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8-K - FORM 8-K - INFORMATICA CORPd8k.htm

LOGO

Exhibit 99.1

 

Contacts:   

Debbie O’Brien

Corporate Communications

+ 1 650 385 5735

dobrien@informatica.com

  

Stephanie Wakefield

Investor Relations

+1 650 385 5261

swakefield@informatica.com

INFORMATICA REPORTS RECORD SECOND QUARTER REVENUES OF $192.7 MILLION

Achieves Greater than 20 Percent Year-over-Year License Revenue Growth for Seventh Consecutive Quarter

 

 

Record second quarter total revenues of $192.7 million, up 24 percent year-over-year

 

 

Record second quarter license revenues of $86.3 million, up 23 percent year-over-year

 

 

Record second quarter GAAP earnings per diluted share of $0.23 and non-GAAP earnings per diluted share of $0.33

REDWOOD CITY, Calif., July 21, 2011 — Informatica Corporation (NASDAQ: INFA), the world’s number one independent provider of data integration software, today announced financial results for the second quarter ended June 30, 2011.

“Informatica’s seventh consecutive quarter with year-over-year license revenue growth higher than twenty percent reflects the increasing adoption of our expansive product portfolio driven by the top business priorities of our customers,” said Sohaib Abbasi, chairman and CEO, Informatica. “The latest big data technology trend is elevating the role of data integration and expanding our addressable market as organizations aspire to become data-centric enterprises.”

Financial Highlights for the Second Quarter Ended June 30, 2011

Total revenues for the second quarter of 2011 were $192.7 million, an increase of 24 percent from $155.7 million recorded in the second quarter of 2010. License revenues were $86.3 million, an increase of 23 percent from $70.0 million recorded in the second quarter of 2010.


Income from operations for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $36.2 million, up 42 percent from $25.5 million in the second quarter of 2010.

GAAP net income for the second quarter of 2011 was $26.2 million or $0.23 per diluted share, up over 35 percent from $17.4 million or $0.17 per diluted share in the second quarter of 2010.

Non-GAAP income from operations for the second quarter of 2011 was $52.5 million, up 41 percent from $37.3 million in the second quarter of 2010. Non-GAAP net income for the second quarter was $37.7 million or $0.33 per diluted share, up over 32 percent from $25.8 million or $0.25 per diluted share in the second 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 and stock compensation. A reconciliation of GAAP results to non-GAAP results is included below.

For the six month period ended June 30, 2011, revenues were $360.8 million, an increase of 24 percent from the $290.8 million recorded for the first six months of 2010. License revenues for the first six months of 2011 were $157.8 million, up 26 percent from $125.1 million in the first six months of 2010. GAAP net income for the first six months of 2011 was $48.1 million or $0.43 per diluted share, up over 48 percent from $29.2 million or $0.29 per diluted share in the first six months of 2010. Non-GAAP net income for the first six months of 2011 was $68.6 million or $0.62 per diluted share, up over 37 percent from $46.8 million or $0.45 per diluted share in the first six months of 2010. For the six month periods ended June 30, 2011 and June 30, 2010, earnings per diluted share was calculated on an “if converted” basis, including the add-back of $0.8 million and $1.9 million, respectively, of interest and convertible notes issuance cost amortization, net of applicable income taxes. The add-back of $0.8 million for the six month period ended June 30, 2011 represents interest and convertible note issuance cost amortization until the redemption of the convertible notes on March 18, 2011.


Additional Highlights Achieved Since April 2011:

 

 

Signed repeat business with 299 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included: AutoTrader.com, BMC Software, Friends Provident Management Services, Symantec Corporation, Vale and XL Global Services.

 

 

Added 96 new customers. Informatica increased its customer base to 4,446 companies including 74 new Informatica customers and 22 customers added through the acquisition of WisdomForce. New customers included: Australia Health Practitioner Regulation Agency, the Board of Trustees of Illinois State University, Mediq Sverige, New York City Department of Finance, and Philadelphia Insurance Companies.

 

 

Launched Informatica 9.1 for Big Data. Based on years of pioneering innovation, Informatica 9.1 is the first unified data integration platform designed to unleash the full business potential of big data and empower the data centric-enterprise, with well-differentiated support for all three big data trends: big transaction data, big interaction data and big data processing.

 

 

Launched Informatica Cloud Summer 2011 in Support of Hybrid IT. The new release will enable hybrid IT by extending unified, enterprise-class data integration services to the cloud and introducing increased levels of security and user management to better protect data access, improve governance and enable “cloud control.”

 

 

Acquired WisdomForce Technologies to Extend Big Data Offering for Data Replication. Together, Informatica PowerCenter and WisdomForce will enable a broad range of data replication projects, from high-speed data cloning to the sophisticated data replication with complex transformations required by active data warehousing.

 

 

Acquired ActiveBase to Deliver Dynamic Data Masking. Addressing a new and fast growing category of dynamic data masking for production databases, ActiveBase complements and extends Informatica’s Information Lifecycle Management (ILM) product portfolio.

 

 

Announced Partnership with EMC for Hadoop Big Data Support. Informatica is supporting EMC’s distribution of Hadoop to help enable enterprises to realize the full potential of big data.


 

Announced Partnership with Symantec to Address Big Data Challenge. Informatica expanded its existing relationship with Symantec to resell Informatica Data Archive.

 

 

Announced Cloud OEM with MicroStrategy. Informatica has been selected as the data integration foundation for the MicroStrategy Cloud, the first cloud-based business intelligence platform.

 

 

Informatica Executives’ Leadership Recognized at Stevie Awards. In the annual American Business Awards, Chris Boorman, chief marketing officer and senior vice president of Education and Enablement won the Stevie Award for Marketing Executive of the Year. Stephanie Wakefield, vice president, Investor Relations, won the Stevie Award for Communications, Investor Relations or PR Executive of the Year.

Conference Call and Webcast

Informatica will discuss its second 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 57566980.

About Informatica

Informatica Corporation (NASDAQ: INFA) is the world’s number one independent provider of data integration software. Organizations around the world gain a competitive advantage in today’s global information economy with timely, relevant and trustworthy data for their top business imperatives. Worldwide, more than 4,400 enterprises rely on Informatica for Data Integration and Data Quality solutions 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, acquisitions 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, 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 July 21, 2011 and Informatica undertakes no duty to update this information.

###

Note: Informatica, Informatica PowerCenter, Informatica Cloud, Informatica Information Lifecycle Management, and Informatica Data Archive 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
June 30,
    Six Months Ended
June 30,
 
     2011      2010     2011     2010  

Revenues:

         

License

   $ 86,343       $ 70,016      $ 157,844      $ 125,063   

Service

     106,384         85,645        202,915        165,728   
                                 

Total revenues

     192,727         155,661        360,759        290,791   
                                 

Cost of revenues:

         

License

     1,217         1,143        2,658        2,108   

Service

     29,365         25,041        56,679        48,098   

Amortization of acquired technology

     4,885         3,616        9,178        6,388   
                                 

Total cost of revenues

     35,467         29,800        68,515        56,594   
                                 

Gross profit

     157,260         125,861        292,244        234,197   
                                 

Operating expenses:

         

Research and development

     32,929         26,801        63,516        50,379   

Sales and marketing

     70,943         60,053        130,525        111,472   

General and administrative

     13,953         10,865        25,991        22,273   

Amortization of intangible assets

     1,992         2,355        4,073        5,065   

Facilities restructuring charges

     476         336        986        992   

Acquisitions and other

     780         —          (922     3,649   
                                 

Total operating expenses

     121,073         100,410        224,169        193,830   
                                 

Income from operations

     36,187         25,451        68,075        40,367   

Interest and other income (expense), net

     425         (694     (1,192     657   
                                 

Income before income taxes

     36,612         24,757        66,883        41,024   

Income tax provision

     10,402         7,330        18,764        11,803   
                                 

Net income

   $ 26,210       $ 17,427      $ 48,119      $ 29,221   
                                 

Basic net income per common share

   $ 0.25       $ 0.19      $ 0.47      $ 0.32   
                                 

Diluted net income per common share (1)

   $ 0.23       $ 0.17      $ 0.43      $ 0.29   
                                 

Shares used in computing basic net income per common share

     106,014         91,673        101,458        91,213   
                                 

Shares used in computing diluted net income per common share

     113,148         107,959        112,755        107,701   
                                 

 

(1) Diluted EPS is calculated under the "if converted" method for the three months ended June 30, 2010, and six months ended June 30, 2011 and 2010. This includes the add-back of interest and convertible notes issuance cost amortization, net of applicable income taxes of $1.0 million for the three months ended June 30, 2010, and $0.8 million and $1.9 million for the six months ended June 30, 2011 and 2010, respectively.


INFORMATICA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     June 30,
2011
     December 31,
2010
 
     (unaudited)         
Assets              

Current assets:

     

Cash and cash equivalents

   $ 273,040       $ 208,899   

Short-term investments

     291,137         262,047   

Accounts receivable, net of allowances of $3,675 and $4,289, respectively

     125,316         147,534   

Deferred tax assets

     18,883         22,664   

Prepaid expenses and other current assets

     39,560         32,321   
                 

Total current assets

     747,936         673,465   

Property and equipment, net

     9,719         9,866   

Goodwill and intangible assets, net

     497,406         478,653   

Long-term deferred tax assets

     25,061         18,314   

Other assets

     6,201         9,343   
                 

Total assets

   $ 1,286,323       $ 1,189,641   
                 
Liabilities and stockholders' equity              

Current liabilities:

     

Accounts payable and other current liabilities

   $ 101,074       $ 112,462   

Accrued facilities restructuring charges

     19,629         18,498   

Deferred revenues

     189,668         172,559   

Convertible senior notes

     —           200,693   
                 

Total current liabilities

     310,371         504,212   

Accrued facilities restructuring charges, less current portion

     13,169         20,410   

Long-term deferred revenues

     6,491         6,987   

Long-term deferred tax liabilities

     230         311   

Long-term income taxes payable

     16,324         12,739   

Other liabilities

     4,872         —     

Stockholders' equity

     934,866         644,982   
                 

Total liabilities and stockholders' equity

   $ 1,286,323       $ 1,189,641   
                 


INFORMATICA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

     Six Months Ended
June 30,
 
     2011     2010  

Operating activities:

    

Net income

   $ 48,119      $ 29,221   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     2,799        3,279   

Allowance for (recovery of) doubtful accounts

     (499     33   

Gain on sale of investment in equity interests

     —          (1,824

Stock-based compensation

     15,667        11,061   

Deferred income taxes

     (1,197     (1,009

Tax benefits from stock-based compensation

     15,421        7,974   

Excess tax benefits from stock-based compensation

     (15,172     (6,077

Amortization of intangible assets and acquired technology

     13,251        11,453   

Non-cash facilities restructuring charges

     986        992   

Other non-cash items

     (1,702     384   

Changes in operating assets and liabilities:

    

Accounts receivable

     22,905        12,097   

Prepaid expenses and other assets

     (8,975     1,078   

Accounts payable and other current liabilities

     (8,675     (2,377

Income taxes payable

     65        (4,379

Accrued facilities restructuring charges

     (7,014     (7,158

Deferred revenues

     16,545        4,849   
                

Net cash provided by operating activities

     92,524        59,597   
                

Investing activities:

    

Purchases of property and equipment

     (2,377     (3,213

Purchases of investments

     (191,895     (129,009

Purchase of investment in equity interest

     (164     (1,500

Sale of investment in equity interest

     —          4,824   

Maturities and sales of investments

     162,947        221,501   

Business acquisitions, net of cash acquired

     (24,085     (168,777
                

Net cash used in investing activities

     (55,574     (76,174
                

Financing activities:

    

Net proceeds from issuance of common stock

     30,519        22,286   

Repurchases and retirement of common stock

     (19,638     (10,651

Redemption of convertible senior notes

     (4     —     

Withholding taxes related to restricted stock units net share settlement

     (5,256     (1,697

Excess tax benefits from stock-based compensation

     15,172        6,077   
                

Net cash provided by financing activities

     20,793        16,015   
                

Effect of foreign exchange rate changes on cash and cash equivalents

     6,398        (8,098
                

Net increase (decrease) in cash and cash equivalents

     64,141        (8,660

Cash and cash equivalents at beginning of period

     208,899        159,197   
                

Cash and cash equivalents at end of period

   $ 273,040      $ 150,537   
                


INFORMATICA CORPORATION

GAAP TO NON-GAAP RESULTS

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2011     2010     2011     2010  

Total revenues

   $ 192,727      $ 155,661      $ 360,759      $ 290,791   
                                

Operating income:

        

GAAP operating income

   $ 36,187      $ 25,451      $ 68,075      $ 40,367   

Percentage of GAAP operating income to total revenues

     19     16     19     14

Plus:

        

Amortization of acquired technology - Cost of revenues

     4,885        3,616        9,178        6,388   

Amortization of intangible assets - Operating expenses

     1,992        2,355        4,073        5,065   

Facilities restructuring charges - Operating expenses

     476        336        986        992   

Acquisitions and other - Operating expenses

     780        —          (922     3,649   

Stock-based compensation - Cost of revenues

     861        653        1,725        1,315   

Stock-based compensation - Research and development

     2,654        1,751        5,053        3,360   

Stock-based compensation - Sales and marketing

     2,478        1,793        4,887        3,566   

Stock-based compensation - General and administrative

     2,162        1,382        4,002        2,820   
                                

Non-GAAP operating income

   $ 52,475      $ 37,337      $ 97,057      $ 67,522   
                                

Percentage of Non-GAAP operating income to total revenues

     27     24     27     23

Net income:

        

GAAP net income

   $ 26,210      $ 17,427      $ 48,119      $ 29,221   

Plus:

        

Amortization of acquired technology - Cost of revenues

     4,885        3,616        9,178        6,388   

Amortization of intangible assets - Operating expenses

     1,992        2,355        4,073        5,065   

Facilities restructuring charges - Operating expenses

     476        336        986        992   

Acquisitions and other - Operating expenses

     780        —          (922     3,649   

Stock-based compensation - Cost of revenues

     861        653        1,725        1,315   

Stock-based compensation - Research and development

     2,654        1,751        5,053        3,360   

Stock-based compensation - Sales and marketing

     2,478        1,793        4,887        3,566   

Stock-based compensation - General and administrative

     2,162        1,382        4,002        2,820   

Gain on sale of investment in equity interest

     —          —          —          (1,824

Income tax adjustments

     (4,792     (3,542     (8,469     (7,711
                                

Non-GAAP net income

   $ 37,706      $ 25,771      $ 68,632      $ 46,841   
                                


INFORMATICA CORPORATION

GAAP TO NON-GAAP RESULTS

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2011     2010     2011     2010  

Diluted net income per share: (1)

        

Diluted GAAP net income per share

   $ 0.23      $ 0.17      $ 0.43      $ 0.29   

Plus:

        

Amortization of acquired technology

     0.04        0.03        0.08        0.06   

Amortization of intangible assets

     0.02        0.03        0.04        0.05   

Facilities restructuring charges

     —          —          0.01        0.01   

Acquisitions and other

     0.01        —          (0.01     0.03   

Stock-based compensation

     0.07        0.05        0.14        0.10   

Gain on sale of investment in equity interest

     —          —          —          (0.02

Income tax adjustments

     (0.04     (0.03     (0.07     (0.07
                                

Diluted Non-GAAP net income per share

   $ 0.33        0.25      $ 0.62      $ 0.45   
                                

Shares used in computing diluted Non-GAAP net income per share

     113,148        107,959        112,755        107,701   
                                

 

(1) Diluted EPS is calculated under the "if converted" method for the three months ended June 30, 2010, and six months ended June 30, 2011 and 2010. This includes the add-back of interest and convertible notes issuance cost amortization, net of applicable income taxes of $1.0 million for the three months ended June 30, 2010, and $0.8 million and $1.9 million for the six months ended June 30, 2011 and 2010, respectively.