Informatica Reports Record Revenues of $65.0 Million and 28 Percent License-Revenue Growth
Achieves third-consecutive quarter of record profitability
REDWOOD CITY, Calif.,
October 20, 2005—Informatica Corporation (NASDAQ: INFA), a leading provider of enterprise data integration software, today announced financial results for the third quarter ended September 30, 2005.
Revenues for the third quarter of 2005 were $65.0 million, up 24 percent from $52.4 million recorded in the third quarter of 2004. License revenues for the third quarter of 2005 were $28.2 million, up 28 percent from $22.0 million in the third quarter of 2004. Net income for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $8.0 million or $0.09 per diluted share versus a net loss of $8.6 million or $0.10 per share in the third quarter of 2004. Pro forma net income for the third quarter of 2005 was $9.7 million or $0.10 per diluted share, up over 325 percent from $2.1 million or $0.02 per diluted share in the third quarter of 2004.
For the nine-month period ended September 30, 2005, revenues were $187.6 million, an increase of 18 percent from the $159.6 million recorded in the first nine months of 2004. License revenues for the first nine months of 2005 were $81.2 million, up 16 percent from $70.2 million in the first nine months of 2004. GAAP net income for the first nine months of 2005 was $19.9 million or $0.22 per diluted share versus a net loss of $5.7 million or $0.07 per share recorded in the first nine months of 2004. Pro forma net income for the first nine months of 2005 was $24.3 million or $0.27 per diluted share, up over 170 percent from $8.6 million or $0.10 per diluted share in the first nine months of 2004.
Pro forma net income excludes charges related to facilities restructurings 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.
“Our third consecutive quarter of record profits and second consecutive quarter of record revenues demonstrates the consistent execution discipline of the Informatica team,” said Sohaib Abbasi, chairman and CEO of Informatica. “With our most innovative product release, PowerCenter 8, we are confident that the momentum will establish Informatica as the dominant leader in the enterprise data integration market.”
Significant milestones achieved since July include:
- Signed repeat business with 145 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included American Express, Commerzbank, DaimlerChrysler, FedEx, Groupe Danone, MetLife, Thomson Financial, Vodafone, and Warner Brothers Entertainment.
- Signed 59 new customers. Informatica increased its customer base this quarter to 2,323 companies. New customers included Beijing Power, China Telecom, Clorox Company, Fieldstone Mortgage Company, Rewards Network, Russell Investment Group, Washington Gas & Light, and the U.S. Department of Energy.
- Announced Global Master Relationship Agreement with SAP. In October, Informatica announced a three-year worldwide agreement with SAP AG focused on accelerating the time-to-value of data migration and other strategic data integration initiatives for SAP customers. The agreement provides a framework for the execution of local go-to-market agreements, piloted by SAP America Inc.
- Recognized by Computer Business Review (CBR). For the third year in a row, CBR named Informatica one of the ten most-influential companies in the integration market. Declaring that Informatica "pioneered the market for data integration," CBR singled out the company for having "steadfastly remained independent" and for "concentrating on enterprise data integration."
- Adapted sales and marketing management for the next phase of growth. Brad Crosby, a four-year Informatica veteran, was promoted to head the North American sales team. Previously, Crosby was responsible for eastern area and federal sales. Crosby will continue to report to Paul Hoffman, executive vice president, worldwide sales, in his new capacity. John Entenmann, executive vice president, corporate strategy & marketing, will be leaving the company on November 1, 2005 to pursue other opportunities. Sohaib Abbasi, CEO, will assume direct responsibility for the marketing organization in the interim.
- Elected new member to board of directors. As announced today, Geoff Squire OBE has joined Informatica's board. With more than 40 years of industry experience, Squire held top executive positions at Oracle, VERITAS and OpenVision. Currently chairman of The Innovation Group plc and Kognitio Ltd., Squire brings considerable international perspective to Informatica's growing global operations.
To supplement the company’s condensed consolidated financial statements presented on a GAAP basis, Informatica uses non-GAAP financial measures of net income and net income per share. These measures are adjusted to exclude the charges and expenses discussed above and in the attached supplemental consolidated statements of operations. The company believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its historical financial performance. These adjustments to the company’s 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 non-GAAP financial measures provides consistency and comparability with its historical financial results, as well as comparability to similar companies in the company’s industry, many of which present similar non-GAAP financial measures to investors. In addition, these non-GAAP financial measures 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 2005 results on a conference call today beginning at 2:00 p.m. PDT. 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 26137298.
About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of enterprise data integration software. Using Informatica products, companies can access, integrate, migrate and consolidate enterprise data across systems, processes and people to reduce complexity, ensure consistency and empower the business. More than 2,300 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/.
This press release contains forward-looking statements relating to the anticipated impact of Informatica’s planned release of PowerCenter 8. Such statements involve risks and uncertainties, and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to (1) the ability of PowerCenter 8 to interoperate with hardware and software technologies that are developed and maintained by third parties, (2) market confusion that could result from changes to the company’s product packaging and pricing as a result of the introduction of PowerCenter 8, (3) any delay in the completion, launch, delivery or availability of PowerCenter 8, and (4) any potential defects that Informatica could discover in PowerCenter 8 after it begins to market and sell the product to its customers, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica’s report on Form 10-Q for the quarter ended June 30, 2005, which is on file with the SEC and is available on the company’s investor relations website at http://www.informatica.com/. All information provided in this release is as of October 20, 2005, and Informatica undertakes no duty to update this information.
###
Note: Informatica and PowerCenter 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. The development, release and timing of any Informatica product described in this release remain at the sole discretion of Informatica. This release should not be relied upon in making a purchasing decision.
View Informatica Q2 2005 Condensed Financial Tables
|
