InfoVista (Paris:IFV) (Euronext: IFV, ISIN: FR0004031649), a leading Proactive Service Assurance management software company, today announced financial results for its fiscal year 2010 first quarter, ended September 30, 2009.

Total revenues for the quarter were €9.6 million, compared to €11 million reported for the comparable quarter last year. Last year's first quarter included €1.9 million of contribution from the multi-year license agreement with Microsoft that ended in May 2009. Operating profit was €0.1 million for the first quarter as compared to €0.4 million for the same period last year. InfoVista posted a net profit for the first quarter of €0.1 million, versus €0.5 million in the comparable quarter last year.

Commenting on the Company's performance, Philippe Ozanian, Chief Executive Officer, said: "In the past fiscal year, we have readied InfoVista for the end of the significant top- and bottom-line contributions made by a multi-year contract with Microsoft. Our performance this quarter, in the face of continued economic challenges, demonstrates the viability of our business model -- on a normalized basis, our revenue base was roughly unchanged and we sharply reduced our operating costs. With a host of new solutions coming on stream, InfoVista is reinforcing its technical and market leadership. 5View Service Data Manager, our recently launched solution bridging the gap between application and network, has already been selected by a leading tier-one service provider. We hope to replicate its initial market success when we launch in the coming months new solutions that will considerably augment the value proposition we bring to our customers, notably to leverage the market opportunity afforded by the mobile data explosion."

Financial Highlights

Revenues by Region

                                                                                          
   In thousands   Q1 2010   Q1 2009   % change   Q1 2009 (excluding Microsoft)   % change 
                                                                                          
   EMEA           ?5,771    ?5,405    7%         ?5,405                          7%       
   Americas       2,599     4,594     -43%       2,672                           -3%      
   Asia-Pacific   1,208     995       21%        995                             21%      
 Total            ?9,578    ?10,994   -13%       ?9,072                          6%       
                                                                                          


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Revenue Drivers:

In EMEA, trends in the first quarter confirm those of recent periods, with strong revenues from emerging markets offsetting tough market conditions in more mature or traditional regions. In the quarter, deals were signed with customers in emerging markets such as South Africa and Serbia.

In the Americas, market conditions remained difficult. Last year's first quarter revenues in the Americas included €1.9 million from the multi-year agreement with Microsoft that ended in May 2009. Excluding this contract and on a constant dollar basis, revenues in the region would have declined by 11%.

InfoVista experienced revenue growth in the Asia-Pacific region during the first quarter, increasing its revenues by 21% to €1.2 million compared to €1.0 million for the same quarter the previous year.

In the first quarter, InfoVista derived 43% of total revenues from its indirect sales channel, while the service provider market generated 75% of total revenues for the quarter.

Gross margin

Gross margin in the first quarter stood at 76% of total revenues, versus 78% for the same quarter of the prior year, reflecting the higher mix of services revenues negatively impacting overall margins.

Operating Expenses

                                                           
   In thousands               Q1 2010   Q1 2009   % change 
                                                           
   Sales & Marketing          ?3,431    3,817     -10%     
   Research & Development     2,307     2,766     -17%     
   General & Administrative   1,311     1,464     -10%     
 Total                        ?7,049    ?8,047    -12%     
                                                           


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Sales & marketing costs were €3.4 million, representing 36% of total revenues for the first quarter. The decline in sales & marketing expenses primarily reflects lower personnel costs following the cost-reduction program initiated in the third quarter of the previous fiscal year, along with ongoing cost optimization.

Research & development costs represented 24% of total revenues, at €2.3 million for the first quarter. In addition to the cost optimization from last year's restructuring, research and development costs benefited in the first quarter from €0.2 million in tax credits versus no contribution in the same quarter of the previous year.

General & administrative costs represented €1.3 million or 14% of total revenues for the first quarter, reflecting continued cost optimization as well.

As at September 30, 2009, InfoVista had 229 employees.

Balance Sheet

Days Sales Outstanding (DSO) stood at 80 days for the first quarter, as compared to 77 days in the comparable previous year quarter.

As at September 30, 2009, the Company's cash, cash equivalent and short term deposits amounted to €26 million, as compared to €28.6 million at the end of the prior quarter and €22 million at September 30, 2008. The €2.6 million decrease from the previous quarter is due to strong cash collections in the previous fiscal year as well as €0.4 million from the share-buyback program.

As at September 30, 2009, InfoVista had a total of 18,007,329 and 17,308,429 shares issued and outstanding, respectively.