- First quarter total revenues of $214.3 million, up 9 percent year-over-year
- First quarter GAAP earnings per diluted share of $0.16 and non-GAAP earnings per diluted share of $0.31
- Signed 62 deals over $300,000 and 19 deals over $1 million
- Deferred revenues of $266.8 million, up 14 percent year-over-year
REDWOOD CITY, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the first quarter ended March 31, 2013.
"Our first quarter 2013 results highlight the growing customer demand for our expansive portfolio of software and services," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "We continue to invest for sustained growth by further differentiating the Informatica product portfolio and maintaining our track record of continual innovation."
Financial Highlights for the First Quarter Ended March 31, 2013
Total revenues for the first quarter of 2013 were $214.3 million, an increase of 9 percent from $196.0 million in the first quarter of 2012. Software revenues were $87.9 million, compared to $85.9 million in the first quarter of 2012. Within software revenues, license revenues were $78.1 million, down 2 percent year-over-year, and subscription revenues were $9.8 million, up 69 percent year-over-year.
Income from operations for the first quarter of 2013, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $24.7 million, compared to $38.0 million in the first quarter of 2012.
GAAP net income for the first quarter of 2013 was $17.9 million, compared to $26.5 million in the first quarter of 2012, and GAAP net income per diluted share was $0.16, compared to $0.24 per diluted share in the first quarter of 2012.
Non-GAAP income from operations for the first quarter of 2013 was $48.2 million, compared to $56.6 million in the first quarter of 2012. Non-GAAP net income for the first quarter of 2013 was $34.8 million, compared to $39.5 million in the first quarter of 2012 and non-GAAP net income per diluted share was $0.31, compared to $0.35 per diluted share in the first quarter of 2012. 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.
Additional Highlights Achieved Since January 2013:
- Announced Informatica Cloud Spring 2013. Bringing additional capabilities, the release included cloud data masking, cloud workflow, advanced security plus cloud master data management enhancements. Additionally, Informatica released a new Cloud template that synchronizes data between NetSuite ERP and Workday Human Capital Management. Cloud connectivity was also added to the Amazon Redshift, a data warehousing Software-as-a-Service.
- Expanded relationship with INSynergy. INSynergy, an insurance distribution platform, will embed Informatica Cloud Extend to create wizards that allow their customers to automate multi-step, best-practice processes for sales, marketing and services personnel.
- Awarded salesforce.com's AppExchange Best of '12 Awards for IT and Administration. For the fifth consecutive year, Informatica Cloud was rated number one by customers for its product excellence and the highest levels of customer satisfaction amongst the data integration vendor community.
- Partnered with Teradata to offer Unified Data Architecture™ for Big Data Analytics. The combination of the Informatica Platform and Teradata Unified Data Architecture allows organizations to use the Informatica Virtual Data Machine to map once and then deploy anywhere within the Teradata UDA to power a variety of analytics.
- Introduced Informatica Healthcare Data Management. Based on Informatica master data management, the solution allows healthcare organizations to manage healthcare master data domains for analytics. Also introduced Proactive Healthcare Decision Management, based on complex event processing, which allows caregivers to monitor real-time operational data to proactively improve patient safety and reduce avoidable readmissions.
- Announced new offerings from award-winning Global Customer Support. The Informatica MySupport portal now has self-service resources to improve the customer experience with personalized, proactive and effective customer support worldwide. Informatica's Customer Support recently won a Gold Stevie Award for its Use of Technology and a Bronze Stevie Award for Innovation.
- Informatica Wins Award for Best Security Software. Info Security Products Guide named Informatica an Award winner for Best Security Software in their 2013 Global Excellence Awards.
Reclassifications
During the first quarter of 2013, Informatica performed a review of the presentation of certain of the company's revenue categories and adopted a revised presentation, which Informatica believes better reflects the company's evolving product and service offerings. A change was made to present license revenues and other revenues in software revenues. Other revenues were previously presented in services revenues. A change was also made to rename other revenues to subscription revenues. A corresponding change was made to present cost of license revenues and cost of other revenues in cost of software revenues. This change in presentation will not affect our total revenues, total cost of revenues or gross margin. Conforming changes have been made for all prior periods presented.
Conference Call and Webcast
Informatica will discuss its first quarter 2013 results on a conference call today beginning at 2:00 p.m. PDT. 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 growth opportunities. 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. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's Annual Report on Form 10-K for the year ended December 31, 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 April 25, 2013 and Informatica undertakes no duty to update this information.
Note: Informatica, Informatica Cloud, Informatica Cloud Extend, Informatica Platform, Informatica Virtual Data Machine, Informatica Healthcare Data Management and Informatica MySupport 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) | ||
| (unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2013 | 2012 | |
| Revenues: | ||
| Software | $ 87,906 | $ 85,891 |
| Service | 126,394 | 110,129 |
| Total revenues | 214,300 | 196,020 |
| Cost of revenues: | ||
| Software | 2,142 | 1,824 |
| Service | 36,030 | 29,734 |
| Amortization of acquired technology | 5,724 | 5,631 |
| Total cost of revenues | 43,896 | 37,189 |
| Gross profit | 170,404 | 158,831 |
| Operating expenses: | ||
| Research and development | 39,523 | 34,772 |
| Sales and marketing | 84,057 | 67,709 |
| General and administrative | 18,487 | 15,685 |
| Amortization of intangible assets | 1,988 | 1,652 |
| Facilities restructuring and facility lease termination costs | — | 710 |
| Acquisitions and other charges | 1,650 | 286 |
| Total operating expenses | 145,705 | 120,814 |
| Income from operations | 24,699 | 38,017 |
| Interest and other income, net | 702 | 698 |
| Income before income taxes | 25,401 | 38,715 |
| Income tax provision | 7,494 | 12,186 |
| Net income | $ 17,907 | $ 26,529 |
| Net income per share: | ||
| Basic | $ 0.17 | $ 0.25 |
| Diluted | $ 0.16 | $ 0.24 |
| Shares used in per share calculation: | ||
| Basic | 107,669 | 107,576 |
| Diluted | 111,263 | 112,792 |
| INFORMATICA CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
| March 31, | December 31, | |
| 2013 | 2012 | |
| (unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 218,623 | $ 190,127 |
| Short-term investments | 374,247 | 345,478 |
| Accounts receivable, net of allowances of $5,445 and $5,460, respectively | 126,781 | 171,893 |
| Deferred tax assets | 21,798 | 23,350 |
| Prepaid expenses and other current assets | 30,620 | 29,396 |
| Total current assets | 772,069 | 760,244 |
| Property and equipment, net | 145,078 | 145,474 |
| Goodwill and intangible assets, net | 579,369 | 577,381 |
| Long-term deferred tax assets | 28,426 | 24,087 |
| Other assets | 5,015 | 5,031 |
| Total assets | $ 1,529,957 | $ 1,512,217 |
| Liabilities and Equity | ||
| Current liabilities: | ||
| Accounts payable and other current liabilities | $ 106,054 | $ 128,742 |
| Deferred revenues | 259,100 | 241,968 |
| Total current liabilities | 365,154 | 370,710 |
| Long-term deferred revenues | 7,659 | 8,807 |
| Long-term deferred tax liabilities | 2,192 | 2,523 |
| Long-term income taxes payable | 22,493 | 21,195 |
| Other liabilities | 3,240 | 3,459 |
| Total liabilities | 400,738 | 406,694 |
| Equity: | ||
| Total Informatica Corporation stockholders' equity | 1,127,394 | 1,103,105 |
| Noncontrolling interest | 1,825 | 2,418 |
| Total equity | 1,129,219 | 1,105,523 |
| Total liabilities and equity | $ 1,529,957 | $ 1,512,217 |
| INFORMATICA CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (in thousands) | ||
| (unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2013 | 2012 | |
| Operating activities: | ||
| Net income | $ 17,907 | $ 26,529 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 3,687 | 2,247 |
| Share-based compensation | 13,530 | 10,618 |
| Deferred income taxes | (2,318) | (1,766) |
| Tax benefits from share-based compensation | 2,692 | 5,692 |
| Excess tax benefits from share-based compensation | (2,845) | (5,190) |
| Amortization of intangible assets and acquired technology | 7,712 | 7,283 |
| Other operating activities, net | — | 871 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 45,584 | 50,237 |
| Prepaid expenses and other assets | 362 | 11,014 |
| Accounts payable and accrued liabilities | (26,231) | (29,579) |
| Income taxes payable | 338 | (1,513) |
| Accrued facilities restructuring charges | — | (23,977) |
| Deferred revenues | 15,162 | 20,120 |
| Net cash provided by operating activities | 75,580 | 72,586 |
| Investing activities: | ||
| Purchases of property and equipment | (3,236) | (132,178) |
| Purchases of investments | (110,663) | (80,129) |
| Investment in equity interest, net | — | 22 |
| Maturities and sales of investments | 81,392 | 53,672 |
| Business acquisitions, net of cash acquired | (7,464) | — |
| Net cash used in investing activities | (39,971) | (158,613) |
| Financing activities: | ||
| Net proceeds from issuance of common stock | 22,011 | 20,495 |
| Repurchases and retirement of common stock | (21,994) | — |
| Withholding taxes related to restricted stock units net share settlement | (2,849) | (2,997) |
| Payment of contingent consideration | (520) | (3,120) |
| Excess tax benefits from share-based compensation | 2,845 | 5,190 |
| Purchase of acquiree stock | (2,667) | — |
| Net cash provided by (used in) financing activities | (3,174) | 19,568 |
| Effect of foreign exchange rate changes on cash and cash equivalents | (3,939) | 1,874 |
| Net increase (decrease) in cash and cash equivalents | 28,496 | (64,585) |
| Cash and cash equivalents at beginning of period | 190,127 | 316,835 |
| Cash and cash equivalents at end of period | $ 218,623 | $ 252,250 |
| INFORMATICA CORPORATION | ||
| GAAP TO NON-GAAP RESULTS | ||
| (in thousands, except per share data) | ||
| (unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2013 | 2012 | |
| Total revenues | $ 214,300 | $ 196,020 |
| Operating income: | ||
| GAAP operating income | $ 24,699 | $ 38,017 |
| Percentage of GAAP operating income to total revenues | 12% | 19% |
| Plus: | ||
| Amortization of acquired technology - Cost of revenues | 5,724 | 5,631 |
| Amortization of intangible assets - Operating expenses | 1,988 | 1,652 |
| Facilities restructuring and facility lease termination costs - Operating expenses | — | 710 |
| Building operating expense (benefit), net - Operating expenses (1) | 640 | (290) |
| Acquisitions and other charges - Operating expenses | 1,650 | 286 |
| Share-based compensation - Cost of revenues | 1,330 | 1,087 |
| Share-based compensation - Research and development | 4,440 | 3,485 |
| Share-based compensation - Sales and marketing | 4,689 | 3,338 |
| Share-based compensation - General and administrative | 3,071 | 2,708 |
| Non-GAAP operating income | $ 48,231 | $ 56,624 |
| Percentage of Non-GAAP operating income to total revenues | 23% | 29% |
| Net income: | ||
| GAAP net income | $ 17,907 | $ 26,529 |
| Plus: | ||
| Amortization of acquired technology - Cost of revenues | 5,724 | 5,631 |
| Amortization of intangible assets - Operating expenses | 1,988 | 1,652 |
| Facilities restructuring and facility lease termination costs - Operating expenses | — | 710 |
| Building operating expense (benefit), net - Operating expenses (1) | 640 | (290) |
| Acquisitions and other charges - Operating expenses | 1,650 | 286 |
| Share-based compensation - Cost of revenues | 1,330 | 1,087 |
| Share-based compensation - Research and development | 4,440 | 3,485 |
| Share-based compensation - Sales and marketing | 4,689 | 3,338 |
| Share-based compensation - General and administrative | 3,071 | 2,708 |
| Income tax adjustments | (6,659) | (5,608) |
| Non-GAAP net income | $ 34,780 | $ 39,528 |
| Diluted net income per share: | ||
| Diluted GAAP net income per share | $ 0.16 | $ 0.24 |
| Plus: | ||
| Amortization of acquired technology | 0.05 | 0.05 |
| Amortization of intangible assets | 0.02 | 0.01 |
| Facilities restructuring and facility lease termination costs | — | 0.01 |
| Building operating expense (benefit), net (1) | 0.01 | — |
| Acquisitions and other charges | 0.01 | — |
| Share-based compensation | 0.12 | 0.09 |
| Income tax adjustments | (0.06) | (0.05) |
| Diluted Non-GAAP net income per share | $ 0.31 | $ 0.35 |
| Shares used in computing diluted Non-GAAP net income per share | 111,263 | 112,792 |
| _____________ | ||
| (1) Represents expense (benefit) 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 "Facilities restructuring charges (benefit) - Operating expenses." | ||