Informatica Reports Third Quarter Revenues Of $79 Million And 19 Percent License-Revenue Growth

REDWOOD CITY, Calif., October 19, 2006—Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the third quarter ended September 30, 2006.

Revenues for the third quarter of 2006 were $78.9 million, up 21 percent from the $65.0 million recorded in the third quarter of 2005.  License revenues for the third quarter were $33.6 million, up 19 percent from the $28.2 million recorded in the third quarter of 2005.  Net income for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $9.4 million or $0.10 per diluted share, versus net income of $8.3 million or $0.09 per diluted share in the third quarter of 2005.  Results for the third quarter of 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses.  Non-GAAP net income for the third quarter of 2006 was $14.8 million or $0.16 per diluted share, up over 45 percent from $10.1 million or $0.11 per diluted share in the third quarter of 2005.   Non-GAAP net income excludes charges related to purchased in-process research and development, share-based compensation, facilities restructurings, and the amortization of acquired technology and intangible assets.  A reconciliation of GAAP operating results and non-GAAP results is included below.

For the nine-month period ending September 30, 2006, revenues were $232.8 million, an increase of 24 percent from the $187.6 million recorded for the first nine months of 2005. License revenues for the first nine months of 2006 were $103.2 million, up 27 percent from $81.2 million in the first nine months of 2005. GAAP net income for the first nine months of 2006 was $22.3 million or $0.24 per diluted share, versus $20.3 million or $0.22 per diluted share in the first nine months of 2005. Results for the first nine months of 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses.  Non-GAAP net income for the first nine months of 2006 was $39.0 million or $0.41 per diluted share, up over 55 percent from $24.7 million or $0.27 per diluted share in the first nine months of 2005.

 “We are pleased to report increasing operating margins and record third quarter profitability,” said Sohaib Abbasi, chairman and CEO of Informatica.  “We continue to benefit from strong demand for our products and services driven by our customers’ top business priorities.”

 Significant milestones achieved since July include:

• Signed repeat business with 162 customers.  Customers continue to derive considerable value from their investments in Informatica solutions.  Repeat customers included American United Life Insurance, Blue Cross Blue Shield of Minnesota, Canadian Wheat Board, Entergy Services, Motorola, NAVTEQ Corporation, Pacific Gas & Electric Company, Siemens Business Services and Thomson Financial.
• Signed 46 new customers.  Informatica increased its customer base this quarter to 2,658 companies.  New customers include AGL South Australia, American Stock Exchange, Banco Santander Brasil, Hudson’s Bay Company, KLM Royal Dutch Airlines, Paramount Pictures, and Sempra Energy Trading.
• Renewed OEM agreement with Oracle.  Oracle and Informatica signed a four-year agreement to continue to offer Informatica as the embedded data integration solution in Oracle’s Business Intelligence Applications, including Siebel Analytics Platform Server and Siebel Incentive Compensation Management Server.
• Set world record in data integration performance.  Informatica PowerCenter achieved the highest throughput results ever recorded in a published benchmark study of a data integration solution.  Deployed on an HP Integrity Superdome server, PowerCenter 8 Advanced Edition delivered throughput increases of over two times its precursor, PowerCenter 7.
• Gained early traction on On-Demand Data Integration.   Informatica delivered general availability of the PowerCenter Connect for salesforce.com to enable joint customers to integrate data managed by salesforce.com.  Informatica also announced that RightNow, a leading on-demand CRM provider, has agreed to resell Informatica products within its SaaS implementations and joined Informatica’s Service Provider Partner Program.  Launched in May 2006, Informatica’s Service Provider Partner Program now includes more than a dozen members focused on SaaS and business process outsourcing.
• Recognized for award-winning customer implementation. Informatica, Deloitte Consulting, and customer Nationwide won DM Review's coveted World Class Solution Award in the Data Management category for the ground-breaking FOCUS finance data-management initiative, a multi-year undertaking on the part of Nationwide to transform its global enterprise finance function.

Conference Call and Webcast
Informatica will be discussing its third quarter 2006 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 26430095.

• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Supplemental Metrics

About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of enterprise data integration software and services. Using Informatica products, companies gain greater business value by integrating all their information assets.  More than 2,650 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of any complexity and scale.  For more information, call 650-385-5000 (1-800-653-3871 in the U.S.), or visit http://www.informatica.com/.

Non-GAAP Financial Information
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.  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 U.S.

Safe Harbor
This press release contains forward-looking statements relating to efforts being conducted with strategic partners such as Oracle, salesforce.com and Service Partner Providers, and assumptions regarding Informatica On-Demand.  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) competition with larger companies that have longer operating histories and greater financial, technical, marketing, and other resources; (2) uncertainty in the state of IT spending and the continued growth in the market for data integration solutions in general; (3) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products; and (4) any revision to, delay regarding or cancellation of product release or service availability due to market or other conditions, 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, 2006, 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 19, 2006, and Informatica undertakes no duty to update this information.