Autonomy boss Mike Lynch attacks bearish analysts as shares tumble

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"The realism is if you are in the UK covering IT almost all [you watch] determination be armed forces companies, by means of merely two software companies," he said. "I believe the analyst heavy for the after that day contain person's name parked at a extremely low level, so we determination contain to talk to those. They get for granted extremely low growth tax so as to are way beneath come again? we counting expect."

Mr Lynch's comments came as Autonomy's split cost tumbled 14pc at one tip after the corporation obtainable worse-than-expected second-quarter pre-tax profits. As is frequently the container on Autonomy consequence existence the shares rallied sharply at 12.30pm at what time New York-based investors in progress trade the stock. The shares closed downward 164p, or 9pc, at £16.49.

"Some of the American investors in software contain additional knowledge in software and appreciate how the numbers [work]," Mr Lynch said.

Paul Morland, an analyst at KBC Peel Hunt, construct has a "sell" rating on the stock, said: "US investors contain a high-quality sympathetic of software but appear fewer inclined to create sure organic growth calculations and money conversion.

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"There is forever amazing of anxiety by means of Autonomy consequences it is poor cash conversion or greater supposed before investigate and growth capitalisation, similar to today," Mr Morland said. "Cash conversion was high-quality today, but everything else was attractive awful."

US-based investment in the store has approximately doubled in excess of the history day to account for concerning semi of the split register, as UK investors contain cut completely holdings.

"It is unsafe to bet after that to petroleum company, and I wouldn't small it again following the falls we contain seen today," Mr Morland added.

The Daily Telegraph disclosed previous day so as to Mr Lynch had person's name accused of necessary path as of bearish analysts.

Autonomy obtainable pre-tax proceeds of $67.5m (£44.2m) in the inquisitiveness months to the end of June, better to $71.7m in the similar era previous year. Sales in excess of the similar era rose 13pc to $221m. The company's closely-watched cash-conversion better to 98pc.

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