Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the fourth quarter ended December 31, 2005.
Revenues for the fourth quarter of 2005 were $79.8 million, up 33 percent from $60.0 million recorded in the fourth quarter of 2004. Net income for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $13.6 million or $0.14 per diluted share, compared to a net loss of $98.7 million or $1.14 per share in the fourth quarter of 2004. Non-GAAP net income for the fourth quarter of 2005 was $14.7 million or $0.16 per diluted share, up over 166 percent from $5.2 million or $0.06 per diluted share in the fourth quarter of 2004.
For the year ended December 31, 2005, revenues were $267.4 million, up 22 percent from $219.7 million recorded in 2004. GAAP net income in 2005 was $33.8 million or $0.37 per diluted share, compared to a net loss of $104.4 million or $1.22 per share in 2004. Non-GAAP net income for 2005 was $39.3 million or $0.43 per diluted share, up over 168 percent from $13.7 million or $0.16 per diluted share in 2004.
Non-GAAP net income excludes charges related to facilities restructurings and the amortization of acquired technology, intangible assets and stock-based compensation. A reconciliation of non-GAAP operating results and GAAP results is included in the financial statements attached below.
“At the beginning of 2005, we outlined our strategy to become the dominant leader in the data integration market: grow beyond the traditional data warehousing market, expand across all geographic regions, strengthen our partnerships and deliver technology innovations to best address our customers’ requirements,” said Sohaib Abbasi, chairman and CEO of Informatica. “Executing on our strategy, in 2005, Informatica achieved the best results in the company’s history with record non-GAAP operating margins of 15 percent in the fourth quarter. With our validated strategy, we are confident that we have substantial room for continued growth in the data integration market.”
Significant milestones achieved since November include:
- Signed repeat business with 243 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included ABN AMRO, Advanced Micro Devices, American Electric Power, American Healthways, Commerzbank, Charles Schwab, DaimlerChrysler, Daiwa Securities America, General Electric, Guidant, Pfizer, Toyota Communications, Wachovia Corporation, and XM Satellite Radio.
- Signed 88 new customers. Informatica increased its customer base this quarter to 2,411 companies. New customers included America Life, China Development Bank, Chiquita Brands, Federal-Mogul Corporation, Fresenius Medical Care, Korea Electric Power Corporation, New York City Department of Corrections, Philadelphia Stock Exchange, Prime Therapeutics, and Yamaha Motor Corporation.
- Delivered PowerCenter 8 release. On December 16, 2005, Informatica delivered the FCS version of PowerCenter 8. PowerCenter 8, generally available in April 2006, offers near-universal access to enterprise data, unparalleled advancements in enterprise scalability and performance, and breakthrough capabilities delivering greater developer productivity.
- Elected Chuck Robel to board of directors. A 26-year veteran of PricewaterhouseCoopers, Chuck Robel brings a wide range of experience in finance, corporate governance, accounting, mergers and acquisitions as well as technology strategy to the Informatica board.
- Named the ETL market leader by Gartner. For the fourth year in a row, Gartner named Informatica the worldwide revenue leader in ETL in 2004. Informatica captured 25 percent of the ETL market, highlighting a strong revenue increase from 2003, driven by an expanded footprint of data integration outside of traditional data warehousing.
- Voted best for enterprise data integration by DM Review magazine. For the second year in a row, readers of DM Review magazine have named Informatica the industry’s top vendor in enterprise data integration. Informatica was awarded the prestigious DM Review 2005 Readership Award by subscribers who were asked to rank vendors on the quality of products used in their organizations and their satisfaction with those products.
To supplement the company’s condensed consolidated financial statements presented on a GAAP basis, Informatica uses non-GAAP financial measures of operating margin, 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 operating margin, net income or net income per share prepared in accordance with generally accepted accounting principles in the United States.
Informatica will be discussing its fourth quarter and full year 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 92251799.
This press release contains forward-looking statements relating to the opportunities for growth in the data integration market and the anticipated timing and 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) 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) the ability of PowerCenter 8 to interoperate with hardware and software technologies that are developed and maintained by third parties; (4) market confusion that could result from changes to the company’s product packaging and pricing as a result of the introduction of PowerCenter 8; (5) any delay in the completion, launch, delivery or availability of PowerCenter 8; and (6) 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 September 30, 2005, which is on file with the SEC and is available on the company’s investor relations website at www.informatica.com. All information provided in this release is as of January 26, 2006, and Informatica undertakes no duty to update this information.
View Informatica Q4 2005 and FY 2005 Condensed Financial Tables