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INFORMATICA REPORTS $47.6 MILLION IN THIRD QUARTER REVENUES
Further expands reseller ecosystem, garners strong industry recognition
REDWOOD CITY, Calif., October 17, 2002 - Informatica Corporation (NASDAQ: INFA), the leading provider of business analytics software, today announced financial results for the third quarter ended September 30, 2002.
Revenues for the third quarter of 2002 were $47.6 million, up slightly from the $47.1 million recorded in the third quarter of 2001. On a GAAP basis, the net loss for the third quarter was $17.3 million or $0.22 per share, which includes a facilities restructuring charge of $17.0 million, compared to the net loss of $27.0 million or $0.35 per share recorded in the third quarter of 2001, which included a restructuring charge of $12.1 million. Pro forma net income for the quarter was $0.09 million or $0.00 per share, compared to the net loss of $7.6 million or $0.10 per share in the third quarter of 2001. Pro forma operating results discussed in this press release exclude charges related to the amortization of stock-based compensation, goodwill and other intangible assets, and facilities restructuring charges. All of these expenses are included in our U.S. generally accepted accounting principles (GAAP) results.
For the nine-month period ending September 30, 2002, revenues were $145.3 million, down slightly from the $149.8 million recorded in the first nine months of 2001. On a GAAP basis, the net loss for the first nine months of 2002 was $17.1 million or $0.21 per share, compared to the net loss of $36.4 million or $0.47 per share recorded in the first nine months of 2001. Pro forma net income for the first nine months of 2002 was $1.0 million or $0.01 per share, compared to a net loss of $3.0 million or $0.04 per share in the first nine months of 2001.
“Informatica continues to make good progress in a difficult environment, keeping costs under control, improving key metrics on the balance sheet, and at the same time adapting to customer preferences with an expanded analytics product offering,” said Gaurav Dhillon, president and CEO of Informatica. “By opening up the components of our analytic applications, customers have the opportunity to realize more value with a smaller initial investment.”
Significant milestones in the third quarter of 2002 included:
- Signed 58 new customers. Informatica grew its customer base this quarter to 1,639 companies. New customers included Bell Canada, Chela Financial, CIBC World Markets, Independent Health, National Institute of Health, NEC Corporation, Orange County, Starwood Hotels & Resorts, State of Massachusetts, Thomson Financial, Time Warner and The Washington Post.
- Signed repeat business with 73 customers. Customers continue to derive value from their investment in Informatica solutions. Repeat customers included Amgen, Blue Cross/Blue Shield, Department of State, eBay, Food & Drug Administration, General Electric, Hearst Corp., Internal Revenue Service, Pharmacia, Salem Health, Toyota, US Air Force, the US Customs Service and Valero.
- Authorized world's leading systems integrators to resell Informatica Applications. Resellers for Informatica Applications now include Accenture, Core Integration, CSC Consulting, Deloitte Consulting, Fujitsu Consulting, Headstrong, KPMG Consulting, LoganBritton and PwC Consulting. These top consulting firms will help extend the value of Informatica's analytics solutions with their worldwide reach, services skills and vertical-industry expertise.
- Formed global reseller partnership with Teradata. The world's leading vendor for very large data warehouse solutions, Teradata will serve as a worldwide reseller for Informatica's entire family of data integration software.
- Ranked among “top ten” IT vendors for homeland security solutions. Informatica was the only data integration and analytics vendor placed on Federal Computer Week's “Top 10 Companies To Watch” list for offering the right solution for homeland-security problems.
- Named top data integration vendor by leading industry analyst. IDC ranked Informatica as the leading vendor in the data integration space for the second consecutive year in its “Worldwide Data Distribution, Migration and Repurposing Software Forecast and Analysis, 2002-2006” bulletin.
Informatica will be discussing its third quarter 2002 results on a conference call today beginning at 2:00 p.m. PST. 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 283903. Telephone and Web cast replays of the call will be available until 4:00 p.m. EST on October 24, 2002.
About Informatica
Informatica Corporation (NASDAQ: INFA) 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 1,600 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 1.650.385.5000 (1.800.970.1179 in the U.S.), or visit the Informatica Web site at http://www.informatica.com/.
Note: Informatica is a registered trademark of Informatica Corporation. All other company or product names may be the trademarks or registered trademarks of their respective owners.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues:
License $22,270 $27,171 $75,176 $90,755
Service 25,375 19,922 70,142 59,060
Total revenues 47,645 47,093 145,318 149,815
Cost of revenues:
License 1,377 1,412 4,483 2,636
Service 9,764 10,713 29,362 32,341
Total cost of revenues 11,141 12,125 33,845 34,977
Gross profit 36,504 34,968 111,473 114,838
Operating expenses:
Research and development 11,278 13,224 34,884 35,099
Sales and marketing 20,981 26,191 64,851 74,247
General and administrative 5,270 5,507 15,093 14,453
Total operating expenses 37,529 44,922 114,828 123,799
Operating loss before
amortization and
restructuring charges (1,025) (9,954) (3,355) (8,961)
Amortization of stock-based
compensation 52 277 190 949
Amortization of goodwill
and other intangible assets 285 6,994 855 20,383
Restructuring charges 17,030 12,096 17,030 12,096
Loss from operations (18,392) (29,321) (21,430) (42,389)
Interest income and other,
net 1,176 2,338 4,655 7,255
Loss before income taxes (17,216) (26,983) (16,775) (35,134)
Income tax provision 64 -- 325 1,304
Net loss $(17,280) $(26,983) $(17,100) $(36,438)
Net loss per share:
Basic and diluted $(0.22) $(0.35) $(0.21) $(0.47)
Weighted shares used to
compute net loss per share:
Basic and diluted 79,999 78,038 79,659 77,330
Pro forma information,
excluding amortization
of stock-based
compensation and
amortization of goodwill
and other intangible assets
and restructuring charges:
Net loss, GAAP basis $(17,280) $(26,983) $(17,100) $(36,438)
Amortization of stock-based
compensation 52 277 190 949
Amortization of goodwill
and other intangible assets 285 6,994 855 20,383
Restructuring charges 17,030 12,096 17,030 12,096
Net income (loss), as adjusted $87 $(7,616) $975 $(3,010)
Net income (loss) per share,
basic and diluted, as
adjusted: $0.00 $(0.10) $0.01 $(0.04)
Weighted shares used to
compute net income (loss)
per share, as adjusted:
Basic 79,999 78,038 79,659 77,330
Diluted 82,820 78,038 83,187 77,330
Notes:
1Informatica adopted FASB Staff Announcement Topic No. D-103, which
was subsequently incorporated in Emerging Issues Task Force
No. 01-14, effective January 1, 2002. As a result, out-of-pocket
expenses billed to a customer have been recorded as revenue versus a
reduction of the related expense. Prior period financial statements
have been reclassified to conform to this presentation.
2Informatica 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)
September 30, December 31,
2002 2001
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $82,002 $131,264
Short-term investments 40,499 16,057
Accounts receivable, net 30,173 29,131
Prepaid expenses and other current assets 6,342 7,061
Total current assets 159,016 183,513
Property and equipment, net 49,036 53,180
Long-term investments 103,188 61,898
Restricted cash 12,166 12,166
Goodwill and other intangible assets, net 30,366 31,221
Other assets 379 925
Total assets $354,151 $342,903
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current
liabilities $37,437 $36,609
Deferred revenue 43,791 36,554
Restructuring charges 4,980 4,136
Total current liabilities 86,208 77,299
Restructuring charges, less current portion 16,104 5,196
Stockholders' equity 251,839 260,408
Total liabilities and stockholders'
equity $354,151 $342,903
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Operating activities
Net loss $(17,280) $(26,983) $(17,100) $(36,438)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation and
amortization 2,540 1,621 7,265 3,353
Provision for doubtful
accounts 772 90 1,008 298
Amortization of
stock-based compensation 52 277 190 949
Amortization of goodwill
and intangible assets 285 6,994 855 20,383
Restructuring charges 1,887 1,497 1,887 1,497
Gain on the sale of
investments -- -- (154) --
Loss on disposal of
property and equipment -- -- 357 --
Other 181 -- 181 --
Changes in operating assets
and liabilities:
Accounts receivable 740 1,313 (2,050) 2,258
Prepaid expenses and other
current assets (848) 950 719 (2,735)
Other assets 205 1,053 546 (20)
Accounts payable and
other current
liabilities (4,552) 821 828 699
Deferred revenue 5,084 2,099 7,237 7,535
Restructuring charges 14,296 10,599 11,752 10,599
Net cash provided by
operating activities 3,362 331 13,521 8,378
Investing activities
Purchases of property and
equipment, net (650) (8,746) (5,365) (22,898)
Purchases of investments (89,370) (39,477) (218,350) (242,385)
Sales and maturities of
investments 66,700 76,150 153,013 166,350
Acquisitions, net of cash
acquired -- -- -- (13,737)
Transfer from restricted cash -- 8,116 -- 8,116
Net cash provided (used)
by investing
activities (23,320) 36,043 (70,702) (104,554)
Financing activities
Proceeds from issuance of
common stock, net of payments
for repurchases 3,737 3,070 7,531 10,544
Payments on capital lease
obligations -- -- -- (83)
Net cash provided by
financing activities 3,737 3,070 7,531 10,461
Effect of foreign currency
translation 11 40 388 160
Increase (decrease) in cash
and cash equivalents (16,210) 39,484 (49,262) (85,555)
Cash and cash equivalents
at beginning of period 98,212 92,674 131,264 217,713
Cash and cash equivalents
at end of period $82,002 $132,158 $82,002 $132,158
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