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Informatica Reports Quarterly Revenues of $234.7 Million and Record Annual Revenues of $811.6 Million(GlobeNewswire Via Acquire Media NewsEdge) Achieves Sequential License Revenue Growth of 58 Percent Quarterly total revenues of $234.7 millionRecord total annual revenues of $811.6 millionFourth quarter GAAP earnings per diluted share of $0.28 and non-GAAP earnings per diluted share of $0.41Annual GAAP earnings per diluted share of $0.83 and non-GAAP earnings per diluted share of $1.31 Signed 142 deals over $300,000 and 26 deals over $1 million Deferred revenues of $250.8 million REDWOOD CITY, Calif., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the fourth quarter and year ended December 31, 2012. "Our fourth quarter 2012 results demonstrate our progress to regain our operational discipline," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "Our conviction in our long-term opportunity is firmer than ever for three reasons: first, our increasing addressable market; second, promising new opportunities driven by market and technology trends of big data and cloud computing; and third, our own measures to more effectively scale our business." Financial Highlights for the Fourth Quarter and Year Ended December 31, 2012 Total revenues for the fourth quarter of 2012 were $234.7 million, compared to $227.1 million in the fourth quarter of 2011. License revenues were $104.0 million, compared to $112.1 million in the fourth quarter of 2011. Income from operations for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $44.6 million, compared to $59.4 million in the fourth quarter of 2011. GAAP net income for the fourth quarter of 2012 was $31.1 million, compared to $42.4 million in the fourth quarter of 2011, and GAAP net income per diluted share was $0.28, compared to $0.38 per diluted share in the fourth quarter of 2011. Non-GAAP income from operations for the fourth quarter of 2012 was $64.7 million, compared to $74.5 million in the fourth quarter of 2011. Non-GAAP net income for the fourth quarter of 2012 was $45.2 million, compared to $53.2 million in the fourth quarter of 2011 and non-GAAP net income per diluted share was $0.41, compared to $0.47 per diluted share in the fourth quarter of 2011. 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 acquisition-related adjustments, acquisition and other expenses and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below. For the year ended December 31, 2012, revenues were $811.6 million, up from the $783.8 million in 2011. License revenues for the year ended December 31, 2012 were $321.0 million, compared to $353.7 million in 2011. Income from operations for the year ended December 31, 2012, calculated in accordance with GAAP, was $136.0 million, compared to $164.7 million in 2011. GAAP net income for the year ended December 31, 2012 was $93.2 million, compared to $117.5 million in 2011 and GAAP net income per diluted share was $0.83, compared to $1.05 per diluted share in 2011. Non-GAAP income from operations for the year ended December 31, 2012 was $212.3 million, compared to $225.1 million in 2011. Non-GAAP net income for the year ended December 31, 2012 was $147.1 million, compared to $159.9 million in 2011 and non-GAAP net income per diluted share was $1.31, compared to $1.43 per diluted share. For the year ended December 31, 2011, earnings per diluted share was calculated on an "if converted" basis, including the add-back of $0.8 million, of interest and convertible notes issuance cost amortization, net of applicable income taxes until the redemption of the convertible notes on March 18, 2011. Additional Highlights Achieved Since October 2012: Informatica PowerCenter Big Data Edition wins industry accolade. Recognized in the 2012 Ventana Research Leadership and Technology Innovation Awards, Informatica won the top award in the Information Management category for the newly-released PowerCenter Big Data Edition.Recognized as a Leader in Data Masking Technology. The 2012 Gartner Magic Quadrant for Data Masking Technology notes, "Leaders demonstrate balanced progress in execution and vision. Their actions raise the competitive bar for all vendors and solutions in the market, and they tend to set the pace for the industry."Announced Informatica Cloud Winter 2013. Included in the release are new features that extend Informatica Cloud functionality, ease of use and performance and advances in cloud master data management (MDM) as well as expanded availability of cloud connectors.Introduced Ultra Messaging Dynamic Routing Option. This new option extends Informatica Ultra Messaging products with automatic best-path selection and global guaranteed delivery across WAN and LAN environments to deliver higher availability and support "big data in motion" initiatives.Informatica Marketplace reaches new growth milestones. Launched in 2010, the Informatica Marketplace has grown by 25,000 users to 125,000 active data integration users and developers, over the past year. Solution downloads are up 250 percent and site visits have increased 150 percent year over year.Named Margaret Breya as executive vice president and chief marketing officer. Responsible for worldwide marketing, Breya brings more than 25 years of marketing leadership experience at enterprise software category leaders including SAP, Business Objects and BEA as well as IT industry leaders including HP and Sun Microsystems.Concluded takeover offer for shares of Heiler Software AG. Informatica has secured 97.7 percent of all outstanding Heiler shares. The takeover offer is only the first step in the process to combine Heiler's business with Informatica's. Informatica intends to take further integration steps under German laws, which may not be complete until mid-to-late 2013. Informatica intends to combine Heiler's PIM solutions with its broader MDM business in order to offer customers better functionality and a more comprehensive range of services than many competing PIM-providers or MDM-providers can offer.Conference Call and Webcast Informatica will discuss its fourth quarter and full year 2012 results on a conference call today beginning at 2:00 p.m. PST. The live conference call can be accessed at http://www.informatica.com/investor or by dialing 866-799-9311, reservation number 69299164. A replay of the call will also be available by dialing 404-537-3406, reservation number 69299164. About Informatica Informatica Corporation (Nasdaq:INFA) is the world's number one independent provider of data integration software. Organizations around the world rely on Informatica for maximizing return on data to drive their top business imperatives. Worldwide, over 5,000 enterprises depend on Informatica to fully leverage their information assets residing on-premise, in the Cloud and across social networks. 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, 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 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 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 our long-term market opportunities and our future plans for Heiler Software AG. 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; sales execution; and uncertainty in the state of IT spending and the growth of the market for data integration solutions in general and, with respect to our plans for Heiler Software AG, risks related to the completion of further integration steps, product integration and the failure of the market to develop as expected. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, 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 January 24, 2013 and Informatica undertakes no duty to update this information. Note: Informatica, PowerCenter, PowerCenter Big Data Edition, Informatica Cloud and Ultra Messaging 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 CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data) Three Months EndedYears Ended December 31, December 31, 2012201120122011 (unaudited)(unaudited) Revenues: License $ 104,047 $ 112,084 $ 320,982 $ 353,664 Service 130,694 115,049 490,589 430,115 Total revenues 234,741 227,133 811,571 783,779 Cost of revenues: License 1,280 1,342 4,490 5,011 Service 33,388 31,830 126,152 118,941 Amortization of acquired technology 5,816 5,169 21,980 19,503 Total cost of revenues 40,484 38,341 152,622 143,455 Gross profit 194,257 188,792 658,949 640,324 Operating expenses: Research and development 38,046 34,435 143,607 132,528 Sales and marketing 92,067 77,111 305,682 278,073 General and administrative 17,247 16,866 63,616 57,373 Amortization of intangible assets 1,888 1,758 6,578 7,717 Facilities restructuring and facility lease termination costs (benefit), net (1,798) 710 (1,094) Acquisitions and other charges 408 1,034 2,797 1,029 Total operating expenses 149,656 129,406 522,990 475,626 Income from operations 44,601 59,386 135,959 164,698 Interest and other income, net 102 1,357 1,808 1,930 Income before income taxes 44,703 60,743 137,767 166,628 Income tax provision 13,637 18,357 44,585 49,133 Net income $ 31,066 $ 42,386 $ 93,182 $ 117,495 Net income per share: Basic $ 0.29 $ 0.40 $ 0.86 $ 1.13 Diluted (1) $ 0.28 $ 0.38 $ 0.83 $ 1.05 Shares used in per share calculation: Basic 107,627 106,555 107,874 103,956 Diluted 110,802 112,166 112,089 112,540 (1) Diluted EPS is calculated under the "if converted" method for the year ended December 31, 2011. This includes the add-back of $0.8 million of interest and convertible notes issuance cost amortization, net of applicable income taxes until the redemption of the convertible notes on March 18, 2011. INFORMATICA CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) December 31, 20122011 (unaudited) Assets Current assets: Cash and cash equivalents $ 190,127 $ 316,835 Short-term investments 345,478 285,579 Accounts receivable, net of allowances of $5,460 and $4,001, respectively 171,893 176,066 Deferred tax assets 23,350 21,591 Prepaid expenses and other current assets 29,396 23,206 Total current assets 760,244 823,277 Property and equipment, net 145,474 16,025 Goodwill and intangible assets, net 577,381 497,058 Long-term deferred tax assets 24,087 23,037 Other assets 5,031 21,351 Total assets $ 1,512,217 $ 1,380,748 Liabilities and Equity Current liabilities: Accounts payable and other current liabilities $ 128,742 $ 126,448 Income taxes payable 1,178 Accrued facilities restructuring charges 17,751 Deferred revenues 241,968 208,039 Total current liabilities 370,710 353,416 Accrued facilities restructuring charges, less current portion 5,543 Long-term deferred revenues 8,807 6,573 Long-term deferred tax liabilities 2,523 Long-term income taxes payable 21,195 16,709 Other liabilities 3,459 6,304 Total liabilities 406,694 388,545 Equity: Total Informatica Corporation stockholders' equity 1,103,105 992,203 Noncontrolling interest 2,418 Total equity 1,105,523 992,203 Total liabilities and equity $ 1,512,217 $ 1,380,748 INFORMATICA CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Years Ended December 31, 20122011 (unaudited) Operating activities: Net income $ 93,182 $ 117,495 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12,284 6,274 Share-based compensation 42,803 33,263 Deferred income taxes (4,651) 57 Tax benefits from share-based compensation 16,463 29,096 Excess tax benefits from share-based compensation (17,021) (29,952) Amortization of intangible assets and acquired technology 28,558 27,220 Other operating activities, net (854) (3,000) Changes in operating assets and liabilities: Accounts receivable 8,723 (28,272) Prepaid expenses and other assets 10,593 (20,218) Accounts payable and accrued liabilities (2,282) 9,215 Income taxes payable 1,553 12,860 Accrued facilities restructuring charges (23,977) (14,358) Deferred revenues 35,127 34,795 Net cash provided by operating activities 200,501 174,475Investing activities: Purchases of property and equipment (141,610) (12,743) Purchases of investments (266,088) (350,951) Investment in equity interest, net (257) 542 Maturities and sales of investments 208,399 326,966 Business acquisitions, net of cash acquired (90,542) (32,969) Net cash used in investing activities (290,098) (69,155)Financing activities: Net proceeds from issuance of common stock 41,351 58,727 Repurchases and retirement of common stock (80,983) (74,492) Redemption of convertible senior notes (4) Withholding taxes related to restricted stock units net share settlement (6,686) (6,218) Payment of contingent consideration (8,050) (1,000) Excess tax benefits from share-based compensation 17,021 29,952 Purchase of noncontrolling interest (437) Net cash provided by (used in) financing activities (37,784) 6,965 Effect of foreign exchange rate changes on cash and cash equivalents 673 (4,349) Net increase (decrease) in cash and cash equivalents (126,708) 107,936 Cash and cash equivalents at beginning of the year 316,835 208,899 Cash and cash equivalents at end of the year $ 190,127 $ 316,835 INFORMATICA CORPORATIONGAAP TO NON-GAAP RESULTS(in thousands, except per share data)(unaudited) Three Months Ended Years Ended December 31, December 31, 2012201120122011 Total revenues $ 234,741 $ 227,133 $ 811,571 $ 783,779 Operating income: GAAP operating income $ 44,601 $ 59,386 $ 135,959 $ 164,698 Percentage of GAAP operating income to total revenues 19%26%17%21% Plus: Amortization of acquired technology - Cost of revenues 5,816 5,169 21,980 19,503 Amortization of intangible assets - Operating expenses 1,888 1,758 6,578 7,717 Facilities restructuring and facility lease termination costs (benefit), net - Operating expenses (1,798) 710 (1,094) Building operating expense - Operating expenses (1) 731 1,502 Acquisitions and other charges - Operating expenses 408 1,034 2,797 1,029 Share-based compensation - Cost of revenues 1,178 940 4,349 3,539 Share-based compensation - Research and development 4,095 2,970 14,919 10,848 Share-based compensation - Sales and marketing 3,440 2,682 13,518 10,185 Share-based compensation - General and administrative 2,507 2,371 10,017 8,691 Non-GAAP operating income $ 64,664 $ 74,512 $ 212,329 $ 225,116 Percentage of Non-GAAP operating income to total revenues 28%33%26%29% Net income: GAAP net income $ 31,066 $ 42,386 $ 93,182 $ 117,495 Plus: Amortization of acquired technology - Cost of revenues 5,816 5,169 21,980 19,503 Amortization of intangible assets - Operating expenses 1,888 1,758 6,578 7,717 Facilities restructuring and facility lease termination costs (benefit), net - Operating expenses (1,798) 710 (1,094) Building operating expense - Operating expenses (1) 731 1,502 Acquisitions and other charges - Operating expenses 408 1,034 2,797 1,029 Share-based compensation - Cost of revenues 1,178 940 4,349 3,539 Share-based compensation - Research and development 4,095 2,970 14,919 10,848 Share-based compensation - Sales and marketing 3,440 2,682 13,518 10,185 Share-based compensation - General and administrative 2,507 2,371 10,017 8,691 Gain on sale of investment in equity interest (706) Income tax adjustments (5,911) (4,323) (22,407) (17,310) Non-GAAP net income $ 45,218 $ 53,189 $ 147,145 $ 159,897 Diluted net income per share: (2) Diluted GAAP net income per share $ 0.28 $ 0.38 $ 0.83 $ 1.05 Plus: Amortization of acquired technology 0.05 0.05 0.20 0.17 Amortization of intangible assets 0.02 0.01 0.06 0.07 Facilities restructuring and facility lease termination costs (benefit), net (0.02) 0.01 (0.01) Building operating expense (1) 0.01 0.01 Acquisitions and other charges 0.01 0.02 0.01 Share-based compensation 0.10 0.08 0.38 0.30 Gain on sale of investment in equity interest (0.01) Income tax adjustments (0.05) (0.04) (0.20) (0.15) Diluted Non-GAAP net income per share $ 0.41 $ 0.47 $ 1.31 $ 1.43 Shares used in computing diluted Non-GAAP net income per share 110,802 112,166 112,089 112,540 (1) Represents expense from operating future headquarters buildings purchased in February 2012 prior to expected occupancy by Informatica, which the Company previously reported in periods prior to the acquisition as a part of "Facilities restructuring charges (benefit) - Operating expenses." (2) Diluted EPS is calculated under the "if converted" method for the year ended December 31, 2011. This includes the add-back of $0.8 million of interest and convertible notes issuance cost amortization, net of applicable income taxes until the redemption of the convertible notes on March 18, 2011.CONTACT: Debbie O'Brien Corporate Communications + 1 650 385 5735 [email protected] Stephanie Wakefield Investor Relations + 1 650 385 5261 [email protected] Source: Informatica Corporation 2013 GlobeNewswire, Inc. |