Autonomy shares drop 15% after disappointing update

Autonomy , the software group which tends to split analyst opinion, has upset the City with a disappointing trading update. Its shares have dropped 282p to £15.70 - a 15% decline - after the company said difficult trading conditions meant its full year revenues would be around 3% below consensus forecasts. It now expects growth of 17%, with organic growth of 12% and year on year profit growth of around 20%. Third quarter revenues were likely to be at the top end of its previous range of $206m to $211m. Chief executive Mike Lynch said: We are pleased to be at the top end of our range during our traditionally seasonally weakest quarter, but were disappointed not to be in a position to report revenues above this range. There are unique challenges to the summer months with a consequent September catch-up, but we are also noticing customers still showing volatility around their view of the current macro economic situation. Watch the bears of the company sharpen their knives.