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

Date of Report (date of earliest event reported)
October 19, 2006

INFORMATICA CORPORATION

(Exact name of Registrant as specified in its charter)

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

100 Cardinal Way
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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

Item 2.02 Results of Operations and Financial Condition.

On October 19, 2006, Informatica Corporation issued a press release reporting its results for the third quarter ended September 30, 2006. A copy of the press release issued by Informatica Corporation concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
No.	Description
99.1	Press Release dated October 19, 2006 reporting Informatica Corporation’s results for the third quarter ended September 30, 2006.

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 19, 2006		INFORMATICA CORPORATION
	By:	/s/ Earl E. Fry
		Earl E. Fry
		Chief Financial Officer, Executive Vice President
		and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated October 19, 2006 reporting Informatica Corporation’s results for the third quarter ended September 30, 2006.

EX-99.1

Exhibit 99.1

Contacts:	Jason Khoury	Stephanie Wakefield
	Public Relations	Director, Investor Relations
	650-385-5360	650-385-5261
	jkhoury@informatica.com	swakefield@informatica.com

INFORMATICA REPORTS THIRD QUARTER REVENUES OF $79 MILLION AND 19
PERCENT LICENSE-REVENUE GROWTH

REDWOOD CITY, Calif., October 19, 2006 — Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the third quarter ended September 30, 2006.

     Revenues for the third quarter of 2006 were $78.9 million, up 21 percent from the $65.0 million recorded in the third quarter of 2005. License revenues for the third quarter were $33.6 million, up 19 percent from the $28.2 million recorded in the third quarter of 2005. Net income for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $9.4 million or $0.10 per diluted share, versus net income of $8.3 million or $0.09 per diluted share in the third quarter of 2005. Results for the third quarter of 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses. Non-GAAP net income for the third quarter of 2006 was $14.8 million or $0.16 per diluted share, up over 45 percent from $10.1 million or $0.11 per diluted share in the third quarter of 2005. Non-GAAP net income excludes charges related to purchased in-process research and development, share-based compensation, facilities restructurings, and the amortization of acquired technology and intangible assets. A reconciliation of GAAP operating results and non-GAAP results is included below.

     For the nine-month period ending September 30, 2006, revenues were $232.8 million, an increase of 24 percent from the $187.6 million recorded for the first nine months of 2005. License revenues for the first nine months of 2006 were $103.2 million, up 27 percent from $81.2 million in the first nine months of 2005. GAAP net income for the first nine months of 2006 was $22.3 million or $0.24 per diluted share, versus $20.3 million or $0.22 per diluted share in the first nine months of 2005. Results for the first nine months of 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R,

whereas 2005 results exclude these expenses. Non-GAAP net income for the first nine months of 2006 was $39.0 million or $0.41 per diluted share, up over 55 percent from $24.7 million or $0.27 per diluted share in the first nine months of 2005.

     “We are pleased to report increasing operating margins and record third quarter profitability,” said Sohaib Abbasi, chairman and CEO of Informatica. “We continue to benefit from strong demand for our products and services driven by our customers’ top business priorities.”

Significant milestones achieved since July include:

• Signed repeat business with 162 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included American United Life Insurance, Blue Cross Blue Shield of Minnesota, Canadian Wheat Board, Entergy Services, Motorola, NAVTEQ Corporation, Pacific Gas & Electric Company, Siemens Business Services and Thomson Financial.

• Signed 46 new customers. Informatica increased its customer base this quarter to 2,658 companies. New customers include AGL South Australia, American Stock Exchange, Banco Santander Brasil, Hudson’s Bay Company, KLM Royal Dutch Airlines, Paramount Pictures, and Sempra Energy Trading.

• Renewed OEM agreement with Oracle. Oracle and Informatica signed a four-year agreement to continue to offer Informatica as the embedded data integration solution in Oracle’s Business Intelligence Applications, including Siebel Analytics Platform Server and Siebel Incentive Compensation Management Server.

• Set world record in data integration performance. Informatica PowerCenter achieved the highest throughput results ever recorded in a published benchmark study of a data integration solution. Deployed on an HP Integrity Superdome server, PowerCenter 8 Advanced Edition delivered throughput increases of over two times its precursor, PowerCenter 7.

• Gained early traction on On-Demand Data Integration. Informatica delivered general availability of the PowerCenter Connect for salesforce.com to enable joint customers to integrate data managed by salesforce.com. Informatica also announced that RightNow, a leading on-demand CRM provider, has agreed to resell Informatica

	products within its SaaS implementations and joined Informatica’s Service Provider Partner Program. Launched in May 2006, Informatica’s Service Provider Partner Program now includes more than a dozen members focused on SaaS and business process outsourcing.
•	Recognized for award-winning customer implementation. Informatica, Deloitte Consulting, and customer Nationwide won DM Review’s coveted World Class Solution Award in the Data Management category for the ground-breaking FOCUS finance data-management initiative, a multi-year undertaking on the part of Nationwide to transform its global enterprise finance function.

Conference Call and Webcast

     Informatica will be discussing its third quarter 2006 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 26430095.

About Informatica

Informatica Corporation (NASDAQ: INFA) is a leading provider of enterprise data integration software and services. Using Informatica products, companies gain greater business value by integrating all their information assets. More than 2,650 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of any complexity and scale. For more information, call 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 and percentages)
(unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
GAAP Net income	$	9,384	$	8,301	$	22,281	$	20,251
Plus:
Amortization of acquired technology		549		227		1,545		696
Amortization of intangible assets		162		47		454		141
Facilities restructuring charges		1,108		1,274		3,386		2,902
Purchased in-process research and development		—		—		1,340		—
Share-based payments		3,596		212		10,016		674
Non-GAAP Net income	$	14,799	$	10,061	$	39,022	$	24,664

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Diluted net income per share:
Diluted GAAP Net income per share		0.10		0.09		0.24		0.22
Plus:
Amortization of acquired technology		0.01		—		0.02		—
Amortization of intangible assets		—		—		—		—
Facilities restructuring charges		0.01		0.02		0.03		0.04
Purchased in-process research and development		—		—		0.01		—
Share-based payments		0.04		—		0.11		0.01
Diluted Non-GAAP Net income per share	$	0.16	$	0.11	$	0.41	$	0.27
Shares used in computing diluted GAAP Net income per share		92,412		93,571		93,326		91,126
Shares used in computing diluted Non-GAAP Net income per share		93,050		93,571		94,129		91,126

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 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 or net income per share prepared in accordance with generally accepted accounting principles in the U.S.

Safe Harbor

This press release contains forward-looking statements relating to efforts being conducted with strategic partners such as Oracle, salesforce.com and Service Partner Providers, and assumptions regarding Informatica On-Demand. 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) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products; and (4) any revision to, delay regarding or cancellation of product release or service availability due to market or other conditions, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica’s report on Form 10-Q for the quarter ended June 30, 2006, which is on file with the SEC and is available on the company’s investor relations website at www.informatica.com. All information provided in this release is as of October 19, 2006, and Informatica undertakes no duty to update this information.

###

Note: Informatica, and PowerCenter are 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. The development, release and timing of any Informatica product described in this release remain at the sole discretion of Informatica. This release should not be relied upon in making a purchasing decision.

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Revenues:
License	$	33,578	$	28,168	$	103,233	$	81,227
Service		45,352		36,829		129,564		106,366
Total revenues		78,930		64,997		232,797		187,593
Cost of revenues:
License		898		862		3,814		2,707
Service		14,162		11,548		42,346		33,416
Amortization of acquired technology		549		227		1,545		696
Total cost of revenues		15,609		12,637		47,705		36,819
Gross profit		63,321		52,360		185,092		150,774
Operating expenses:
Research and development		13,826		10,777		41,069		31,484
Sales and marketing		33,825		28,312		100,790		82,698
General and administrative		6,997		5,146		20,575		15,246
Amortization of intangible assets		162		47		454		141
Facilities restructuring charges		1,108		1,274		3,386		2,902
Purchased in-process research and development		—		—		1,340		—
Total operating expenses		55,918		45,556		167,614		132,471
Income from operations		7,403		6,804		17,478		18,303
Interest income and other, net		3,244		1,911		8,640		4,515
Income before provision for income taxes		10,647		8,715		26,118		22,818
Income tax provision		1,263		414		3,837		2,567
Net income	$	9,384	$	8,301	$	22,281	$	20,251
Net income per share:
Basic	$	0.11	$	0.09	$	0.26	$	0.23
Diluted	$	0.10	$	0.09	$	0.24	$	0.22
Weighted shares used to compute net income per share:
Basic		86,187		87,568		86,500		87,112
Diluted		92,412		93,571		93,326		91,126

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	September 30,		December 31,
	2006		2005
ASSETS
Current assets:
Cash and cash equivalents	$	124,193	$	76,545
Short-term investments		310,318		185,649
Accounts receivable, net of allowance of $867 and $1,094		48,572		50,533
Prepaid expenses and other current assets		11,001		9,342
Total current assets		494,084		322,069
Restricted cash		12,016		12,166
Property and equipment, net		15,276		21,026
Goodwill and intangible assets, net		135,959		85,229
Other assets		6,692		532
Total assets	$	664,027	$	441,022
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other current liabilities	$	44,094	$	45,844
Accrued facilities restructuring charges		18,854		18,718
Deferred revenues		76,174		69,748
Total current liabilities		139,122		134,310
Convertible senior notes		230,000		—
Accrued facilities restructuring charges, less current portion		68,719		75,815
Deferred revenues, less current portion		8,066		8,167
Stockholders’ equity		218,120		222,730
Total liabilities and stockholders’ equity	$	664,027	$	441,022

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

	For the Nine Months Ended
	September 30,
	2006			2005
Operating activities
Net income	$	22,281		$	20,251
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,496			6,691
Recovery for doubtful accounts and sales returns allowances		(33	)		(151	)
Share-based payments and amortization of stock-based compensation		10,016			674
Amortization of intangible assets and acquired technology		2,623			837
Impairment of property and equipment, net		1,035			—
Non-cash facilities restructuring charges		3,386			2,902
Purchased in-process research and development		1,340			—
Loss on disposal of property and equipment		—			3
Changes in operating assets and liabilities:
Accounts receivable		4,609			9,758
Prepaid expenses and other assets		(1,055	)		(4,331	)
Accounts payable and other current liabilities		(6,798	)		(5,362	)
Accrued facilities restructuring charges		(10,223	)		(13,972	)
Deferred revenue		5,711			6,572
Net cash provided by operating activities		40,388			23,872
Investing activities
Purchases of property and equipment		(2,483	)		(9,219	)
Purchases of investments		(383,558	)		(174,650	)
Maturities and sales of investments		259,398			135,906
Acquisition of business, net of cash acquired		(46,720	)		—
Net cash used in investing activities		(173,363	)		(47,963	)
Financing activities
Proceeds from issuance of common stock		22,962			18,636
Repurchases and retirement of common stock		(66,932	)		(16,156	)
Issuance of convertible senior notes		230,000			—
Payment of issuance costs on convertible senior notes		(6,242	)		—
Net cash provided by financing activities		179,788			2,480
Effect of foreign exchange rate changes on cash and cash equivalents		835			(1,569	)
Net increase (decrease) in cash and cash equivalents		47,648			(23,180	)
Cash and cash equivalents at beginning of period		76,545			88,941
Cash and cash equivalents at end of period	$	124,193		$	65,761