updated 4/21/2011 4:17:01 PM ET 2011-04-21T20:17:01

Achieves 30 Percent License Revenue Growth

  • Record first quarter total revenues of $168.0 million, up 24 percent year-over-year
  • Record first quarter license revenues of $71.5 million, up 30 percent year-over-year
  • Record first quarter GAAP earnings per diluted share of $0.20 and record first quarter non-GAAP earnings per diluted share of $0.28

REDWOOD CITY, Calif., April 21, 2011 (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, 2011.

"The secular technology trends of cloud computing and big data are expanding our addressable market as well as elevating the critical role of data integration within the IT infrastructure," said Sohaib Abbasi, chairman and CEO, Informatica. "Our first quarter results are yet further evidence that Informatica's value proposition aligns well with the top priorities of our customers. In these uncertain times of change, data integration matters more than ever."

Financial Highlights for the First Quarter Ended March 31, 2011

Total revenues for the first quarter of 2011 were a record $168.0 million, an increase of 24 percent from $135.1 million recorded in the first quarter of 2010. License revenues were $71.5 million, an increase of 30 percent from the $55.0 million recorded in the first quarter of 2010.

Income from operations for the first quarter of 2011, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $31.9 million, up 114 percent from $14.9 million in the first quarter of 2010.

GAAP net income for the first quarter of 2011 was $21.9 million or $0.20 per diluted share, up over 66 percent from $11.8 million or $0.12 per diluted share in the first quarter of 2010. For the three-month periods ended March 31, 2011 and March 31, 2010, respectively, earnings per diluted share is calculated on an "if converted" basis, including the add-back of $0.8 million and $1.0 million of interest and convertible notes issuance cost amortization, net of applicable income taxes.

Non-GAAP income from operations for the first quarter of 2011 was $44.6 million, up 48 percent from $30.2 million in the first quarter of 2010. Non-GAAP net income for the first quarter of 2011 was $30.9 million or $0.28 per diluted share, up over 33 percent from $21.1 million or $0.21 per diluted share in the first quarter of 2010. 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, acquisitions and other expenses, investment gains and stock compensation. A reconciliation of GAAP results to non-GAAP results is included below.

Additional Highlights Since January 2011:

  • Signed Repeat Business with 252 Customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included: Best Buy Europe, Express Scripts, John Wiley & Sons, Logitech, McGraw-Hill Companies, Schneider Electric Industries and Vale.
  • Added 68 New Customers. Informatica increased its customer base this quarter to 4,350 companies. New customers included: Art.com, Cannery Casino Resorts, DineEquity, Dunnhumby, Leaf Holland, PKO Bank Polski, and UltraTech Cement.
  • Announced Partnership with NetSuite to Deliver First Cloud Two-Tier ERP Solution. Combining Informatica's enterprise data integration with NetSuite's cloud ERP suites, global companies can extend and integrate their on-premise enterprise systems with cloud-based ERP solutions for their regional subsidiaries and divisions.
  • Informatica Customer LMAX Won "Best Trading System" Award. LMAX was recognized at the prestigious Financial Services Technology Awards event in London as the "Best Trading System" for its multilateral trading facility powered by Informatica Ultra Messaging.
  • Named a Finalist in Two Categories of the Software & Information Industry Association's 26th Annual CODiE Awards. Informatica Cloud has been named a Finalist for Best Cloud Management Solution and Best Integration Solution. By being named a finalist in the annual industry peer-reviewed awards, Informatica has been recognized for its outstanding achievement, innovation and vision in the software and information industry.
  • Awarded "Best Of The Best" Status In Annual Industry Benchmark. Informatica Professional Services was ranked in the top five percent of Professional Services organizations in the annual Service Performance Insight (SPI) Research's 2011 Professional Services Maturity Model Benchmark Survey. SPI Research conducts an annual benchmark to measure performance against industry leaders.
  • Named Finalist in the Fifth Annual Stevie Awards for Sales and Customer Service 2011. Informatica Global Customer Support was a finalist in the Innovation in Customer Service category. The awards honor customer service and sales professionals that display outstanding performance in the workplace, highlighting the results achieved for their customers.

Conference Call and Webcast

Informatica will discuss its first quarter 2011 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 706-645-9291, reservation number 57566284.

About Informatica

Informatica Corporation (Nasdaq:INFA) is the world's number one independent provider of data integration software. Organizations around the world turn to Informatica to gain a competitive advantage in today's global information economy with timely, relevant and trustworthy data for their top business imperatives. Worldwide, 4,350 enterprises rely on Informatica for data integration and data quality solution to access, integrate and trust their information assets held in the traditional enterprise, off premise and in the Cloud. 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 the expansion of our markets and the critical role of data integration. 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; and uncertainty in the state of IT spending and the growth of the market for data integration solutions in general. 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, 2010, 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 21, 2011 and Informatica undertakes no duty to update this information.

Note: Informatica, Informatica Ultra Messaging and Informatica Cloud 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,
  2011 2010
     
Revenues:    
License  $ 71,501  $ 55,047
Service  96,531 80,083
Total revenues  168,032  135,130
     
Cost of revenues:    
License  1,441 965
Service  27,314 23,057
Amortization of acquired technology  4,293 2,772
Total cost of revenues   33,048  26,794
     
Gross profit 134,984 108,336
     
Operating expenses:    
Research and development  30,587 23,578
Sales and marketing  59,582 51,419
General and administrative  12,038 11,408
Amortization of intangible assets  2,081 2,710
Facilities restructuring charges   510  656
Acquisitions and other   (1,702)  3,649
Total operating expenses   103,096  93,420
Income from operations  31,888  14,916
Interest and other income (expense), net  (1,617)  1,351
Income before income taxes  30,271  16,267
Income tax provision   8,362 4,473
Net income   $ 21,909  $ 11,794
     
Basic net income per common share  $ 0.23  $ 0.13
Diluted net income per common share (1)  $ 0.20  $ 0.12
     
Shares used in computing basic net income per common share 96,858 90,748
Shares used in computing diluted net income per common share 112,318 107,374
     
(1) Diluted EPS is calculated under the "if converted" method for the three months ended

March 31, 2011 and 2010. This includes the add-back of interest and convertible notes

issuance cost amortization, net of applicable income taxes of $0.8 million and $1.0 million

for the three months ended March 31, 2011 and 2010, respectively.
 
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
     
  March 31,

2011
December 31,

2010
  (unaudited)  
Assets    
     
Current assets:    
Cash and cash equivalents  $ 323,912  $ 208,899
Short-term investments   228,803  262,047
Accounts receivable, net of allowances of $3,618 and $4,289, respectively  91,635  147,534
Deferred tax assets  19,566  22,664
Prepaid expenses and other current assets  37,590  32,321
Total current assets  701,506  673,465
     
Property and equipment, net  9,259  9,866
Goodwill and intangible assets, net  468,226  478,653
Long-term deferred tax assets  27,598  18,314
Other assets  6,140  9,343
Total assets  $ 1,212,729  $ 1,189,641
     
Liabilities and stockholders' equity    
     
Current liabilities:    
Accounts payable and other current liabilities  $ 80,302  $ 112,462
Accrued facilities restructuring charges  18,977  18,498
Deferred revenues  181,846  172,559
Convertible senior notes  —   200,693
Total current liabilities  281,125  504,212
     
Accrued facilities restructuring charges, less current portion  16,847  20,410
Long-term deferred revenues  6,425  6,987
Long-term deferred tax liabilities   275  311
Long-term income taxes payable  15,070  12,739
     
Stockholders' equity  892,987  644,982
Total liabilities and stockholders' equity  $ 1,212,729  $ 1,189,641
 
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
   
  Three Months Ended

March 31,
  2011 2010
Operating activities:    
Net income   $ 21,909  $ 11,794
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,468 1,829
Allowance for (recovery of) doubtful accounts (517) 63
Gain on sale of investment in equity interest  —   (1,824)
Stock-based compensation 7,512 5,482
Deferred income taxes (337) (632)
Tax benefits from stock-based compensation 5,476 4,189
Excess tax benefits from stock-based compensation (5,397) (3,325)
Amortization of intangible assets and acquired technology 6,374 5,482
Non-cash facilities restructuring charges  510  656
Other non-cash items  (1,702)  (6)
Changes in operating assets and liabilities:    
Accounts receivable  56,416  42,099
Prepaid expenses and other assets  (6,076)  2,403
Accounts payable and other current liabilities   (26,892)  (18,924)
Income taxes payable  (2,187)  (5,276)
Accrued facilities restructuring charges  (3,553)  (3,604)
Deferred revenues  8,725  2,776
Net cash provided by operating activities 61,729 43,182
Investing activities:    
Purchases of property and equipment  (605)  (1,300)
Purchases of investments  (58,112)  (42,569)
Purchase of investment in equity interest  —   (1,500)
Sale of investment in equity interest  —   4,824
Maturities and sales of investments  90,893  145,365
Business acquisitions, net of cash acquired  —   (168,777)
Net cash provided by (used in) investing activities 32,176 (63,957)
Financing activities:    
Net proceeds from issuance of common stock 17,060 13,785
Repurchases and retirement of common stock  (3,181)  — 
Redemption of convertible senior notes  (4)  — 
Withholding taxes related to restricted stock units net share settlement  (2,659)  (1,108)
Excess tax benefits from stock-based compensation  5,397  3,325
Net cash provided by financing activities 16,613 16,002
Effect of foreign exchange rate changes on cash and cash equivalents 4,495 (2,400)
Net increase (decrease) in cash and cash equivalents 115,013 (7,173)
Cash and cash equivalents at beginning of period 208,899 159,197
Cash and cash equivalents at end of period  $ 323,912  $ 152,024
 
INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended 

March 31,
  2011 2010
     
Total revenues  $ 168,032  $ 135,130
     
Operating income:    
     
GAAP operating income  $ 31,888  $ 14,916
     
Percentage of GAAP operating income to total revenues  19.0% 11.0%
     
Plus:    
Amortization of acquired technology - Cost of revenues  4,293 2,772
Amortization of intangible assets - Operating expenses  2,081 2,710
Facilities restructuring charges - Operating expenses  510  656
Acquisitions and other - Operating expenses  (1,702)  3,649
Stock-based compensation - Cost of revenues  864  662
Stock-based compensation - Research and development  2,399  1,609
Stock-based compensation - Sales and marketing  2,409  1,773
Stock-based compensation - General and administrative  1,840  1,438
Non-GAAP operating income  $ 44,582  $ 30,185
     
Percentage of Non-GAAP operating income to total revenues  26.5% 22.3%
     
Net income:    
     
GAAP net income  $ 21,909  $ 11,794
     
Plus:    
Amortization of acquired technology - Cost of revenues  4,293  2,772
Amortization of intangible assets - Operating expenses  2,081  2,710
Facilities restructuring charges - Operating expenses  510  656
Acquisitions and other - Operating expenses  (1,702)  3,649
Stock-based compensation - Cost of revenues  864  662
Stock-based compensation - Research and development  2,399  1,609
Stock-based compensation - Sales and marketing  2,409  1,773
Stock-based compensation - General and administrative  1,840  1,438
Gain on sale of investment in equity interest   —   (1,824)
Income tax adjustments  (3,677)  (4,169)
Non-GAAP net income  $ 30,926  $ 21,070
     
Diluted net income per share: (1)    
     
Diluted GAAP net income per share  $ 0.20  $ 0.12
     
Plus:     
Amortization of acquired technology  0.04  0.03
Amortization of intangible assets  0.02  0.03
Facilities restructuring charges  —   0.01
Acquisitions and other   (0.02)  0.03
Stock-based compensation  0.07  0.05
Gain on sale of investment in equity interest   —   (0.02)
Income tax adjustments   (0.03)  (0.04)
Diluted Non-GAAP net income per share   $ 0.28 $ 0.21
     
Shares used in computing diluted Non-GAAP net income per share 112,318 107,374
     
(1) Diluted EPS is calculated under the "if converted" method for the three months ended

March 31, 2011 and 2010. This includes the add-back of interest and convertible notes

issuance cost amortization, net of applicable income taxes of $0.8 million and $1.0 million

for the three months ended March 31, 2011 and 2010, respectively.
CONTACT: Debbie O'Brien
         Corporate Communications
         + 1 650 385 5735
         dobrien@informatica.com
         
         Stephanie Wakefield
         Investor Relations
         +1 650 385 5261
         swakefield@informatica.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.03%
$30K home equity loan FICO 5.68%
$75K home equity loan FICO 4.87%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com