INFO VISTA : InfoVista Announces Financial Results for Second Quarter

Regulatory News:

InfoVista (Paris:IFV), global leader of service performance assurance, today announced financial results for its second quarter, ended December 31, 2011.

Total revenues for the quarter were ?11.2 million, compared to ?12 million in the second quarter of the prior year which represents a 6% decline. The operating loss was ?0.2 million for the quarter, including a ?1.9 million non-recurring transaction cost, compared to an operating profit of ?1.1 million for the comparable quarter of the prior year. The net loss reached ?0.2 million for the quarter as compared to ?0.9 million of net income for the comparable quarter of the prior year.

"With the recent announcement of the Thoma Bravo acquisition, we remain focused on the successful completion of this project." said Philippe Ozanian, InfoVista's CEO. "With Thoma Bravo's support, InfoVista shall be able to achieve its goals of delivering industry leading innovation in the network management market and unparalleled customer support, while providing an attractive value to our shareholders through the upcoming tender offer."

Thoma Bravo Acquires Control of InfoVista

On December 20, 2011, InfoVista announced that Thoma Bravo and many of InfoVista's largest shareholders have simultaneously signed an agreement and completed a transaction, under which Thoma Bravo acquired, through an acquisition vehicle ("Project Metro Acquco SAS"), 10,827,692 InfoVista shares, representing 67.24% of the outstanding share capital and voting rights. Each InfoVista share was acquired at a purchase price per share of ?5.05, representing a 44% premium to InfoVista's closing share price of ?3.50 on December 9, 2011, the last full trading day before InfoVista publicly requested a trading suspension of its shares from Euronext Paris.

In connection with the acquisition, a shareholders' meeting of the Company has been convened for February 8, 2012 to approve an exceptional distribution of ?1.40 per share. As the majority shareholder of the Company, Project Metro Acquco SAS has undertaken to vote in favor of this exceptional distribution. As required by applicable regulations, Project Metro Acquco SAS will file a simplified all-cash public tender offer with the Autorité des marchés financiers (AMF) at a price of ?5.05 per share on the shares it has not already acquired. However, if the ?1.40 per share exceptional distribution is approved and paid before the opening of the simplified tender offer, the price per share will be adjusted accordingly to ?3.65.

Revenues by Region
In thousands				Q2 FY12				Q2 FY11				% Change					H1 FY12				H1 FY11				% Change
EMEA				?6,075				?7,215				-16	%				?11,097				?12,797				-13	%
Americas				4,132				3,521				17	%				7,381				7,333				1	%
Asia-Pacific				1,015				1,224				-17	%				2,375				2,714				-12	%
Total				?11,222				?11,960				-6	%				?20,853				?22,844				-9	%

In the second quarter, Americas' region topline performance was boosted by sizable software deals with both existing and new customers. In Europe, challenging macroeconomic conditions led to continued delays in the sales cycles, especially on large deals.

Operating Expenses
In thousands				Q2 FY11				% revenues				Q2 FY10				% revenues				H1 FY11				% revenues				H1 FY10				% revenues
Sales & Marketing				?3,470				31%				?4,280				36%				? 7,200				35%				? 8,318				36%
Research & Development				2,083				19%				2,382				20%				3,861				19%				4,716				21%
General & Administrative				1,260				11%				1,435				12%				2,619				13%				2,747				12%
Total				?6,813								?8,097								?13,680								?15,781

Sales and marketing along with research and development primarily decreased from lower personnel costs as a result of headcount reductions. General & administrative costs declined from lower professional fees. As at December 31, 2011, InfoVista had 206 employees.

Balance Sheet

As at December 31, 2011, the Company's cash, cash equivalents and short-term deposits amounted to ?27 million, as compared to ?25.7 million as at June 30, 2011 and ?25 million as at September 30, 2011. Days Sales Outstanding (DSO) stood at 79 days for the second quarter, as compared to 79 days in the comparable quarter of the prior year. As at December 31, 2011, InfoVista had a total of 16,480,037 and 16,101,008 shares issued and outstanding, respectively.

About InfoVista

InfoVista is the leading provider of service performance assurance software solutions for IP-based network and application services. We empower communication service providers and large IT enterprise organizations to transform their IT infrastructure into a distinctive asset for revenue generation, customer loyalty and business agility by adopting a quality centric approach to expedite the launch of innovative, differentiated and performing services ahead of the competition. InfoVista's unified network performance management and application performance management platform equips 80% of the world's largest operators and a roster of global enterprises with the actionable visibility they need to ensure a high-quality user experience end-to-end, by holistically and effectively assuring the performance and quality of their converged network and IT services, while keeping operational costs as low as possible. InfoVista is traded on the Euronext Paris (FR0004031649) and can be found online at www.infovista.com

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. The consolidated semi-annual accounts for the period ended December 31, 2011 are currently being audited and are subject to approval by the Board of Directors anticipated for February 8, 2012.

INFOVISTA
CONSOLIDATED INCOME STATEMENTS
(In thousands, except for share and per share data)
The table presented below represents the consolidated income statements in accordance with IFRS
				For the six months ended December 31,												For the three months ended December 31,
					2011						2010						2011						2010
				(unaudited)						(audited)						(unaudited)						(audited)
Revenues
Software products				?	6,982					?	9,046					?	3,914					?	4,955
Maintenance services					10,807						10,941						5,457						5,462
Professional services					3,064						2,857						1,851						1,543
Total					20,853						22,844						11,222						11,960
Cost of revenues
Cost of software products					914						918						504						562
Cost of services					4,204						4,328						2,147						2,043
Total					5,118						5,246						2,651						2,605
Gross profit					15,735						17,598						8,571						9,355
Operating expenses
Sales and marketing expenses					7,200						8,319						3,470						4,280
Research and development expenses					3,861						4,716						2,083						2,382
General and administrative expenses					2,619						2,747						1,260						1,435
Amortization of acquired intangible assets					191						229						76						114
Non-recuring transaction costs					1,875						-						1,875						-
Total					15,746						16,011						8,764						8,211
Operating (loss) profit					(11	)					1,587						(193	)					1,144
Financial revenues					154						90						80						51
Financial costs					(11	)					(11	)					(11	)					(1	)
Net foreign currency transaction gains (losses)					205						(236	)					30						(141	)
Net financial profit (loss)					348						(157	)					99						(91	)
Profit (loss) before income taxes					337						1,430						(94	)					1,053
Income tax expense					(283	)					(256	)					(149	)					(135	)
Net profit (loss)				?	54					?	1,174					?	(243	)				?	918
Basic profit (loss) per share				?	0.00					?	0.07					?	(0.02	)				?	0.06
Diluted profit (loss) per share				?	0.00					?	0.07					?	(0.02	)				?	0.05
Basic weighted average shares outstanding					16,093,426						16,507,196						16,100,245						16,501,750
Diluted weighted average shares outstanding					16,351,164						16,868,646						16,315,201						16,986,216

INFOVISTA
CONSOLIDATED BALANCE SHEETS
(In thousands)
The table presented below represents the consolidated balance sheets in accordance with IFRS
				As of
				December 31,						June 30,
					2011						2011
				(unaudited)						(audited)
ASSETS
Goodwill				?	9,668					?	9,668
Other intangible assets, net					1,781						1,243
Tangible assets, net					899						950
Deferred tax asset					2,186						2,210
Other non-current assets					766						544
Total non-current assets					15,300						14,615
Accounts receivables, net					9,872						12,327
Other current assets					2,569						3,285
Financial assets - current					9,555						14,057
Cash and cash equivalents					17,451						11,642
Total current assets					39,447						41,311
Total assets				?	54,747					?	55,926
EQUITY
Issued capital				?	8,899					?	8,877
Share premiums and other reserves					31,456						31,216
Treasury shares					(1,850	)					(1,842	)
Total equity					38,505						38,251
LIABILITIES
Deferred revenues - non-current					1,304						1,282
Other non-current liabilities					296						280
Total non-current liabilities					1,600						1,562
Accounts payables					3,774						1,863
Accrued salaries and commissions					1,540						2,132
Accrued social security and payroll taxes					1,278						916
Deferred revenues - current					6,674						9,876
Other current liabilities					1,376						1,326
Total current liabilities					14,642						16,113
Total liabilities and equity				?	54,747					?	55,926

InfoVista
David Forlizzi, [phone]/[phone]
Chief Financial Officer
[e-mail]