UPDATE 1-Autonomy sees upside to 2011 EPS consensus

Published 10/19/2010, 03:03 AM
Updated 10/19/2010, 03:08 AM

* Q3 revenue up 10 percent to $211 million

* Sees good EPS growth in 2011, with upside to consensus

* Says no change in fundamental demand for products

LONDON, Oct 19 (Reuters) - British software firm Autonomy said it was confident there was upside for earnings consensus for 2011, even after organic growth slowed in the third-quarter as some contracts were delayed.

The company, whose software searches and organises unstructured information such as emails, phone conversations, documents and video, reported a 10 percent rise in revenue to $211 million, at the top of its own guidance.

Autonomy warned earlier this month, however, that revenue for the full year would be 3 percent lower than it expected, sending its shares sharply down.

Chief Executive Mike Lynch said on Tuesday that the downgrade was taken on "conservative assumptions" around the timing of deals, and there was no change in fundamental demand for its products.

"We are confident in maintaining our view of the outlook for demand and expect to continue to deliver good EPS growth in 2011, with upside to current market consensus," he said.

Analysts expect the company to report full-year revenue of about $973 million and earnings per share of about $1.24 in 2011, according to the company.

Adjusted pretax profit in the third quarter rose 34 percent $86.3 million and adjusted EPS rose 25 percent to 25 cents. (Reporting by Paul Sandle; Editing by Jon Loades-Carter)

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