|
INFORMATICA REPORTS INCREASED SECOND QUARTER REVENUES OF $50.5 MILLION, INCREASED OPERATING INCOME OF $2.6 MILLION
REDWOOD CITY, Calif., July 17, 2003 - Informatica Corporation (NASDAQ: INFA), a leading provider of data integration and business intelligence software, today announced financial results for the second quarter ended June 30, 2003.
Revenues for the second quarter of 2003 were $50.5 million, up sequentially from the $48.5 million recorded in the first quarter of 2003, and also up over the $49.1 million recorded in the second quarter of 2002. Net income for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $3.2 million or $0.04 per share, up sequentially from net income of $1.2 million or $0.01 per share in the first quarter of 2003, and also an increase over the net income of $0.4 million or $0.01 per share earned in the second quarter of 2002.
For the six-month period ending June 30, 2003, revenue were $99.1 million, an increase from the $97.7 million recorded during the first six months of 2002. GAAP net income for the first six months of 2003 was $4.4 million or $0.05 per share, an increase from $0.2 million or $0.00 per share for the first six months of 2002.
“We're pleased with our progress in the second quarter, generating continued revenue growth and increased profitability. Uptake of our data integration and business intelligence products also remained high, as we added new customers and closed a record amount of repeat business,” said Gaurav Dhillon, president and CEO of Informatica. “Given the strength of our data integration business and the expanding opportunities in this market, we will intensify our focus on these products by transitioning our solutions business to our strong partner ecosystem. We are focused on growth, have demonstrated we can do so profitably, and are excited about the year to come.”
Significant milestones achieved in the second quarter of 2003 include:
- Signed repeat business with 144 customers. Customers continue to derive value from their investment in Informatica solutions. Repeat customers include American Express, American Power Conversion, AT&T Wireless, DaimlerChrysler AG, eBay, GE, GMAC Residential Funding, Honeywell, HP, Marathon Oil, U.S. Department of Justice, U.S. Customs, U.S. Navy, Verizon Communications and Wachovia Securities.
- Signed 53 new customers. Informatica increased its customer base this quarter to 1,805 companies. New customers include Cargill Ltd, Cypress Semiconductor, DriveTime Automotive, Hitachi Data Systems, Information Resources, Medtronic, Neoforma, Newmont Mining, U.S. Census Bureau, University of Kentucky and Vodafone AB.
- Gained significant traction for Informatica's business intelligence platform. With the signing of 22 new PowerAnalyzer customers this quarter, Informatica has seen its order volume and the number of customers purchasing more than double from the first quarter. Customers include Accredited Home Lenders, Canadian Wheat Board, Federal Express, Royal Bank of Scotland, UPS and the United States Navy
- Launched Business Activity Platform with webMethods. Jointly delivered a unique product for enabling enterprise integration and real-time visibility. The result of a collaboration between Informatica and webMethods - both identified by Gartner as leaders in their respective markets - the Business Activity Platform is the first product that addresses the convergence of integration technologies and visibility to meet customers' requirements for business activity monitoring (BAM).
- Informatica PowerCenter uniquely optimized for IBM DB2. The latest release of the Informatica PowerCenter data integration platform delivers breakthrough load performance for IBM DB2 Universal Database Enterprise Server Edition software. “Data smart parallelism” has supercharged DB2 Universal Database load performance by up to 2,000 percent over the previous release of PowerCenter.
- SAP users choose Informatica as their preferred data integration platform. The PowerCenter data integration platform was placed on SAP FAQ's “Members' Choice Top 25 Tools and Technology” list for the second consecutive year. Informatica is the only data integration vendor in this year's list, which recognizes the foremost 25 tools and technology vendors chosen by the more than 15,000 members of the SAP FAQ community.
- Launched research and development center in India. Informatica's new India R&D Lab will focus on research and development across Informatica's entire family of software products for data integration and business intelligence. By expanding its software development operation into India, Informatica will ensure that its customers have access to high-quality software-development resources, no matter where their customers are located.
- Expanded partnership with Tata Consultancy Services. Tata Consultancy Services (TCS), Asia's largest software solutions and IT consulting company, is now a global reseller of Informatica products. TCS also plans to double the number of consultants trained on Informatica's family of software. Additionally, TCS has licensed Informatica software to drive business performance within its own global organization.
- Won two prestigious industry awards. Toyota Motor Sales U.S.A. (TMS) won the 2003 Best Practices Award in the metadata management category from The Data Warehousing Institute (TDWI). The prestigious award recognizes TMS' successful implementation of the Informatica PowerCenter data integration platform, and the role metadata management played in dramatically improving its customer-service capabilities. ING U.S. Financial Services' implementation of Informatica PowerCenter received DM Review's World Class Solution Award in the data acquisition and integration category. Using the Informatica data integration platform, ING created a real-time architecture to help the company improve sales, marketing and customer service.
Informatica will be discussing its second quarter 2003 results on a conference call today beginning at 2:00 p.m. PDT. A live Webcast 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 888-286-8010, passcode 17945825. The telephone replay will be available until 4:00 p.m. on July 24, 2003.
About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration and business intelligence software. Using Informatica products, Global 2000 companies can leverage their existing information assets for enterprise insight that helps them improve business performance, increase customer profitability, streamline supply chain operations and proactively manage regulatory compliance. With more than 1,800 companies worldwide, Informatica addresses companies' end-to-end needs for enterprise data integration and business intelligence. 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, PowerCenter and PowerAnalyzer are registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Revenues:
License $24,197 $26,392 $47,778 $52,906
Service 26,350 22,754 51,317 44,767
Total revenues 50,547 49,146 99,095 97,673
Cost of revenues:
License 637 1,720 1,224 3,106
Service 9,679 9,727 18,916 19,598
Total cost of revenues 10,316 11,447 20,140 22,704
Gross profit 40,231 37,699 78,955 74,969
Operating expenses:
Research and development 11,339 11,695 22,679 23,606
Sales and marketing 20,782 22,110 41,922 43,870
General and administrative 5,395 5,026 10,791 9,823
Amortization of stock-based
compensation 19 65 43 138
Amortization of other intangible
assets 140 285 425 570
Total operating expenses 37,675 39,181 75,860 78,007
Income (loss) from operations 2,556 (1,482) 3,095 (3,038)
Interest income and other, net 1,257 2,177 2,380 3,479
Income before income taxes 3,813 695 5,475 441
Income tax provision 596 261 1,089 261
Net income $3,217 $434 $4,386 $180
Net income per share:
Basic and Diluted $0.04 $0.01 $0.05 $0.00
Weighted shares used to compute net
income per share:
Basic 80,143 79,308 80,335 79,137
Diluted 82,777 82,796 82,959 83,760
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, March 31, December 31,
2003 2003 2002
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $130,791 $122,875 $122,490
Short-term investments 111,088 115,572 113,385
Accounts receivable, net 26,119 22,822 29,982
Prepaid expenses and other current
assets 5,376 7,603 8,680
Total current assets 273,374 268,872 274,537
Property and equipment, net 42,861 45,255 47,370
Restricted cash 12,166 12,166 12,166
Goodwill and intangible assets, net 30,366 30,506 30,791
Other assets 355 316 330
Total assets $359,122 $357,115 $365,194
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current
liabilities $41,762 $38,678 $41,383
Deferred revenue 50,478 51,287 51,702
Accrued restructuring charges 4,866 4,828 4,812
Total current liabilities 97,106 94,793 97,897
Accrued restructuring charges, less
current portion 12,548 13,685 14,894
Stockholders' equity 249,468 248,637 252,403
Total liabilities and
stockholders' equity $359,122 $357,115 $365,194
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Operating activities
Net income $3,217 $434 $4,386 $180
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 2,824 2,460 5,751 4,725
Provision for doubtful accounts 81 565 177 661
Amortization of stock-based
compensation 19 65 43 138
Amortization of intangible assets 140 285 425 570
Gain on the sale of investments -- -- (18) (154)
Loss on disposal of property and
equipment 4 344 4 357
Other 76 -- 76 --
Changes in operating assets and
liabilities:
Accounts receivable (3,378) (4,300) 3,686 (3,215)
Prepaid expenses and other
current assets 2,227 (1,716) 3,304 1,567
Other assets (39) 138 (25) 341
Accounts payable and other
current liabilities 3,085 6,557 380 5,380
Accrued restructuring charges (1,100) (1,174) (2,293) (2,544)
Deferred revenue (809) (724) (1,224) 2,153
Net cash provided by
operating activities 6,347 2,934 14,672 10,159
Investing activities
Purchases of property and
equipment, net (434) (1,466) (1,246) (4,715)
Purchases of investments (22,479) (57,858) (67,287) (128,980)
Sales and maturities of
investments 26,800 44,604 69,390 86,313
Net cash provided (used) by
investing
activities 3,887 (14,720) 857 (47,382)
Financing activities
Proceeds from issuance of common
stock, net of payments
for repurchases 355 504 3,052 3,794
Repurchase and retirement of common
stock (2,880) -- (10,445) --
Net cash provided (used) by
financing activities (2,525) 504 (7,393) 3,794
Effect of foreign currency
translation 207 403 165 377
Increase (decrease) in cash and
cash equivalents 7,916 (10,879) 8,301 (33,052)
Cash and cash equivalents at
beginning of period 122,875 109,091 122,490 131,264
Cash and cash equivalents
at end of period $130,791 $98,212 $130,791 $98,212
|
