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/.

Voor meer informatie over Informatica kunt u contact opnemen met:

Informatica Nederland
Maaike Hilbrand, Marketing Manager
030-6086701 / 06-51553760
E-mail: mhilbrand@informatica.com

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Notitie: Informatica is een geregistreerd handelsmerk van Informatica Corporation in de Verenigde Staten en in rechtsgebieden over de hele wereld. Alle andere bedrijfs- of productnamen kunnen handelsmerken of handelsnamen zijn van de respectievelijke eigenaren.