InfoVista (Euronext Paris: FR0004031649, NASDAQ: IVTA), the leading service-centric performance management software company today announced record financial results for its fiscal second quarter ended December 31, 2004. Total revenues for the quarter increased to EUR 8.6 million, up 25% over the comparable quarter last year. On a comparable currency basis, revenues would have increased by 28%. InfoVista recorded positive EBITDA of EUR 0.5 million for the quarter, as compared to negative EBITDA of EUR 0.2 million in the comparable quarter last year. For the first time since its inception and ahead of plan, InfoVista achieved positive net income in the quarter, totaling EUR 0.1 million, or EUR 0.01 per share, as compared to a loss of EUR 0.6 million, or EUR 0.03 per share, in the comparable quarter last year.

Commenting on the quarter, Gad Tobaly, Chief Executive Officer of InfoVista, said: "This has been a pivotal quarter in the history of InfoVista, as we achieved our first ever quarterly net income, ahead of our own market guidance. Our teams delivered a solid quarter consistent with our sustainable profitable growth strategy. Each of our three main regions, Europe, America and Asia, posted sharp growth, validating our Go-To-Market strategy. We have won brand new accounts, both in the Service Providers and Enterprise markets. Last but not least, several large existing customers are back in the game, and have been investing in InfoVista solutions to support their new service offering."

Philippe Ozanian, Chief Financial Officer, added: "Most of our financial indicators - Operating Results, EBITDA, Gross Margin, DSOs - improved significantly in the quarter despite the sharp decline of the US dollar, underscoring our operational discipline."

Financial Highlights

-- Revenues for the second quarter increased 25% year-on-year and 13% sequentially to EUR 8.6 million, significantly above our own market guidance provided at the end of the previous quarter. On a constant currency basis, total second quarter revenues would have risen by 28% year-on-year.

-- License revenues increased 19% year-on-year in the second quarter to EUR 4.7 million, representing 54% of total revenues. On a constant currency basis, license revenues would have increased by 22% year-on-year.

-- InfoVista's gross margin stood at 80% in the second quarter, compared to 76% in the comparable quarter last year. This represents the fourth consecutive quarter during which gross margin was at least 80% of revenues.

-- EBITDA for the second quarter was EUR 0.5 million, as a result of continuous tight control over operational expenses.

-- Net income was EUR 0.1 million, or EUR 0.01 per share, versus a net loss of EUR 0.6 million, or EUR 0.03 per share, in the comparable quarter last year. Operating results was EUR 0.2 million as compared to a loss of EUR 0.7 million last year

-- As of December 31, 2004, cash and marketable securities stood at EUR 32.6 million, or EUR 1.8 per outstanding share.

-- As of December 31, 2004, InfoVista had a total of 17,821,491 shares outstanding.

Operational Review for the second quarter 2004/2005

InfoVista recorded strong growth across all geographical regions.

-- The American, European and Asian markets contributed 35%, 56% and 9% of total revenues, respectively. Revenues in the Americas amounted to EUR 3.0 million, up 37% from the same quarter last year. In US dollar terms, American revenues were up 45% over the comparable last year quarter. European revenues were up 16% over the comparable quarter last year to EUR 4.8 million. Finally, the growth in Asia-Pacific revenues picked up pace in the quarter, with sales up by over 46% to EUR 0.8 million.

-- InfoVista recorded a large number of major new customer wins, including Time Warner Telecom and ADP in the Americas, Yours Communication and Aena in Europe, and KVH in Asia.

-- Large existing customers also increased their investment in InfoVista solutions during the quarter, including Bell Canada and Motorola in the Americas, Deutsche Telekom, Telefonica and Cable & Wireless in Europe, and NEC for NTT in Asia.

-- Revenues from the Service Provider market contributed 73% of total revenues in the second quarter, with Enterprise customers contributing the remaining 27%.

-- Revenues from Software Licenses grew by 19% in the quarter, contributing 54% of total revenues, while Service revenues, representing 46% of total revenues, rose by 33%.

-- Revenues from indirect channels were up by 26%, contributing 44% to total revenues, while direct channels posted growth of 24% and contributed the remaining 56% of revenues.

Promising Outlook for the second half of FY 2004-05

Looking ahead, Gad Tobaly concluded:

"Our core markets are well and alive and we have entered the second half of our fiscal year with a strong pipeline. We are also positioned to win various large projects in Q3. This quarter, we expect revenues to be in the range of EUR 9 million to EUR 9.2 million, representing year-on-year growth of 15%. For the fiscal year as a whole, we expect revenues to pass the EUR 34.5 million mark, representing year-on-year growth of over 20% despite the sharply reduced value of the US dollar. Thanks to continued discipline in cost-control, our bottom-line profitability should be consistently strengthened quarter after quarter, putting us solidly on track to achieve positive net income for our full fiscal year

Conference Call

InfoVista will host a conference call today at 9:00 a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental Europe). The call will be available by dialing + 44(0)20 7019 9523 in the UK/Europe, or +1 718 354 1172 in North America. A replay of the teleconference will be available shortly after the end of the conference call at the following numbers: UK/Europe: +44 (0)20 7984 7578, North America: +1 718 354 1112, Passcode: 301484.

About InfoVista

InfoVista is the Service-Centric Performance Management Software Company that assures the optimal delivery of business-critical IT services. Driven by a uniquely adaptive and real-time technology foundation, InfoVista solutions improve business effectiveness, reduce operating risk, lower cost of operations, increase agility and create competitive advantage. Eighty percent of the world's largest service providers as ranked by Fortune(R), as well as leading Global 2000 enterprises, rely on InfoVista to enhance the business value of their technology assets. Representative customers include Allstream, Banques Populaires, Banque de France, Broadwing Communications, Defense Information Systems Agency (DISA), Deloitte & Touche, Deutsche Telecom, France Telecom, Savvis Corporation, SingTel, US Cellular and Verio Inc. InfoVista stock is traded on the NASDAQ (IVTA) and the Nouveau Marche (FR0004031649). For more information about the company, please visit www.infovista.com

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: 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 US Securities & Exchange Commission and French Autorite des Marches 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.