Informatica Reports Second Quarter Results

27 July 2012

Total revenues of $190.5 million

GAAP earnings per diluted share of $0.18 and non-GAAP earnings per diluted share of $0.29

Deferred revenues of $236.7 million, up $2.0 million sequentially and up $40.5 million year over year

First half 2012 total revenues of $386.5 million, up 7 percent year-over-year

Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, have announced financial results for the second quarter ended June 30, 2012.

“Our focus in the second half of 2012 is to address the operational challenges we faced in the second quarter, in these times of macroeconomic uncertainty,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “Our long-term conviction is based on increasing customer demand and the growing role of the Informatica Platform for the next generation analytics platform, big data and cloud computing.”

Financial Highlights for the Second Quarter Ended June 30, 2012

Total revenues for the second quarter of 2012 were $190.5 million, compared to $192.7 million in the second quarter of 2011. License revenues were $70.9 million, compared to $86.3 million in the second quarter of 2011.

Income from operations for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $28.2 million, compared to $36.2 million in the second quarter of 2011.

GAAP net income for the second quarter of 2012 was $20.1 million, compared to $26.2 million in the second quarter of 2011, and GAAP net income per diluted share was $0.18, compared to $0.23 per diluted share in the second quarter of 2011.

Non-GAAP income from operations for the second quarter of 2012 was $45.9 million, compared to $52.5 million in the second quarter of 2011. Non-GAAP net income for the second quarter of 2012 was $32.4 million, compared to $37.7 million in the second quarter of 2011 and non-GAAP net income per diluted share was $0.29, compared to $0.33 per diluted share in the second 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 and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.

For the six month period ended June 30, 2012, revenues were $386.5 million, up from the $360.8 million recorded for the first six months of 2011. License revenues for the first six months of 2012 were $151.0 million, compared to $157.8 million in the first six months of 2011. Income from operations for the first six months of 2012, calculated in accordance with GAAP, was $66.2 million, compared to $68.1 million in the first six months of 2011. GAAP net income for the first six months of 2012 was $46.6 million, compared to $48.1 million in the first six months of 2011, and GAAP net income per diluted share was $0.41, compared to $0.43 per diluted share in the first six months of 2011. Non-GAAP income from operations for the first six months of 2012 was $102.5 million, up from $97.1 million in the first six months of 2011. Non-GAAP net income for the first six months of 2012 was $72.0 million, up from $68.6 million in the first six months of 2011 and non-GAAP net income per diluted share was $0.64, up from $0.62 per diluted share.

For the six months ended June 30, 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 April 2012:

Announced appointment of executive vice president, Worldwide Field Operations. A seasoned industry veteran with a strong track record for leading global, high-growth sales organizations, John T. McGee joined Informatica as executive vice president of Worldwide Field Operations. McGee is responsible for leading Informatica's worldwide field organization to scale to the next level.

Appointed Amy Chang to Board of Directors. As Global Head of Product, Google Analytics, Chang brings a broad range of technology experience at Google, eBay and McKinsey & Company to the Informatica Board of Directors. During her time at Google, Chang has advanced Google Analytics to become one of the most prominent platforms for the office of the CMO to leverage search, social and mobile data.

Announced Informatica 9.5 Platform and Informatica 9.5 Platform for Hadoop. Informatica 9.5 Platform empowers organizations to realize the promise of big data to gain business advantage. Informatica 9.5 Platform for Hadoop will offer interoperability, productivity and manageability that in turn will facilitate the mainstream adoption of Hadoop.

Released Informatica MDM 9.5. The latest version of Informatica's MDM solution provides capabilities in master data management for social media, Cloud, mobile computing and big data. Key elements include the social customer master and the master data timeline for effective date versioning.

Introduced new Informatica Cloud Connector for Google Cloud. Extending its Informatica Cloud integration Platform-as-a-Service (iPaaS), Informatica customers can now securely move data to and from Google Cloud services such as Google Cloud Storage and Google BigQuery.

Announced Informatica Cloud Spring 2012. The latest release of Informatica's Cloud integration Platform-as-a-Service includes a Cloud Connector Toolkit, Cloud Integration Templates and enterprise features.

Launched HParser on Amazon Elastic MapReduce. Informatica HParser leverages the power of the Hadoop framework on Amazon EMR and provides customers with immediate access to data parsing, hierarchical data mapping and transformation tools.

Attendance up 35 percent at twelfth user conference. Informatica World 2012 showcased technology for customers to maximize return on big data.

Expanded partnership with NEC. NEC announced availability of new data migration services, leveraging Informatica PowerCenter, to improve its system construction services to the Japanese market.

Announced $100 million increase to stock repurchase program. On July 5, 2012, Informatica's Board of Directors added $100 million to augment the existing authorization under the company's common stock repurchase program. With this increase, Informatica has approximately $147 million available for common stock repurchases.

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