Software in the recession: Out on its own

Autonomy, Britain’s largest software firm, is prospering amid the gloom LOSERS can sometimes land on their feet. After the internet bubble burst in 2000-01 Autonomy, a British software firm, had a dramatic fall from grace. Its share price dropped by more than 90%, as did the fortune of Michael Lynch, its founder, who had been hailed as Britain’s answer to Bill Gates. “No one needs a billion pounds,” he said, putting a brave face on it. As the technology industry shrinks once again, however, Autonomy is one of the winners. Today it is Britain’s biggest software company by market value, and there is no mistaking Mr Lynch’s satisfaction as he reviews his firm’s latest results. Revenues in the last three months of 2008, a disaster for most technology companies, were up 26% compared with the previous year, reaching $145m. Net profit more than doubled to $51m. What could explain this remarkable reversal of fortune? For a start, the suffering of technology firms ... (link)