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INFORMATICA REPORTS $49.1 MILLION IN SECOND QUARTER REVENUES
REDWOOD CITY, Calif., July 18, 2002 - Informatica Corporation (NASDAQ: INFA), the leading provider of business analytics software, today announced financial results for the second quarter ended June 30, 2002.
Revenues for the second quarter of 2002 were $49.1 million, up from the $48.5 million recorded in the first quarter of 2002, and also up compared to the $47.8 million recorded in the second quarter of 2001. On a GAAP basis, net income for the second quarter was $0.4 million or $0.01 per share, up sequentially from the net loss of $0.3 million or ($0.00) per share in the first quarter of 2002, and up significantly compared to the net loss of $7.5 million or ($0.10) per share recorded in the second quarter of 2001. Pro forma net income for the quarter was $0.8 million or $0.01 per share, up from the $0.1 million or $0.00 per share in the first quarter of 2002, and up from the net loss of $0.4 million or ($0.01) per share in the second quarter of 2001. Pro forma operating results discussed in this press release exclude charges related to the amortization of stock-based compensation and other intangible assets. All of these expenses are included in our U.S. generally accepted accounting principles (GAAP) results.
For the six-month period ending June 30, 2002, revenues were $97.7 million, down slightly from the $102.7 million recorded in the first six months of 2001. On a GAAP basis, net income for the first six months of 2002 was $0.2 million or $0.00 per share, up from the net loss of $9.5 million or ($0.12) per share recorded in the first six months of 2001. Pro forma net income for the first six months of 2002 was $0.9 million or $0.01 per share, down from the $4.6 million or $0.06 per share in the first six months of 2001.
“Informatica continues to execute in a difficult environment, keeping costs under control and closing good business despite current economic conditions,” said Gaurav Dhillon, CEO of Informatica. “Informatica's combination of the industry's broadest data integration platform and the deepest analytic applications is very powerful, creating a market-leading path for us. We have great products and happy customers, as evidenced by the strength of our repeat business.”
Significant milestones in the second quarter of 2002 included:
- Signed 60 new customers. Informatica grew its customer base this quarter to 1,581 companies. New customers included Bemis Company, Burger King, DaimlerChrysler AG, Department of Works & Pensions, DTE Energy, Land O'Lakes, National Rifle Association (NRA), National Security Agency (NSA), New York Comptroller's Office, Novell, Ohio State University, Puerto Rico Telephone, Sony Corporation and Telus Communications.
- Signed repeat business with 134 customers. Demonstrating confidence in their Informatica-based analytic solutions, repeat customers included Avon Products, Best Buy, ChevronTexaco, Dannon Company, Eli Lilly, Intuit, Lucent Technologies, Merck & Co., Neiman Marcus Group, Pacific Life, Pfizer, RR Donnelley & Sons, Tetra Pak Intl, United States Army, United States Postal Service, Verizon Data Services, and Waste Management.
- Announced industry's first real-time enterprise data integration platform. PowerCenterRT is Informatica's response to growing customer demand for next-generation data integration software that can easily process data both in real time and in batch mode, enabling users to get business-relevant information at the right time and empowering them to more effectively monitor and manage business performance.
- Introduced substantial upgrade to flagship PowerCenter platform. Capping an 18-month development effort, Informatica PowerCenter 6 (and its line-of-business counterpart Informatica PowerMart 6) incorporate a broad array of new functionality designed to significantly improve enterprise data warehousing.
- Expanded partner ecosystem. Informatica entered into an OEM agreement with J.D. Edwards & Company to provide the data integration platform for the J.D. Edwards Business Intelligence software. The Informatica platform will help enable J.D. Edwards' customers to efficiently integrate data from a wide range of data sources, inside and outside the enterprise, in support of real-time business performance monitoring and analysis.
- Recognized by two industry analysts for market-leadership position. Gartner placed Informatica in the “Leaders” quadrant in the May 6 report, “ETL Magic Quadrant Update: A Market in Evolution” (see http://www.gartner.com/reprints/informatica/106602.html). Giga Information Group named Informatica the leader in the data integration market in its report, “Market Overview Update: ETL,” estimating that Informatica market share grew to 18 percent in 2001, 50% higher than the closest competing vendor.
About Informatica
Informatica is the leading provider of business analytics software that helps Global 2000 companies monitor and manage the performance of key business operations across the enterprise. Informatica business analytics products span the entire “build to buy” spectrum, enabling customers to buy packaged analytic applications or build their own best-of-breed data warehousing solutions -- whichever approach best suits their requirements and resources. More than 1,500 companies worldwide are using Informatica data integration software to build and manage data warehouses. And, leading technology innovators, including Motorola, ConAgra, Brunswick, Brocade, Hewlett-Packard and GE, are using Informatica packaged analytic applications to successfully monitor and optimize business performance. For more information, call 650-385-5000 (800-970-1179 in the U.S.), or visit the Informatica Web site at http://www.informatica.com/
Informatica will be discussing its second quarter 2002 results on a conference call today beginning at 2:00 p.m. PDT. A live web cast and replay of the conference call will be available at http://www.informatica.com/investor. A replay of the call will also be available by dialing 719-457-0820, reservation number 297005. Telephone and web cast replays of the call will be available until 4:00 p.m. EST on July 25, 2002. NOTE: Informatica, PowerCenter, PowerMart and PowerCenterRT are the trademarks or registered trademarks of Informatica Corporation. All other company names or product names may be the trademarks or registered trademarks of their respective owners.
Contact:
Samantha Moore
Sr. Manager, Public Relations
Informatica Corporation
650-385-5259
Tara Calhoun
Director, Investor Relations
Informatica Corporation
650-385-
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenues:
License $26,392 $28,213 $52,906 $63,584
Service 22,754 19,611 44,767 39,138
Total revenues 49,146 47,824 97,673 102,722
Cost of revenues:
License 1,720 780 3,106 1,224
Service 9,727 10,497 19,598 21,628
Total cost of revenues 11,447 11,277 22,704 22,852
Gross profit 37,699 36,547 74,969 79,870
Operating expenses:
Research and development 11,695 10,817 23,606 21,875
Sales and marketing 22,110 24,704 43,870 48,056
General and administrative 5,026 4,044 9,823 8,946
Total operating expenses 38,831 39,565 77,299 78,877
Operating income (loss) before amortization (1,132) (3,018) (2,330) 993
Amortization of stock-based compensation 65 316 138 672
Amortization of goodwill
and other intangible assets 285 6,795 570 13,389
Loss from operations (1,482 (10,129) (3,038) (13,068)
Interest income and other, net 2,177 2,212 3,479 4,917
Income (loss) before income taxes 695 (7,917) 441 (8,151)
Income tax provision 261 (375) 261 1,304
Net income (loss) $434 $(7,542) $180 $(9,455)
Net income (loss) per share:
Basic $0.01 $(0.10) $0.00 $(0.12)
Diluted $0.01 $(0.10) $0.00 $(0.12)
Weighted shares used to compute net
income (loss) per share:
Basic 79,308 77,307 79,137 76,969
Diluted 82,796 77,307 83,760 76,969
ProForma information, excluding amortization of stock-based
compensation and amortization of goodwill and intangible assets:
Net income (loss), GAAP basis $434 $(7,542) $180 $(9,455)
Amortization of stock-based compensation 65 316 138 672
Amortization of goodwill
and other intangible assets 285 6,795 570 13,389
Net income (loss), as adjusted $784 ($431) $888 $4,606
Net income (loss), as adjusted, per share:
Basic $0.01 $(0.01) $0.01 $0.06
Diluted $0.01 $(0.01) $0.01 $0.06
Weighted shares used to compute net
income (loss), as adjusted,
Basic 79,308 77,307 79,137 76,969
Diluted 82,796 77,307 83,760 83,243
Notes:
1 Informatica adopted FASB Staff Announcement Topic No. D-103 effective
January 1, 2002.
As a result, out-of-pocket expenses billed to a customer have been recorded
as revenue versus an offset to the related expense. Prior period financial
statements have been reclassified to conform to this presentation.
2 Informatica adopted FAS 141 on Business Combinations and FAS 142 on
Goodwill and Other Intangible Assets on January 1, 2002.
Under FAS 142, goodwill and other intangible assets with indefinite
lives are no longer amortized beginning January 1, 2002.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $98,212 $131,264
Short-term investments 58,251 16,057
Accounts receivable, net 31,685 29,131
Prepaid expenses and other current assets 5,494 7,061
Total current assets 193,642 183,513
Property and equipment, net 52,812 53,180
Long-term investments 62,450 61,898
Restricted cash 12,166 12,166
Goodwill and other intangible assets, net 30,652 31,221
Other assets 584 925
Total assets $352,306 $342,903
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
and other current liabilities $41,989 $36,609
Deferred revenue 38,707 36,554
Restructuring charges 2,468 4,136
Total current liabilities 83,164 77,299
Restructuring charges, less current portion 4,320 5,196
Stockholders' equity 264,822 260,408
Total liabilities
and stockholders' equity $352,306 $342,903
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