Attached files

file filename
EX-99.2 - EX-99.2 - INFORMATICA CORPf55468exv99w2.htm
EX-99.3 - EX-99.3 - INFORMATICA CORPf55468exv99w3.htm
EX-23.1 - EX-23.1 - INFORMATICA CORPf55468exv23w1.htm
8-K/A - FORM 8-K/A - INFORMATICA CORPf55468e8vkza.htm
Exhibit 99.4
UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS
     The following unaudited pro forma condensed combined balance sheet as of September 30, 2009 and the unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2009 and for the fiscal year ended December 31, 2008 are based on the historical financial statements of Informatica Corporation (“Informatica”) and Siperian, Inc. (“Siperian”) after giving effect to the acquisition of all the capital stock of Siperian by Informatica in a cash merger transaction valued at approximately $130 million by Informatica, and after applying the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial statements. The acquisition was completed on January 28, 2010.
     Informatica has prepared the unaudited pro forma condensed combined financial statements only for illustrative purposes. These unaudited pro forma condensed combined financial statements reflect preliminary estimates and assumptions based on information available at the time of the preparation, including preliminary fair value estimates of the intangible assets acquired and net liabilities assumed as discussed below. The unaudited pro forma condensed combined financial statements do not represent the consolidated results of operations or financial condition of Informatica had the acquisition been completed as the dates presented and should not be viewed as representative of the future consolidated results of operations or financial condition of Informatica. The unaudited pro forma condensed combined financial statements do not reflect any operating efficiencies and cost savings that Informatica may achieve with respect to the merged operations.
     Informatica and Siperian have two different fiscal year ends. Accordingly, the unaudited pro forma condensed combined balance sheet as of September 30, 2009 combines Informatica’s historical unaudited condensed consolidated balance sheet as of September 30, 2009 and Siperian’s historical unaudited condensed consolidated balance sheet as of August 31, 2009 and is presented as if the acquisition of Siperian had occurred on September 30, 2009. The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2009 combines the unaudited historical results of Informatica for the nine months ended September 30, 2009 and the unaudited historical results of Siperian for the nine months ended August 31, 2009. The unaudited pro forma condensed combined statement of operations for the fiscal year ended December 31, 2008 combines the historical results of Informatica for the year ended December 31, 2008 and the unaudited historical results of Siperian for the twelve months ended November 30, 2008. The unaudited pro forma condensed combined statements of operations are presented as if the acquisition had occurred on January 1, 2008.
     The acquisition has been accounted for in accordance with the Financial Accounting Standards Board (“FASB”) guidance under Business Combination (ASC 805). Accordingly, the total estimated purchase price, calculated as described in Note 1 to these unaudited pro forma condensed combined financial statements, has been allocated on a preliminary basis to intangible assets acquired and net liabilities assumed in connection with the acquisition based on their estimated fair values as of the completion of the acquisition. These allocations reflect various assumptions, estimates, and analyses.
     The unaudited pro forma condensed combined financial statements should be read in conjunction with Informatica’s historical consolidated financial statements and accompanying notes contained in Informatica’s Annual Report on Form 10-K for its fiscal year ended December 31, 2008 and Quarterly Report on Form 10-Q for its quarter ended September 30, 2009 and Siperian’s historical consolidated financial statements and accompanying notes for its fiscal year ended May 31, 2009 and the unaudited six month periods ended November 30, 2009 and 2008, which are included as Exhibits 99.2 and 99.3, respectively, to this Form 8-K/A.
Page 1

 


 

INFORMATICA CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
As of September 30, 2009
(Amounts in thousands, except share and per-share data)
                                 
    Historical              
    September 30, 2009     August 31, 2009     Pro Forma     Pro Forma  
    Informatica     Siperian (1)     Adjustments     Combined  
Assets
                               
Current assets:
                               
Cash and cash equivalents
  $ 138,457     $ 6,436     $ (102,917 ) (a)   $ 41,976  
Short-term investments
    284,932                   284,932  
Accounts receivable, net
    83,625       5,571       (354 ) (b)     88,842  
Deferred tax assets
    24,273                   24,273  
Prepaid expenses and other current assets
    13,560       747       (43 ) (b)     14,264  
 
                       
Total current assets
    544,847       12,754       (103,314 )     454,287  
 
                               
Property and equipment, net
    8,042       831             8,873  
Goodwill
    287,569             79,445  (a)(c)     367,014  
Other intangible assets, net
    68,808             24,890  (a)     93,698  
Long-term deferred tax assets
    2,481             17,303  (d)     19,784  
Other assets
    8,324       170             8,494  
 
                       
Total assets
  $ 920,071     $ 13,755     $ 18,324   $ 952,150  
 
                       
 
                               
Liabilities, Conditionally Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
                               
Current liabilities:
                               
Accounts payable and accrued liabilities
  $ 38,433     $ 4,901     $ 3,718  (e) (i)   $ 47,052  
Accrued compensation and related expenses
    29,058       1,405       6,136  (i)     36,599  
Income taxes payable
    12,956             5,009  (f)     17,965  
Accrued facilities restructuring charges
    20,567                   20,567  
Deferred revenues
    126,040       5,976       (4,510 ) (g)     127,506  
 
                       
Total current liabilities
    227,054       12,282       10,353     249,689  
 
                               
Convertible senior notes
    201,000                   201,000  
Notes payable and warrant
          9,665       (263 ) (h)     9,402  
Accrued facilities restructuring charges, less current portion
    35,973                   35,973  
Long-term deferred revenues
    6,033       146       (104 ) (g)     6,075  
Long-term income taxes payable
    12,180                   12,180  
 
                       
Total liabilities
    482,240       22,093       9,986     514,319  
 
                       
 
                               
Conditionally redeemable convertible preferred stock:
                               
$0.001 par value; issuable in series; 73,689,074 shares authorized; 73,027,381 shares issued and outstanding; aggregate liquidation preference of $60,023
          68,100       (68,100 ) (h)      
 
                               
Stockholders’ equity (deficit):
                               
Common stock
    89       3       (3 ) (h)     89  
Additional paid-in capital
    412,073       1,449       (1,449 ) (h)     412,073  
Accumulated other comprehensive income
    911                   911  
Retained earnings (accumulated deficit)
    24,758       (77,890 )     77,890  (h)     24,758  
 
                       
Total stockholders’ equity (deficit)
    437,831       (76,438 )     76,438       437,831  
 
                       
Total liabilities, conditionally redeemable convertible preferred stock and stockholders’ equity (deficit)
  $ 920,071     $ 13,755     $ 18,324   $ 952,150  
 
                       
 
(1)   Certain reclassifications were made to conform to Informatica’s financial statement presentation. See Note 2 below for further discussion.
 
Page 2

 


 

INFORMATICA CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2009
(Amounts in thousands, except share and per-share data)
                                 
    Historical              
    Nine months ended              
    September 30, 2009     August 31, 2009     Pro Forma     Pro Forma  
    Informatica     Siperian (1)     Adjustments     Combined  
Revenues:
                               
 
                               
License
  $ 142,770     $ 12,912     $ (731 ) (j)   $ 154,951  
Service
    207,026       10,146       (390 ) (k)(l)     216,782  
 
                       
Total revenues
    349,796       23,058       (1,121     371,733  
 
                       
 
                               
Cost of revenues:
                               
 
                               
License
    2,024       1,203       (670 ) (m)     2,557  
Service
    55,605       6,115       (282 ) (m)     61,438  
Amortization of acquired technology
    5,497             2,286  (n)     7,783  
 
                       
Total cost of revenues
    63,126       7,318       1,334       71,778  
 
                       
 
                               
Gross profit
    286,670       15,740       (2,455 )     299,955  
 
                       
 
                               
Operating expenses:
                               
Research and development
    57,089       6,382             63,471  
Sales and marketing
    135,366       13,760             149,126  
General and administrative
    30,646       6,066             36,712  
Amortization of intangible assets
    7,239             309  (n)     7,548  
Facilities restructuring charges
    1,961                   1,961  
 
                       
Total operating expenses
    232,301       26,208       309       258,818  
 
                       
 
                               
Income (loss) from operations
    54,369       (10,468 )     (2,764 )     41,137  
 
                               
Interest income, expense, and other net
    752       (509 )     (975 ) (o)     (732 )
 
                       
Income (loss) before income taxes
    55,121       (10,977 )     (3,739 )     40,405  
 
                               
Income tax provision (benefit)
    15,881       31       (6,999 ) (p)     8,913  
 
                       
Net income (loss)
  $ 39,240     $ (11,008 )   $ 3,260     $ 31,492  
 
                       
 
                               
Basic net income per common share
  $ 0.45                 $ 0.36  
 
                               
Diluted net income per common share
  $ 0.41                 $ 0.34  
 
                               
Shares used in computing basic net income per common share
    87,837                   87,837  
Shares used in computing diluted net income per common share
    102,507                   102,507  
 
(1)   Certain reclassifications were made to conform to Informatica’s financial statement presentation. See Note 2 below for further discussion.
 
Page 3

 


 

INFORMATICA CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2008
(Amounts in thousands, except share and per-share data)
                                 
    Historical              
    For the year ended              
    December 31, 2008     November 30, 2008     Pro Forma     Pro Forma  
    Informatica     Siperian (1)     Adjustments     Combined  
Revenues:
                               
 
                               
License
  $ 195,769     $ 8,933     $ (233 ) (j)   $ 204,469  
Service
    259,930       11,755       (2,106 ) (k)(l)     269,579  
 
                       
Total revenues
    455,699       20,688       (2,339     474,048  
 
                       
 
                               
Cost of revenues:
                               
 
                               
License
    3,291       684       (354 ) (m)     3,621  
Service
    80,287       8,684       (229 ) (m)     88,742  
Amortization of acquired technology
    4,125             3,049  (n)     7,174  
 
                       
Total cost of revenues
    87,703       9,368       2,466       99,537  
 
                       
 
                               
Gross profit
    367,996       11,320       (4,805 )     374,511  
 
                       
 
                               
Operating expenses:
                               
Research and development
    72,522       8,500             81,022  
Sales and marketing
    177,339       19,102             196,441  
General and administrative
    37,411       7,218             44,629  
Amortization of intangible assets
    4,575             493  (n)     5,068  
Facilities restructuring charges
    3,018                   3,018  
Purchased in-process research and development
    390                   390  
Patent related litigation proceeds net of patent contingency accruals
    (11,495 )                 (11,495 )
 
                       
Total operating expenses
    283,760       34,820       493       319,073  
 
                       
 
                               
Income (loss) from operations
    84,236       (23,500 )     (5,298 )     55,438  
Interest income, expense, and other net
    7,737       257       (3,454 ) (o)     4,540  
 
                       
Income (loss) before income taxes
    91,973       (23,243 )     (8,752 )     59,978  
 
                               
Income tax provision (benefit)
    35,993       11       (9,859 ) (p)     26,145  
 
                       
Net income (loss)
  $ 55,980     $ (23,254 )   $ 1,107     $ 33,833  
 
                       
 
                               
Basic net income per common share
  $ 0.64                 $ 0.38  
Diluted net income per common share
  $ 0.58                 $ 0.37  
 
                               
Shares used in computing basic net income per common share
    88,109                   88,109  
Shares used in computing diluted net income per common share
    103,278                   103,278  
 
(1)   Certain reclassifications were made to conform to Informatica’s financial statement presentation. See Note 2 below for further discussion.
 
Page 4

 


 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS
(Amounts in thousands)
Note 1: Basis of Pro Forma Presentation
     On January 28, 2010, Informatica acquired Siperian, a private company incorporated in Delaware. Siperian is a leader in the Master Data Management (MDM) infrastructure technology category. MDM provides a holistic, single view of foundational business entities, commonly referred to as master data such as customers, employees, citizens, locations and products. Siperian delivers a multidomain MDM platform to optimize business decisions across multiple entities or considerations, and its technology expedites deployment time with easy-to-configure capabilities.
     Informatica assigned preliminary fair values to the identified intangible assets acquired in accordance with the guidelines established in Business Combinations (ASC 805). The allocation of the purchase price for this acquisition as of the date of the acquisition is as follows:
         
Goodwill, pre-tax gross up
  $ 92,771  
Developed and core technology
    21,340  
In process research and development (IPR&D)
    1,920  
Customer relationships
    1,630  
Assumed liabilities, net of assets
    (14,744 )
 
     
Total estimated purchase price
  102,917  
 
     
Note 2: Reclassifications
     Certain reclassifications have been made to conform Siperian’s historical amounts to Informatica’s presentation. These adjustments primarily relate to reclassification of some long-term liabilities to short-term liabilities since Informatica intended to settle these liabilities at the time of acquisition or shortly after the acquisition.
Note 3: Pro Forma Adjustments
     The pro forma adjustments included in the unaudited pro forma condensed combined consolidated financial statements are as follows:
  (a)   See Note 1. Basis of Pro Forma Presentation above for a further discussion.
  (b)   To adjust accounts receivable and prepaid for intercompany transactions. These transactions are related to products that Informatica and its subsidiaries had sold to Siperian during the periods presented.
  (c)   To record tax credit adjustments of $13,326 to goodwill as follows:
         
Deferred tax assets related to net operating losses not previously benefited
  $ (28,810 )
Deferred tax liabilities related to purchased intangibles
    9,707  
Accrued liabilities and compensation accruals
    5,777  
 
     
 
  $ (13,326 )
 
     
 
Page 5

 


 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands)
  (d)   To record long term deferred tax assets related to deferred tax assets for net operating losses that Company did not benefit previously net of deferred tax liabilities for purchased intangibles and the tax effects of fair value adjustments.
  (e)   To eliminate intercompany liabilities for $344 due to products and services sold by Informatica and its subsidiaries to Siperian.
  (f)   To record tax liabilities accrued for $1,032 due to adoption of ASC 740-10 by Siperian and additional accrued liabilities assumed and compensation accruals for $3,977 due to the acquisition.
  (g)   To adjust deferred revenues to its estimated fair value from its historical values.
  (h)   To eliminate common stock, redeemable convertible preferred stock, additional paid-in capital, and accumulated deficit of $77,890, and payment of $263 for warrant outstanding to shareholders subsequent to acquisition.
  (i)   To reflect additional liabilities assumed due to the acquisition for $10,198 of which $4,062 is related to accounts payable and accrued liabilities and $6,136 is related to accrued compensation.
  (j)   To eliminate the intercompany license revenues of $731 for the nine months ended September 30, 2009, and to reduce the license revenues for intercompany transactions of $214 and fair value adjustment of $19 from historical fair value to estimated fair market value for the twelve months ended December 31, 2008.
  (k)   To adjust the difference between the estimated fair value and historical value of deferred revenues for $63 for the nine months ended August 31, 3009 and $1,877 for the twelve months ended November 30, 2008.
  (l)   To eliminate the intercompany revenues of $327 for the nine months ended September 30, 2009 and $229 for the twelve months ended December 31, 2008. These transactions are related to products that Informatica and its subsidiaries had sold to Siperian during the periods presented.
  (m)   To eliminate the intercompany transactions related to the cost of revenues for the products and services that Informatica and its subsidiaries sold to Siperian:
                 
            Twelve Months  
    Nine Months Ended     Ended  
    September 30,     December 31,  
    2009     2008  
Cost of revenues:
               
License
  $ (670 )   $ (354 )
Service
    (282 )     (229 )
 
           
 
  $ (952 )   $ (583 )
 
           
  (n)   To record amortization expenses for the nine months ended September 30, 2009 and twelve months ended December 31, 2008, related to acquired intangible assets as follows:
                                 
                    Amortization Expense  
                    Nine Months     Twelve Months  
    Estimated     Estimated     Ended     Ended  
    Fair     Useful Life     September 30,     December 31,  
    Value     (in years)     2009     2008  
Developed and core technology
  $ 21,340       7     $ 2,286     $ 3,049  
Customer relationships
    1,630       6       309       493  
 
                         
 
  $ 22,970             $ 2,595     $ 3,542  
 
                         
 
Page 6

 


 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands)
  (o)   The interest income of $1,436 and $3,817 was based on 1.50% and 2.99% average rate of return for the nine months ended September 30, 2009 and twelve months ended December 31, 2008, respectively. The amounts also include adjustments to interest expense related to Siperian’s term loan and notes payable to shareholders for $461 and $363 for the nine months ended September 30, 2009 and twelve months ended December 31, 2008, respectively.
  (p)   To record income tax benefit related to the acquisition netted against an immaterial expense related to Siperian’s pro forma adoption of ASC 740-10 on January 1, 2008 and previously unbenefitted credit.
 
Page 7