REDWOOD CITY, Calif., April 23, 2009 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the leading independent provider of enterprise data integration software and services, today announced financial results for the first quarter ended March 31, 2009.
Revenues for the first quarter of 2009 were $109.1 million, up five percent from the $103.7 million recorded in the first quarter of 2008. License revenues for the first quarter were $44.1 million, compared to $44.2 million recorded in the first quarter of 2008. Total revenues were negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, total revenues would have been $6.4 million higher in the first quarter of 2009.
Income from operations for the first quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was a first quarter record $15.0 million, up 21 percent from $12.4 million in the first quarter of 2008. GAAP income from operations was negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, GAAP income from operations would have been $0.8 million higher in the first quarter of 2009.
GAAP net income for the first quarter of 2009 was $11.1 million or $0.12 per diluted share, in comparison to $11.2 million or $0.12 per diluted share in the first quarter of 2008. For the three-month periods ended March 31, 2008 and March 31, 2009, 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 income from operations for the first quarter of 2009 was $23.6 million, up 28 percent from $18.5 million in the first quarter of 2008. Non-GAAP net income for the first quarter of 2009 was $17.1 million or $0.18 per diluted share, up over nine percent from $15.7 million or $0.16 per diluted share in the first quarter of 2008. 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 restructurings, and share-based payments. A reconciliation of GAAP results to non-GAAP results is included below.
"Our record first quarter results reaffirm our sound strategy and the Informatica team's operational discipline, particularly in light of the current global economic recession," said Sohaib Abbasi, chairman and CEO of Informatica. "With our singular focus and track record of continual innovation, we are well-positioned with a compelling value proposition. Our strongest-ever product portfolio enables our customers to "do more with less" while aligning IT with top business imperatives."
Significant milestones achieved since January 2009 include:
* Signed repeat business with 190 customers. Customers continue
to derive considerable value from their investments in
Informatica solutions. Repeat customers included Amtrak,
Chinabond, EchoStar Communications, New York Police Department,
Union Bank of California, Virgin Media, and Vivo Celular.
* Added 212 new customers. Informatica increased its customer
base this quarter to 3,664 companies including a first quarter
record 59 new Informatica customers and 153 customers added
through the Applimation acquisition. New customers include
Aeropostale, Arbonne International, Bank of the West, Delta
Dental Plan of Michigan, Kredyt Bank SA Centrala, Key Energy,
and Yale University.
* Acquired Applimation to grow Data Integration Platform
leadership by incorporating application Information Lifecycle
Management (ILM) into our technology portfolio, thus expanding
our addressable market to encompass an adjacent growth category.
Informatica's application ILM products manage various phases of
the application data lifecycle, from testing to archiving.
Application ILM reduces storage cost and total-cost-of-ownership
associated with enterprise business applications, such as ERP,
CRM, HR, and SCM.
* Informatica On Demand Data Loader named 'Best Data Integration
Tool' on Force.Com AppExchange by salesforce.com customers.
Informatica On Demand Data Loader garnered more four and five
star reviews than any other integration product in its
category. Over 100 companies around the world now use
Informatica On Demand to integrate their Salesforce CRM
applications and Force.com platform with their back office
systems.
* Delivered the Informatica Platform. Informatica Platform
leverages our broadest-ever product portfolio, and provides
well-differentiated value: comprehensive, unified, open, and
economical.
* Three Informatica customers named as "Computerworld Laureate"
finalists for 2009. The Defense Health Services Systems,
LinkShare and the U.S. Departments of Defense and Veterans
Affairs were chosen in a select group of finalists due to
their contributions for the betterment of society through
exceptional use of information technology.
Conference Call and Webcast
Informatica will discuss its first quarter 2009 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 62285694.
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 their information assets across the enterprise. More than 3,600 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
March 31,
------------------------
2009 2008
---------- ----------
GAAP Net income $ 11,059 $ 11,224
Plus:
Amortization of acquired technology 1,557 620
Amortization of intangible assets 2,051 362
Facilities restructuring charges 809 947
Share-based payments 4,199 4,114
Tax benefit of amortization of
intangible assets and restructuring
charges (1,653) (752)
Tax benefit of share-based payments (889) (802)
---------- ----------
Non-GAAP Net income $ 17,133 $ 15,713
========== ==========
Three Months Ended
March 31,
------------------------
2009 2008
---------- ----------
Diluted net income per share: *
Diluted GAAP Net income per share $ 0.12 $ 0.12
Plus:
Amortization of acquired technology 0.02 0.01
Amortization of intangible assets 0.02 --
Facilities restructuring charges 0.01 0.01
Share-based payments 0.04 0.04
Tax benefit of amortization of
intangible assets and restructuring
charges (0.02) (0.01)
Tax benefit of share-based payments (0.01) (0.01)
---------- ----------
Diluted Non-GAAP Net income per share $ 0.18 $ 0.16
========== ==========
Shares used in computing diluted GAAP
Net income per share 100,430 103,727
Shares used in computing diluted
Non-GAAP Net income per share 100,841 104,706
------------------
* Diluted EPS is calculated under the "if converted" method for
the three months ended March 31, 2009 and 2008. This includes
the add-back of $1.1 million of interest and convertible notes
issuance cost amortization, net of applicable income taxes for
both periods.
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, income from operations 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, income from operations, or net income per share prepared in accordance with GAAP in the U.S.
Forward Looking Statements
This press release contains forward-looking statements relating to Informatica's opportunity for growth in the data integration market, Informatica's integration of Applimation, 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; (3) successful integration of Applimation's products and employees and achievement expected synergies; and (4) lack of control regarding our strategic partners' devotion of adequate resources to promote, sell, implement, and support our products. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's report on Form 10-K for the year ended December 31, 2008 which is 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 April 23, 2009 and Informatica undertakes no duty to update this information.
Note: Informatica and Informatica On Demand Data Loader are trademarks or registered trademark 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)
(unaudited)
Three Months Ended
March 31,
------------------------
2009 2008
---------- -----------
Revenues:
License $ 44,059 $ 44,209
Service 64,999 59,501
---------- ----------
Total revenues 109,058 103,710
---------- ----------
Cost of revenues:
License 748 693
Service 18,472 19,785
Amortization of acquired technology 1,557 620
---------- ----------
Total cost of revenues 20,777 21,098
---------- ----------
Gross profit 88,281 82,612
Operating expenses:
Research and development 18,183 17,724
Sales and marketing 41,438 42,787
General and administrative 10,806 8,369
Amortization of intangible assets 2,051 362
Facilities restructuring charges 809 947
---------- ----------
Total operating expenses 73,287 70,189
---------- ----------
Income from operations 14,994 12,423
Interest income and other, net 886 3,558
---------- ----------
Income before income taxes 15,880 15,981
Income tax provision 4,821 4,757
---------- ----------
Net income $ 11,059 $ 11,224
========== ==========
Basic net income per common share $ 0.13 $ 0.13
========== ==========
Diluted net income per common share (1) $ 0.12 $ 0.12
========== ==========
Shares used in computing basic net
income per common share 86,862 88,128
========== ==========
Shares used in computing diluted net
income per common share 100,430 103,727
========== ==========
(1) Diluted EPS is calculated under the "if converted" method for
the three months ended March 31, 2009 and 2008. This includes
the add-back of $1.1 million of interest and convertible notes
issuance cost amortization, net of applicable income taxes for
both periods.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2009 2008
----------- ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 123,349 $ 179,874
Short-term investments 296,527 281,055
Accounts receivable, net of allowances
of $2,761 and $2,558 respectively 65,921 87,492
Deferred tax assets 24,112 22,336
Prepaid expenses and other current assets 16,384 12,498
----------- -----------
Total current assets 526,293 583,255
Property and equipment, net 8,469 9,063
Goodwill and intangible assets, net 286,382 254,592
Long-term deferred tax assets 10,682 7,294
Other assets 8,302 8,908
----------- -----------
Total assets $ 840,128 $ 863,112
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current
liabilities $ 58,792 $ 71,282
Accrued facilities restructuring charges 20,151 19,529
Deferred revenues 121,469 120,892
----------- -----------
Total current liabilities 200,412 211,703
Convertible senior notes 201,000 221,000
Accrued facilities restructuring charges,
less current portion 41,866 44,939
Long-term deferred revenues 6,245 8,847
Long-term income taxes payable 21,200 20,668
Stockholders' equity 369,405 355,955
----------- -----------
Total liabilities and stockholders'
equity $ 840,128 $ 863,112
=========== ===========
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
------------------------
2009 2008
----------- -----------
Operating activities:
Net income $ 11,059 $ 11,224
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,353 1,401
Gain on early extinguishment of debt (337) --
Share-based payments 4,199 4,114
Deferred income taxes (1,469) (188)
Tax benefits from stock option plans 672 2,961
Excess tax benefits from share-based
payments (397) (2,335)
Amortization of intangible assets and
acquired technology 3,608 982
Non-cash facilities restructuring charges 809 947
Other non-cash items 610 (652)
Changes in operating assets and
liabilities:
Accounts receivable 23,730 26,678
Prepaid expenses and other assets (3,612) (3,952)
Accounts payable and other current
liabilities (20,499) (16,201)
Income taxes payable 665 435
Accrued facilities restructuring charges (3,219) (2,347)
Deferred revenues (4,291) 5,979
----------- -----------
Net cash provided by operating
activities 12,881 29,046
----------- -----------
Investing activities:
Purchases of property and equipment (577) (1,071)
Purchases of investments (146,227) (60,054)
Payment of investment in equity interests -- (3,000)
Maturities and sales of investments 129,945 124,120
Business acquisition, net of cash acquired (32,976) --
----------- -----------
Net cash provided by (used in) investing
activities (49,835) 59,995
----------- -----------
Financing activities:
Net proceeds from issuance of common stock 6,967 13,757
Repurchases and retirement of common stock (5,910) (6,349)
Repurchases of convertible senior notes (19,200) --
Excess tax benefits from share-based
payments 397 2,335
----------- -----------
Net cash provided by (used in) financing
activities (17,746) 9,743
----------- -----------
Effect of foreign exchange rate changes on
cash and cash equivalents (1,825) 2,256
----------- -----------
Net increase (decrease) in cash and cash
equivalents (56,525) 101,040
Cash and cash equivalents at beginning of
period 179,874 203,661
----------- -----------
Cash and cash equivalents at end of period $ 123,349 $ 304,701
=========== ===========
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31, 2009
---------------------------------------
GAAP Adjustments (1) Non-GAAP
---------- ---------------- ----------
Revenues:
License $ 44,059 $ -- $ 44,059
Service 64,999 -- 64,999
---------- ---------------- ----------
Total revenues 109,058 -- 109,058
---------- ---------------- ----------
Cost of revenues:
License 748 -- 748
Service 18,472 (531) 17,941
Amortization of acquired
technology 1,557 (1,557) --
---------- ---------------- ----------
Total cost of revenues 20,777 (2,088) 18,689
---------- ---------------- ----------
Gross profit 88,281 2,088 90,369
Operating expenses:
Research and development 18,183 (1,118) 17,065
Sales and marketing 41,438 (1,367) 40,071
General and administrative 10,806 (1,183) 9,623
Amortization of intangible
assets 2,051 (2,051) --
Facilities restructuring
charges 809 (809) --
---------- ---------------- ----------
Total operating expenses 73,287 (6,528) 66,759
---------- ---------------- ----------
Income from operations 14,994 8,616 23,610
Interest income and other, net 886 -- 886
---------- ---------------- ----------
Income before income taxes 15,880 8,616 24,496
Income tax provision 4,821 2,542 7,363
---------- ---------------- ----------
Net income $ 11,059 $ 6,074 $ 17,133
========== ================ ==========
Net income per share:
Basic $ 0.13 $ 0.20
========== ==========
Diluted (2) $ 0.12 $ 0.18
========== ==========
Weighted shares used to
compute net income per
share:
Basic 86,862 86,862
========== ==========
Diluted 100,430 411 (3) 100,841
========== ================ ==========
Three Months Ended
March 31, 2008
---------------------------------------
GAAP Adjustments (1) Non-GAAP
---------- ---------------- ----------
Revenues:
License $ 44,209 $ -- $ 44,209
Service 59,501 -- 59,501
---------- ---------------- ----------
Total revenues 103,710 -- 103,710
---------- ---------------- ----------
Cost of revenues:
License 693 -- 693
Service 19,785 (546) 19,239
Amortization of acquired
technology 620 (620) --
---------- ---------------- ----------
Total cost of revenues 21,098 (1,166) 19,932
---------- ---------------- ----------
Gross profit 82,612 1,166 83,778
Operating expenses:
Research and development 17,724 (1,064) 16,660
Sales and marketing 42,787 (1,373) 41,414
General and administrative 8,369 (1,131) 7,238
Amortization of intangible
assets 362 (362) --
Facilities restructuring
charges 947 (947) --
---------- ---------------- ----------
Total operating expenses 70,189 (4,877) 65,312
---------- ---------------- ----------
Income from operations 12,423 6,043 18,466
Interest income and other, net 3,558 -- 3,558
---------- ---------------- ----------
Income before income taxes 15,981 6,043 22,024
Income tax provision 4,757 1,554 6,311
---------- ---------------- ----------
Net income $ 11,224 $ 4,489 $ 15,713
========== ================ ==========
Net income per share:
Basic $ 0.13 $ 0.18
========== ==========
Diluted (2) $ 0.12 $ 0.16
========== ==========
Weighted shares used to
compute net income per
share:
Basic 88,128 88,128
========== ==========
Diluted 103,727 979 (3) 104,706
========== ================ ==========
(1) The following table summarizes the Non-GAAP adjustments for
the respective periods presented:
Three Months Ended
March 31,
-----------------------
2009 2008
---------- ----------
Net income, GAAP basis $ 11,059 $ 11,224
Amortization of acquired technology 1,557 620
Amortization of intangible assets 2,051 362
Facilities restructuring charges 809 947
Share-based payments 4,199 4,114
Tax benefit for amortization of
intangible assets and restructuring
charges (1,653) (752)
Tax benefit of share-based payments (889) (802)
---------- ----------
Net income, Non-GAAP basis $ 17,133 $ 15,713
========== ==========
(2) Diluted EPS is calculated under the "if converted" method for
the three months ended March 31, 2009 and 2008. This includes
the add-back of $1.1 million of interest and convertible notes
issuance cost amortization, net of applicable income taxes for
both periods.
(3) Anti-diluted shares generated from the unrecognized
share-based payments under the "treasury stock method" have
been added back to the non-GAAP diluted weighted shares due to
non-GAAP results excluding the share-based payments.