REDWOOD CITY, Calif., July 20, 2004 - Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the second quarter ended June 30, 2004.
Revenues for the second quarter of 2004 were $53.0 million, up from the $50.6 million recorded in the second quarter of 2003. Net income for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $1.0 million or $0.01 per diluted share, compared with net income of $3.3 million or $0.04 per diluted share in the second quarter of 2003. Pro forma net income for the second quarter of 2004 was $3.3 million or $0.04 per diluted share, compared to $3.4 million and $0.04 per diluted share in the second quarter of 2003.
For the six-month period ending June 30, 2004, revenues were $107.2 million, an increase from the $99.0 million recorded during the first six months of 2003. GAAP net income for the first six months of 2004 was $2.9 million or $0.03 per diluted share. Pro forma net income for the first six months of 2004 was $6.5 million or $0.07 per diluted share. Pro forma operating results discussed in this press release exclude charges related to the amortization of acquired technology, intangible assets and stock-based compensation. A reconciliation of pro forma operating results and GAAP results is included in the financial statements attached.
"Although this quarter was disappointing, we expect to benefit from the strong team we have put in place as we focus on increasing our sales and marketing productivity during the second half of this year," said Earl Fry, executive vice president and chief financial officer at Informatica.
"It is a great testament to the value that Informatica's products deliver that over two-thirds of our orders come from our installed base of 2000-plus customers," said Sohaib Abbasi, incoming president and chief executive officer at Informatica. "With world-class products, a solid management team, and a strong customer base, I am looking forward to leading Informatica to the next level."
Significant milestones achieved in the second quarter of 2004 include:
* Signed repeat business with 119 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included American Red Cross, Chicago Board of Trade, Dresdner Bank, eBay, Federal Bureau of Investigation, General Electric, Hewlett Packard, La Poste, Lockheed Martin, Societe Air France, Stanford University and Waste Management.
* Signed 62 new customers. Informatica increased its customer base this quarter to over 2,050 companies. New customers included ACH Food Companies, Collegiate Funding Services, Colonial Life Accident Insurance Company, Defense Finance & Accounting Service, HNI Corporation, Hyundai Motor Company, State of Louisiana, U.S. Department of Agriculture, U.S. Sugar Corporation, University of Missouri, University of Toronto, Verizon Canada and XM Satellite Radio.
* Launched Universal Data Services (UDS) architecture. Informatica announced its product vision and roadmap for delivering Universal Data Services. Informatica's UDS architecture is unique in that it enables shared data services for access, integration, visualization and auditing to come together on an as-needed basis to address existing and emerging business problems and opportunities.
* Launched new Japanese subsidiary. Informatica launched a Japanese subsidiary, hiring seasoned executive Takemi Hojo as country manager for Informatica KK. The company also strengthened its strategic partnership with Mitsubishi Electric Information Technology Corporation, which is expanding its support for Informatica products and customers in Japan with additional Informatica-certified consultants, technical support capabilities and engineering resources for localization, testing and quality assurance.
* Reached 2,000th customer milestone. Informatica's world-class customer base topped 2,000 with the addition of the U.S. Department of Agriculture (USDA) and the Center for Agribusiness Excellence (CAE) at Tarleton State University.
* Named market share leader by leading analyst firm. In a June 22, 2004 report, Forrester Research stated that Informatica captured the leadership position once again in 2003 with 23 percent of the ETL market, a component of the broader data integration market.
* Won prestigious industry award for customer implementation. The Deutsche Börse Group and Informatica won The Data Warehousing Institute's 2004 Best Practices Award in the Real-time Data Warehousing category, marking the eighth consecutive year that an Informatica customer has won a TDWI Best Practices Award. In addition, Optimus Telecomunicaçöes SA and Owens & Minor won Best Practices Awards this year for their implementations of Informatica's products.
To supplement the company's condensed consolidated financial statements presented on a GAAP basis, Informatica uses pro forma measures of net income and net income per share. These measures are adjusted to exclude certain charges and expenses discussed above and in the attached supplemental consolidated statements of operations, which the company believes are appropriate to enhance an overall understanding of its historical financial performance. These adjustments to the company's current period 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 pro forma financial measures provides consistency and comparability with its historical reports of financial results, as well as comparability to similar companies in the company's industry, many of which present similar pro forma financial measures to investors. In addition, these pro forma results 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 generally accepted accounting principles in the United States. Informatica will be discussing its second quarter 2004 results on a conference call today beginning at 2:00 p.m. PDT / 5:00 p.m. EDT. 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 83714997.
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About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration software. Using Informatica products, companies can access, integrate, visualize, and audit their enterprise information assets to help improve business performance, increase customer profitability, streamline supply chain operations and proactively manage regulatory compliance. More than 2,000 companies worldwide rely on Informatica for their end-to-end enterprise data integration needs. For more information, call 650-385-5000 (1-800-970-1179 in the U.S.), or visit www.informatica.com.
This press release contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995, particularly statements referencing the Company's expected benefits of its newly hired personnel and its focus on increasing sales and marketing productivity. These statements are not guarantees of future developments and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results and outcomes may differ materially from what is expressed in any such forward-looking statements.
Such risks and uncertainties include the effects of changes in sales management, the impact of increased focus on sales and marketing productivity, possible delays in the development, availability and shipment of new products and enhancements to existing products, and risks associated with changes in general economic conditions. Further risks are detailed from time to time in Informatica's SEC reports, including its Form 10-K Report and Form 10-Q filings. Informatica assumes no duty to update any of the forward-looking statements in this release.
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Note: Informatica is a 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.
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