Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the third quarter ended September 30, 2012.
“Our third quarter results reflect operational improvements in the US and Asia Pacific regions and disappointing performance in Europe, as compared to our prior quarter results,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “With our track record of continual innovation, coupled with our aggressive measures for more rigor and better operational discipline, Informatica is now better positioned to pursue our market opportunity.”
Financial Highlights for the Third Quarter Ended September 30, 2012
Total revenues for the third quarter of 2012 were $190.3 million, compared to $195.9 million in the third quarter of 2011. License revenues were $65.9 million, compared to $83.7 million in the third quarter of 2011.
Income from operations for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $25.1 million, compared to $37.2 million in the third quarter of 2011.
GAAP net income for the third quarter of 2012 was $15.5 million, compared to $27.0 million in the third quarter of 2011, and GAAP net income per diluted share was $0.14, compared to $0.24 per diluted share in the third quarter of 2011.
Non-GAAP income from operations for the third quarter of 2012 was $45.2 million, compared to $53.5 million in the third quarter of 2011. Non-GAAP net income for the third quarter of 2012 was $30.0 million, compared to $38.1 million in the third quarter of 2011 and non-GAAP net income per diluted share was $0.27, compared to $0.34 per diluted share in the third 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, acquisition and other expenses and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
For the nine-month period ended September 30, 2012, revenues were $576.8 million, up from the $556.6 million recorded for the first nine months of 2011. License revenues for the first nine months of 2012 were $216.9 million, compared to $241.6 million in the first nine months of 2011. Income from operations for the first nine months of 2012, calculated in accordance with GAAP, was $91.4 million, compared to $105.3 million in the first nine months of 2011. GAAP net income for the first nine months of 2012 was $62.1 million, compared to $75.1 million in the first nine months of 2011, and GAAP net income per diluted share was $0.55, compared to $0.67 per diluted share in the first nine months of 2011. Non-GAAP income from operations for the first nine months of 2012 was $147.7 million, compared to $150.6 million in the first nine months of 2011. Non-GAAP net income for the first nine months of 2012 was $101.9 million, compared to $106.7 million in the first nine months of 2011, and non-GAAP net income per diluted share was $0.91, compared to $0.95 per diluted share.
For the nine months ended September 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 July 2012:
Conference Call and Webcast
Informatica will discuss its third quarter 2012 results on a conference call today beginning at 2:00 p.m. PDT. The live conference call can be accessed at http://www.informatica.com/investor or by dialing 866-799-9311, reservation number 69298883. A replay of the call will also be available by dialing 404-537-3406, reservation number 69298883.
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, over 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.
Information About the Offer for Heiler Software AG
Additional details about the voluntary public takeover offer of Informatica Deutschland AG for all outstanding shares in Heiler Software AG, including the Offer Document relating thereto, can be found at http://www.informatica-offer.com. Copies of the Offer Document and its non-binding English translation are also available free of charge at Commerzbank Aktiengesellschaft, ZCM-ECM Execution, Mainzer Landstrasse 153, 60327 Frankfurt/Main (orders by fax to +49 (0) 69 136 44598). Shareholders of Heiler Software AG are strongly advised to carefully read in full the Offer Document as well as other publications and notifications of Informatica Deutschland AG in connection to the takeover offer. In particular, U.S. shareholders of Heiler Software AG are advised to pay particular attention to the section of the Offer Document entitled “Important Information for U.S. Shareholders.”
Disclaimer and Forward Looking Statements
This press release contains forward-looking statements, including those relating to our position to pursue market opportunities and the takeover offer for Heiler Software AG. 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; sales execution; and uncertainty in the state of IT spending and the growth of the market for data integration solutions in general and, with respect to the takeover offer for Heiler Software AG, risks related to the completion of the takeover offer, product integration and the failure of the market to develop as expected. Additional risks and uncertainties are included under the caption “Risk Factors” in Informatica's Quarterly Report on Form 10-Q for the quarter ended June 30, 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 October 25, 2012 and neither Informatica nor Informatica Deutschland AG undertakes any duty to update this information.
This press release is neither an offer to purchase nor a solicitation of an offer to sell Heiler Software AG shares or any other security. The Offer Document and the terms and conditions contained therein shall have sole relevance in respect of the offer. Investors and holders of shares in Heiler Software AG are advised to read the relevant documents regarding the takeover offer published by Informatica Deutschland AG because they contain important information. Investors and holders of shares in Heiler Software AG can receive the Offer Document as well as other documents pertaining to the offer from the website www.informatica-offer.com.
Note: Informatica, PowerCenter, PowerCenter Big Data Edition, Informatica Data Quality, Informatica MDM, Informatica Cloud, and Informatica Cloud MDM 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.