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Informatica Reports Second Quarter Revenues of $250.7 Million(GlobeNewswire Via Acquire Media NewsEdge) Achieved over $1 billion of revenues in a 12-month period for the first time in company historySecond quarter software revenues of $103.5 million, up 13 percent year-over-yearSecond quarter subscription revenues of $16.2 million, up 43 percent year-over-yearSecond quarter GAAP earnings per diluted share of $0.20, up 25% year-over-year, and non-GAAP earnings per diluted share of $0.35, up 13% year-over-yearREDWOOD CITY, Calif., July 24, 2014 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the second quarter ended June 30, 2014. "I would like to recognize the Informatica team for achieving a significant corporate milestone: exceeding $1 billion dollars in revenue over the past 12-month period," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "We are positioned for sustained growth with an expansive product portfolio and an innovation plan that are well-aligned with the strategic priorities of our customers." Financial Highlights for the Second Quarter Ended June 30, 2014 Total revenues for the second quarter of 2014 were $250.7 million, an increase of 13 percent from $222.4 million in the second quarter of 2013. Software revenues were $103.5 million, an increase of 13 percent from $91.4 million in the second quarter of 2013. Within software revenues, license revenues were $87.3 million, up nine percent year-over-year, and subscription revenues were $16.2 million, up 43 percent year-over-year. Income from operations for the second quarter of 2014, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $33.8 million, up 30 percent from $25.9 million in the second quarter of 2013. GAAP net income for the second quarter of 2014 was $22.8 million, up 26 percent from $18.2 million in the second quarter of 2013, and GAAP net income per diluted share was $0.20, up 25 percent from $0.16 per diluted share in the second quarter of 2013. Non-GAAP income from operations for the second quarter of 2014 was $54.6 million, up 10 percent from $49.6 million in the second quarter of 2013. Non-GAAP net income for the second quarter of 2014 was $38.5 million, up 13 percent from $34.1 million in the second quarter of 2013 and non-GAAP net income per diluted share was $0.35, up 13 percent from $0.31 per diluted share in the second quarter of 2013. These non-GAAP results exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, building operating expenses related to the headquarters move, acquisition and other charges (benefit), acquisition integration-related tax expenses, and stock-based compensation. A reconciliation of GAAP results to non-GAAP results is included below. For the six month period ended June 30, 2014, total revenues were $493.8 million, up 13 percent from $436.7 million in the first six months of 2013. Software revenues for the first six months of 2014 were $206.5 million, up 15 percent from $179.3 million in the first six months of 2013. Within software revenues, license revenues were $175.8 million, up 11 percent year-over-year, and subscription revenues were $30.7 million, up 45 percent year-over-year. Income from operations for the first six months of 2014, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $70.6 million, up 40 percent from $50.6 million in the first six months of 2013. GAAP net income for the first six months of 2014 was $47.7 million, up 32 percent from $36.1 million in the first six months of 2013, and GAAP net income per diluted share was $0.43, up 34 percent from $0.32 per diluted share in the first six months of 2013. Non-GAAP income from operations for the first six months of 2014 was $111.3 million, up 14 percent from $97.8 million in the first six months of 2013. Non-GAAP net income for the first six months of 2014 was $78.1 million, up 13 percent from $68.9 million in the first six months of 2013 and non-GAAP net income per diluted share was $0.70, up 13 percent from $0.62 per diluted share in the first six months of 2013. Additional Highlights Since April 2014: Announced role transition for Earl Fry. Informatica's CFO, CAO and executive vice president, global customer support and services, will transition to a new role within the company by the end of 2014. Mr Fry will retain responsibility for global customer support and professional services, as well as assume additional business planning and operational responsibilities. Mr. Fry will continue to serve as Informatica's CFO until a replacement has been named.Announced appointment of Charles Race as EVP, Worldwide Field Operations. Mr. Race, currently Informatica's senior vice president, EMEA sales, brings over nine years of strong leadership experience with the company. He will replace John McGee, who is departing Informatica for another opportunity.Approved additional $100 million stock repurchase authorization. Informatica's Board of Directors has approved an additional $100 million to augment the existing authorization under the company's common stock repurchase program.Acquired StrikeIron, Inc. to extend cloud-based data-as-a-service offering. StrikeIron expands Informatica Cloud capabilities to now include phone, e-mail and SMS data validation services.Hosted largest and most successful Informatica World to date. Attendees were up 17 percent year-over-year. Conference highlights included: keynotes from strategic partners, such as Cloudera and Amazon, and presentations by 76 customers showcasing initiatives in areas such as Big Data and the Internet of Things.Introduced several new products based on Informatica's Intelligent Data Platform (IDP). These include data-centric security (Secure@Source), self-service data integration for business users (Project Springbok) and 360-degree views of business entities (MDM 10).Announced a 60-day free trial of Informatica Cloud for Amazon Redshift. The free trial enables companies to quickly and reliably import data into Amazon Redshift from on-premises enterprise systems or other cloud applications.Recognized as a leader in five recent independent market research studies. Gartner positioned Informatica in the leaders quadrant of its 2014 Magic Quadrant for Data Integration Tools and 2014 Magic Quadrant for Structured Data Archiving and Application Retirement reports. Forrester named Informatica a leader in three The Forrester Wave™ reports: Product Information Management (Q2 2014), Data Governance Tools (Q2 2014) and Big Data Streaming Analytics Platforms (Q3 2014).Conference Call and Webcast Informatica will discuss its second quarter 2014 results on a conference call today beginning at 2:00 p.m. PT. The live conference call can be accessed at http://www.informatica.com/investor or by dialing 888-339-2688, passcode 28480250. A replay of the call will also be available by dialing (888) 286-8010, passcode 90104010. 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 to realize their information potential and drive top business imperatives. Informatica Vibe, the industry's first and only embeddable virtual data machine (VDM), powers the unique "Map Once. Deploy Anywhere." capabilities of the Informatica Platform. Worldwide, over 5,000 enterprises depend on Informatica to fully leverage their information assets from devices to mobile to social to big data 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 is 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 includes forward looking statements, such as those related to our growth opportunities and our executive officer changes. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the statements made in this press release. Potential risks and uncertainties that could cause actual results to differ include, among others, risks and uncertainties related to competition, product introductions and enhancements, quarterly and seasonal fluctuations, macroeconomic and geopolitical conditions, our ability to forecast sales and trends in our business, reductions in our sales pipeline and pipeline conversion rates, changes to our sales cycles, changes in our product offering strategies, our international operations and the loss of key personnel. A discussion of these and other risks and uncertainties is included in our recent SEC filings, including our most recent report on Form 10-Q. Copies of these documents may be obtained from the SEC, by contacting our investor relations department or from our investor relations website at www.informatica.com/investor. All information provided in this press release is as of July 24, 2014, and Informatica assumes no obligation and does not intend to update or revise any forward-looking statements made in this press release as a result of new information or future events. Note: Informatica, Informatica Vibe, Informatica Platform, Informatica Cloud, Intelligent Data Platform, and Secure@Source 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)(unaudited) Three Months EndedSix Months Ended June 30, June 30, 2014201320142013 Revenues: Software $ 103,455 $ 91,428 $ 206,498 $ 179,334 Service 147,258 131,011 287,312 257,405 Total revenues 250,713 222,439 493,810 436,739 Cost of revenues: Software 2,450 2,501 5,569 4,643 Service 43,343 36,463 83,572 72,493 Amortization of acquired technology 3,286 5,621 7,271 11,345 Total cost of revenues 49,079 44,585 96,412 88,481 Gross profit 201,634 177,854 397,398 348,258 Operating expenses: Research and development 48,850 41,668 94,535 81,191 Sales and marketing 96,784 89,510 188,368 173,567 General and administrative 20,019 19,181 40,072 37,668 Amortization of intangible assets 1,384 2,000 2,920 3,988 Acquisitions and other charges (benefit) 771 (436) 860 1,214 Total operating expenses 167,808 151,923 326,755 297,628 Income from operations 33,826 25,931 70,643 50,630 Interest and other income, net 815 374 1,757 1,076 Income before income taxes 34,641 26,305 72,400 51,706 Income tax provision 11,812 8,139 24,718 15,633 Net income $ 22,829 $ 18,166 $ 47,682 $ 36,073 Net income per share: Basic $ 0.21 $ 0.17 $ 0.44 $ 0.33 Diluted $ 0.20 $ 0.16 $ 0.43 $ 0.32 Shares used in per share calculation: Basic 109,739 108,138 109,453 107,904 Diluted 111,601 111,344 111,770 111,305 INFORMATICA CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) June 30, December 31, 20142013 (unaudited) Assets Current assets: Cash and cash equivalents $ 257,772 $ 297,818 Short-term investments 428,399 379,616 Accounts receivable, net of allowances of $4,028 and $4,135, respectively 181,493 204,374 Deferred tax assets 46,773 32,898 Prepaid expenses and other current assets 46,275 34,541 Total current assets 960,712 949,247 Property and equipment, net 159,318 157,308 Goodwill and intangible assets, net 608,317 564,767 Long-term deferred tax assets 30,674 44,865 Other assets 6,335 6,834 Total assets $ 1,765,356 $ 1,723,021 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and other current liabilities $ 134,666 $ 144,493 Income taxes payable — 14,184 Deferred revenues 296,681 285,184 Total current liabilities 431,347 443,861 Long-term deferred revenues 14,113 12,938 Long-term deferred tax liabilities 45 44 Long-term income taxes payable 30,641 29,878 Other liabilities 4,145 550 Stockholders' equity 1,285,065 1,235,750 Total liabilities and stockholders' equity $ 1,765,356 $ 1,723,021 INFORMATICA CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Six Months Ended June 30, 20142013Operating activities: Net income $ 47,682 $ 36,073 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,066 7,263 Stock-based compensation 29,607 29,379 Deferred income taxes (3,426) (3,663) Tax benefits from stock-based compensation 225 3,518 Excess tax benefits from stock-based compensation (2,634) (4,810) Amortization of intangible assets and acquired technology 10,191 15,333 Other operating activities, net — (2,462) Changes in operating assets and liabilities: Accounts receivable 23,491 21,308 Prepaid expenses and other assets (2,324) (1,298) Accounts payable and accrued liabilities (6,009) (8,131) Income taxes payable (14,861) (4,572) Deferred revenues 11,073 20,989 Net cash provided by operating activities 102,081 108,927Investing activities: Purchases of property and equipment (8,707) (5,017) Purchases of investments (165,893) (232,304) Investment in equity interest, net (282) — Maturities and sales of investments 117,900 164,620 Business acquisitions, net of cash acquired (54,614) (7,464) Net cash used in investing activities (111,596) (80,165)Financing activities: Net proceeds from issuance of common stock 31,742 30,100 Repurchases and retirement of common stock (55,872) (42,982) Withholding taxes related to restricted stock units net share settlement (5,978) (5,570) Payment of contingent consideration (3,061) (2,490) Excess tax benefits from stock-based compensation 2,634 4,810 Purchase of acquiree stock — (6,365) Net cash used in financing activities (30,535) (22,497) Effect of foreign exchange rate changes on cash and cash equivalents 4 (3,344) Net increase (decrease) in cash and cash equivalents (40,046) 2,921 Cash and cash equivalents at beginning of period 297,818 190,127 Cash and cash equivalents at end of period $ 257,772 $ 193,048 INFORMATICA CORPORATIONGAAP TO NON-GAAP RESULTS(in thousands, except per share data)(unaudited) Three Months Ended Six Months Ended June 30, June 30, 2014201320142013Total revenues $ 250,713 $ 222,439 $ 493,810 $ 436,739 Operating income: GAAP operating income $ 33,826 $ 25,931 $ 70,643 $ 50,630 Percentage of GAAP operating income to total revenues 13%12%14%12% Plus: Amortization of acquired technology - Cost of revenues 3,286 5,621 7,271 11,345 Amortization of intangible assets - Operating expenses 1,384 2,000 2,920 3,988 Building operating expense - Operating expenses (1) — 591 — 1,231 Acquisitions and other charges (benefit) - Operating expenses 771 (436) 860 1,214 Stock-based compensation - Cost of revenues and Operating expenses (2) 15,361 15,849 29,607 29,379 Non-GAAP operating income $ 54,628 $ 49,556 $ 111,301 $ 97,787 Percentage of Non-GAAP operating income to total revenues 22%22%23%22% Net income: GAAP net income $ 22,829 $ 18,166 $ 47,682 $ 36,073 Plus: Amortization of acquired technology - Cost of revenues 3,286 5,621 7,271 11,345 Amortization of intangible assets - Operating expenses 1,384 2,000 2,920 3,988 Building operating expense - Operating expenses (1) — 591 — 1,231 Acquisitions and other charges (benefit) - Operating expenses 771 (436) 860 1,214 Stock-based compensation - Cost of revenues and Operating expenses (2) 15,361 15,849 29,607 29,379 Income tax adjustments (5,092) (7,647) (10,272) (14,306) Non-GAAP net income $ 38,539 $ 34,144 $ 78,068 $ 68,924 Diluted net income per share: Diluted GAAP net income per share $ 0.20 $ 0.16 $ 0.43 $ 0.32 Plus: Amortization of acquired technology 0.03 0.05 0.07 0.10 Amortization of intangible assets 0.01 0.02 0.02 0.04 Building operating expense (1) — 0.01 — 0.01 Acquisitions and other charges (benefit) 0.01 — 0.01 0.01 Stock-based compensation (2) 0.14 0.14 0.26 0.27 Income tax adjustments (0.04) (0.07) (0.09) (0.13) Diluted Non-GAAP net income per share $ 0.35 $ 0.31 $ 0.70 $ 0.62 Shares used in computing diluted Non-GAAP net income per share 111,601 111,344 111,770 111,305 _______________ (1) Represents expense from operating current headquarters buildings purchased in February 2012 prior to occupancy in September 2013 by Informatica. (2) The allocation of the stock-based compensation is as follows: Three Months Ended Six Months Ended June 30, June 30, 2014201320142013 Cost of service revenues $ 1,454 $ 1,433 $ 2,918 $ 2,763 Operating expenses: Research and development 5,214 4,978 9,876 9,418 Sales and marketing 5,137 5,686 9,843 10,375 General and administrative 3,556 3,752 6,970 6,823 Total stock-based compensation $ 15,361 $ 15,849 $ 29,607 $ 29,379CONTACT: Debbie O'Brien Global Communications + 1 650 385 5735 [email protected] Cherryl Valenzuela Investor Relations + 1 650 385 5289 [email protected] Source: Informatica Corporation 2014 GlobeNewswire, Inc. |