- 29 January 2010 16:10
Informatica Reports Record Quarterly Revenues of US$151 Million and 25 Per Cent License Revenue Growth
Revenues for the fourth quarter of 2009 were US$150.9 million, up 21 percent from the US$124.4 million recorded in the fourth quarter of 2008. License revenues for the fourth quarter were US$71.6 million, up 25 percent from the US$57.2 million recorded in the fourth quarter of 2008. Income from operations for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was US$35.0 million.
This compares to US$39.5 million in income from operations in the fourth quarter of 2008, which included the one time benefit of US$11.5 million from patent-related litigation proceeds net of patent contingency accruals. GAAP net income for the fourth quarter of 2009 was US$25.0 million or US$0.25 per diluted share, up over 19 percent from US$19.9 million or US$0.21 per diluted share in the fourth quarter of 2008. For the three-month periods ended December 31, 2009 and December 31, 2008, earnings per diluted share is calculated on an “if converted” basis, including the add-back of US$1.0 million and US$1.1 million, respectively, of interest and convertible notes issuance cost amortization, net of income taxes.
Non-GAAP income from operations for the fourth quarter of 2009 was US$44.2 million, up 24 percent from US$35.6 million in the fourth quarter of 2008. Non-GAAP net income for the fourth quarter of 2009 was US$31.5 million or US$0.31 per diluted share, up 29 percent from US$23.5 million or US$0.24 per diluted share in the fourth quarter of 2008. Non-GAAP income from operations and non-GAAP net income exclude charges and benefits related to the amortization of acquired technology and intangible assets, share-based payments, facilities restructurings, acquisitions and other, and patent-related litigation proceeds net of patent contingency accruals. A reconciliation of GAAP results to non-GAAP results is included below.
For the year ended December 31, 2009, revenues were US$500.7 million, an increase of 10 percent from the US$455.7 million recorded in 2008. License revenues for the year 2009 were US$214.3 million, up nine percent from US$195.8 million for the year 2008. GAAP income from operations for 2009 was US$89.4 million, up six percent from US$84.2 million for 2008. GAAP net income for the year 2009 was US$64.2 million or US$0.66 per diluted share, up over 13 percent from US$56.0 million or US$0.58 per diluted share for the year 2008. Non-GAAP income from operations for the year of 2009 was US$125.2 million, up 24 percent from US$101.2 million for the year 2008. Non-GAAP net income for 2009 was US$89.6 million or US$0.91 per diluted share, up over 19 percent from US$74.8 million or US$0.76 per diluted share in 2008. For the years ended December 31, 2008 and December 31, 2009, earnings per diluted share is calculated on an “if converted” basis, including the add-back of US$4.0 million in 2009 and US$4.3 million in 2008 of interest and convertible notes issuance cost amortization, net of income taxes. Non-GAAP income from operations and non-GAAP net income exclude charges and benefits related to the amortization of acquired technology and intangible assets, share-based payments, facilities restructurings, acquisitions and other, and patent-related litigation proceeds net of patent contingency accruals.
“In 2009, we attained our fifth consecutive record year. Over the past five years, we consistently achieved year-over-year growth rates that are significantly faster than the enterprise software industry,” said Sohaib Abbasi, chairman and CEO of Informatica. “Clearly, our singular mission, compelling value proposition and the team’s relentless pace of innovation are driving record results in all economic times.”
Significant milestones achieved since October 2009 include:
Signed repeat business with 356 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included Alcatel-Lucent, Bell Mobility, British Sky Broadcasting, Monsanto, Standard & Poor’s, Thomson Corporation, Union Bank and US Xpress.
Added 74 new customers. Informatica increased its customer base this quarter to 3,931 companies. New customers included the Asseco Poland, Columbia Sportswear Company, ENMAX, the Federation of State Medical Boards, HealthNow of New York, Sensis and Tatung University.
Acquired Siperian, a visionary pioneer in the Master Data Management (MDM) infrastructure technology category. The new MDM Infrastructure category expands Informatica’s addressable market. Based on the existing tight integration between Informatica and Siperian products, Informatica is even better prepared to advance its leadership in its core data integration and MDM infrastructure markets.
Launched Informatica 9. The first and only data integration platform enabling the data-driven enterprise through Business-IT Collaboration, Pervasive Data Quality and SOA-Based Data Services. The Platform combines products in six categories: enterprise data integration, data quality, B2B data exchange, application information lifecycle management, complex event processing and cloud computing data integration.
Launched Informatica Cloud 9. A comprehensive offering for cloud integration, comprised of the Informatica Cloud Platform - a multi-tenant, enterprise-class data integration platform-as-a-service, new and enhanced cloud software-as-a-service offerings and Informatica Address Quality Cloud Services running on Amazon EC2.
Achieved SWIFT Certification. Scoring 99% to 100% from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on rigorous SWIFTReady MDS Certification, the Informatica Platform achieved one of the most technically advanced solution categories defined by SWIFT.
Positioned in the Leaders Quadrant in the Gartner 2009 Data Integration Tools Magic Quadrant. According to the report, “Leaders in the data integration tools market are front-runners in the convergence of single purpose tools into an offering that supports a range of data delivery styles. These vendors are strong in the more traditional data integration patterns such as ETL, they support newer patterns such as data federation, and provide capabilities that enable data services in the context of SOA. Leaders have significant mind share in the market, and resources skilled with their tools are readily available. These vendors establish market trends, to a large degree, by providing new functional capabilities in their products, and by identifying new types of business problems where data integration tools can bring significant value.”
Informatica Cloud Data Loader named 2009 ‘Best Data Integration Tool’. For the second consecutive year Informatica, the preferred data integration partner for salesforce.com, garnered more four and five star reviews than any other integration product in its category. More than 500 companies around the world use Informatica Cloud to integrate their Salesforce CRM applications and Force.com platform with their back office systems.
Announced US$50 million Stock Repurchase Authorization. Informatica’s Board of Directors has approved US$50 million to replenish the existing authorization under the company’s common stock repurchase program, including the repurchase of its outstanding common stock and convertible notes from time to time. The company expects to repurchase shares to offset the otherwise dilutive impact of stock option exercise and restricted stock vesting activity. Purchases may be made, from time to time, in the open market and will be funded from available working capital. The number of shares to be purchased and the timing of purchases will be based on several factors, including the price of Informatica's stock, general business and market conditions, and other investment opportunities.
About Informatica Informatica Corporation (NASDAQ: INFA) is the world’s number one provider of data integration software. The Informatica Platform provides organizations with a comprehensive, unified, open and economical approach to lower IT costs and gain competitive advantage from their information assets. More than 3,900 enterprises worldwide rely on Informatica to access, integrate and trust their information assets held in the traditional enterprise and in the internet 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, 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-based compensation in its non-GAAP financial measures because of the different types of stock-based awards that companies may grant and because SFAS 123(R) 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 share-based payments, and we believe that share-based compensation will continue to be a significant recurring expense for the foreseeable future; because share-based 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 relating to Informatica’s opportunity for growth in the data integration market and the expected benefits of the Siperian acquisition to customers, to Informatica’s addressable market and to Informatica’s technology leadership. 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 (1) competition with larger companies that have longer operating histories and greater financial, technical, marketing, and other resources; (2) uncertainty in the state of IT spending and the continued growth in the market for data integration solutions in general; (3) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products; (4) successfully integrating Siperian, its products, technologies and employees into Informatica and achieve expected synergies and (5) retain key employees . Additional risks and uncertainties are included under the caption “Risk Factors” in Informatica’s report on Form 10-K for the year ended December 31, 2008 and 10-Q for the quarter ended September 30, 2009, which are on file with the SEC and is available on the Company’s investor relations website at http://www.informatica.com/. All information provided in this release is as of January 28, 2010 and Informatica undertakes no duty to update this information. ###
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.