Total revenues of $190.5 million
GAAP earnings per diluted share of $0.18 and non-GAAP earnings per diluted share of $0.29
Deferred revenues of $236.7 million, up $2.0 million sequentially and up $40.5 million year over year
First half 2012 total revenues of $386.5 million, up 7 percent year-over-year
Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the second quarter ended June 30, 2012.
“Our focus in the second half of 2012 is to address the operational challenges we faced in the second quarter, in these times of macroeconomic uncertainty,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “Our long-term conviction is based on increasing customer demand and the growing role of the Informatica Platform for the next generation analytics platform, big data and cloud computing.”
Financial Highlights for the Second Quarter Ended June 30, 2012
Total revenues for the second quarter of 2012 were $190.5 million, compared to $192.7 million in the second quarter of 2011. License revenues were $70.9 million, compared to $86.3 million in the second quarter of 2011.
Income from operations for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $28.2 million, compared to $36.2 million in the second quarter of 2011.
GAAP net income for the second quarter of 2012 was $20.1 million, compared to $26.2 million in the second quarter of 2011, and GAAP net income per diluted share was $0.18, compared to $0.23 per diluted share in the second quarter of 2011.
Non-GAAP income from operations for the second quarter of 2012 was $45.9 million, compared to $52.5 million in the second quarter of 2011. Non-GAAP net income for the second quarter of 2012 was $32.4 million, compared to $37.7 million in the second quarter of 2011 and non-GAAP net income per diluted share was $0.29, compared to $0.33 per diluted share in the second quarter of 2011. Non-GAAP income from operations and non-GAAP net income exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, facilities acquisition-related adjustments and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
For the six month period ended June 30, 2012, revenues were $386.5 million, up from the $360.8 million recorded for the first six months of 2011. License revenues for the first six months of 2012 were $151.0 million, compared to $157.8 million in the first six months of 2011. Income from operations for the first six months of 2012, calculated in accordance with GAAP, was $66.2 million, compared to $68.1 million in the first six months of 2011. GAAP net income for the first six months of 2012 was $46.6 million, compared to $48.1 million in the first six months of 2011, and GAAP net income per diluted share was $0.41, compared to $0.43 per diluted share in the first six months of 2011. Non-GAAP income from operations for the first six months of 2012 was $102.5 million, up from $97.1 million in the first six months of 2011. Non-GAAP net income for the first six months of 2012 was $72.0 million, up from $68.6 million in the first six months of 2011 and non-GAAP net income per diluted share was $0.64, up from $0.62 per diluted share.
For the six months ended June 30, 2011, earnings per diluted share was calculated on an “if converted” basis, including the add-back of $0.8 million, of interest and convertible notes issuance cost amortization, net of applicable income taxes until the redemption of the convertible notes on March 18, 2011.
Additional Highlights Achieved Since April 2012:
Announced appointment of executive vice president, Worldwide Field Operations. A seasoned industry veteran with a strong track record for leading global, high-growth sales organizations, John T. McGee joined Informatica as executive vice president of Worldwide Field Operations. McGee is responsible for leading Informatica's worldwide field organization to scale to the next level.
Appointed Amy Chang to Board of Directors. As Global Head of Product, Google Analytics, Chang brings a broad range of technology experience at Google, eBay and McKinsey & Company to the Informatica Board of Directors. During her time at Google, Chang has advanced Google Analytics to become one of the most prominent platforms for the office of the CMO to leverage search, social and mobile data.
Announced Informatica 9.5 Platform and Informatica 9.5 Platform for Hadoop. Informatica 9.5 Platform empowers organizations to realize the promise of big data to gain business advantage. Informatica 9.5 Platform for Hadoop will offer interoperability, productivity and manageability that in turn will facilitate the mainstream adoption of Hadoop.
Released Informatica MDM 9.5. The latest version of Informatica's MDM solution provides capabilities in master data management for social media, Cloud, mobile computing and big data. Key elements include the social customer master and the master data timeline for effective date versioning.
Introduced new Informatica Cloud Connector for Google Cloud. Extending its Informatica Cloud integration Platform-as-a-Service (iPaaS), Informatica customers can now securely move data to and from Google Cloud services such as Google Cloud Storage and Google BigQuery.
Announced Informatica Cloud Spring 2012. The latest release of Informatica's Cloud integration Platform-as-a-Service includes a Cloud Connector Toolkit, Cloud Integration Templates and enterprise features.
Launched HParser on Amazon Elastic MapReduce. Informatica HParser leverages the power of the Hadoop framework on Amazon EMR and provides customers with immediate access to data parsing, hierarchical data mapping and transformation tools.
Attendance up 35 percent at twelfth user conference. Informatica World 2012 showcased technology for customers to maximize return on big data.
Expanded partnership with NEC. NEC announced availability of new data migration services, leveraging Informatica PowerCenter, to improve its system construction services to the Japanese market.
Announced $100 million increase to stock repurchase program. On July 5, 2012, Informatica's Board of Directors added $100 million to augment the existing authorization under the company's common stock repurchase program. With this increase, Informatica has approximately $147 million available for common stock repurchases.
Conference Call and Webcast
Informatica will discuss its second quarter 2012 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 404-537-3406, reservation number 69298881.
Informatica Corporation (Nasdaq:INFA) is the world's number one independent provider of data integration software. Organizations around the world rely on Informatica for maximizing return on data to drive their top business imperatives. Worldwide, nearly 5,000 enterprises depend on Informatica to fully leverage their information assets residing on-premise, in the Cloud and across social networks. For more information, call +1 650-385-5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.
Non-GAAP Financial Information
To supplement Informatica's condensed consolidated financial statements prepared and presented on a GAAP basis, Informatica uses non-GAAP financial measures of income from operations, net income and net income per share. These measures are adjusted from income from operations, net income or net income per share prepared in accordance with GAAP to exclude the charges and expenses discussed above. The presentation of these non-GAAP financial measures are not meant to be considered in isolation or as a substitute for, or superior to, income from operations, net income or net income per share prepared in accordance with GAAP.
Informatica believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its financial performance, its financial and operational decision making, and as a means to evaluate period to period comparisons. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of Informatica's performance, by excluding certain expenses and expenditures such as non-cash charges and discrete charges that are infrequent in nature, such as charges related to acquisitions, that may not be indicative of its underlying operating results. In addition, Informatica believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Informatica believes that the disclosure of these non-GAAP financial measures provides consistency and comparability of its recent financial results with its historical financial results, as well as to the operating results of similar companies in Informatica's industry, many of which present similar non-GAAP financial measures to investors. As an example, Informatica believes that it enhances comparability with similar companies' operating results by excluding stock compensation in its non-GAAP financial measures because of the different types of stock-based awards that companies may grant and because ASC 718 (“Stock Compensation”) allows companies to use different valuation methodologies and subjective assumptions. In addition, Informatica believes that both management and investors benefit from referring to these non-GAAP financial measures when planning, analyzing and forecasting future periods. There are a number of limitations related to these non-GAAP financial measures: (1) the non-GAAP measures exclude some costs that are recurring, particularly stock compensation, and we believe that stock compensation will continue to be a significant recurring expense for the foreseeable future; because stock compensation is an important part of our employees' compensation, such payments can impact their performance; and (2) the items we exclude in our non-GAAP measures may differ from the components our peer companies exclude when they report their non-GAAP measures. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP measures and evaluating non-GAAP measures together with the corresponding measures calculated in accordance with GAAP.
Forward Looking Statements
This press release contains forward-looking statements, including those relating to increasing customer demand and the growing role of Informatica's platform. 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 competition with larger companies that have longer operating histories or greater financial, technical, marketing and other resources; and uncertainty in the state of IT spending and the growth of the market for data integration solutions in general. Additional risks and uncertainties are included under the caption “Risk Factors” in Informatica's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, which has been filed with the SEC and is available on our investor relations website at http://www.informatica.com. All information provided in this release is as of July 26, 2012 and Informatica undertakes no duty to update this information.