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INFORMATICA REPORTS $46.5 MILLION IN THIRD-QUARTER REVENUE

REDWOOD CITY, Calif., October 18, 2001 - Informatica Corporation (NASDAQ: INFA), the leading provider of enterprise analytic software, today announced financial results for the third quarter ended September 30, 2001. Revenues for the third quarter of 2001 were $46.5 million, compared to $42.8 million in the corresponding quarter of 2000 and $47.1 million recorded in the second quarter of 2001. Net loss for the third quarter of 2001, excluding non-operating charges of $7.3 million related to the amortization of goodwill and other intangible assets, stock-based compensation, and a restructuring charge for facilities consolidation of $12.1 million, was $7.6 million or $0.10 per share.

Revenues were $147.7 million for the nine-month period ending September 30, 2001, compared to $102.6 million in the same period of 2000. Excluding non-operating charges related to the amortization of goodwill and other intangible assets, stock-based compensation, purchased in-process research and development, and the restructuring charge, net loss for the nine months ended September 30, 2001 was $3.0 million, or $0.04 per share, compared to net income of $5.9 million, or $0.07 per share for the nine months ended September 30, 2000.

Including non-operating charges related to amortization of goodwill and other intangible assets, stock-based compensation, purchased in-process research and development, and the restructuring charge, net loss for the third quarter was $27.0 million or $0.35 per share, compared to a net loss of $7.5 million or $0.11 per share for the third quarter of 2000. Net loss for the nine months ended September 30, 2001 was $36.4 million, or $0.47 per share, compared to a net loss of $11.0 million, or $0.16 per share for the nine months ended September 30, 2000.

"We are pleased with the steady progress Informatica continues to make in the face of challenging economic times," said Gaurav Dhillon, CEO of Informatica. "Informatica's powerful product line, its growing list of blue-chip customers and an unmatched ecosystem of partners combine to make it one of the strongest players in enterprise analytics. We are committed to furthering our success in these turbulent times and are targeting our business to break even on a cash basis by the first quarter of 2002."

Significant milestones in the third quarter of 2001 included:
  • Signed 76 new customers. This quarter Informatica increased its base of marquee customers to more than 1,370 with the addition of Brunswick, Cablevision Systems, Cingular Wireless, Dole Foods, Eli Lilly, Health Management Systems, PETsMART, Ralston Purina, University of Massachusetts, U.S. Coast Guard, U.S. Department of State and the U.S. Department of Housing & Urban Development.

  • Signed repeat business with 61 customers. Current customers continued to demonstrate confidence in their Informatica-based analytic solutions by purchasing additional software. Repeat customers included Adidas International, Amgen Europe, British Sky Broadcasting, Carnival Cruise Lines, Charter Communications, Credit Suisse First Boston, General Electric, Hewlett-Packard, KPN Telecom, JP Morgan, Pfizer, Putnam Investments, TransCanada, UBS Card Center, U.S. Department of Defense, U.S. Air Force, U.S. Food & Drug Administration, U.S. Postal Service and Verizon.

  • Appointed new head of worldwide field operations. Kyle Bowker, formerly senior vice president and general manager for SAP America's Manufacturing Sector, joined Informatica this quarter as executive vice president of worldwide field operations. Bowker is responsible for global field operations, including all distribution channels as well as strategic business planning, alliances and channels, sales, professional services, training and customer development. He is also responsible for driving the continued development of the Informatica ecosystem of more than 300 strategic, technology and OEM partners.

  • Expanded OEM relationship with i2. Building on an existing partnership, i2 selected Informatica as a critical component of the i2 platform for data integration. The enterprise data integration capabilities provided by the Informatica PowerCenter platform and Informatica PowerConnect products will help i2 customers further maximize the efficiency of their planning operations while responding more quickly to changes in their supply chain environments. The expanded agreement includes joint product development initiatives in supply chain management and other strategic i2 areas, as well as joint marketing of i2 solutions and Informatica products.

  • Launched distributed data integration solution. Informatica PowerChannel allows companies to integrate global corporate data as well as share data with suppliers, customers and partners across the extended enterprise, thus enabling a comprehensive view of the entire business. The new product is designed to enable global 2000 companies with large data volumes and distributed data sources to achieve fast, secure date integration over the Internet.

About Informatica
Informatica provides enterprise analytic software that enables decision makers to transform business insight into competitive advantage. Informatica provides the industry's only integrated enterprise analytics suite, including a powerful data integration platform, cross value chain analytic applications, and soon the real-time delivery of analytics via Web, wireless and voice. More than 1,370 customers, including 60 percent of the Fortune 100, rely on Informatica software to integrate, analyze, personalize and deliver critical information to managers, executives and other decision makers to optimize business performance.

Our list of global customers includes 3Com, AMD, American Airlines, BMW, Borders Group, Brocade, Brunswick, Chevron, Cisco, CNET, Deutsche Bank, eBay, General Electric, Hewlett-Packard, MetLife, Motorola, Orbitz, Philips, Polo Ralph Lauren, Sprint, UBS, the U.S. Department of Justice and the U.S. Postal Service. For more information, call +1-800-970-1179, or visit the Informatica Web site at http://www.informatica.com/.

Informatica will be discussing its third quarter results and its 2001 outlook on a conference call today beginning at 2:00 p.m. PST. A live Webcast of the conference call will be available at http://www.informatica.com/investor. Playback of the call will be available through 4:00 p.m. EST on October 25, 2001, and can be accessed by dialing 800-633- 8284 (domestic) or 858-812-6440 (international) and entering reservation number 19825219. A replay of the Webcast will also be available on the Informatica Web site.

This press release contains forward-looking statements, including the statements regarding our targeting of our business to break even on a cash basis in the first quarter of fiscal 2002, our outlook and prospects, including the rate of adoption for our products, the outlook and prospects for our industry, and the effect of general economic conditions on our performance. Factors that could cause actual results to differ materially include continuing uncertainty regarding global economic conditions and the political environment, the pace of IT capital spending, the level of demand for our products, risks associated with new versions and new products and risks associated with rapid technological change, our ability to continue the partnerships described herein, the successful integration of our products with our partners' products, as well as additional risk factors outlined in our Annual Report on Form 10-K for the year ended December 31, 2000 and updated in our report on Form 10-Q for our quarter ended June 30, 2001. Informatica assumes no duty to update the information in this release.

NOTE: Informatica, PowerCenter and PowerConnect are trademarks or registered trademarks of Informatica Corporation. iForce is a service mark of Sun Microsystems, Inc. All other product and company names may be trademarks or registered trademarks of their respective owners.

Media Contact:


Deb Cromer
Vice President, Communications
(650) 385-5559
pr@informatica.com

 
Investor Contact:

Tara Calhoun
Director, Investor Relations
(650) 385-5059
tcalhoun@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,
2001 2000 2001 2000
Revenues:
License
 $27,171
 $28,475
 $90,755
 $67,044
Service
19,347
14,333
56,949
35,602
Total revenues
46,518
42,808
147,704
102,646
Cost of revenues:
License
1,412
443
2,636
1,236
Service
10,138
8,019
30,230
19,226
Total cost of revenues 
11,550
8,462
32,866
20,46
Gross profit
34,968
34,346
114,838
82,184
Operating expenses:
Research and development
13,224
7,787
35,099
17,663
Sales and marketing
26,191
20,460
74,247
50,561
General and administrative
5,507
3,178
14,453
7,489
Total operating expenses 
44,922
31,425
123,799
75,713
Operating income (loss) before amortization, purchased
  in-process research and development and restructuring charges
(9,954)
2,921
(8,961)
6,471
Amortization of stock-based compensation
277
427
949
956
Amortization of goodwill and other intangible assets
6,994
4,367
20,383
8,539
Purchased in-process research and development
-
5,117
-
7,316
Restructuring charges
12,096
-
12,096
-
Loss from operations
(29,321)
(6,990)
(42,389)
(10,340)
Interest income and other, net
2,338
357
7,255
1,079
Loss before income taxes
(26,983)
(6,633)
(35,134)
(9,261)
Income tax provision
-
820
1,304
1,695
Net loss
$(26,983)
$(7,453)
$(36,438)
$(10,956)
Net loss per share:
Basic and diluted
 $(0.35)
 $(0.11)
 $(0.47)
 $(0.16)
 
 
 
 
Shares used to compute net 
loss per share:
Basic and diluted
78,038
69,608
77,330
67,898
 
 
 
 
Supplemental information, excluding amortization
and restructuring charges:
Net income (loss), as adjusted
$(7,616)
$2,458
$(3,010)
$5,855
Net income (loss), as adjusted,
per share - diluted
$(0.10)
$0.03
$(0.04)
$0.07
Shares used to compute net
income (loss), as adjusted,
  per share - diluted
78,038
80,187
77,330
78,779

 

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30,
December 31,
2001
2000
ASSETS
Current assets:
Cash and cash equivalents
 $132,158
 $217,713
Short-term investments
17,567
-
Restricted cash
-
8,116
Accounts receivable, net 
29,193
30,100
Prepaid expenses and other current assets
5,823
2,852
Total current assets
184,741
258,781
Property and equipment, net
49,315
31,131
Long-term investments
59,064
-
Restricted cash, less current portion
12,166
12,166
Goodwill and other intangible assets, net
38,214
47,491
Other assets
1,504
1,414
Total assets
 $345,004
 $350,983
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current liabilities
 $34,397
 $37,146
Deferred revenue
31,341
23,340
Restructuring charges
4,658
-
Total current liabilities
70,396
60,486
Restructuring charges, less current portion
5,941
-
Stockholders' equity
268,667
290,497
Total liabilities and stockholders' equity
 $345,004
 $350,983