Achieves Revenue Growth of 19 Percent
REDWOOD CITY, Calif., April 19 /PRNewswire-FirstCall/ -- Informatica
Corporation (Nasdaq: INFA), a leading provider of data integration
software, today announced financial results for the first quarter ended
March 31, 2007.
Revenues for the first quarter of 2007 were $87.1 million, up 19
percent from the $73.1 million recorded in the first quarter of 2006.
License revenues for the first quarter were $37.6 million, up 15 percent
from the $32.8 million recorded in the first quarter of 2006. Net income
for the first quarter, calculated in accordance with U.S. generally
accepted accounting principles (GAAP), was $9.1 million or $0.10 per
diluted share, up more than 65 percent from net income of $5.3 million or
$0.06 per diluted share in the first quarter of 2006. For the three months
ending March 31, 2007, 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 first quarter of 2007 was $14.4 million or
$0.15 per diluted share, up more than 25 percent from $11.3 million or
$0.12 per diluted share in the first quarter of 2006. Non-GAAP net income
excludes charges related to purchased in-process research and development,
equity-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.
"Our customers' top-ranked business imperatives are driving greater
demand for our technology across more types of data integration and data
quality projects," said Sohaib Abbasi, chairman and CEO of Informatica.
"The growing adoption of our latest product releases is fueling license
growth, and our expanding partnerships are further strengthening our
competitive position. Overall, the first quarter was a strong beginning to
2007."
Significant milestones achieved since January 2007 include:
-- Signed repeat business with 176 customers. Customers continue to
derive considerable value from their investments in Informatica
solutions. Repeat customers included Bank of America, Blue Cross
Blue Shield of Massachusetts, Electronic Arts, Grupo Elektra S.A. de
C.V, Level 3 Communications, New York Police Department, Toyota
Motor Credit Corp, and TXU Business Services.
-- Added 41 new customers. Informatica increased its customer base
this quarter to 2,790 companies. New customers include Centene
Corporation, Cephalon, Collect America, eHarmony.com, Rajeev Gandhi
Memorial College of Engineering, Taiwan Futures Exchange, Vente-
privee.com, and Xiamen Local Taxation Bureau.
-- Won a $25 million judgment. Informatica received a favorable
verdict in its patent infringement lawsuit against Business Objects.
The jury found that the two Informatica patents are valid and that
Business Objects willfully infringed on both patents. The finding
of willfulness allows the judge to increase the damages by up to
three times, and to award attorneys' fees. Informatica has now
requested an injunction against further sales of the infringing
features of the software in question. Although an appeal by Business
Objects is expected, Informatica will continue to vigorously defend
its intellectual property rights.
-- Announced the expansion of Informatica Velocity(SM) to address data
quality, legacy data migration and data governance as integral
aspects of enterprise data integration, underscoring the corporate
commitment to providing customers with access to best practices-
based implementation frameworks.
-- Introduced Informatica On Demand Data Replicator, its first and the
industry's only multi-tenant, on-demand service for cross-enterprise
data integration, which can be quickly configured and used by
business users using only a browser.
Stock Repurchase Program
Informatica also today announced that its Board of Directors has
authorized the renewal of its stock repurchase program for purchases of
common stock up to $50 million dollars. The company expects to repurchase
shares to partially offset the otherwise dilutive impact of stock option
exercise activity. Purchases may be made, from time to time, in the open
market and will be funded from available working capital. The number of
shares to be purchased and the timing of purchases will be based on several
factors, including the price of Informatica's stock, general business and
market conditions, and other investment opportunities.
Conference Call and Webcast
Informatica will discuss its first quarter 2007 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
71794568.
About Informatica
Informatica Corporation 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 2,790 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 http://www.informatica.com.
INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended
March 31,
2007 2006
GAAP Net income $9,094 $5,268
Plus:
Amortization of acquired technology 722 452
Amortization of intangible assets 356 130
Facilities restructuring charges 1,049 1,149
Purchased in-process research and development - 1,340
Share-based payment 4,041 3,000
Tax benefit of share-based payment (867) -
Non-GAAP Net income $14,395 $11,339
Three Months Ended
March 31,
2007 2006
Diluted net income per share:
Diluted GAAP Net income per share $0.10 $0.06
Plus:
Amortization of acquired technology 0.01 0.01
Amortization of intangible assets - -
Facilities restructuring charges 0.01 0.01
Purchased in-process research and development - 0.01
Share-based payment 0.04 0.03
Tax benefit of share-based payment (0.01) -
Diluted Non-GAAP Net income per share $0.15 $0.12
Shares used in computing diluted
GAAP Net income per share 102,638 97,147
Shares used in computing diluted
Non-GAAP Net income per share 104,129 98,102
*Diluted EPS is calculated under the "if converted" method for the
three months ended March 31, 2007.This includes the add-back of $1.1
million of interest and convertible notes issuance cost amortization, net
of income taxes.
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,
efforts being conducted with strategic partners and the company's intention
to repurchase shares of its common stock under the stock repurchase
program. 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) factors related to the stock
repurchase program including the market price of the company's stock,
general business and market conditions, and management's determination of
alternative needs and uses of the company's cash resources and (4) 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, 2006,
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 19, 2007 and Informatica undertakes no duty
to update this information.
NOTE: Informatica, Informatica On Demand Data Replicator, and
Informatica Velocity 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.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2007 2006
Revenues:
License $37,562 $32,804
Service 49,552 40,253
Total revenues 87,114 73,057
Cost of revenues:
License 805 1,527
Service 16,314 13,181
Amortization of acquired technology 722 452
Total cost of revenues 17,841 15,160
Gross profit 69,273 57,897
Operating expenses:
Research and development 18,024 13,058
Sales and marketing 35,111 31,523
General and administrative 7,725 6,643
Amortization of intangible assets 356 130
Facilities restructuring charges 1,049 1,149
Purchased in-process research and
development - 1,340
Total operating expenses 62,265 53,843
Income from operations 7,008 4,054
Interest income and other, net 3,159 2,368
Income before provision for
income taxes 10,167 6,422
Provision for income taxes 1,073 1,154
Net income $9,094 $5,268
Basic net income per common share $0.11 $0.06
Diluted net income per common share $0.10 $0.06
Shares used in computing basic net
income per common share 86,448 87,566
Shares used in computing diluted net
income per common share 102,638 97,147
(1)Diluted EPS is calculated under the "if converted" method for the
three months ended March 31, 2007. This includes an add-back
of $1.1 million in interest and convertible notes issuance cost
amortization, net of income taxes.
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2007 2006
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $121,718 $120,491
Short-term investments 311,076 280,149
Accounts receivable, net of
allowances of $1,399 and $1,666 45,273 65,407
Prepaid expenses and other current
assets 12,841 10,424
Total current assets 490,908 476,471
Restricted cash 12,016 12,016
Property and equipment, net 13,852 14,368
Goodwill and intangible assets, net 185,929 187,317
Other assets 6,517 6,593
Total assets $709,222 $696,765
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current
liabilities $48,789 $62,400
Accrued facilities restructuring
charges 18,675 18,758
Deferred revenues 88,479 85,364
Total current liabilities 155,943 166,522
Convertible senior notes 230,000 230,000
Accrued facilities restructuring
charges, less current portion 62,596 65,052
Deferred revenues, less current
portion 6,918 7,035
Deferred tax liability, non-current 993 993
Income taxes payable, non-current 5,022 -
Stockholders' equity 247,750 227,163
Total liabilities and
stockholders' equity $709,222 $696,765
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Three Months Ended
March 31,
2007 2006
Operating activities:
Net income $9,094 $5,268
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 2,714 2,465
Share-based payment compensation 4,041 3,000
Amortization of intangible assets
and acquired technology 1,078 790
Allowance for doubtful accounts
and sales returns allowances 36 -
Purchased in-process research and
development - 1,340
Non-cash facilities restructuring
charges 1,049 1,149
Changes in operating assets and
liabilities:
Accounts receivable 20,408 16,321
Prepaid expenses and other assets (2,419) (1,413)
Accounts payable and other
current liabilities (13,612) (11,936)
Income taxes payable, non-current 5,022 -
Accrued facilities restructuring
charges (3,547) (3,821)
Deferred revenues 2,999 (439)
Net cash provided by operating
activities 26,863 12,724
Investing activities:
Purchases of property and
equipment (2,095) (1,032)
Purchases of investments (123,473) (89,290)
Maturities and sales of
investments 92,640 62,953
Business acquisitions, net of cash
acquired - (46,720)
Net cash used in investing
activities (32,928) (74,089)
Financing activities:
Proceeds from issuance of common
stock 8,525 12,284
Repurchases and retirement of
common stock (1,389) (49,956)
Issuance of convertible senior
notes - 230,000
Payment of issuance costs on
convertible senior notes - (6,152)
Net cash provided by financing
activities 7,136 186,176
Effect of foreign exchange rate
changes on cash and cash
equivalents 156 221
Net increase in cash and cash
equivalents 1,227 125,032
Cash and cash equivalents at
beginning of period 120,491 76,545
Cash and cash equivalents at end of
period $121,718 $201,577
SOURCE Informatica Corporation
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Related links:
http://www.informatica.com/
CONTACT:
Stephanie Wakefield, Director, Investor
Relations, +1-650-385-5261, or swakefield@informatica.com, or
Stacey Torman, Public Relations, +1-650-385-5389, or
storman@informatica.com
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