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8-K - FORM 8-K - INFORMATICA CORP | f59007e8vk.htm |
Exhibit 99.1
Contacts:
|
Debbie OBrien | Stephanie Wakefield | ||
Corporate Communications | Investor Relations | |||
+ 1 650 385 5735 | +1 650 385 5261 | |||
dobrien@informatica.com | swakefield@informatica.com |
INFORMATICA
REPORTS RECORD FIRST QUARTER REVENUES OF $168 MILLION
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 Informatica Corporation (NASDAQ: INFA), the worlds 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 Informaticas 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 Informaticas enterprise data integration with NetSuites 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 Associations 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) Researchs 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 worlds number one independent provider of data
integration software. Organizations around the world turn to Informatica to gain a competitive
advantage in todays 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 Informaticas 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 Companys
GAAP results are made with the intent of providing both management and investors a more complete
understanding of Informaticas 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 Informaticas
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 Informaticas
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)
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)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, | December 31, | |||||||
2011 | 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)
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)
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 | ||||
INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
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. |