8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

October 16, 2003
Date of Report (date of earliest event reported)

INFORMATICA CORPORATION

(Exact name of Registrant as specified in its charter)

State of Delaware	0-25871	77-0333710
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

2100 Seaport Boulevard
Redwood City, California 94063
(Address of principal executive offices)

(650) 385-5000
(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

TABLE OF CONTENTS

	Item 12. Results of Operations and Financial Condition
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Item 12. Results of Operations and Financial Condition

     On October 16, 2003, Informatica Corporation issued a press release reporting its results for the three months ended September 30, 2003. The press release is attached as Exhibit 99.1.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Date: October 16, 2003		INFORMATICA CORPORATION
	By:	/s/ Earl E. Fry
		Earl E. Fry Chief Financial Officer, Senior Vice President and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated October 16, 2003.

EX-99.1 3 f93650exv99w1.htm EXHIBIT 99.1

EXHIBIT 99.1

Media Contact:
Samantha Moore
Group Manager, Public Relations
(650) 385-5259
smoore@informatica.com Investor Contact:
Tara Calhoun
Sr. Director, Investor Relations
(650) 385-5059
tcalhoun@informatica.com

INFORMATICA REPORTS THIRD QUARTER REVENUES OF $50.7 MILLION

Strengthens position through acquisition and infrastructure focus

REDWOOD CITY, Calif., October 16, 2003 — Informatica Corporation (NASDAQ: INFA), a leading provider of data integration and business intelligence software, today announced financial results for the third quarter ended September 30, 2003.

     Revenues for the third quarter of 2003 were $50.7 million, up slightly from the $50.5 million recorded in the second quarter of 2003, and also up over the $47.6 million recorded in the third quarter of 2002. Net loss for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $0.2 million or $0.00 per share, compared with a net loss of $17.3 million or $0.22 per share in the third quarter of 2002. Pro forma net income for the third quarter of 2003 was $4.5 million or $0.05 per share, up from $0.1 million or $0.00 per share in the third quarter of 2002. Pro forma operating results discussed in this press release exclude charges related to the amortization of other intangible assets and stock-based compensation, purchased in-process research and development and restructuring charges. All of these expenses are included in Informatica’s GAAP results.

     For the nine-month period ending September 30, 2003, revenues were $149.8 million, an increase from the $145.3 million recorded during the first nine months of 2002. GAAP net income for the first nine months of 2003 was $4.2 million or $0.05 per share, an increase from net loss of $17.1 million or $0.21 per share for the first nine months of 2002. Pro forma net income for the first nine months of 2003 was $9.3 million or $0.11 per share, an increase from $1.0 million or $0.01 per share in the first nine months of 2002.

 
“This was a pivotal quarter for Informatica as we drove forward with persistent focus around our infrastructure business, while continuing to deliver customer success, product innovation

and industry leadership,” said Gaurav Dhillon, president and CEO of Informatica. “With our acquisition of Striva and our launch of our metadata management product SuperGlue, we have demonstrated our commitment to delivering the most comprehensive, unified platform for integrating and visualizing data anywhere in the organization at a time when CIOs are consistently ranking integration and visibility among their top needs. Our customers continue to derive tremendous ROI from our solutions, with a customer going live almost every day of the quarter.”

	Significant milestones achieved in the third quarter of 2003 include:
•	Signed repeat business with 124 customers. Customers continue to derive value from their investment in Informatica solutions, including American Eagle Outfitters, AXA, Best Buy, Federal Express, Hearst Corporation, GE Aircraft, Hoffman La Roche, Lockheed Martin, Motorola, T-Mobile, Union Bank of California, U.S. Secret Service and Warner Brothers.
•	Signed 55 new customers. Informatica increased its customer base this quarter to 1,860 companies. New customers include Allianz Australia, Amway, Boston Children’s Hospital, Equity One, Federal Bureau of Investigation, Highmark, Metro-Goldwyn Mayer, Office of the Secretary of Defense, Siemens Building Technologies, Telecom Italia, U.S. Agency for International Development and U.S. Office of Personnel Management.
•	Completed acquisition of Striva Corporation. An award-winning provider of mainframe data integration solutions, Striva extends Informatica’s leadership in comprehensive enterprise data integration and business intelligence with innovative mainframe technology for high-speed bulk data movement and industry-leading solutions for real-time change data capture in legacy and non-legacy environments.
•	Launched Informatica SuperGlue metadata management product. Designed to empower CIOs with greater visibility and control of their enterprise information assets, Informatica SuperGlue is the industry’s first completely Web-based metadata management solution for assembling, visualizing and analyzing information about data and systems across the enterprise. Leveraging Informatica’s data integration and business intelligence software, SuperGlue integrates disparate enterprise metadata and vividly portrays and controls the movement, lineage and utilization of

	information assets, enabling organizations to reduce business risk and increase productivity while helping to reduce IT development and maintenance costs.
•	Enhanced data quality offering through an OEM agreement with Firstlogic, Inc. Informatica’s market-leading data integration platform now embeds powerful data quality technology from Firstlogic, providing customers with a unified solution for best-of-breed data quality and integration capabilities.
•	Strengthened focus on data integration business. In order to further extend its market leadership in data integration, Informatica transitioned its solutions business to systems integration and software application partners. With this realignment in strategy, Informatica has focused resources around its strongest product lines: the market’s leading data integration infrastructure and a next-generation business intelligence platform.
•	Acknowledged as industry’s leading data integration vendor. The Data Warehousing Institute (TDWI) issued a survey on data integration highlighting Informatica as the clear market leader, with market share over 200 percent larger than the nearest vendor. Informatica was also named one of the top “10 most influential” companies in the areas of application development and data integration by Computer Business Review alongside industry heavyweights such as Sun, IBM and Microsoft. International Data Corporation also ranked Informatica as the leading vendor in the data movement and replication space for the third-consecutive year.
•	Gained further traction in business intelligence market. Informatica was positioned in the “Visionary” quadrant in Gartner’s August 25, 2003 report, “Magic Quadrants for EBIS/Reporting and BI Platforms, 2H03.” According to a study by Ventana Research, the Informatica PowerAnalyzer business intelligence platform also demonstrated the lowest overall total cost of ownership among leading business intelligence vendors in the most use case scenarios – beating out Cognos, MicroStrategy, Information Builders and Actuate. Finally, Motorola’s implementation of Informatica’s PowerAnalyzer business intelligence platform beat nominations from other BI vendors for CMP Media’s “RealWare Award” for Best Strategic Business Performance Management solution – recognizing Motorola’s “outstanding achievements in innovative IT solutions powered by Informatica products that produce business value”.

 
To supplement our condensed consolidated financial statements presented on a GAAP basis, Informatica uses pro forma measures of net income and net income per share, which are adjusted to exclude certain charges and expenses discussed above which we believe are appropriate to enhance an overall understanding of our past financial performance. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of our underlying operational results and trends and our marketplace performance. For example, the pro forma results are an indication of our baseline performance before losses or other charges that are considered by management to be outside of our core operating results. In addition, these pro forma results are among the primary indicators management uses as a basis for our 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 or net income per share prepared in accordance with generally accepted accounting principles in the United States.

Informatica will be discussing its third quarter 2003 results on a conference call today beginning at 2:00 p.m. PDT. A live Webcast and replay of the conference call will be available at http://www.informatica.com/investor. A replay of the call will also be available by dialing 888-286-8010, passcode 20124210. The telephone replay will be available until 4:00 p.m. on October 23, 2003.

About Informatica
     Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration and business intelligence software. Using Informatica products, Global 2000 companies can leverage their existing information assets for enterprise insight that helps them improve business performance, increase customer profitability, streamline supply chain operations and proactively manage regulatory compliance. More than 1,800 companies worldwide rely on Informatica to meet their end-to-end needs for enterprise data integration and business intelligence. For more information, call 1.650.385.5000 (1.800.970.1179 in the U.S.), or visit the Informatica Web site at www.informatica.com.

###

     Note: Informatica and SuperGlue are the 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 OPERATIONS
(in thousands, except per share data)
(unaudited)

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2003			2002			2003		2002
Revenues:
	License		$	22,774		$	22,270		$	70,552	$	75,176
	Service			27,903			25,375			79,220		70,142
		Total revenues		50,677			47,645			149,772		145,318
Cost of revenues:
	License			974			1,377			2,198		4,483
	Service			9,745			9,764			28,661		29,362
		Total cost of revenues		10,719			11,141			30,859		33,845
Gross profit				39,958			36,504			118,913		111,473
Operating expenses:
	Research and development			12,071			11,278			34,750		34,884
	Sales and marketing			20,350			20,981			62,272		64,851
	General and administrative			5,190			5,270			15,981		15,093
	Amortization of intangible assets			99			285			524		855
	Amortization of stock-based compensation			22			52			65		190
	Purchased in-process research and development			4,524			—			4,524		—
	Restructuring charges			—			17,030			—		17,030
		Total operating expenses		42,256			54,896			118,116		132,903
Income (loss) from operations				(2,298	)		(18,392	)		797		(21,430	)
Interest income and other, net				2,895			1,176			5,275		4,655
Income (loss) before income taxes				597			(17,216	)		6,072		(16,775	)
Income tax provision				781			64			1,870		325
Net income (loss)			$	(184	)	$	(17,280	)	$	4,202	$	(17,100	)
Net income (loss) per share:
	Basic and Diluted		$	(0.00	)	$	(0.22	)	$	0.05	$	(0.21	)
Weighted shares used to compute net income (loss) per share:
	Basic			80,380			79,999			80,381		79,659
	Diluted			80,380			79,999			83,097		79,659
Pro forma information, excluding amortization of intangible assets and stock-based compensation, purchased in-process research and development and restructuring charges:
Income (loss) from operations, GAAP basis			$	(2,298	)	$	(18,392	)	$	797	$	(21,430	)
	Amortization of intangible assets			99			285			524		855
	Amortization of stock-based compensation			22			52			65		190
	Purchased in-process research and development			4,524			—			4,524		—
	Restructuring charges			—			17,030			—		17,030
Income (loss) from operations, pro forma				2,347			(1,025	)		5,910		(3,355	)
Interest income and other, net				2,895			1,176			5,275		4,655
Income before income taxes, pro forma				5,242			151			11,185		1,300
Income tax provision				781			64			1,870		325
Net income, pro forma			$	4,461		$	87		$	9,315	$	975
Net income per share, pro forma:
	Basic		$	0.06		$	0.00		$	0.12	$	0.01
	Diluted		$	0.05		$	0.00		$	0.11	$	0.01
Weighted shares used to compute net income per share, pro forma:
	Basic			80,380			79,999			80,381		79,659
	Diluted			83,394			82,820			83,097		83,187

INFORMATICA CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

			September 30,		June 30,		December 31,
			2003		2003		2002
			(unaudited)		(unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$	160,489	$	130,791	$	122,490
	Short-term investments			57,800		111,088		113,385
	Accounts receivable, net			27,093		26,119		29,982
	Prepaid expenses and other current assets			4,683		5,376		8,680
		Total current assets		250,065		273,374		274,537
Property and equipment, net				40,862		42,861		47,370
Restricted cash				12,166		12,166		12,166
Goodwill and intangible assets, net				87,694		30,366		30,791
Other assets				355		355		330
		Total assets	$	391,142	$	359,122	$	365,194
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and other current liabilities		$	44,368	$	41,762	$	41,383
	Deferred revenue			48,020		50,478		51,702
	Accrued restructuring charges			4,857		4,866		4,812
	Accrued merger costs			1,431		—		—
		Total current liabilities		98,676		97,106		97,897
Accrued restructuring charges, less current portion				11,435		12,548		14,894
Accrued merger costs, less current portion				603		—		—
Stockholders’ equity				280,428		249,468		252,403
		Total liabilities and stockholders’ equity	$	391,142	$	359,122	$	365,194

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

				Three Months Ended						Nine Months Ended
				September 30,						September 30,
				2003			2002			2003			2002
Operating activities
Net income (loss)				$	(184	)	$	(17,280	)	$	4,202		$	(17,100	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	Depreciation and amortization				2,655			2,540			8,406			7,265
	Provision for doubtful accounts				—			772			177			1,433
	Amortization of stock-based compensation				22			52			65			190
	Amortization of intangible assets				99			285			524			855
	Purchased in-process research and development				4,524			—			4,524			—
	Non-cash restructuring charges				—			1,887			—			1,887
	Gain on the sale of investments				(103	)		—			(121	)		(154	)
	Loss on disposal of property and equipment				—			—			4			357
	Other				—			181			76			181
	Changes in operating assets and liabilities:
		Accounts receivable			423			740			4,109			(2,475	)
		Prepaid expenses and other current assets			1,205			(848	)		4,509			719
		Other assets			7			205			(18	)		546
		Accounts payable and other current liabilities			681			(4,552	)		1,061			(828	)
		Accrued restructuring charges			(1,121	)		14,296			(3,414	)		11,752
		Deferred revenue			(3,387	)		5,084			(4,611	)		7,237
			Net cash provided by operating activities		4,821			3,362			19,493			13,521
Investing activities
Purchases of property and equipment, net					(512	)		(650	)		(1,758	)		(5,365	)
Purchases of investments					(25,458	)		(89,370	)		(92,745	)		(218,350	)
Sales and maturities of investments					78,499			66,700			147,889			153,013
Acquisitions, net of cash acquired					(30,279	)		—			(30,279	)		—
			Net cash provided (used) by investing activities		22,250			(23,320	)		23,107			(70,702	)
Financing activities
Proceeds from issuance of common stock, net of payments for repurchases					3,480			3,737			6,532			7,531
Treasury stock purchases					(1,003	)		—			(11,448	)		—
			Net cash provided (used) by financing activities		2,477			3,737			(4,916	)		7,531
Effect of foreign currency translation					150			11			315			388
Increase (decrease) in cash and cash equivalents					29,698			(16,210	)		37,999			(49,262	)
Cash and cash equivalents at beginning of period					130,791			98,212			122,490			131,264
Cash and cash equivalents at end of period				$	160,489		$	82,002		$	160,489		$	82,002

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EX-99.1

exv99w1