[INFORMATICA LOGO]
EXHIBIT 99.1
Contact: Samantha Moore Stephanie Moser
Informatica Corporation Informatica Corporation
650-385-5259 650-385-5261
mobile/650-996-3251 smoser@informatica.com
smoore@informatica.com
INFORMATICA CORPORATION ANNOUNCES ADJUSTMENTS TO 2003 REVENUE ALLOCATION
REDWOOD CITY, February 23, 2004 -- Informatica Corporation (NASDAQ: INFA) today
announced that it is adjusting its previously announced 2003 revenues to correct
an error in the allocation of revenues between license and service components.
Informatica discovered the error, which had been applied consistently since the
fourth quarter of 1999, in the course of responding to the SEC's review of the
Form S-3 Registration Statement filed October 14, 2003 in connection with the
acquisition of Striva Corporation. Immediately upon discovery, Informatica
reviewed this matter with the SEC and began applying the proper allocation
methodology for the fourth quarter 2003.
License revenues generated during the fourth quarter of 2003 were properly
recorded at $27.4 million before the net cumulative impact of the error from
prior periods. The net cumulative impact over the four plus year period and the
impact for any quarter or annual period are not material. Informatica will not
be amending any of its periodic reports already filed with the SEC or revising
any results prior to 2003.
As a result of discussions with the SEC staff, and since Informatica has not yet
filed its 2003 Form 10-K, Informatica is adjusting certain of its previously
announced results of operations for the quarters and fiscal year 2003 to reflect
the impact of the error in the allocation of revenue during 2003, and the
cumulative impact of the correction for previous periods. The adjustments to the
previously announced 2003 quarterly results
will be reflected in the notes to Informatica's consolidated financial
statements for the year ended December 31, 2003 to be filed on Form 10-K. The
correction to the allocation methodology and the resulting adjustments will not
impact Informatica's current guidance for revenue and earnings for the first
quarter or fiscal year 2004.
The impact of the error is detailed in the attached table.
In the event that there are additional questions in connection with this matter,
Informatica will be holding a conference call today beginning at 2:30 p.m. PST.
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 67141446.
This press release contains forward-looking statements regarding the Company's
guidance for revenue and earnings for the first quarter of 2004 and the year
ended December 31, 2004. Factors that could cause actual results to differ
materially include uncertainty regarding the pace of IT capital spending, the
level of demand for the Company's products, the integration of the Company's
recent acquisition of Striva Corporation with the rest of the Company's
operations, risks associated with rapid technological change, as well as
additional risk factors described in the Company's annual report on Form 10-K
for the year ended December 31, 2002 and updated in the Company's report on Form
10-Q for the quarter ended September 30, 2003. The Company assumes no duty to
update the information in this release.
ABOUT INFORMATICA
Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration
and business intelligence software. Using Informatica products, companies can
leverage their existing information assets for enterprise insight that helps
them improve business performance, increase customer profitability, streamline
supply chain operations and proactively manage regulatory compliance. More than
1,900 companies worldwide rely on Informatica to meet their end-to-end needs for
enterprise data integration and business
intelligence. For more information, call 1.650.385.5000 (1.800.970.1179 in the
U.S.), or visit the Informatica Web site at www.informatica.com.
###
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.
INFORMATICA CORPORATION
SELECTED DATA FROM THE STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
AS PREVIOUSLY REPORTED:
For the first three quarters of 2003, amounts were reported on Form 10-Q of each
quarter; for fourth quarter and annual 2003, amounts were reported in our
January 22, 2004 earnings release.
THREE MONTHS ENDED
------------------------------------------------- YEAR ENDED
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
-------- ------- ------------ ----------- -----------
License revenues $ 23,581 $ 24,197 $ 22,774 $ 27,441 $ 97,993
Service Revenues 24,967 26,350 27,903 29,229 108,449
-------- -------- -------- -------- --------
Total revenues 48,548 50,547 50,677 56,670 206,442
Income (loss) from operations 539 2,556 (2,298) 2,487 3,284
Net income (loss) $ 1,169 $ 3,217 ($ 184) $ 4,017 $ 8,219
Net income (loss) per share:
Basic $ 0.01 $ 0.04 ($ 0.00) $ 0.05 $ 0.10
Diluted $ 0.01 $ 0.04 ($ 0.00) $ 0.04 $ 0.10
IMPACT OF ERROR:
Represents impact of the overallocation of license revenues and underallocation
of support revenues for the three quarters of the year prior to the correction
of the error effective October 1, 2003.
THREE MONTHS ENDED
------------------------------------------------ YEAR ENDED
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
-------- ------- ------------ ----------- -----------
License revenues overallocation ($ 715) ($ 609) ($ 704) $ -- ($2,028)
Service Revenues underallocation 588 681 632 -- 1,901
------- ------- ------- ------- -------
Total revenues (overallocation)/underallocation (127) 72 (72) 0 (127)
IMPACT OF CUMULATIVE ADJUSTMENT:
Represents negative adjustment to the fourth quarter license revenues for the
support revenues which will be recognized over the period from the fourth
quarter of 2003 to the third quarter of 2004.
THREE MONTHS ENDED
------------------------------------------------- YEAR ENDED
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
-------- ------- ------------ ----------- -----------
License revenues negative adjustment $ -- $ -- $ -- ($1,375) ($1,375)
Service Revenues impact -- -- -- 593 593
-------- -------- --------- ------- -------
Total revenues negative adjustment -- -- -- (782) (782)
Note: The net deferred revenue as of December 31, 2003 will be recognized as
$408, 257 and 117 in the first three quarters of 2003, respectively.
AS REVISED:
Represents amounts "As Previously Reported" for the four quarters and year ended
December 31, 2003 as revised for the "Impact of Error" and "Impact of Cumulative
Adjustment".
THREE MONTHS ENDED
------------------------------------------------- YEAR ENDED
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
-------- ------- ------------ ----------- -----------
License revenues $ 22,866 $ 23,588 $ 22,070 $ 26,066 $ 94,590
Service Revenues 25,555 27,031 28,535 29,822 110,943
-------- -------- -------- -------- --------
Total revenues 48,421 50,619 50,605 55,888 205,533
Income (loss) from operations 412 2,628 (2,370) 1,705 2,375
Net income (loss) $ 1,042 $ 3,289 ($ 256) $ 3,235 $ 7,310
Net income (loss) per share:
Basic $ 0.01 $ 0.04 $ (0.00) $ 0.04 $ 0.09
Diluted $ 0.01 $ 0.04 $ (0.00) $ 0.04 $ 0.09