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Informatica Reports Third Quarter Revenues Of $52.4 Million
REDWOOD CITY, Calif.,
October 19, 2004—Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the third quarter ended September 30, 2004.
Revenues for the third quarter of 2004 were $52.4 million, compared to $50.6 million recorded in the third quarter of 2003. Net loss for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $8.6 million or $0.10 per diluted share, compared with a net loss of $0.3 million or $0.00 per diluted share in the third quarter of 2003. Pro forma net income for the third quarter of 2004 was $2.1 million or $0.02 per diluted share, compared to $4.4 million or $0.05 per diluted share in the third quarter of 2003.
For the nine-month period ending September 30, 2004, revenues were $159.6 million, an increase from the $149.6 million recorded during the first nine months of 2003. GAAP net loss for the first nine months of 2004 was $5.7 million or $0.07 per diluted share. Pro forma net income for the first nine months of 2004 was $8.6 million or $0.10 per diluted share.
As announced on October 8, 2004, the GAAP results for the three months and nine months ended September 30, 2004 include a $9.7 million non-cash adjustment to the 2001 restructuring charge.
Pro forma operating results discussed in this press release exclude charges related to an adjustment to the 2001 facilities restructuring charge, purchased in-process research and development and the amortization of acquired technology, intangible assets and stock-based compensation. A reconciliation of pro forma operating results and GAAP results is included in the financial statements attached below.
"In the third quarter we booked four transactions over a million dollars each—our best performance in nearly two years," said Sohaib Abbasi, president and CEO of Informatica. "Increasingly, customers are selecting Informatica as their standard platform of choice for enterprise-wide, strategic data integration initiatives."
Significant milestones achieved in the third quarter of 2004 include:
- Signed repeat business with 124 customers. Successful customers continue to invest in additional Informatica technologies. Repeat customers included ABN Amro North America, Cendant, Cisco Systems, Sprint, Citigroup, General Electric, Hewlett-Packard, Abbey National, CIBC, DaimlerChrysler, Marriott International, MetLife, Pfizer, RR Donnelley & Sons, Royal Bank of Scotland, and Warner Brothers Entertainment.
- Signed 55 new customers. Informatica increased its customer base this quarter to over 2,100 companies. New customers include the German Army, TD Waterhouse Group, Federal Reserve Bank of New York, Daiwa Securities America, Interval International, Ministerie van Defensie, Tennessee Valley Authority, and Kansas City Southern Railway.
- Expanded relationship with IBM. Together, Informatica and IBM launched the Dashboard Engine Appliance (IIDEA), a hardware and software bundle for mid-size businesses, which is being delivered through Avnet Partner Solutions, IBM Americas. In addition, Informatica and IBM announced that they would jointly integrate, market and sell comprehensive data integration solutions in Japan.
- Named one of "10 Most Influential" companies in the integration market. For the second year in a row, Informatica was selected by Computer Business Review as one of the ten most-influential companies in the integration market, advancing two positions for "grand vision" and technology that is "deeply embedded in the enterprise."
- Voted number one for data integration by readers of Intelligent Enterprise. For the second year in a row, Informatica PowerCenter won Intelligent Enterprise magazine's Reader's Choice Award in the ETL category, voted on by the magazine's 80,000 subscribers.
- Demonstrated customer success with top industry awards. Informatica and CNA won DM Review's 2004 World Class Solutions Award in the category of Data Acquisition and Integration for CNA's successful implementation of Informatica PowerCenter and PowerExchange. In addition, The Data Warehousing Institute chose Deutsche Börse Group's successful implementation of Informatica PowerCenter from among twelve Best Practices Awards winners as the prestigious 2004 Leadership in Data Warehousing Award winner.
- Named worldwide revenue market leader in data warehouse integration. For the fourth year in a row, IDC identified Informatica as the market leader with a 17.4 percent share, highlighting the company's strong revenue increase of 11.8 percent in 2003 and successful strategy of "re-focusing on its core data integration and replication business."
- Received SAP certification for data migration. SAP awarded its Data Migration Interface (CA-DMI) certification to Informatica PowerCenter, helping ensure that SAP customers can leverage Informatica solutions to simplify large-scale data migration, consolidation and synchronization projects, enable seamless upgrades to SAP R/3®, and support the consolidation of the mySAP™ family of business solutions.
- Named new senior management team members. Sohaib Abbasi, a 22-year enterprise software veteran, joined Informatica as president and chief executive officer on July 20, 2004. In addition, John Entenmann was recently appointed as executive vice president of corporate strategy and marketing to lead Informatica's worldwide marketing, channels and business development organizations.
To supplement the company's condensed consolidated financial statements presented on a GAAP basis, Informatica uses pro forma measures of net income and net income per share. These measures are adjusted to exclude certain charges and expenses discussed above and in the attached supplemental consolidated statements of operations, which the company believes are appropriate to enhance an overall understanding of its historical financial performance. These adjustments to the company's current period GAAP results are made with the intent of providing both management and investors a more complete understanding of the company's underlying operational results, trends and marketplace performance. Informatica believes that the inclusion of these pro forma financial measures provides consistency and comparability with its historical reports of financial results, as well as comparability to similar companies in the company's industry, many of which present similar pro forma financial measures to investors. In addition, these pro forma results are among the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles in the United States.
Informatica will be discussing its third quarter 2004 results on a conference call today beginning at 2:00 p.m. PDT / 5:00 p.m. EDT. 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 617-801-6888, reservation number 28453305.
About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration software. Using Informatica products, companies can access, integrate, visualize, and audit their enterprise information assets to help improve business performance, increase customer profitability, streamline supply chain operations and proactively manage regulatory compliance. More than 2,100 companies worldwide rely on Informatica for their end-to-end enterprise data integration needs. For more information, call 650-385-5000 (1-800-970-1179 in the U.S.), or visit http://www.informatica.com/.
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Note: Informatica, PowerCenter and PowerExchange are trademarks or 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 Three Months Ended
September 30, 2004 September 30, 2003
Adjust- Pro Adjust- Pro
GAAP ments* Forma GAAP ments* Forma
Revenues:
License $22,024 $-- $22,024 $22,070 $-- $22,070
Service 30,404 -- 30,404 28,535 -- 28,535
Total revenues 52,428 52,428 50,605 50,605
Cost of revenues:
License 727 -- 727 974 -- 974
Service 10,399 (12) 10,387 9,745 -- 9,745
Amortization of
acquired technology 585 (585) -- 82 (82) --
Total cost of
revenues 11,711 (597) 11,114 10,801 (82) 10,719
Gross profit 40,717 597 41,314 39,804 82 39,886
Operating expenses:
Research and
development 12,339 (184) 12,155 12,090 (19) 12,071
Sales and marketing 22,574 (248) 22,326 20,353 (3) 20,350
General and
administrative 5,950 39 5,989 5,190 -- 5,190
Amortization of
intangible assets 47 (47) -- 17 (17) --
Purchased in-process
research and
development -- -- -- 4,524 (4,524) --
Restructuring charge 9,673 (9,673) -- -- -- --
Total operating
expenses 50,583 (10,113) 40,470 42,174 (4,563) 37,611
Income (loss) from
operations (9,866) 10,710 844 (2,370) 4,645 2,275
Interest income and
other, net 1,014 -- 1,014 2,895 -- 2,895
Income (loss) before
income taxes (8,852) 10,710 1,858 525 4,645 5,170
Income tax provision
(benefit) (267) -- (267) 781 -- 781
Net income (loss) $(8,585) $10,710 $2,125 $(256) $4,645 $4,389
Net income (loss) per
share:
Basic and diluted $(0.10) $0.02 $(0.00) $0.05
Weighted shares used
to compute net
income per share:
Basic 86,002 86,002 80,380 80,380
Diluted 86,002 87,774 80,380 83,394
* The following table summarizes the pro forma adjustments for the
respective periods presented:
Three Months Ended
September 30, 2004
2004 2003
Net loss, GAAP: $(8,585) $(256)
Amortization of acquired technology 585 82
Amortization of intangible assets 47 17
Amortization of stock-based compensation 405 22
Purchased in-process research
and development -- 4,524
Restructuring charge 9,673 --
Net income, pro forma: $2,125 $4,389
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Nine Months Ended Nine Months Ended
September 30, 2004 September 30, 2003
Adjust- Pro Adjust- Pro
GAAP ments* Forma GAAP ments* Forma
Revenues:
License $70,234 $-- $70,234 $68,524 $-- $68,524
Service 89,401 -- 89,401 81,121 -- 81,121
Total revenues 159,635 -- 159,635 149,645 149,645
Cost of revenues:
License 2,452 -- 2,452 2,198 -- 2,198
Service 30,145 (36) 30,109 28,661 - 28,661
Amortization of
acquired technology 1,740 (1,740) -- 457 (457) --
Total cost of
revenues 34,337 (1,776) 32,561 31,316 (457) 30,859
Gross profit 125,298 1,776 127,074 118,329 457 118,786
Operating expenses:
Research and
development 39,565 (2,032) 37,533 34,812 (62) 34,750
Sales and marketing 67,716 (748) 66,968 62,275 (3) 62,272
General and
administrative 15,616 80 15,696 15,981 -- 15,981
Amortization of
intangible assets 150 (150) -- 67 (67) --
Purchased in-process
research and
development -- -- -- 4,524 (4,524) --
Restructuring charge 9,673 (9,673) -- -- -- --
Total operating
expenses 132,720 (12,523) 120,197 117,659 (4,656) 113,003
Income (loss) from
operations (7,422) 14,299 6,877 670 5,113 5,783
Interest income and
other, net 2,129 -- 2,129 5,275 -- 5,275
Income (loss) before
income taxes (5,293) 14,299 9,006 5,945 5,113 11,058
Income tax provision 422 -- 422 1,870 -- 1,870
Net income (loss) $(5,715) $14,299 $8,584 $4,075 $5,113 $9,188
Net income (loss) per
share:
Basic and diluted $(0.07) $0.10 $0.05 $0.11
Weighted shares used
to compute net
income per share:
Basic 85,566 85,566 80,381 80,381
Diluted 85,566 88,451 83,097 83,097
* The following table summarizes the pro forma adjustments for the
respective periods presented:
Nine Months Ended
September 30, 2004
2004 2003
Net income (loss), GAAP: $(5,715) $4,075
Amortization of acquired technology 1,740 457
Amortization of intangible assets 150 67
Amortization of stock-based compensation 2,736 65
Purchased in-process research
and development -- 4,524
Restructuring charge 9,673 --
Net income, pro forma: $8,584 $9,188
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $81,634 $82,903
Short-term investments 152,541 140,890
Accounts receivable, net 38,106 34,375
Prepaid expenses and other current assets 6,510 5,124
Total current assets 278,791 263,292
Property and equipment, net 32,880 38,734
Restricted cash 12,166 12,166
Goodwill and intangible assets, net 85,455 87,511
Other assets 1,374 1,105
Total assets $410,666 $402,808
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current
liabilities $40,487 $45,828
Deferred revenue 56,111 51,282
Accrued restructuring charges 4,106 4,624
Accrued merger costs 261 543
Total current liabilities 100,965 102,277
Accrued restructuring charges, less
current portion 17,460 10,543
Accrued merger costs, less current portion 226 389
Stockholders' equity 292,015 289,599
Total liabilities and
stockholders' equity $410,666 $402,808
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended,
September 30,
2004 2003
Operating activities
Net income (loss) $(5,715) $4,075
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 7,468 8,406
Provision for doubtful accounts and
accounts receivable reserve (126) 177
Stock-based compensation 3,105 65
Amortization of acquired technology
and other intangible assets 1,890 524
Non-cash restructuring charge 9,673
Purchased in-process research and
development -- 4,524
Other 19 (41)
Changes in operating assets and liabilities:
Accounts receivable (3,605) 4,109
Prepaid expenses and other current assets (1,213) 4,509
Other assets (269) (18)
Accounts payable and other current
liabilities (5,341) 1,061
Accrued restructuring charges (3,274) (3,414)
Accrued merger costs (232) --
Deferred revenue 4,799 (4,484)
Net cash provided by operating activities 7,179 19,493
Investing activities
Purchases of property and equipment, net (2,067) (1,758)
Purchases of investments (150,397) (155,620)
Sales and maturities of investments 138,232 147,889
Acquisitions, net of cash acquired -- (30,279)
Net cash used in investing activities (14,232) (39,768)
Financing activities
Proceeds from issuance of common stock 11,730 6,532
Repurchase and retirement of common stock (6,118) (11,448)
Net cash provided by (used in)
financing activities 5,612 (4,916)
Effect of foreign currency translation 172 315
Decrease in cash and cash equivalents (1,269) (24,876)
Cash and cash equivalents at
beginning of period 82,903 105,590
Cash and cash equivalents at end of period $81,634 $80,714
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