Informatica Reports Record Second Quarter Revenues Of $192.7 Million

Achieves Greater than 20 Percent Year-over-Year License Revenue Growth for Seventh Consecutive Quarter

REDWOOD CITY, Calif., July 21, 2011 - 

 

  • Record second quarter total revenues of $192.7 million, up 24 percent year-over-year
  • Record second quarter license revenues of $86.3 million, up 23 percent year-over-year
  • Record second quarter GAAP earnings per diluted share of $0.23 and non-GAAP earnings per diluted share of $0.33

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, 2011.

“Informatica’s seventh consecutive quarter with year-over-year license revenue growth higher than twenty percent reflects the increasing adoption of our expansive product portfolio driven by the top business priorities of our customers,” said Sohaib Abbasi, chairman and CEO, Informatica. “The latest big data technology trend is elevating the role of data integration and expanding our addressable market as organizations aspire to become data-centric enterprises.” 

Financial Highlights for the Second Quarter Ended June 30, 2011

Total revenues for the second quarter of 2011 were $192.7 million, an increase of 24 percent from $155.7 million recorded in the second quarter of 2010. License revenues were $86.3 million, an increase of 23 percent from $70.0 million recorded in the second quarter of 2010.

Income from operations for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $36.2 million, up 42 percent from $25.5 million in the second quarter of 2010.

GAAP net income for the second quarter of 2011 was $26.2 million or $0.23 per diluted share, up over 35 percent from $17.4 million or $0.17 per diluted share in the second quarter of 2010.

Non-GAAP income from operations for the second quarter of 2011 was $52.5 million, up 41 percent from $37.3 million in the second quarter of 2010. Non-GAAP net income for the second quarter was $37.7 million or $0.33 per diluted share, up over 32 percent from $25.8 million or $0.25 per diluted share in the second quarter of 2010. 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, acquisitions and other expenses and stock compensation. A reconciliation of GAAP results to non-GAAP results is included below.

For the six month period ended June 30, 2011, revenues were $360.8 million, an increase of 24 percent from the $290.8 million recorded for the first six months of 2010. License revenues for the first six months of 2011 were $157.8 million, up 26 percent from $125.1 million in the first six months of 2010. GAAP net income for the first six months of 2011 was $48.1 million or $0.43 per diluted share, up over 48 percent from $29.2 million or $0.29 per diluted share in the first six months of 2010. Non-GAAP net income for the first six months of 2011 was $68.6 million or $0.62 per diluted share, up over 37 percent from $46.8 million or $0.45 per diluted share in the first six months of 2010. For the six month periods ended June 30, 2011 and June 30, 2010, earnings per diluted share was calculated on an “if converted” basis, including the add-back of $0.8 million and $1.9 million, respectively, of interest and convertible notes issuance cost amortization, net of applicable income taxes. The add-back of $0.8 million for the six month period ended June 30, 2011 represents interest and convertible note issuance cost amortization until the redemption of the convertible notes on March 18, 2011.

 Additional Highlights Achieved Since April 2011:

  • Signed repeat business with 299 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included: AutoTrader.com, BMC Software, Friends Provident Management Services, Symantec Corporation, Vale and XL Global Services.
  • Added 96 new customers. Informatica increased its customer base to 4,446 companies including 74 new Informatica customers and 22 customers added through the acquisition of WisdomForce. New customers included: Australia Health Practitioner Regulation Agency, the Board of Trustees of Illinois State University, Mediq Sverige, New York City Department of Finance and Philadelphia Insurance Companies.
  • Launched Informatica 9.1 for Big Data. Based on years of pioneering innovation, Informatica 9.1 is the first unified data integration platform designed to unleash the full business potential of big data and empower the data centric-enterprise, with well-differentiated support for all three big data trends: big transaction data, big interaction data and big data processing.
  • Launched Informatica Cloud Summer 2011 in Support of Hybrid IT. The new release will enable hybrid IT by extending unified, enterprise-class data integration services to the cloud and introducing increased levels of security and user management to better protect data access, improve governance and enable “cloud control.”
  • Acquired WisdomForce Technologies to Extend Big Data Offering for Data Replication. Together, Informatica PowerCenter and WisdomForce will enable a broad range of data replication projects, from high-speed data cloning to the sophisticated data replication with complex transformations required by active data warehousing. 
  • Acquired ActiveBase to Deliver Dynamic Data Masking. Addressing a new and fast growing category of dynamic data masking for production databases, ActiveBase complements and extends Informatica’s Information Lifecycle Management (ILM) product portfolio.
  • Announced Partnership with EMC for Hadoop Big Data Support. Informatica is supporting EMC’s distribution of Hadoop to help enable enterprises to realize the full potential of big data.
  • Announced Partnership with Symantec to Address Big Data Challenge. Informatica expanded its existing relationship with Symantec to resell Informatica Data Archive.
  • Announced Cloud OEM with MicroStrategy. Informatica has been selected as the data integration foundation for the MicroStrategy Cloud, the first cloud-based business intelligence platform.
  • Informatica Executives’ Leadership Recognized at Stevie Awards. In the annual American Business Awards, Chris Boorman, chief marketing officer and senior vice president of Education and Enablement won the Stevie Award for Marketing Executive of the Year. Stephanie Wakefield, vice president, Investor Relations, won the Stevie Award for Communications, Investor Relations or PR Executive of the Year.

Conference Call and Webcast

Informatica will discuss its second quarter 2011 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 706-645-9291, reservation number 57566980.

About Informatica

Informatica Corporation (NASDAQ: INFA) is the world’s number one independent provider of data integration software. Organizations around the world gain a competitive advantage in today’s global information economy with timely, relevant and trustworthy data for their top business imperatives. Worldwide, more than 4,400 enterprises rely on Informatica for Data Integration and Data Quality solutions to access, integrate and trust their information assets held in the traditional enterprise, off premise and in the Cloud. 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 the expansion of our markets, acquisitions and the critical role of data integration. 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, 2011, 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 21, 2011 and Informatica undertakes no duty to update this information.

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Note: Informatica, Informatica PowerCenter, Informatica Cloud, Informatica Information Lifecycle Management, and Informatica Data Archive are trademarks or 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.