Informatica Reports Record Revenues Of $64.2 Million And 21 Percent License-Revenue Growth
Achieves record profitability of $0.09 earnings per share
REDWOOD CITY, Calif., July 21, 2005—Informatica Corporation (NASDAQ: INFA), a leading provider of enterprise data integration software, today announced financial results for the second quarter ended June 30, 2005.
Revenues for the second quarter of 2005 were $64.2 million, up 21 percent from the $53.0 million recorded in the second quarter of 2004. License revenues for the second quarter of 2005 were $28.1 million, up 21 percent from $23.3 million in the second quarter of 2004. Net income for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $7.6 million or $0.09 per diluted share, up over 665 percent from net income of $1.0 million or $0.01 per diluted share in the second quarter of 2004. Pro forma net income for the second quarter of 2005 was $8.2 million or $0.09 per diluted share, up over 145 percent from $3.3 million or $0.04 per diluted share in the second quarter of 2004.
For the six-month period ending June 30, 2005, revenues were $122.6 million, an increase of 14 percent from the $107.2 million recorded for the first six months of 2004. License revenues for the first six months of 2005 were $53.1 million, up 10 percent from $48.2 million in the first six months of 2004. GAAP net income for the first six months of 2005 was $12.0 million or $0.13 per diluted share, up over 310 percent versus the $2.9 million or $0.03 per diluted share recorded in the first six months of 2004. Pro forma net income for the first six months of 2005 was $14.6 million or $0.16 per diluted share, up over 120 percent versus $6.5 million or $0.07 per diluted share in the first six 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.
“Twenty-one percent year-over-year growth in both license and total revenues clearly validates our growth strategy to establish Informatica as the dominant leader in the enterprise data integration market,” said Sohaib Abbasi, president and CEO of Informatica. “Record revenues and record profits demonstrate the exceptional execution discipline of the Informatica team.”
Significant milestones achieved in the second quarter of 2005 include:
- Signed repeat business with 158 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included Applied Materials, Charles Schwab, Cingular Wireless, Dresdner Bank, Lockheed Martin, ING Direct, Novell, PayPal, Sun Microsystems, University of Kentucky and Wachovia Securities.
- Signed 48 new customers. Informatica increased its customer base this quarter to 2,264 companies. New customers included ACNielsen, Boston Medical Center, Eurohypo Systems, KeyBank, Mentor Graphics, North Carolina State University, Select Comfort Group, Singapore Health Services, SUVA, ThinkTech, the U.S. Centers for Disease Control and Prevention and the U.S. Department of Agriculture.
- Achieved record attendance at Informatica World 2005. Informatica held its seventh-annual worldwide customer and partner conference in June in Washington, D.C., and nearly doubled attendance from the previous year. Keynote speakers included executives from Accenture, Gartner, HP, IBM Business Consulting Services and Siebel.
- Continued Asia-Pacific expansion. Informatica launched its presence in Beijing, Seoul, and Taipei in the second quarter. Informatica also opened its Hong Kong subsidiary during the same period.
- Announced record-setting 64-bit performance results. Informatica and Sun revealed new performance and scalability test results achieved during a series of data integration benchmark tests in the second quarter. Informatica's 64-bit PowerCenter data integration platform running on Solaris™ 10 Operating System delivered throughput of one terabyte in approximately 37 minutes—faster than any previously published data integration benchmark results.
- Announced support for unstructured data. Informatica continued to deliver on its two-year product roadmap by adding support for unstructured data to the PowerCenter data integration platform. Now, PowerCenter customers can access and integrate all forms of data—unstructured, semi-structured and structured—that reside across the enterprise.
- Renewed strategic partnerships with i2 and Siebel. Informatica extended its existing OEM agreement with i2 by three years, adding PowerCenter's real-time capabilities to i2 SCOS, and making available co-distribution opportunities in Asia-Pacific by NEC Corporation. Informatica also expanded its long-standing partnership with Siebel, in which Siebel Systems' Expert Services team selected PowerCenter to power high-availability customer software upgrades. With PowerCenter, Siebel Expert Services can address the needs of customers who require near-zero downtime when migrating to new releases of Siebel CRM applications.
To supplement the company’s condensed consolidated financial statements presented on a GAAP basis, Informatica uses pro forma financial 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 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 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 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 second 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 888-286-8010, reservation number 53893112.
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 2,250 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 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 features 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