INFORMATICA REPORTS RECORD $42.8 MILLION THIRD-QUARTER REVENUES; UP 155% OVER LAST YEAR
Sequential growth of 26% achieved as Informatica reaches 1,000th customer milestone
PALO ALTO, Calif., October 19, 2000 - Informatica Corporation (NASDAQ: INFA), a leading provider of eBusiness analytic solutions, today announced record financial results for its third quarter ended September 30, 2000.
Revenues for the quarter were $42.8 million, a 155% increase from $16.8 million in the third quarter of 1999, and a 26% sequential increase from $33.9 million in the second quarter of 2000. Net income for the quarter, excluding non-operating charges related to the amortization of goodwill and other intangible assets, purchased in-process research and development and stock-based compensation, was $2.5 million, or $0.06 per share, a 220% increase from $769,000, or $0.02 per share, in the third quarter of 1999, and up sequentially from $1.9 million, or $0.05 per share, in the second quarter of 2000.
Revenues were $102.6 million for the nine-month period ending September 30, 2000, up 145% compared to $41.8 million in the same period in 1999. The earnings per share for the nine-month period ending September 30, 2000, excluding non-operating charges related to the amortization of goodwill and other intangible assets, purchased in-process research and development and stock-based compensation, were $0.15, compared to breakeven in the same period in 1999.
Including non-operating charges related to amortization of goodwill and other intangible assets, purchased in-process research and development and stock-based compensation, the net loss for the quarter and nine months ended September 30, 2000 was $7.5 million, or $0.21 per share, and $11.0 million, or $0.32 per share respectively, compared to net income of $583,000 in the third quarter of 1999, or $0.02 per share and a net loss of $484,000, or $0.02 per share for the nine months ended September 30, 1999.
"During the third quarter, Informatica achieved tremendous growth through the continued adoption of our data-integration infrastructure products across a broad range of industries and geographies as well as through OEM partnerships with key software partners, such as Siebel, " said Gaurav Dhillon, CEO of Informatica. "More importantly, we are pleased at the growing adoption and deployment of our recently launched Informatica Applications.
"Our success reflects the growing recognition of the value that business insight delivers to organizations. The Informatica Insight Network provides executives, managers and mobile professionals with personalized and timely business information to capture new market opportunities and drive revenues. Evidence of our success is Motorola's recent selection of Informatica's analytic family as the company's standard for worldwide deployment. This represents the largest licensing agreement in our company's history," Dhillon said.
Informatica achieved a number of other significant milestones during the third quarter of 2000 and in the first weeks of October, including:
- Formed an alliance with Siebel Systems. Informatica partnered with Siebel, the world's leading provider of eBusiness application software, to integrate components of Informatica's analytic product family with Siebel eBusiness Applications.
- Acquired Zimba, mobile applications technology provider, for approximately $26 million in a stock-for-stock transaction. Informatica will leverage technology and technical expertise acquired through this transaction to extend the value and reach of business insight to mobile professionals through real-time access to corporate and external information via wireless devices, voice recognition and the Web.
- Named Silicon Valley's 11th fastest-growing technology company by Deloitte & Touche. Informatica was ranked the 11th fastest-growing technology company in Deloitte & Touche's "Silicon Valley Technology Fast 50" program based on 10,491 percent revenue-growth from 1995 to 1999.
- Completed follow-on public offering of 2,875,000 shares of common stock. Of the 2,875,000 sold, 2,375,000 shares were offered by Informatica, and selling shareholders offered the remaining 500,000 shares. Net proceeds to Informatica after underwriting discounts, commissions and expenses were approximately $191 million. The managing underwriters for the offering were Morgan Stanley Dean Witter, Credit Suisse First Boston, Robertson Stephens, Thomas Weisel Partners LLC and FAC/Equities
- Chosen best analytic applications product of 2000. Readers of Intelligent Enterprise magazine selected Informatica Applications as the winner of the 2000 Intelligent Enterprise Readers' Choice Award in the analytic applications category.
- Announced Informatica eMarketplace analytic application for B2B digital marketplaces. Designed to address the unique analytic requirements of online marketplaces, the newest addition to the Informatica Applications product family will help Internet marketplaces increase revenue, as well as extend eBusiness insight to buyers and sellers. Other applications in the suite include eCRM, eBusiness Operations and eProcurement.
- Solidified position as market standard with worldwide customer base totaling 1,000. With nearly half of Informatica's entire customer base signed within the last 12 months, this milestone reinforces not only the continued confidence leading global companies place in Informatica's data-integration platform, but also its growing adoption as a market standard.
- Signed 115 new customers. New customers signed in the third quarter include American Airlines, Axient, Bristol Myers Squibb, Best Buy, British Oxygen, Broadwing, Brocade Communications, CarsDirect.com, Dain Rauscher, Deutsche Borse, DirectTV, Enterprise Rent-a-Car, Fleet Capital Leasing, Hydro One Networks, Imperial Bank, Loudcloud, Nalco Chemical Co., Net Curricula, Norwich Union Group Service, OrthoMcNeil, Plantronics, Purdue University, Singapore Cable Vision and Southcorp.
- Signed repeat business with 71 existing customers, including 3Com, Air France, Alltel Communications, CNET.com, Delta Airlines, General Electric, Goldman Sachs & Co., Health Alliance, Hewlett-Packard, KPMG, Lincoln Financial Group, Lucent Technologies, Met Life, One2One, Simon & Schuster, Sprint, Stanford University, Toyota Motor Sales USA, USAA and Warner Brothers.
- Signed largest licensing agreement in Informatica's history with Motorola. Motorola plans a worldwide deployment of Informatica Applications as its global analytic standard to achieve insight across its entire value chain and to maximize business performance.
- Unveiled strategic vision of "business insight networks" powering the next wave of eBusiness. At Informatique 2000, attended by more than 635 customers and partners, CEO Gaurav Dillon, outlined a market vision and product roadmap to help companies capitalize on the promise of eBusiness by building "business insight networks" to deliver unprecedented visibility and top- and bottom-line growth prospects across their extended value chains. The business insight network vision helps transform the principles behind data warehousing, business intelligence, Internet and wireless technologies into a unified network that gives corporate professionals a 360-degree view of their business, including internal operations as well as customer and supplier relationships.
About Informatica
Informatica provides eBusiness analytic solutions that enable companies to leverage business insight for competitive advantage. More than 1,000 global customers, including more than half of the Fortune 100, leverage the Informatica Insight Network to integrate, analyze and personalize critical business information to improve business performance and responsiveness across the entire business value chain. Informatica's products include a comprehensive suite of analytic applications, the industry's most powerful data integration platform and a wide range of supporting services and partnerships. The company's list of leading customers includes 3Com, AMD, American Airlines, Boeing, Borders Group, Chevron, Cisco, CNET, Deutsche Bank, eBay, GE, Genencor, Hewlett-Packard, Inktomi, J. Crew, Merrill Lynch, MetLife, MCI WorldCom, Motorola, Mutual of Omaha, Philips, Polo Ralph Lauren, Preview Travel, Priceline.com, Sprint and Zurich Insurance. For more information, call 800.970.1179, or visit Informatica's Web site at http://www.informatica.com/
This press release contains forward-looking statements as defined under the Securities Litigation Reform Act of 1995. Forward-looking statements in this release include statements regarding Informatica's leveraging of the technology of Zimba, Informatica's market vision and product roadmap, Informatica's financial results, growth outlook, market leadership position, and adoption of our products. Such forward-looking statements are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause the actual results to differ materially. Factors that could cause Informatica's actual results to differ materially include the size and timing of customer orders, market acceptance of our products, particularly our new analytics products, the length and variability of our sales cycle for our products, and our ability to develop, introduce and market new products on a timely basis, as well as additional risk factors, as discussed in the "Risk Factors'' sections of Informatica's Annual Report on Form 10-K for the year ended December 31, 1999, Informatica's second quarter report on Form 10-Q dated August 14, 2000 and our Registration Statement on Form S-3 dated September 26, 2000. Informatica disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
NOTE: Informatica, PowerCenter and PowerMart are trademarks or registered trademarks of Informatica Corporation. All other company and product names may be trademarks of their respective owners.
Investor Contact:
Deborah Cromer Vice President, Communications (650) 687-6234 dcromer@informatica.com
Media Contact:
Samantha Moore Informatica Corporation (650) 687-6361 smoore@informatica.com
| INFORMATICA CORPORATION |
|
| |
|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
| (in thousands, except per share data) |
|
| (unaudited) |
|
| |
|
| |
|
Three Months Ended |
|
Nine Months Ended |
|
| |
|
September 30, |
|
September 30, |
|
| |
|
2000 |
|
1999 |
|
2000 |
|
1999 |
|
| |
|
|
|
|
|
| |
|
| Revenues: |
|
| |
License |
|
$28,475 |
|
$11,003 |
|
$ 67,044 |
|
$ 27,531 |
|
| |
Service |
|
14,333 |
|
5,799 |
|
35,602 |
|
14,283 |
|
| |
Total revenues |
|
42,808 |
|
16,802 |
|
102,646 |
|
41,814 |
|
| Cost of revenues: |
|
| |
License |
|
443 |
|
191 |
|
1,236 |
|
444 |
|
| |
Service |
|
8,019 |
|
2,797 |
|
19,226 |
|
7,038 |
|
| |
Total cost of revenues |
|
8,462 |
|
2,988 |
|
20,462 |
|
7,482 |
|
| |
|
|
|
|
|
|
| Gross profit |
|
34,346 |
|
13,814 |
|
82,184 |
|
34,332 |
|
| |
| Operating expenses: |
|
| |
Research and development |
|
7,787 |
|
3,310 |
|
17,663 |
|
8,543 |
|
| |
Sales and marketing |
|
20,460 |
|
8,802 |
|
50,561 |
|
22,718 |
|
| |
General and administrative |
|
3,178 |
|
1,280 |
|
7,489 |
|
3,313 |
|
| |
Total operating expenses |
|
31,425 |
|
13,392 |
|
75,713 |
|
34,574 |
|
| Income (loss) before amortization, interest income and taxes |
|
2,921 |
|
422 |
|
6,471 |
|
(242) |
|
| |
Amortization of stock-based compensation |
|
427 |
|
186 |
|
956 |
|
473 |
|
| |
Amortization of goodwill and other intangible assets |
|
4,367 |
|
- |
|
8,539 |
|
- |
|
| |
Purchased in-process research and development |
|
5,117 |
|
- |
|
7,316 |
|
- |
|
| Income (loss) from operations |
|
(6,990) |
|
236 |
|
(10,340) |
|
(715) |
|
| Interest income, net |
|
357 |
|
548 |
|
1,079 |
|
732 |
|
| Income (loss) before income taxes |
|
(6,633) |
|
784 |
|
(9,261) |
|
17 |
|
| Income tax provision |
|
820 |
|
201 |
|
1,695 |
|
501 |
|
| Net income (loss) |
|
$ (7,453) |
|
$ 583 |
|
$ (10,956) |
|
$ (484) |
|
| |
| Net income (loss) per share: |
|
| |
Basic |
|
$ (0.21) |
|
$ 0.02 |
|
$ (0.32) |
|
$ (0.02) |
|
| |
Diluted |
|
$ (0.21) |
|
$ 0.02 |
|
$ (0.32) |
|
$ (0.02) |
|
| |
|
|
| Shares used to compute net |
|
|
|
| income (loss) per share: |
|
|
|
| |
Basic |
|
34,804 |
|
31,029 |
|
33,949 |
|
21,124 |
|
| |
Diluted |
|
34,804 |
|
37,625 |
|
33,949 |
|
21,124 |
|
| |
| Supplemental information, excluding amortization: |
|
| |
| Net income (loss), as adjusted |
|
$ 2,458 |
|
$ 769 |
|
$ 5,855 |
|
$ (11) |
|
| |
| Net income (loss), as adjusted, |
|
| per share - diluted |
|
$ 0.06 |
|
$ 0.02 |
|
$ 0.15 |
|
$ (0.00) |
|
| |
|
|
| Shares used to compute net |
|
|
|
| income (loss), as adjusted, |
|
|
|
| per share - diluted |
|
40,094 |
|
37,625 |
|
39,390 |
|
21,124 |
|
| INFORMATICA CORPORATION |
|
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
| (unaudited) |
|
|
|
|
September 30, |
|
December 31, |
|
2000 |
|
1999 |
|
|
|
|
|
|
| ASSETS |
|
|
|
| Current assets: |
|
|
Cash and cash equivalents |
$ 38,825 |
|
$ 57,521 |
|
Restricted cash |
8,116 |
|
- |
|
Accounts receivable, net |
24,602 |
|
8,119 |
|
Prepaid expenses and other current assets |
3,394 |
|
1,272 |
|
Total current assets |
74,937 |
|
66,912 |
|
|
| Restricted cash, less current portion |
12,166 |
|
- |
| Property and equipment, net |
5,242 |
|
1,482 |
| Goodwill and other intangible assets, net |
50,346 |
|
- |
| Other assets |
1,387 |
|
129 |
|
Total assets |
$ 144,078 |
|
$ 68,523 |
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
| Current liabilities: |
|
|
Accounts payable and other current liabilities |
$ 28,710 |
|
$ 17,301 |
|
Deferred revenue |
18,182 |
|
9,660 |
|
Total current liabilities |
46,892 |
|
26,961 |
|
|
| Long-term liabilities |
47 |
|
1,438 |
|
|
| Stockholders' equity |
97,139 |
|
40,124 |
|
Total liabilities and stockholders' equity |
$ 144,078 |
|
$ 68,523 |
|
|
|
|
|
|
|
|
|
|