EX-99.1 2 infa-2012q4x8k_ex991.htm PRESS RELEASE INFA-2012.Q4-8K_Ex99.1


Exhibit 99.1

Contacts:
Debbie O'Brien
 
Stephanie Wakefield
 
Corporate Communications
 
Investor Relations
 
+ 1 650 385 5735
 
+ 1 650 385 5261
 
dobrien@informatica.com
 
swakefield@informatica.com
INFORMATICA REPORTS QUARTERLY REVENUES OF $234.7 MILLION AND RECORD ANNUAL REVENUES OF $811.6 MILLION
Achieves Sequential License Revenue Growth of 58 Percent

Quarterly total revenues of $234.7 million
Record total annual revenues of $811.6 million
Fourth quarter GAAP earnings per diluted share of $0.28 and non-GAAP earnings per diluted share of $0.41
Annual GAAP earnings per diluted share of $0.83 and non-GAAP earnings per diluted share of $1.31
Signed 142 deals over $300,000 and 26 deals over $1 million
Deferred revenues of $250.8 million

REDWOOD CITY, Calif., January 24, 2013 - Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the fourth quarter and year ended December 31, 2012.
"Our fourth quarter 2012 results demonstrate our progress to regain our operational discipline," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "Our conviction in our long-term opportunity is firmer than ever for three reasons: first, our increasing addressable market; second, promising new opportunities driven by market and technology trends of big data and cloud computing; and third, our own measures to more effectively scale our business."
Financial Highlights for the Fourth Quarter and Year Ended December 31, 2012
Total revenues for the fourth quarter of 2012 were $234.7 million, compared to $227.1 million in the fourth quarter of 2011. License revenues were $104.0 million, compared to $112.1 million in the fourth quarter of 2011.
Income from operations for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $44.6 million, compared to $59.4 million in the fourth quarter of 2011.
GAAP net income for the fourth quarter of 2012 was $31.1 million, compared to $42.4 million in the fourth quarter of 2011, and GAAP net income per diluted share was $0.28, compared to $0.38 per diluted share in the fourth quarter of 2011.





Non-GAAP income from operations for the fourth quarter of 2012 was $64.7 million, compared to $74.5 million in the fourth quarter of 2011. Non-GAAP net income for the fourth quarter of 2012 was $45.2 million, compared to $53.2 million in the fourth quarter of 2011 and non-GAAP net income per diluted share was $0.41, compared to $0.47 per diluted share in the fourth 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 year ended December 31, 2012, revenues were $811.6 million, up from the $783.8 million in 2011. License revenues for the year ended December 31, 2012 were $321.0 million, compared to $353.7 million in 2011. Income from operations for the year ended December 31, 2012, calculated in accordance with GAAP, was $136.0 million, compared to $164.7 million in 2011. GAAP net income for the year ended December 31, 2012 was $93.2 million, compared to $117.5 million in 2011 and GAAP net income per diluted share was $0.83, compared to $1.05 per diluted share in 2011. Non-GAAP income from operations for the year ended December 31, 2012 was $212.3 million, compared to $225.1 million in 2011. Non-GAAP net income for the year ended December 31, 2012 was $147.1 million, compared to $159.9 million in 2011 and non-GAAP net income per diluted share was $1.31, compared to $1.43 per diluted share.
For the year ended December 31, 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 October 2012:

Informatica PowerCenter Big Data Edition wins industry accolade. Recognized in the 2012 Ventana Research Leadership and Technology Innovation Awards, Informatica won the top award in the Information Management category for the newly-released PowerCenter Big Data Edition.
Recognized as a Leader in Data Masking Technology. The 2012 Gartner Magic Quadrant for Data Masking Technology notes, "Leaders demonstrate balanced progress in execution and vision. Their actions raise the competitive bar for all vendors and solutions in the market, and they tend to set the pace for the industry."
Announced Informatica Cloud Winter 2013. Included in the release are new features that extend Informatica Cloud functionality, ease of use and performance and advances in cloud master data management (MDM) as well as expanded availability of cloud connectors.
Introduced Ultra Messaging Dynamic Routing Option. This new option extends Informatica Ultra Messaging products with automatic best-path selection and global guaranteed delivery across WAN and LAN environments to deliver higher availability and support "big data in motion" initiatives.
Informatica Marketplace reaches new growth milestones. Launched in 2010, the Informatica Marketplace has grown by 25,000 users to 125,000 active data integration users and developers, over the past year. Solution downloads are up 250 percent and site visits have increased 150 percent year over year.
Named Margaret Breya as executive vice president and chief marketing officer. Responsible for worldwide marketing, Breya brings more than 25 years of marketing leadership experience at enterprise software category leaders including SAP, Business Objects and BEA as well as IT industry leaders including HP and Sun Microsystems.
Concluded takeover offer for shares of Heiler Software AG. Informatica has secured 97.7 percent of all outstanding Heiler shares. The takeover offer is only the first step in the process to combine Heiler's business with Informatica's.





Informatica intends to take further integration steps under German laws, which may not be complete until mid-to-late 2013. Informatica intends to combine Heiler’s PIM solutions with its broader MDM business in order to offer customers better functionality and a more comprehensive range of services than many competing PIM-providers or MDM-providers can offer.

Conference Call and Webcast
Informatica will discuss its fourth quarter and full year 2012 results on a conference call today beginning at 2:00 p.m. PST. The live conference call can be accessed at http://www.informatica.com/investor or by dialing 866-799-9311, reservation number 69299164. A replay of the call will also be available by dialing 404-537-3406, reservation number 69299164.
About Informatica
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.
Forward Looking Statements
This press release contains forward-looking statements, including those relating to our long-term market opportunities and our future plans 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 our plans for Heiler Software AG, risks related to the completion of further integration steps, 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 September 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 January 24, 2013 and Informatica undertakes no duty to update this information.

###

Note: Informatica, PowerCenter, PowerCenter Big Data Edition, Informatica Cloud and Ultra Messaging 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.





INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
2012
 
2011
 
2012
 
2011
 
(unaudited)
 
(unaudited)
 
 
Revenues:
 
 
 
 
 
 
 
License
$
104,047

 
$
112,084

 
$
320,982

 
$
353,664

Service
130,694

 
115,049

 
490,589

 
430,115

Total revenues
234,741

 
227,133

 
811,571

 
783,779

Cost of revenues:
 

 
 

 
 
 
 
License
1,280

 
1,342

 
4,490

 
5,011

Service
33,388

 
31,830

 
126,152

 
118,941

Amortization of acquired technology
5,816

 
5,169

 
21,980

 
19,503

Total cost of revenues
40,484

 
38,341

 
152,622

 
143,455

Gross profit
194,257

 
188,792

 
658,949

 
640,324

Operating expenses:
 

 
 

 
 
 
 
Research and development
38,046

 
34,435

 
143,607

 
132,528

Sales and marketing
92,067

 
77,111

 
305,682

 
278,073

General and administrative
17,247

 
16,866

 
63,616

 
57,373

Amortization of intangible assets
1,888

 
1,758

 
6,578

 
7,717

Facilities restructuring and facility lease termination costs (benefit), net

 
(1,798
)
 
710

 
(1,094
)
Acquisitions and other charges
408

 
1,034

 
2,797

 
1,029

Total operating expenses
149,656

 
129,406

 
522,990

 
475,626

Income from operations
44,601

 
59,386

 
135,959

 
164,698

Interest and other income, net
102

 
1,357

 
1,808

 
1,930

Income before income taxes
44,703

 
60,743

 
137,767


166,628

Income tax provision
13,637

 
18,357

 
44,585

 
49,133

Net income
$
31,066

 
$
42,386

 
$
93,182

 
$
117,495

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.29

 
$
0.40

 
$
0.86

 
$
1.13

Diluted (1)
$
0.28

 
$
0.38

 
$
0.83

 
$
1.05

Shares used in per share calculation:
 
 
 
 
 
 
 
Basic
107,627

 
106,555

 
107,874

 
103,956

Diluted
110,802

 
112,166

 
112,089

 
112,540

____________________
(1)
Diluted EPS is calculated under the "if converted" method for the year ended December 31, 2011. This includes 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.








INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
December 31,
 
2012
 
2011
 
(unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
190,127

 
$
316,835

Short-term investments
345,478

 
285,579

Accounts receivable, net of allowances of $5,460 and $4,001, respectively
171,893

 
176,066

Deferred tax assets
23,350

 
21,591

Prepaid expenses and other current assets
29,396

 
23,206

Total current assets
760,244

 
823,277

Property and equipment, net
145,474

 
16,025

Goodwill and intangible assets, net
577,381

 
497,058

Long-term deferred tax assets
24,087

 
23,037

Other assets
5,031

 
21,351

Total assets
$
1,512,217

 
$
1,380,748

Liabilities and Equity
 
 
 
Current liabilities:
 

 
 

Accounts payable and other current liabilities
$
128,742

 
$
126,448

Income taxes payable

 
1,178

Accrued facilities restructuring charges

 
17,751

Deferred revenues
241,968

 
208,039

Total current liabilities
370,710

 
353,416

Accrued facilities restructuring charges, less current portion

 
5,543

Long-term deferred revenues
8,807

 
6,573

Long-term deferred tax liabilities
2,523

 

Long-term income taxes payable
21,195

 
16,709

Other liabilities
3,459

 
6,304

Total liabilities
406,694

 
388,545

Equity:
 
 
 
Total Informatica Corporation stockholders' equity
1,103,105

 
992,203

Noncontrolling interest
2,418

 

Total equity
1,105,523

 
992,203

Total liabilities and equity
$
1,512,217

 
$
1,380,748








INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 
Years Ended
December 31,
 
2012
 
2011
 
(unaudited)
 
 
Operating activities:
 
 
 
Net income
$
93,182

 
$
117,495

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 

Depreciation and amortization
12,284

 
6,274

Share-based compensation
42,803

 
33,263

Deferred income taxes
(4,651
)
 
57

Tax benefits from share-based compensation
16,463

 
29,096

Excess tax benefits from share-based compensation
(17,021
)
 
(29,952
)
Amortization of intangible assets and acquired technology
28,558

 
27,220

Other operating activities, net
(854
)
 
(3,000
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable
8,723

 
(28,272
)
Prepaid expenses and other assets
10,593

 
(20,218
)
Accounts payable and accrued liabilities
(2,282
)
 
9,215

Income taxes payable
1,553

 
12,860

Accrued facilities restructuring charges
(23,977
)
 
(14,358
)
Deferred revenues
35,127

 
34,795

Net cash provided by operating activities
200,501

 
174,475

Investing activities:
 
 
 
Purchases of property and equipment
(141,610
)
 
(12,743
)
Purchases of investments
(266,088
)
 
(350,951
)
Investment in equity interest, net
(257
)
 
542

Maturities and sales of investments
208,399

 
326,966

Business acquisitions, net of cash acquired
(90,542
)
 
(32,969
)
Net cash used in investing activities
(290,098
)
 
(69,155
)
Financing activities:
 
 
 
Net proceeds from issuance of common stock
41,351

 
58,727

Repurchases and retirement of common stock
(80,983
)
 
(74,492
)
Redemption of convertible senior notes

 
(4
)
Withholding taxes related to restricted stock units net share settlement
(6,686
)
 
(6,218
)
Payment of contingent consideration
(8,050
)
 
(1,000
)
Excess tax benefits from share-based compensation
17,021

 
29,952

Purchase of noncontrolling interest
(437
)
 

Net cash provided by (used in) financing activities
(37,784
)
 
6,965

Effect of foreign exchange rate changes on cash and cash equivalents
673

 
(4,349
)
Net increase (decrease) in cash and cash equivalents
(126,708
)
 
107,936

Cash and cash equivalents at beginning of the year
316,835

 
208,899

Cash and cash equivalents at end of the year
$
190,127

 
$
316,835






INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)

 
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
 
2012
 
2011
 
2012
 
2011
Total revenues
$
234,741

 
$
227,133

 
$
811,571

 
$
783,779

 
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP operating income
$
44,601

 
$
59,386

 
$
135,959

 
$
164,698

 
 
 
 
 
 
 
 
 
Percentage of GAAP operating income to total revenues
19
%
 
26
%
 
17
%
 
21
%
 
 
 
 
 
 
 
 
 
Plus:
 
 
 
 
 
 
 
 
 
Amortization of acquired technology - Cost of revenues
5,816

 
5,169

 
21,980

 
19,503

 
Amortization of intangible assets - Operating expenses
1,888

 
1,758

 
6,578

 
7,717

 
Facilities restructuring and facility lease termination costs (benefit), net - Operating expenses

 
(1,798
)
 
710

 
(1,094
)
 
Building operating expense - Operating expenses (1)
731

 

 
1,502

 

 
Acquisitions and other charges - Operating expenses
408

 
1,034

 
2,797

 
1,029

 
Share-based compensation - Cost of revenues
1,178

 
940

 
4,349

 
3,539

 
Share-based compensation - Research and development
4,095

 
2,970

 
14,919

 
10,848

 
Share-based compensation - Sales and marketing
3,440

 
2,682

 
13,518

 
10,185

 
Share-based compensation - General and administrative
2,507

 
2,371

 
10,017

 
8,691

Non-GAAP operating income
$
64,664

 
$
74,512

 
$
212,329

 
$
225,116

 
 
 
 
 
 
 
 
 
Percentage of Non-GAAP operating income to total revenues
28
%
 
33
%
 
26
%
 
29
%
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP net income
$
31,066

 
$
42,386

 
$
93,182

 
$
117,495

 
 
 
 
 
 
 
 
 
Plus:
 
 
 
 
 
 
 
 
 
Amortization of acquired technology - Cost of revenues
5,816

 
5,169

 
21,980

 
19,503

 
Amortization of intangible assets - Operating expenses
1,888

 
1,758

 
6,578

 
7,717

 
Facilities restructuring and facility lease termination costs (benefit), net - Operating expenses

 
(1,798
)
 
710

 
(1,094
)
 
Building operating expense - Operating expenses (1)
731

 

 
1,502

 

 
Acquisitions and other charges - Operating expenses
408

 
1,034

 
2,797

 
1,029

 
Share-based compensation - Cost of revenues
1,178

 
940

 
4,349

 
3,539

 
Share-based compensation - Research and development
4,095

 
2,970

 
14,919

 
10,848

 
Share-based compensation - Sales and marketing
3,440

 
2,682

 
13,518

 
10,185

 
Share-based compensation - General and administrative
2,507

 
2,371

 
10,017

 
8,691

 
Gain on sale of investment in equity interest

 

 

 
(706
)
 
Income tax adjustments
(5,911
)
 
(4,323
)
 
(22,407
)
 
(17,310
)
Non-GAAP net income
$
45,218

 
$
53,189

 
$
147,145

 
$
159,897







INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)

 
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
 
2012
 
2011
 
2012
 
2011
Diluted net income per share: (2)
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
Diluted GAAP net income per share
$
0.28

 
$
0.38

 
$
0.83

 
$
1.05

Plus:
 
 
 
 
 
 
 
 
 
Amortization of acquired technology
0.05

 
0.05

 
0.20

 
0.17

 
Amortization of intangible assets
0.02

 
0.01

 
0.06

 
0.07

 
Facilities restructuring and facility lease termination costs (benefit), net

 
(0.02
)
 
0.01

 
(0.01
)
 
Building operating expense (1)
0.01

 

 
0.01

 

 
Acquisitions and other charges

 
0.01

 
0.02

 
0.01

 
Share-based compensation
0.10

 
0.08

 
0.38

 
0.30

 
Gain on sale of investment in equity interest

 

 

 
(0.01
)
 
Income tax adjustments
(0.05
)
 
(0.04
)
 
(0.20
)
 
(0.15
)
Diluted Non-GAAP net income per share
$
0.41

 
$
0.47

 
$
1.31

 
$
1.43

 
 
 
 
 
 
 
 
 
Shares used in computing diluted Non-GAAP net income per share
110,802

 
112,166

 
112,089

 
112,540

________________
(1)
Represents expense from operating future headquarters buildings purchased in February 2012 prior to expected occupancy by Informatica, which the Company previously reported in periods prior to the acquisition as a part of the “Facilities restructuring charges (benefit) - Operating expenses.”
(2)
Diluted EPS is calculated under the "if converted" method for the year ended December 31, 2011. This includes 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.