Informatica Reports Record First Quarter Revenues Of $109.1 Million

Achieves Operating Income Growth of 21%

REDWOOD CITY, Calif., April 23, 2009 - 

Informatica Corporation (NASDAQ: INFA), the leading independent provider of enterprise data integration software and services, today announced financial results for the first quarter ended March 31, 2009.

Revenues for the first quarter of 2009 were $109.1 million, up five percent from the $103.7 million recorded in the first quarter of 2008. License revenues for the first quarter were $44.1 million, compared to $44.2 million recorded in the first quarter of 2008. Total revenues were negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, total revenues would have been $6.4 million higher in the first quarter of 2009.

Income from operations for the first quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was a first quarter record $15.0 million, up 21 percent from $12.4 million in the first quarter of 2008. GAAP income from operations was negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, GAAP income from operations would have been $0.8 million higher in the first quarter of 2009.

GAAP net income for the first quarter of 2009 was $11.1 million or $0.12 per diluted share, in comparison to $11.2 million or $0.12 per diluted share in the first quarter of 2008. For the three-month periods ended March 31, 2008 and March 31, 2009, earnings per diluted share is calculated on an "if converted" basis, including the add-back of $1.1 million of interest and convertible notes issuance cost amortization, net of income taxes.

Non-GAAP income from operations for the first quarter of 2009 was $23.6 million, up 28 percent from $18.5 million in the first quarter of 2008. Non-GAAP net income for the first quarter of 2009 was $17.1 million or $0.18 per diluted share, up over nine percent from $15.7 million or $0.16 per diluted share in the first quarter of 2008. 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 restructurings, and share-based payments. A reconciliation of GAAP results to non-GAAP results is included below.

"Our record first quarter results reaffirm our sound strategy and the Informatica team's operational discipline, particularly in light of the current global economic recession," said Sohaib Abbasi, chairman and CEO of Informatica. "With our singular focus and track record of continual innovation, we are well-positioned with a compelling value proposition. Our strongest-ever product portfolio enables our customers to "do more with less" while aligning IT with top business imperatives."

Significant milestones achieved since January 2009 include:

  • Signed repeat business with 190 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included Amtrak, Chinabond, EchoStar Communications, New York Police Department, Union Bank of California, Virgin Media, and Vivo Celular.
  • Added 212 new customers. Informatica increased its customer base this quarter to 3,664 companies including a first quarter record 59 new Informatica customers and 153 customers added through the Applimation acquisition. New customers include Aeropostale, Arbonne International, Bank of the West, Delta Dental Plan of Michigan, Kredyt Bank SA Centrala, Key Energy, and Yale University.
  • Acquired Applimation to grow Data Integration Platform leadership by incorporating application Information Lifecycle Management (ILM) into our technology portfolio, thus expanding our addressable market to encompass an adjacent growth category. Informatica's application ILM products manage various phases of the application data lifecycle, from testing to archiving. Application ILM reduces storage cost and total-cost-of-ownership associated with enterprise business applications, such as ERP, CRM, HR, and SCM.
  • Informatica On Demand Data Loader named 'Best Data Integration Tool' on Force.Com AppExchange by salesforce.com customers. Informatica On Demand Data Loader garnered more four and five star reviews than any other integration product in its category. Over 100 companies around the world now use Informatica On Demand to integrate their Salesforce CRM applications and Force.com platform with their back office systems.
  • Delivered the Informatica Platform. Informatica Platform leverages our broadest-ever product portfolio, and provides well-differentiated value: comprehensive, unified, open, and economical.
  • Three Informatica customers named as "Computerworld Laureate" finalists for 2009. The Defense Health Services Systems, LinkShare and the U.S. Departments of Defense and Veterans Affairs were chosen in a select group of finalists due to their contributions for the betterment of society through exceptional use of information technology.

Conference Call and Webcast
Informatica will discuss its first quarter 2009 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 62285694.

About Informatica
Informatica Corporation (NASDAQ: INFA) is the leading independent provider of enterprise data integration software and services. With Informatica, organizations can gain greater business value by integrating their information assets across the enterprise. More than 3,600 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of varying complexity and scale. For more information, call +1 650 385 5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.

GAAP to Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2009 2008
GAAP Net income $ 11,059 $ 11,224
Plus:
Amortization of acquired technology 1,557 620
Amortization of intangible assets 2,051 362
Facilities restructuring charges 809 947
Share-based payments 4,199 4,114
Tax benefit of amortization of intangible assets and restructuring charges (1,653) (752)
Tax benefit of share-based payments (889) (802)
Non-GAAP Net income $17,133 $15,713
Three Months Ended
March 31,
2009 2008
Diluted net income per share: *
Diluted GAAP Net income per share $ 0.12 $ 0.12
Plus:
Amortization of acquired technology 0.02 0.01
Amortization of intangible assets 0.02 -
Facilities restructuring charges 0.01 0.01
Share-based payments 0.04 0.04
Tax benefit of amortization of intangible assets and restructuring charges (0.02) (0.01)
Tax benefit of share-based payments (0.01) (0.01)
Diluted Non-GAAP Net income per share $ 0.18 $ 0.16
Shares used in computing diluted GAAP Net income per share 100,430 103,727
Shares used in computing diluted Non-GAAP Net income per share 100,841 104,706

* Diluted EPS is calculated under the "if converted" method for the three months ended March 31, 2009 and 2008.
This includes the add-back of $1.1 million of interest and convertible notes issuance cost amortization, net of applicable income taxes for both periods.

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, income from operations 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, income from operations, or net income per share prepared in accordance with GAAP in the U.S.

Forward Looking Statements
This press release contains forward-looking statements relating to Informatica's opportunity for growth in the data integration market, Informatica's integration of Applimation, and expected benefits to our customers and products. 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) successful integration of Applimation's products and employees and achievement expected synergies; and (4) lack of control regarding our strategic partners' devotion of adequate resources to promote, sell, implement, and support our products. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's report on Form 10-K for the year ended December 31, 2008 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 April 23, 2009 and Informatica undertakes no duty to update this information.

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Note: Informatica and Informatica On Demand Data Loader are trademarks or registered trademark 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.