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INFORMATICA REPORTS FOURTH QUARTER REVENUES OF $50.1 MILLION AND GAAP EARNINGS OF $0.02 PER SHARE
REDWOOD CITY, Calif., January 23, 2003 - Informatica Corporation (NASDAQ: INFA), a leading provider of business analytics software, today announced financial results for the fourth quarter ended December 31, 2002.
Revenues for the fourth quarter of 2002 were $50.1 million, compared to the $50.3 million recorded in the fourth quarter of 2001. Net income for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $1.5 million or $0.02 per share, compared to a net loss of $8.5 million or $0.11 per share recorded in the fourth quarter of 2001. Pro forma net income for the quarter was $1.8 million or $0.02 per share, compared to a pro forma net loss of $1.5 million or $0.02 per share in the fourth 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 Informatica's GAAP results.
For the year ended December 31, 2002, revenues were $195.4 million, compared to the $200.1 million recorded in 2001. Net loss in 2002, calculated in accordance with U.S. GAAP, was $15.6 million or $0.20 per share, compared to a net loss of $45.0 million or $0.58 per share recorded in 2001. Pro forma net income for the year 2002 was $2.8 million or $0.03 per share, compared to a pro forma net loss of $4.5 million or $0.06 per share in 2001.
“We are very pleased with Informatica's performance this quarter, as we returned to profitability and further strengthened our balance sheet,” said Gaurav Dhillon, president and CEO of Informatica. “We demonstrated that our business is firing on all cylinders again, adding new customers, expanding our partner ecosystem, shipping new products, and garnering industry recognition.”
Significant milestones achieved in the fourth quarter of 2002 included:
- Signed 72 new customers. Informatica increased its customer base this quarter to 1,711 companies. New customers included Bankers Life & Casualty, Cardinal Health, Cobalt Group, the Drug Enforcement Agency (DEA), the Environmental Protection Agency (EPA), GTECH Corporation, Harris Bank, Hawaiian Airlines, McGraw-Hill, Network Associates, R.H. Donnelly, Shaw Industries, Texaco Relaystar, University of North Texas and Winn Dixie.
- Signed repeat business with 87 customers. Customers continue to derive value from their investment in Informatica solutions. Repeat customers included AT&T Broadband, Burger King, DaimlerChrysler, Dreyer's Grand Ice Cream, Group Danone, Hartford Insurance, ING Direct, Internal Revenue Service, Lockheed Martin, Nokia, Robert Half International, United Parcel Service, U.S. Coast Guard, U.S. Customs, U.S. Department of Justice and Volkswagen.
- Introduced industry's first “plug and play” approach to business analytics. Informatica rolled out a unique modular approach to buying and deploying business analytics centered around three key components: data integration, data warehousing and business intelligence. To complement its market-leading data integration platform (Informatica PowerCenter) and its award-winning family of analytic applications (Informatica Applications), Informatica introduced two new innovations: the Informatica Warehouse and Informatica PowerAnalyzer. These products help companies “mix and match” analytic components to quickly and easily build, expand or enhance their analytics implementations.
- Launched the PowerAnalyzer business intelligence (BI) platform. Informatica PowerAnalyzer extends Informatica's business analytics software family, and delivers a full suite of BI functionality without the complexity, need for extensive training, or infrastructure burdens that have left many BI tools on the shelf.
- Expanded OEM relationship with i2 Technologies. i2 is now licensing the Informatica Warehouse for Supply Chain Analytics and Informatica PowerAnalyzer to form core components of i2's platform for supply chain management. Under the existing agreement, i2 is also authorized to resell the entire suite of Informatica Applications and embed Informatica's PowerCenter data integration platform within the i2 architecture.
- Selected by Cap Gemini Ernst & Young to power its new CPO Solution Set. CGE&Y chose the Informatica Warehouse for Strategic Sourcing Analytics as an integral component of its newly offered Chief Procurement Officer Solution Set. By pairing Informatica's leading analytics software with CGE&Y's business expertise, the CPO Solution Set is designed to help companies lower their procurement costs and increase supplier performance.
- Announced OEM alliance with Aspen Technology. One of the leading suppliers of integrated solutions to the process industries, AspenTech will embed Informatica's PowerCenter and PowerConnect software into its new Performance Management enterprise solution for manufacturing and supply chain operations.
- Announced reseller alliance with HP. Informatica PowerCenterRT will be resold as an integral component of the HP Zero Latency Enterprise (ZLE) architectural framework for real-time, zero latency enterprise computing. As a result of the agreement, HP ZLE customers can now deploy PowerCenterRT real-time data integration software to consolidate very large volumes of information in real time to help drive high-value business actions instantaneously across an enterprise and beyond.
- Placed among the top ten vendors in DM Review 100. Moving up steadily from the number 17 spot in 2000 and the number 12 spot in 2001, Informatica this year was ranked number nine out of 100 business intelligence, data warehousing, analytic applications and CRM companies by DM Review magazine.
- Received “Reader's Choice Award” from Intelligent Enterprise magazine. For the second consecutive year, subscribers of Intelligent Enterprise voted Informatica Applications as best in class within the Packaged Analytic Application Suite category. Intelligent Enterprise also named Informatica the “Company to Watch” for integration.
Informatica will be discussing its fourth quarter 2002 results 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 A replay of the call will also be available by dialing (719) 457-0820, reservation number 297059. Telephone and Webcast replays of the call will be available until 4:00 p.m. EST on January 30, 2003.
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 analytics or build their own best-of-breed data warehousing solutions - whichever approach best suits their requirements and resources. More than 1,700 companies worldwide are using Informatica data integration software to build and manage data warehouses. And, leading technology innovators, including Motorola, ConAgra, Brunswick, Brocade, HP 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 and PowerCenter, PowerCenter RT, PowerConnect, PowerAnalyzer, and Informatica Warehouse are trademarks or registered trademarks of Informatica Corporation in the U.S. and in jurisdictions throughout the world. 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 Year Ended
December 31, December 31,
2002 2001 2002 2001
Revenues:
License $24,767 $29,182 $99,943 $119,937
Service 25,356 21,148 95,498 80,208
Total revenues 50,123 50,330 195,441 200,145
Cost of revenues:
License 1,702 1,864 6,185 4,500
Service 9,884 10,198 39,246 42,539
Total cost of
revenues 11,586 12,062 45,431 47,039
Gross profit 38,537 38,268 150,010 153,106
Operating expenses:
Research and
development 10,747 11,172 45,631 46,271
Sales and marketing 21,909 25,087 86,760 99,334
General and
administrative 5,191 5,176 20,284 19,629
Total operating
expenses 37,847 41,435 152,675 165,234
Operating income
(loss) before
amortization and
restructuring charges 690 (3,167) (2,665) (12,128)
Amortization of
stock-based
compensation 31 87 221 1,036
Amortization of
goodwill and other
intangible assets 285 6,993 1,140 27,376
Restructuring charges -- -- 17,030 12,096
Income (loss) from
operations 374 (10,247) (21,056) (52,636)
Interest income and
other, net 1,708 1,705 6,363 8,960
Income (loss) before
income taxes 2,082 (8,542) (14,693) (43,676)
Income tax provision 596 -- 921 1,304
Net income (loss) $1,486 $(8,542) $(15,614) $(44,980)
Net income (loss)
per share:
Basic and diluted $0.02 $(0.11) $(0.20) $(0.58)
Weighted shares used
to compute net
income (loss)
per share:
Basic 80,720 78,400 79,753 77,599
Diluted 83,082 78,400 79,753 77,599
Pro forma information,
excluding amortization
of stock-based
compensation and
amortization of
goodwill and other
intangible assets
and restructuring
charges:
Net income (loss),
GAAP basis $1,486 $(8,542) $(15,614) $(44,980)
Amortization of
stock-based
compensation 31 87 221 1,036
Amortization of
goodwill and
other intangible
assets 285 6,993 1,140 27,376
Restructuring charges -- -- 17,030 12,096
Net income (loss),
Pro forma basis $1,802 $(1,462) $2,777 $(4,472)
Net income (loss)
per share,
Pro forma basis:
Basic and diluted $0.02 $(0.02) $0.03 $(0.06)
Weighted shares used
to compute net income
(loss) per share,
Pro forma basis:
Basic 80,720 78,400 79,753 77,599
Diluted 83,082 78,400 82,998 77,599
Notes:
- (1) Informatica adopted FASB 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.
- (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)
Dec. 31, Sept. 30, Dec. 31,
2002 2002 2001
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $122,490 $82,002 $131,264
Short-term investments 113,385 143,687 77,955
Accounts receivable, net 29,982 30,173 29,131
Prepaid expenses and
other current assets 8,680 6,342 7,061
Total current assets 274,537 262,204 245,411
Property and equipment, net 47,370 49,036 53,180
Restricted cash 12,166 12,166 12,166
Goodwill and other
intangible assets, net 30,791 30,366 31,221
Other assets 330 379 925
Total assets $365,194 $354,151 $342,903
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
other current liabilities $41,383 $37,437 $36,609
Deferred revenue 51,702 43,791 36,554
Accrued restructuring
charges 4,812 4,980 4,136
Total current liabilities 97,897 86,208 77,299
Accrued restructuring
charges, less current
portion 14,894 16,104 5,196
Stockholders' equity 252,403 251,839 260,408
Total liabilities and
stockholders' equity $365,194 $354,151 $342,903
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
(unaudited) (unaudited) (unaudited)
Operating activities
Net income (loss) $1,486 $(8,542) $(15,614) $(44,980)
Adjustments to
reconcile net income
(loss) to net cash
provided by operating
activities:
Depreciation and
amortization 3,212 2,396 10,477 5,749
Provision for
doubtful accounts
and other receivable
allowances 173 1,421 1,606 1,719
Amortization of
stock-based
compensation 31 87 221 1,036
Amortization of
goodwill and
intangible assets 285 6,993 1,140 27,376
Restructuring charges -- -- 1,887 1,497
Gain on the sale of
investments -- -- (154) --
Loss on disposal of
property and equipment -- 1,048 357 1,048
Other 9 -- 190 --
Adjustment to
acquisition
allocation (710) -- (710) --
Changes in operating
assets and
liabilities:
Accounts receivable 18 (1,359) (2,457) 899
Prepaid expenses
and other current
assets (2,338) (1,238) (1,619) (3,973)
Other assets 49 579 595 559
Accounts payable
and other current
liabilities 3,946 2,212 4,774 2,911
Accrued
restructuring
charges (1,378) (1,267) 10,374 9,332
Deferred revenue 7,911 5,213 15,148 12,748
Net cash provided
by operating
activities 12,694 7,543 26,215 15,921
Investing activities
Purchases of property
and equipment, net (1,546) (7,309) (6,911) (30,207)
Purchases of
investments (11,734) (21,952) (230,084) (264,337)
Sales and maturities
of investments 42,100 20,450 195,113 186,800
Acquisitions, net
of cash acquired -- -- -- (13,737)
Transfer from
restricted cash -- -- -- 8,116
Net cash provided
(used) by
investing
activities 28,820 (8,811) (41,882) (113,365)
Financing activities
Proceeds from
issuance of
common stock,
net of payments
for repurchases 329 502 7,860 11,046
Treasury stock
purchases (1,750) -- (1,750) (83)
Net cash provided
(used) by
financing
activities (1,421) 502 6,110 10,963
Effect of foreign
currency translation 395 (128) 783 32
Increase (decrease)
in cash and cash
equivalents 40,488 (894) (8,774) (86,449)
Cash and cash
equivalents at
beginning of period 82,002 132,158 131,264 217,713
Cash and cash
equivalents at end
of period $122,490 $131,264 $122,490 $131,264
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