31, 2011, InfoVista had 220 employees.

Balance Sheet

• Days Sales Outstanding (DSO) stood at 93 days for the third quarter, as compared to 105 days in the comparable quarter last year.
• As at March 31, 2011, the Company’s cash, cash equivalents and short-term deposits amounted to €26.2 million, as compared to €25.8 million as at June 30, 2010 and €25.7 million as at December 31, 2010. For the third quarter, €0.9 million of cash was generated from operating and investing activities, while €0.4 million was primarily used to repurchase treasury shares.
• As at March 31, 2011, InfoVista had a total of 17,826,114 and 16,531,646 shares issued and outstanding, respectively.

Conference call

InfoVista will host an investor conference call on April 26, 2011 at 9.00 a.m. (EDT) / 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 58798656. 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: +1 866 247 4222– all with access code 58798656#.

About InfoVista

InfoVista enables managed service providers, mobile operators, broadband operators and enterprise IT organizations to ensure the availability and quality of the services they deliver at the lowest possible cost, empowering these organizations to successfully make the transformation from infrastructure providers to service providers. Our customers rely on InfoVista’s proven solutions for service and infrastructure performance management to successfully launch new and high performance services, foresee potential service issues before they impact end users, reduce customer churn, and invest appropriately. Sample customers include Bell Canada, Bharti, BNP Paribas, Cable & Wireless, Citigroup, Deutsche Telekom, KPN International, Microsoft, SFR, SingTel, T-Mobile, Telefonica, Telstra, and Wells Fargo. InfoVista is traded on the Euronext Paris (FR0004031649) and can be found online at www.infovista.com.

Legal Statement

Except for historical information contained herein, the matters discussed in this news release are "forward looking statements." These statements involve risks and uncertainties which could cause actual results to differ materially from those in such forward-looking statements; including, without limitation, risks and uncertainties arising from the rapid evolution of our markets, competition, market acceptance of our products, our dependence upon spending by the telecommunications industry and our ability to develop and protect new technologies. For a description of other factors which might affect our actual results, please see the "Risk Factors" section and other disclosures in InfoVista's public filings with the French Autorité des Marchés Financiers. Readers of this news release are cautioned not to put undue reliance on any forward-looking statement. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.