Informatica 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

INFORMATICA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended December 31, 2004									Three Months Ended December 31, 2004
	GAAP
	January 25, 2005			Restructuring						GAAP			Pro Forma
	Press Release			Adjustment			Actual			Actual			Adjustments*			Pro Forma
Revenues:
License	$	27,707		$	—		$	27,707		$	27,707		$	—		$	27,707
Service		32,339			—			32,339			32,339			—			32,339
Total revenues		60,046						60,046			60,046			—			60,046
Cost of revenues:
License		1,326			—			1,326			1,326			—			1,326
Service		10,201			—			10,201			10,201			(12	)		10,189
Amortization of acquired technology		582			—			582			582			(582	)		—
Total cost of revenues		12,109			—			12,109			12,109			(594	)		11,515
Gross profit		47,937			—			47,937			47,937			594			48,531
Operating expenses:
Research and development		11,757			—			11,757			11,757			(183	)		11,574
Sales and marketing		27,184			—			27,184			27,184			(55	)		27,129
General and administrative		5,139			—			5,139			5,139			(2	)		5,137
Amortization of intangible assets		47			—			47			47			(47	)		—
Restructuring charge		110,024			(7,061	)		102,963			102,963			(102,963	)		—
Total operating expenses		154,151			(7,061	)		147,090			147,090			(103,250	)		43,840
Income (loss) from operations		(106,214	)		7,061			(99,153	)		(99,153	)		103,844			4,691
Interest income and other, net		1,262			—			1,262			1,262			—			1,262
Income (loss) before income taxes		(104,952	)		7,061			(97,891	)		(97,891	)		103,844			5,953
Income tax provision		798			—			798			798			—			798
Net income (loss)	$	(105,750	)	$	7,061		$	(98,689	)	$	(98,689	)	$	103,844		$	5,155
Net income (loss) per share:
Basic	$	(1.22	)				$	(1.14	)	$	(1.14	)				$	0.06
Diluted	$	(1.22	)				$	(1.14	)	$	(1.14	)				$	0.06
Weighted shares used to compute net income (loss) per share:
Basic		86,565						86,565			86,565						86,565
Diluted		86,565						86,565			86,565						88,834

* The following table summarizes the pro forma adjustments for the period presented:

	Three Months Ended December 31, 2004
	January 25, 2005			Restructuring
	Press Release			Adjustment			Actual
Net income (loss), GAAP:	$	(105,750	)	$	7,061		$	(98,689	)
Amortization of acquired technology		582			—			582
Amortization of intangible assets		47			—			47
Amortization of stock-based compensation		252						252
Restructuring charge		110,024			(7,061	)		102,963
Net income, pro forma:	$	5,155		$	—		$	5,155

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Year Ended December 31, 2004									Year Ended December 31, 2004
	GAAP
	January 25, 2005			Restructuring						GAAP			Pro Forma
	Press Release			Adjustment			Actual			Actual			Adjustments*				Pro Forma
Revenues:
License	$	97,941		$	—		$	97,941		$	97,941		$	—			$	97,941
Service		121,740			—			121,740			121,740			—				121,740
Total revenues		219,681			—			219,681			219,681							219,681
Cost of revenues:
License		3,778			—			3,778			3,778			—				3,778
Service		40,346			—			40,346			40,346			(48	)			40,298
Amortization of acquired technology		2,322			—			2,322			2,322			(2,322	)			—
Total cost of revenues		46,446			—			46,446			46,446			(2,370	)			44,076
Gross profit		173,235			—			173,235			173,235			2,370				175,605
Operating expenses:
Research and development		51,322			—			51,322			51,322			(2,216	)			49,106
Sales and marketing		94,900			—			94,900			94,900			(803	)			94,097
General and administrative		20,755			—			20,755			20,755			78				20,833
Amortization of intangible assets		197			—			197			197			(197	)	��		—
Restructuring charge		119,697			(7,061	)		112,636			112,636			(112,636	)			—
Total operating expenses		286,871			(7,061	)		279,810			279,810			(115,774	)			164,036
Income (loss) from operations		(113,636	)		7,061			(106,575	)		(106,575	)		118,144				11,569
Interest income and other, net		3,391			—			3,391			3,391			—				3,391
Income (loss) before income taxes		(110,245	)		7,061			(103,184	)		(103,184	)		118,144				14,960
Income tax provision		1,220			—			1,220			1,220			—				1,220
Net income (loss)	$	(111,465	)	$	7,061		$	(104,404	)	$	(104,404	)	$	118,144			$	13,740
Net income (loss) per share:
Basic	$	(1.30	)				$	(1.22	)	$	(1.22	)					$	0.16
Diluted	$	(1.30	)				$	(1.22	)	$	(1.22	)					$	0.16
Weighted shares used to compute net income (loss) per share:
Basic		85,812						85,812			85,812							85,812
Diluted		85,812						85,812			85,812							88,583

     * The following table summarizes the pro forma adjustments for the period presented:

	Year Ended December 31, 2004
	January 25, 2005			Restructuring
	Press Release			Adjustment			Actual
Net income (loss), GAAP:	$	(111,465	)	$	7,061		$	(104,404	)
Amortization of acquired technology		2,322			—			2,322
Amortization of intangible assets		197			—			197
Amortization of stock-based compensation		2,989			—			2,989
Restructuring charge		119,697			(7,061	)		112,636
Net income, pro forma:	$	13,740		$	—		$	13,740

INFORMATICA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	December 31, 2004
	January 25, 2005		Restructuring
	Press Release		Adjustments			Actual
ASSETS
Current assets:
Cash and cash equivalents	$	88,941	$			$	88,941
Short-term investments		152,160					152,160
Accounts receivable, net		42,535					42,535
Prepaid expenses and other current assets		7,837					7,837
Total current assets		291,473		—			291,473
Property and equipment, net		20,206		(143	)		20,063
Restricted cash		12,166					12,166
Goodwill and intangible assets, net		85,125					85,125
Other assets		941					941
Total assets	$	409,911	$	(143	)	$	409,768
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other current liabilities	$	41,880	$			$	41,880
Deferred revenue		62,443					62,443
Accrued restructuring charges		20,641		(561	)		20,080
Accrued merger costs		209					209
Total current liabilities		125,173		(561	)		124,612
Accrued restructuring charges, less current portion		95,814		(6,643	)		89,171
Accrued merger costs, less current portion		263					263
Stockholders’ equity		188,661		7,061			195,722
Total liabilities and stockholders’ equity	$	409,911	$	(143	)	$	409,768

INFORMATICA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Year Ended December 31, 2004
	January 25, 2005			Restructuring
	Press Release			Adjustment			Actual
Operating activities
Net income (loss)	$	(111,465	)	$	7,061		$	(104,404	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		9,229						9,229
Provision for doubtful accounts and accounts receivable reserve		5						5
Stock-based compensation		3,358						3,358
Amortization of acquired technology and other intangible assets		2,519						2,519
Non-cash restructuring charge		21,413			143			21,556
Investment impairment charge(1)		—						500
Other		32						32
Changes in operating assets and liabilities:
Accounts receivable		(8,165	)					(8,165	)
Prepaid expenses and other current assets		(2,540	)					(2,540	)
Other assets(1)		164						(336	)
Accounts payable and other current liabilities		(4,190	)					(4,190	)
Accrued restructuring charges		101,288			(7,204	)		94,084
Accrued merger costs		(247	)					(247	)
Deferred revenue		11,131						11,131
Net cash provided by operating activities		22,532			—			22,532
Investing activities
Purchases of property and equipment, net		(12,515	)					(12,515	)
Purchases of investments		(217,849	)					(217,849	)
Sales and maturities of investments		205,782						205,782
Acquisitions, net of cash acquired		—						—
Net cash used in investing activities		(24,582	)		—			(24,582	)
Financing activities
Proceeds from issuance of common stock		13,298						13,298
Repurchase and retirement of common stock		(6,118	)					(6,118	)
Net cash provided by financing activities		7,180			—			7,180
Effect of foreign currency translation		908						908
Increase (decrease) in cash and cash equivalents		6,038						6,038
Cash and cash equivalents at beginning of period		82,903						82,903
Cash and cash equivalents at end of period	$	88,941		$	—		$	88,941

(1) The investment impairment charge was reported as a change in other assets in the January 25, 2004 Press Release.

     Pro forma operating results set forth in the financial statements above exclude charges related to an adjustment to the 2001 facilities restructuring charge, the 2004 restructuring charge, purchased in-process research and development, and the amortization of acquired technology, intangible assets and stock-based compensation. A reconciliation of pro forma operating results and GAAP results are included in the financial statements above.

     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 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.