Exhibit 99.1
(INFORMATICA LOGO)
Contacts: Samantha Moore Stephanie Moser
Public Relations Investor Relations
650-385-5259 650-385-5261
smoore@informatica.com smoser@informatica.com
INFORMATICA REPORTS FIRST QUARTER REVENUES OF $54.2 MILLION
ACHIEVES 81 PERCENT INCREASE IN PROFITABILITY
REDWOOD CITY, Calif., April 20, 2004 - Informatica Corporation (NASDAQ: INFA), a
leading provider of data integration and business intelligence software, today
announced financial results for the first quarter ended March 31, 2004.
Revenues for the first quarter of 2004 were $54.2 million, up from the
$48.4 million recorded in the first quarter of 2003. Net income for the first
quarter, calculated in accordance with U.S. generally accepted accounting
principles (GAAP), was $1.9 million or $0.02 per diluted share, compared with
net income of $1.0 million or $0.01 per diluted share in the first quarter of
2003. Pro forma net income for the first quarter of 2004 was $3.2 million or
$0.04 per diluted share, up from $1.4 million or $0.02 per diluted share in the
first quarter of 2003. Pro forma operating results discussed in this press
release exclude charges related to the amortization of acquired technology,
intangible assets and stock-based compensation. A reconciliation of pro forma
operating results and GAAP results is included in the financial statements
attached below.
"Informatica's strengthened sales management, deeper geographic focus and
strong product hand translate into customer success and position us for further
expansion this year," said Gaurav Dhillon, president and CEO of Informatica. "We
believe our persistent focus on infrastructure is paying off and we look to the
rest of the year with optimism."
Significant milestones achieved in the first quarter of 2004 include:
- SIGNED REPEAT BUSINESS WITH 93 CUSTOMERS. Customers continue to
derive considerable value from their investments in Informatica
solutions. Repeat customers included Alltel Communications, Bank of
Montreal, Best Buy, CIBC, Cingular Wireless, DaimlerChrysler,
Deutsche Bank, Electronic Arts, HP and Sony.
- SIGNED 55 NEW CUSTOMERS. Informatica increased its customer base
this quarter to 1,990 companies. New customers included Cadbury
Schweppes Americas Beverages, Lawrence Livermore Labs, Leap Frog
Enterprises, New Jersey Manufactures Insurance Group, Ontario Power
Generation Inc., Robeco Finance and Worthington Industries.
- NAMED ORACLE VETERAN TO BOARD OF DIRECTORS. Sohaib Abbasi, a former
member of Oracle's executive committee, brings extensive software
industry and organization-building experience to Informatica. Abbasi
joined Oracle in 1982 and in 1985 envisioned and launched the Oracle
Tools business, which he subsequently grew to $3.75 billion in
cumulative license revenues.
- SUPERGLUE NAMED "VISIONARY" BY LEADING INDUSTRY ANALYST FIRM.
Recently evaluated in leading marketplace research, SuperGlue is the
first standards-based enterprise metadata management solution that
integrates metadata from disparate systems, and offers thin-client
visualization and analysis capabilities for enhanced understanding
of an organization's IT environment. Version 1.5 of SuperGlue is now
generally available.
- FURTHER BROADENED PARTNERSHIP WITH IBM. PowerCenter became part of
IBM's Risk and Compliance - Basel II Information Management
solution. Informatica continues to work with IBM to add solutions to
the existing joint Business Performance Management offering, and
also joined IBM's ISV Alliance Advantage program in Europe, the
Middle East and Africa to support small to medium-sized enterprises,
particularly in the insurance and financial services sector.
- EXPANDED INFORMATICA DEVELOPER NETWORK TO 13,500. With a presence in
more than 90 countries, Informatica's three-year-old collaborative
online community is the largest data integration developer network
in the world. The Informatica Developer Network helps accelerate the
creation of effective customer-developed and third-party add-on
solutions.
- DEMONSTRATED 500 PERCENT POTENTIAL SAVINGS WITH INFORMATICA. A Total
Economic Impact(TM) study by Forrester Consulting found that the
Informatica PowerCenter data integration platform offers the
potential for ROI of up to $3.5 million and up to 500 percent
savings in development costs over hand-coded data integration
processes,
particularly for global companies with complex data warehouse and
data integration needs.
- ANNOUNCED INFORMATICA WORLD 2004 IN SCOTLAND. Informatica's annual
user conference will take place May 5-7 in Edinburgh, Scotland. Key
partners such as HP and IBM, as well as key European customers such
as British Airways and Deutsche Boerse will present keynotes at the
conference.
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 current period 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.
Informatica will be discussing its first quarter 2004 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 617-801-6888, reservation
number 69604579.
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.
This Press Release contains forward-looking statements that have been made
pursuant to the provisions of the Private Securities Litigation Reform Act of
1995, particularly statements referencing the Company's potential expansion this
year. These statements are not guarantees of future developments and are subject
to certain risks, uncertainties and assumptions that are difficult to predict;
therefore, actual results and outcomes may differ materially from what is
expressed in any such forward-looking statements. Such risks and uncertainties
include the effects of changes in sales management, the impact of focusing sales
efforts on certain geographic regions, possible delays in the development,
availability and shipment of new products and enhancements to existing products,
and risks associated with changes in general economic conditions. Further risks
are detailed in our SEC reports, including the Form 10-K for 2003, and
subsequent Form 10-Q filings. Unless required by law, we undertake no obligation
to update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
###
Note: Informatica, PowerCenter and SuperGlue are the 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 OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2004 MARCH 31, 2003
------------------------------------ ------------------------------------
GAAP ADJUSTMENTS* PRO FORMA GAAP ADJUSTMENTS* PRO FORMA
Revenues:
License $ 24,918 $ -- $ 24,918 $ 22,866 $ -- $ 22,866
Service 29,255 -- 29,255 25,555 -- 25,555
-------- -------- -------- -------- -------- --------
Total revenues 54,173 54,173 48,421 48,421
Cost of revenues:
License 1,101 -- 1,101 587 -- 587
Service 10,071 -- 10,071 9,237 -- 9,237
Amortization of acquired technology 574 (574) -- 260 (260) --
-------- -------- -------- -------- -------- --------
Total cost of revenues 11,746 (574) 11,172 10,084 (260) 9,824
-------- -------- -------- -------- -------- --------
Gross profit 42,427 574 43,001 38,337 260 38,597
Operating expenses:
Research and development 12,905 -- 12,905 11,340 -- 11,340
Sales and marketing 22,302 -- 22,302 21,140 -- 21,140
General and administrative 4,978 -- 4,978 5,396 -- 5,396
Amortization of intangible assets 55 (55) -- 25 (25) --
Amortization of stock-based compensation 638 (638) -- 24 (24) --
-------- -------- -------- -------- -------- --------
Total operating expenses 40,878 (693) 40,185 37,925 (49) 37,876
-------- -------- -------- -------- -------- --------
Income from operations 1,549 1,267 2,816 412 309 721
Interest income and other, net 689 -- 689 1,123 -- 1,123
-------- -------- -------- -------- -------- --------
Income before income taxes 2,238 1,267 3,505 1,535 309 1,844
Income tax provision 347 -- 347 493 -- 493
-------- -------- -------- -------- -------- --------
Net income $ 1,891 $ 1,267 $ 3,158 $ 1,042 $ 309 $ 1,351
======== ======== ======== ======== ======== ========
Net income per share:
Basic and diluted $ 0.02 $ 0.04 $ 0.01 $ 0.02
======== ======== ======== ========
Weighted shares used to compute net
income per share:
Basic 84,811 84,811 80,530 80,530
======== ======== ======== ========
Diluted 89,752 89,752 83,159 83,159
======== ======== ======== ========
* THE FOLLOWING TABLE SUMMARIZES THE PRO FORMA ADJUSTMENTS FOR THE
RESPECTIVE PERIODS PRESENTED:
THREE MONTHS ENDED
MARCH 31,
2004 2003
---- ----
NET INCOME, GAAP: $1,891 $1,042
AMORTIZATION OF ACQUIRED TECHNOLOGY 574 260
AMORTIZATION OF INTANGIBLE ASSETS 55 25
AMORTIZATION OF STOCK-BASED COMPENSATION 638 24
------ ------
NET INCOME, PRO FORMA: $3,158 $1,351
====== ======
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
MARCH 31, DECEMBER 31,
2004 2003
--------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 81,353 $ 82,903
Short-term investments 150,658 140,890
Accounts receivable, net 26,233 34,375
Prepaid expenses and other current assets 8,831 5,124
-------- --------
Total current assets 267,075 263,292
Property and equipment, net 36,605 38,734
Restricted cash 12,166 12,166
Goodwill and intangible assets, net 86,739 87,511
Other assets 1,582 1,105
-------- --------
Total assets $404,167 $402,808
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current liabilities $ 37,283 $ 45,828
Deferred revenue 54,730 51,282
Accrued restructuring charges 4,396 4,624
Accrued merger costs 390 543
-------- --------
Total current liabilities 96,799 102,277
Accrued restructuring charges, less current portion 9,682 10,543
Accrued merger costs, less current portion 236 389
Stockholders' equity 297,450 289,599
-------- --------
Total liabilities and stockholders' equity $404,167 $402,808
======== ========
INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
------------------------
2004 2003
--------- ---------
OPERATING ACTIVITIES
Net income $ 1,891 $ 1,169
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 2,731 2,927
Provision for doubtful accounts and accounts receivable reserve (207) 96
Amortization of stock-based compensation 1,008 24
Amortization of acquired technology and other intangible assets 629 285
Gain on the sale of investments -- (18)
Loss on disposal of property and equipment 2 --
Changes in operating assets and liabilities:
Accounts receivable 8,349 7,064
Prepaid expenses and other current assets (3,534) 1,077
Other assets (477) 14
Accounts payable and other current liabilities (8,545) (2,705)
Accrued restructuring charges (1,089) (1,193)
Accrued merger costs (93) --
Deferred revenue 3,418 (415)
--------- ---------
Net cash provided by operating activities 4,083 8,325
INVESTING ACTIVITIES
Purchases of property and equipment, net (846) (812)
Purchases of investments (51,390) (64,583)
Sales and maturities of investments 41,667 42,590
--------- ---------
Net cash provided by (used in) investing activities (10,569) (22,805)
FINANCING ACTIVITIES
Proceeds from issuance of common stock 5,131 2,697
Repurchase and retirement of common stock -- (7,565)
--------- ---------
Net cash provided by (used in) financing activities 5,131 (4,868)
--------- ---------
Effect of foreign currency translation (195) (42)
Increase (decrease) in cash and cash equivalents (1,550) (19,390)
Cash and cash equivalents at beginning of period 82,903 105,590
--------- ---------
Cash and cash equivalents at end of period $ 81,353 $ 86,200
========= =========