EX-99.1 2 f42249exv99w1.htm EXHIBIT 99.1 exv99w1
Exhibit 99.1
(Logo)
         
Contacts:
  Deborah Wiltshire   Stephanie Wakefield
 
  Public Relations   Senior Director, Investor Relations
 
  + 1 650 385 5360   +1 650 385 5261
 
  dwiltshire@informatica.com   swakefield@informatica.com
INFORMATICA REPORTS RECORD SECOND QUARTER RESULTS
Achieves Revenue Growth of 21 Percent and Operating Margin Increase of 300 Basis Points
REDWOOD CITY, Calif., July 17, 2008 — Informatica Corporation (NASDAQ: INFA), the leading independent provider of enterprise data integration software and services, today announced financial results for the second quarter ended June 30, 2008.
     Revenues for the second quarter of 2008 were $113.8 million, up 21 percent from the $94.3 million recorded in the second quarter of 2007. License revenues for the second quarter were $48.5 million, up 16 percent from the $41.8 million recorded in the second quarter of 2007. Net income for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $11.5 million or $0.12 per diluted share, up more than 9 percent from net income of $10.5 million or $0.11 per diluted share in the second quarter of 2007. For the three-month periods ended June 30, 2007 and June 30, 2008, earnings per diluted share is calculated on an “if converted” basis, including the add-back of $1.1 million of interest and convertible notes issuance cost amortization, net of income taxes.
     Non-GAAP net income for the second quarter of 2008 was $16.7 million or $0.17 per diluted share, up more than 6 percent from $15.6 million or $0.16 per diluted share in the second quarter of 2007. Non-GAAP net income excludes charges related to purchased in-process research and development, share-based payments, 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 six-month period ended June 30, 2008, revenues were $217.5 million, an increase of 20 percent from the $181.4 million recorded for the first six months of 2007. License revenues for the first six months of 2008 were $92.7 million, up 17 percent from $79.4 million in the first six months of 2007. GAAP net income for the first six months of 2008 was $22.7 million or $0.24 per diluted share, up over 14 percent versus $19.6 million or $0.21 per diluted share in the

 


 

first six months of 2007. Non-GAAP net income for the first six months of 2008 was $32.4 million or $0.33 per diluted share, up over 6 percent versus $30.0 million or $0.31 per diluted share in the first six months of 2007. For the six-month periods ended June 30, 2007 and June 30, 2008, earnings per diluted share is calculated on an “if converted” basis, including the add-back of $2.2 million of interest and convertible notes issuance cost amortization, net of income taxes.
     “We are pleased with our record second quarter results” said Sohaib Abbasi, chairman and CEO of Informatica. “These results further highlight that our value proposition for IT organizations to “do more with less” has promoted even broader customer adoption of our products and services in the current macroeconomic environment.”
     Significant milestones achieved since April 2008 include:
    Signed repeat business with 239 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included Advanced Micro Devices, Affymetrix, Chinatrust Commercial Bank, Deutsche Post, OAO Vimpelcom, State of Rhode Island, Taiwan Futures Exchange, and Virgin Media.
 
    Added 287 new customers. Informatica increased its customer base this quarter to 3,313 companies including 68 new Informatica customers and 219 customers added through the Identity Systems acquisition. New customers include Alameda Alliance for Health, Allergan, Capita Life & Pensions Services, NAL Resources Management, National Oilwell Varco, Servico Federal de Processamento de Dada, and Syndicate Bank.
 
    Launched Informatica 8.6. Advancing leadership in data integration and data quality, Informatica announced the first comprehensive, unified, and open platform for data integration, Informatica 8.6. This latest release delivers new product and Software-as-a-Service offerings including PowerCenter Real Time Edition, On-Demand Data Loader Service, B2B Data Exchange, and Data Quality with identity resolution. This comprehensive platform addresses the complete range of data integration requirements within the enterprise and beyond.

 


 

    Completed Acquisition of Identity Systems, a global leader in identity resolution technology. Identity resolution enables precise identity search and matching to find all the required critical information for an individual or organization. This strategic acquisition will extend Informatica products with innovative technology to search, match and resolve identity data about a variety of objects including people, companies and products.
 
    Launched Informatica On Demand Data Loader Service for Salesforce. The newest addition to its Software as a Service (SaaS) offerings, the IOD Data Loader Service, is a bi-directional integration offering that allows Salesforce administrators to automate many Salesforce integration processes such as synchronizing account information with other applications, creating back office orders from closed opportunities, and loading leads.
 
    Announced Innovation Awards. Informatica hosted the tenth annual Informatica World Conference in Las Vegas, Nevada. At the event, Bank of America, Deutsche Post, Duke Energy, KPN, Paramount, and Virgin Media were among the customers honored with Innovation Awards for their innovative application of Informatica technologies to drive business advantage.
 
    Recognized in the “Leaders” Quadrant in the Gartner Data Quality Tools Magic Quadrant. According to Gartner, “leaders in the market demonstrate strength across a complete range of data quality functionality, including profiling, parsing, standardization, matching, validation and enrichment. They exhibit a clear understanding and vision of where the market is headed, including recognition of non-customer data quality issues and the delivery of enterprise-level data quality implementations. Leaders have an established market presence, significant size and a multinational presence.”
Announced Planned Retirement of Girish Pancha by the End of 2008
Girish Pancha, executive vice president and general manager, data integration, announced his plan to retire by the end of 2008. Pancha will continue his responsibilities at Informatica through his transition and will work with CEO Sohaib Abbasi to ensure a smooth transfer of his daily responsibilities and management of the business unit.

 


 

Conference Call and Webcast
Informatica will discuss its second quarter 2008 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 +1 617-801-6888, reservation number 27697598.
About Informatica
Informatica Corporation (NASDAQ: INFA) is the leading independent provider of enterprise data integration software and services. With Informatica, organizations can gain greater business value by integrating all their information assets across the enterprise. More than 3,300 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of varying complexity and scale. For more information, call +1 650 385 5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.

 


 

INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
GAAP Net income
  $ 11,503     $ 10,456     $ 22,727     $ 19,550  
 
                               
Plus:
                               
Amortization of acquired technology
    951       727       1,571       1,449  
Amortization of intangible assets
    993       362       1,355       718  
Facilities restructuring charges
    921       1,026       1,868       2,075  
Purchased in-process research and development
    390             390        
Share-based payments
    3,832       3,877       7,946       7,918  
Tax benefit of amortization of intangible assets and restructuring charges
    (1,049 )           (1,801 )      
Tax benefit of purchased in-process research and development
    (152 )           (152 )      
Tax benefit of share-based payments
    (694 )     (832 )     (1,496 )     (1,699 )
 
                       
Non-GAAP Net income
  $ 16,695     $ 15,616     $ 32,408     $ 30,011  
 
                       
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
Diluted net income per share: *
                               
Diluted GAAP Net income per share
  $ 0.12     $ 0.11     $ 0.24     $ 0.21  
 
                               
Plus:
                               
Amortization of acquired technology
    0.01       0.01       0.01       0.01  
Amortization of intangible assets
    0.01             0.01       0.01  
Facilities restructuring charges
    0.01       0.01       0.02       0.02  
Purchased in-process research and development
                       
Share-based payments
    0.04       0.04       0.08       0.08  
Tax benefit of amortization of intangible assets and restructuring charges
    (0.01 )           (0.02 )      
Tax benefit of purchased in-process research and development
                       
Tax benefit of share-based payments
    (0.01 )     (0.01 )     (0.01 )     (0.02 )
 
                       
Diluted Non-GAAP Net income per share
  $ 0.17     $ 0.16     $ 0.33     $ 0.31  
 
                       
 
                               
Shares used in computing diluted GAAP Net income per share
    104,457       103,206       104,403       102,778  
Shares used in computing diluted Non-GAAP Net income per share
    104,898       103,951       104,925       103,472  
 
*   Diluted EPS is calculated under the “if converted” method for the three and six months ended June 30, 2008 and 2007. This includes the add-back of $1.1 and $2.2 million of interest and convertible notes issuance cost amortization, net of income taxes for both periods, respectively.
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 GAAP in the U.S.
Safe Harbor
This press release contains forward-looking statements relating to Informatica’s opportunity for growth in the data integration market and expected benefits to our customers and products. 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; and (3) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica’s report on Form 10-K for the year ended December 31, 2007 and 10-Q for the quarter ended March 31, 2008, which are on file with the SEC and is available on the company’s investor relations website at http://www.informatica.com/. All information provided in this release is as of July 17, 2008 and Informatica undertakes no duty to update this information.
###
Note: Informatica, PowerCenter, Informatica Data Quality, Informatica B2B Data Exchange and Informatica On Demand Data Loader Service 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 OPERATIONS
(in thousands, except per share data)
(unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
Revenues:
                               
License
  $ 48,523     $ 41,838     $ 92,732     $ 79,400  
Service
    65,237       52,424       124,738       101,976  
 
                       
Total revenues
    113,760       94,262       217,470       181,376  
 
                       
 
                               
Cost of revenues:
                               
License
    897       943       1,590       1,748  
Service
    21,380       16,945       41,165       33,259  
Amortization of acquired technology
    951       727       1,571       1,449  
 
                       
Total cost of revenues
    23,228       18,615       44,326       36,456  
 
                       
 
                               
Gross profit
    90,532       75,647       173,144       144,920  
 
                               
Operating expenses:
                               
Research and development
    18,497       16,949       36,221       34,973  
Sales and marketing
    45,966       39,103       88,753       74,214  
General and administrative
    9,146       9,134       17,515       16,859  
Amortization of intangible assets
    993       362       1,355       718  
Facilities restructuring charges
    921       1,026       1,868       2,075  
Purchased in-process research and development
    390             390        
 
                       
Total operating expenses
    75,913       66,574       146,102       128,839  
 
                       
Income from operations
    14,619       9,073       27,042       16,081  
Interest income and other, net
    1,765       3,357       5,323       6,516  
 
                       
Income before income taxes
    16,384       12,430       32,365       22,597  
Income tax provision
    4,881       1,974       9,638       3,047  
 
                       
Net income
  $ 11,503     $ 10,456     $ 22,727     $ 19,550  
 
                       
 
                               
Basic net income per common share
  $ 0.13     $ 0.12     $ 0.26     $ 0.23  
 
                       
Diluted net income per common share (1)
  $ 0.12     $ 0.11     $ 0.24     $ 0.21  
 
                       
 
                               
Shares used in computing basic net income per common share
    88,565       87,293       88,347       86,863  
 
                       
Shares used in computing diluted net income per common share
    104,457       103,206       104,403       102,778  
 
                       
 
(1)   Diluted EPS is calculated under the “if converted” method for the three and six months ended June 30, 2008 and 2007. This includes the add-back of $1.1 and $2.2 million of interest and convertible notes issuance cost amortization, net of income taxes for both periods, respectively.

 


 

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    June 30,     December 31,  
    2008     2007  
    (unaudited)          
Assets
               
 
               
Current assets:
               
Cash and cash equivalents
  $ 235,154     $ 203,661  
Short-term investments in marketable securities
    227,289       281,197  
Accounts receivable, net of allowances of $1,818 and $1,299, respectively
    62,649       72,643  
Deferred tax assets
    19,671       18,294  
Prepaid expenses and other current assets
    29,357       14,693  
 
           
Total current assets
    574,120       590,488  
 
               
Restricted cash
    120       12,122  
Property and equipment, net
    9,389       10,124  
Goodwill and intangible assets, net
    252,960       179,315  
Investment in equity interest
    3,000        
Long-term deferred tax assets
    462       462  
Other assets
    6,141       6,133  
 
           
Total assets
  $ 846,192     $ 798,644  
 
           
 
               
Liabilities and stockholders’ equity
               
 
               
Current liabilities:
               
Accounts payable and other current liabilities
  $ 64,411     $ 62,791  
Accrued facilities restructuring charges
    19,336       18,007  
Deferred revenues
    110,262       99,415  
 
           
Total current liabilities
    194,009       180,213  
 
               
Convertible senior notes
    230,000       230,000  
Accrued facilities restructuring charges, less current portion
    50,656       56,235  
Long-term deferred revenues
    11,549       13,686  
Long-term income taxes payable
    7,449       5,968  
 
               
Stockholders’ equity
    352,529       312,542  
 
           
Total liabilities and stockholders’ equity
  $ 846,192     $ 798,644  
 
           

 


 

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                 
    Six Months Ended  
    June 30,  
    2008     2007  
Operating activities:
               
Net income
  $ 22,727     $ 19,550  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    2,813       5,427  
Allowance for doubtful accounts and sales returns allowances
    215       37  
Share-based payments
    7,946       7,918  
Deferred income taxes
    (1,377 )      
Tax benefits from stock option plans
    5,124        
Excess tax benefits from share-based payments
    (4,375 )      
Amortization of intangible assets and acquired technology
    2,926       2,167  
In-process research and development
    390        
Non-cash facilities restructuring charges
    1,868       2,075  
Other non-cash items
    (128 )      
Changes in operating assets and liabilities:
               
Accounts receivable
    14,618       10,383  
Prepaid expenses and other assets
    (14,718 )     (3,279 )
Accounts payable and other current liabilities
    645       (4,824 )
Income taxes payable
    1,309       (2,246 )
Accrued facilities restructuring charges
    (6,036 )     (7,667 )
Deferred revenues
    7,891       4,486  
 
           
Net cash provided by operating activities
    41,838       34,027  
 
           
Investing activities:
               
Purchases of property and equipment
    (1,921 )     (3,442 )
Purchases of investments
    (152,784 )     (230,880 )
Purchase of investment in equity interest
    (3,000 )      
Maturities and sales of investments
    206,625       207,838  
Business acquisition, net of cash acquired
    (79,844 )      
Transfer from restricted cash
    12,016        
 
           
Net cash used in investing activities
    (18,908 )     (26,484 )
 
           
Financing activities:
               
Net proceeds from issuance of common stock
    18,782       15,349  
Repurchases and retirement of common stock
    (15,838 )     (5,993 )
Excess tax benefits from share-based payments
    4,375        
 
           
Net cash provided by financing activities
    7,319       9,356  
 
           
Effect of foreign exchange rate changes on cash and cash equivalents
    1,244       704  
 
           
Net increase in cash and cash equivalents
    31,493       17,603  
Cash and cash equivalents at beginning of period
    203,661       120,491  
 
           
Cash and cash equivalents at end of period
  $ 235,154     $ 138,094