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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:
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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.
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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.
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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.
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| INFORMATICA CORPORATION |
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| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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| (in thousands, except per share data) |
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| (unaudited) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2001 |
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2000 |
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2001 |
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2000 |
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| Revenues: |
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License |
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$27,171 |
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$28,475 |
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$90,755 |
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$67,044 |
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Service |
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19,347 |
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14,333 |
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56,949 |
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35,602 |
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Total revenues |
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46,518 |
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42,808 |
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147,704 |
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102,646 |
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| Cost of revenues: |
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License |
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1,412 |
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443 |
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2,636 |
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1,236 |
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Service |
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10,138 |
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8,019 |
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30,230 |
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19,226 |
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Total cost of revenues |
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11,550 |
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8,462 |
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32,866 |
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20,46 |
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| Gross profit |
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34,968 |
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34,346 |
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114,838 |
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82,184 |
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| Operating expenses: |
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Research and development |
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13,224 |
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7,787 |
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35,099 |
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17,663 |
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Sales and marketing |
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26,191 |
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20,460 |
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74,247 |
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50,561 |
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General and administrative |
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5,507 |
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3,178 |
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14,453 |
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7,489 |
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Total operating expenses |
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44,922 |
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31,425 |
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123,799 |
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75,713 |
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| Operating income (loss) before amortization, purchased |
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| in-process research and development and restructuring charges |
(9,954) |
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2,921 |
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(8,961) |
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6,471 |
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Amortization of stock-based compensation |
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277 |
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427 |
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949 |
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956 |
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Amortization of goodwill and other intangible assets |
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6,994 |
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4,367 |
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20,383 |
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8,539 |
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Purchased in-process research and development |
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- |
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5,117 |
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- |
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7,316 |
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Restructuring charges |
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12,096 |
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- |
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12,096 |
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- |
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| Loss from operations |
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(29,321) |
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(6,990) |
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(42,389) |
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(10,340) |
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| Interest income and other, net |
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2,338 |
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357 |
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7,255 |
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1,079 |
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| Loss before income taxes |
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(26,983) |
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(6,633) |
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(35,134) |
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(9,261) |
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| Income tax provision |
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- |
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820 |
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1,304 |
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1,695 |
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| Net loss |
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$(26,983) |
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$(7,453) |
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$(36,438) |
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$(10,956) |
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| Net loss per share: |
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Basic and diluted |
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$(0.35) |
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$(0.11) |
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$(0.47) |
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$(0.16) |
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| Shares used to compute net |
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| loss per share: |
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Basic and diluted |
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78,038 |
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69,608 |
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77,330 |
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67,898 |
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| Supplemental information, excluding amortization |
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| and restructuring charges: |
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| Net income (loss), as adjusted |
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$(7,616) |
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$2,458 |
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$(3,010) |
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$5,855 |
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| Net income (loss), as adjusted, |
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| per share - diluted |
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$(0.10) |
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$0.03 |
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$(0.04) |
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$0.07 |
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| Shares used to compute net |
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| income (loss), as adjusted, |
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| per share - diluted |
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78,038 |
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80,187 |
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77,330 |
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78,779 |
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| INFORMATICA CORPORATION |
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| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
| (unaudited) |
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September 30, |
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December 31, |
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2001 |
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2000 |
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| ASSETS |
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| Current assets: |
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Cash and cash equivalents |
$132,158 |
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$217,713 |
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Short-term investments |
17,567 |
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- |
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Restricted cash |
- |
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8,116 |
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Accounts receivable, net |
29,193 |
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30,100 |
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Prepaid expenses and other current assets |
5,823 |
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2,852 |
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Total current assets |
184,741 |
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258,781 |
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| Property and equipment, net |
49,315 |
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31,131 |
| Long-term investments |
59,064 |
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- |
| Restricted cash, less current portion |
12,166 |
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12,166 |
| Goodwill and other intangible assets, net |
38,214 |
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47,491 |
| Other assets |
1,504 |
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1,414 |
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Total assets |
$345,004 |
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$350,983 |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| Current liabilities: |
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Accounts payable and other current liabilities |
$34,397 |
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$37,146 |
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Deferred revenue |
31,341 |
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23,340 |
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Restructuring charges |
4,658 |
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- |
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Total current liabilities |
70,396 |
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60,486 |
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| Restructuring charges, less current portion |
5,941 |
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- |
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| Stockholders' equity |
268,667 |
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290,497 |
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Total liabilities and stockholders' equity |
$345,004 |
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$350,983 |
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