Informatica Reports Record First Quarter Revenues of $109.1 Million

Achieves Operating Income Growth of 21%


REDWOOD CITY, Calif., April 23, 2009 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the leading independent provider of enterprise data integration software and services, today announced financial results for the first quarter ended March 31, 2009.

Revenues for the first quarter of 2009 were $109.1 million, up five percent from the $103.7 million recorded in the first quarter of 2008. License revenues for the first quarter were $44.1 million, compared to $44.2 million recorded in the first quarter of 2008. Total revenues were negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, total revenues would have been $6.4 million higher in the first quarter of 2009.

Income from operations for the first quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was a first quarter record $15.0 million, up 21 percent from $12.4 million in the first quarter of 2008. GAAP income from operations was negatively impacted by currency fluctuations. Using currency exchange rates from the first quarter of 2008, GAAP income from operations would have been $0.8 million higher in the first quarter of 2009.

GAAP net income for the first quarter of 2009 was $11.1 million or $0.12 per diluted share, in comparison to $11.2 million or $0.12 per diluted share in the first quarter of 2008. For the three-month periods ended March 31, 2008 and March 31, 2009, earnings per diluted share is calculated on an "if converted" basis, including the add-back of $1.1 million of interest and convertible notes issuance cost amortization, net of income taxes.

Non-GAAP income from operations for the first quarter of 2009 was $23.6 million, up 28 percent from $18.5 million in the first quarter of 2008. Non-GAAP net income for the first quarter of 2009 was $17.1 million or $0.18 per diluted share, up over nine percent from $15.7 million or $0.16 per diluted share in the first quarter of 2008. 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 restructurings, and share-based payments. A reconciliation of GAAP results to non-GAAP results is included below.

"Our record first quarter results reaffirm our sound strategy and the Informatica team's operational discipline, particularly in light of the current global economic recession," said Sohaib Abbasi, chairman and CEO of Informatica. "With our singular focus and track record of continual innovation, we are well-positioned with a compelling value proposition. Our strongest-ever product portfolio enables our customers to "do more with less" while aligning IT with top business imperatives."

Significant milestones achieved since January 2009 include:



    * Signed repeat business with 190 customers. Customers continue
      to derive considerable value from their investments in
      Informatica solutions. Repeat customers included Amtrak,
      Chinabond, EchoStar Communications, New York Police Department,
      Union Bank of California, Virgin Media, and Vivo Celular.

    * Added 212 new customers. Informatica increased its customer
      base this quarter to 3,664 companies including a first quarter
      record 59 new Informatica customers and 153 customers added
      through the Applimation acquisition. New customers include
      Aeropostale, Arbonne International, Bank of the West, Delta
      Dental Plan of Michigan, Kredyt Bank SA Centrala, Key Energy,
      and Yale University.

    * Acquired Applimation to grow Data Integration Platform
      leadership by incorporating application Information Lifecycle
      Management (ILM) into our technology portfolio, thus expanding
      our addressable market to encompass an adjacent growth category.
      Informatica's application ILM products manage various phases of
      the application data lifecycle, from testing to archiving.
      Application ILM reduces storage cost and total-cost-of-ownership
      associated with enterprise business applications, such as ERP,
      CRM, HR, and SCM.

    * Informatica On Demand Data Loader named 'Best Data Integration
      Tool' on Force.Com AppExchange by salesforce.com customers.
      Informatica On Demand Data Loader garnered more four and five
      star reviews than any other integration product in its
      category. Over 100 companies around the world now use
      Informatica On Demand to integrate their Salesforce CRM
      applications and Force.com platform with their back office
      systems.

    * Delivered the Informatica Platform. Informatica Platform
      leverages our broadest-ever product portfolio, and provides
      well-differentiated value: comprehensive, unified, open, and
      economical.

    * Three Informatica customers named as "Computerworld Laureate"
      finalists for 2009. The Defense Health Services Systems,
      LinkShare and the U.S. Departments of Defense and Veterans
      Affairs were chosen in a select group of finalists due to
      their contributions for the betterment of society through
      exceptional use of information technology.

Conference Call and Webcast

Informatica will discuss its first quarter 2009 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 62285694.

About Informatica

Informatica Corporation (Nasdaq:INFA) is the leading independent provider of enterprise data integration software and services. With Informatica, organizations can gain greater business value by integrating their information assets across the enterprise. More than 3,600 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of varying complexity and scale. For more information, call +1 650 385 5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.



                         INFORMATICA CORPORATION
                         GAAP TO NON-GAAP RESULTS
                   (in thousands, except per share data)
                               (unaudited)


                                                 Three Months Ended
                                                     March 31,
                                              ------------------------
                                                 2009           2008
                                              ----------    ----------
 GAAP Net income                               $ 11,059      $ 11,224
                                                           
 Plus:                                                     
  Amortization of acquired technology             1,557           620
  Amortization of intangible assets               2,051           362
  Facilities restructuring charges                  809           947
  Share-based payments                            4,199         4,114
  Tax benefit of amortization of 
   intangible assets and restructuring 
   charges                                       (1,653)         (752)
  Tax benefit of share-based payments              (889)         (802)
                                              ----------    ----------
 Non-GAAP Net income                           $ 17,133      $ 15,713
                                              ==========    ==========
                                                           
                                                 Three Months Ended
                                                      March 31,
                                              ------------------------
                                                 2009           2008
                                              ----------    ----------
 Diluted net income per share: *                           
 Diluted GAAP Net income per share             $   0.12      $   0.12
                                                           
 Plus:                                                     
  Amortization of acquired technology              0.02          0.01
  Amortization of intangible assets                0.02            --
  Facilities restructuring charges                 0.01          0.01
  Share-based payments                             0.04          0.04
  Tax benefit of amortization of 
   intangible assets and restructuring 
   charges                                        (0.02)        (0.01)
  Tax benefit of share-based payments             (0.01)        (0.01)
                                              ----------    ----------
 Diluted Non-GAAP Net income per share         $   0.18      $   0.16
                                              ==========    ==========
                                                           
 Shares used in computing diluted GAAP 
  Net income per share                          100,430       103,727
 Shares used in computing diluted 
  Non-GAAP Net income per share                 100,841       104,706
                                                                      
 ------------------
   *  Diluted EPS is calculated under the "if converted" method for
      the three months ended March 31, 2009 and 2008. This includes
      the add-back of $1.1 million of interest and convertible notes
      issuance cost amortization, net of applicable income taxes for
      both periods.

Non-GAAP Financial Information

To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, Informatica uses non-GAAP financial measures of net income, income from operations and net income per share. These measures are adjusted to exclude the charges and expenses discussed above. The Company believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its historical financial performance. These adjustments to the Company's 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 non-GAAP financial measures provides consistency and comparability with its historical financial results, as well as comparability to similar companies in the Company's industry, many of which present similar non-GAAP financial measures to investors. In addition, these non-GAAP financial measures 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, income from operations, or net income per share prepared in accordance with GAAP in the U.S.

Forward Looking Statements

This press release contains forward-looking statements relating to Informatica's opportunity for growth in the data integration market, Informatica's integration of Applimation, and expected benefits to our customers and products. 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 (1) competition with larger companies that have longer operating histories and greater financial, technical, marketing, and other resources; (2) uncertainty in the state of IT spending and the continued growth in the market for data integration solutions in general; (3) successful integration of Applimation's products and employees and achievement expected synergies; and (4) lack of control regarding our strategic partners' devotion of adequate resources to promote, sell, implement, and support our products. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's report on Form 10-K for the year ended December 31, 2008 which is on file with the SEC and is available on the Company's investor relations website at http://www.informatica.com/. All information provided in this release is as of April 23, 2009 and Informatica undertakes no duty to update this information.

Note: Informatica and Informatica On Demand Data Loader are trademarks or 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
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except per share data)
                             (unaudited)

                                                Three Months Ended
                                                     March 31,
                                              ------------------------
                                                 2009          2008
                                              ----------   -----------
                                                         
 Revenues:                                               
  License                                      $ 44,059      $ 44,209
  Service                                        64,999        59,501
                                              ----------    ----------
     Total revenues                             109,058       103,710
                                              ----------    ----------
                                                         
 Cost of revenues:                                       
  License                                           748           693
  Service                                        18,472        19,785
  Amortization of acquired technology             1,557           620
                                              ----------    ----------
     Total cost of revenues                      20,777        21,098
                                              ----------    ----------
                                                         
 Gross profit                                    88,281        82,612
                                                         
 Operating expenses:                                     
  Research and development                       18,183        17,724
  Sales and marketing                            41,438        42,787
  General and administrative                     10,806         8,369
  Amortization of intangible assets               2,051           362
  Facilities restructuring charges                  809           947
                                              ----------    ----------
     Total operating expenses                    73,287        70,189
                                              ----------    ----------
     Income from operations                      14,994        12,423
 Interest income and other, net                     886         3,558
                                              ----------    ----------
     Income before income taxes                  15,880        15,981
 Income tax provision                             4,821         4,757
                                              ----------    ----------
     Net income                                $ 11,059      $ 11,224
                                              ==========    ==========
                                                         
 Basic net income per common share             $   0.13      $   0.13
                                              ==========    ==========
 Diluted net income per common share (1)       $   0.12      $   0.12
                                              ==========    ==========
                                                         
 Shares used in computing basic net 
  income per common share                        86,862        88,128
                                              ==========    ==========
 Shares used in computing diluted net 
  income per common share                       100,430       103,727
                                              ==========    ==========
                                                                      
   (1) Diluted EPS is calculated under the "if converted" method for
       the three months ended March 31, 2009 and 2008. This includes
       the add-back of $1.1 million of interest and convertible notes
       issuance cost amortization, net of applicable income taxes for
       both periods.


                          INFORMATICA CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                             (in thousands)

                                             March 31,    December 31,
                                                2009          2008
                                            -----------   ------------
                                            (unaudited)

                      Assets

 Current assets:
  Cash and cash equivalents                  $ 123,349     $ 179,874
  Short-term investments                       296,527       281,055
  Accounts receivable, net of allowances 
   of $2,761 and $2,558 respectively            65,921        87,492
  Deferred tax assets                           24,112        22,336
  Prepaid expenses and other current assets     16,384        12,498
                                            -----------   -----------
     Total current assets                      526,293       583,255
                                                         
 Property and equipment, net                     8,469         9,063
 Goodwill and intangible assets, net           286,382       254,592
 Long-term deferred tax assets                  10,682         7,294
 Other assets                                    8,302         8,908
                                            -----------   -----------
     Total assets                            $ 840,128     $ 863,112
                                            ===========   ===========
                                                         
       Liabilities and stockholders' equity 
                                                         
 Current liabilities:                                    
  Accounts payable and other current 
   liabilities                                $ 58,792      $ 71,282
  Accrued facilities restructuring charges      20,151        19,529
  Deferred revenues                            121,469       120,892
                                            -----------   -----------
     Total current liabilities                 200,412       211,703
                                                         
 Convertible senior notes                      201,000       221,000
 Accrued facilities restructuring charges, 
  less current portion                          41,866        44,939
 Long-term deferred revenues                     6,245         8,847
 Long-term income taxes payable                 21,200        20,668
                                                         
 Stockholders' equity                          369,405       355,955
                                            -----------   -----------
     Total liabilities and stockholders' 
      equity                                 $ 840,128     $ 863,112
                                            ===========   ===========


                         INFORMATICA CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)
                                (unaudited)

                                                 Three Months Ended
                                                      March 31,
                                              ------------------------
                                                  2009         2008
                                              -----------  -----------
                                                           
 Operating activities:                                     
  Net income                                   $  11,059    $  11,224
  Adjustments to reconcile net income to net              
   cash provided by operating activities:                 
   Depreciation and amortization                   1,353        1,401
   Gain on early extinguishment of debt             (337)          --
   Share-based payments                            4,199        4,114
   Deferred income taxes                          (1,469)        (188)
   Tax benefits from stock option plans              672        2,961
   Excess tax benefits from share-based                   
    payments                                        (397)      (2,335)
   Amortization of intangible assets and                  
    acquired technology                            3,608          982
   Non-cash facilities restructuring charges         809          947
   Other non-cash items                              610         (652)
   Changes in operating assets and                        
    liabilities:                                          
    Accounts receivable                           23,730       26,678
    Prepaid expenses and other assets             (3,612)      (3,952)
    Accounts payable and other current                    
     liabilities                                 (20,499)     (16,201)
    Income taxes payable                             665          435
    Accrued facilities restructuring charges      (3,219)      (2,347)
    Deferred revenues                             (4,291)       5,979
                                              -----------  -----------
     Net cash provided by operating                       
      activities                                  12,881       29,046
                                              -----------  -----------
 Investing activities:                                     
   Purchases of property and equipment              (577)      (1,071)
   Purchases of investments                     (146,227)     (60,054)
   Payment of investment in equity interests          --       (3,000)
   Maturities and sales of investments           129,945      124,120
   Business acquisition, net of cash acquired    (32,976)          --
                                              -----------  -----------
     Net cash provided by (used in) investing             
      activities                                 (49,835)      59,995
                                              -----------  -----------
 Financing activities:                                     
   Net proceeds from issuance of common stock      6,967       13,757
   Repurchases and retirement of common stock     (5,910)      (6,349)
   Repurchases of convertible senior notes       (19,200)          --
   Excess tax benefits from share-based                   
    payments                                         397        2,335
                                              -----------  -----------
     Net cash provided by (used in) financing             
      activities                                 (17,746)       9,743
                                              -----------  -----------
 Effect of foreign exchange rate changes on               
  cash and cash equivalents                       (1,825)       2,256
                                              -----------  -----------
 Net increase (decrease) in cash and cash                 
  equivalents                                    (56,525)     101,040
 Cash and cash equivalents at beginning of                
  period                                         179,874      203,661
                                              -----------  -----------
 Cash and cash equivalents at end of period    $ 123,349    $ 304,701
                                              ===========  ===========


                          INFORMATICA CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share data)
                              (unaudited)

                                           Three Months Ended         
                                             March 31, 2009           
                               ---------------------------------------
                                  GAAP     Adjustments (1)   Non-GAAP 
                               ---------- ----------------  ----------
                                           
 Revenues:                                 
  License                       $ 44,059     $    --         $ 44,059 
  Service                         64,999          --           64,999 
                               ---------- ----------------  ----------
    Total revenues               109,058          --          109,058 
                               ---------- ----------------  ----------
                                                                      
 Cost of revenues:                                                    
  License                            748          --              748 
  Service                         18,472        (531)          17,941 
  Amortization of acquired 
   technology                      1,557      (1,557)              -- 
                               ---------- ----------------  ----------
    Total cost of revenues        20,777      (2,088)          18,689 
                               ---------- ----------------  ----------
                                                                      
 Gross profit                     88,281       2,088           90,369 
                                                                      
 Operating expenses:                                                  
  Research and development        18,183      (1,118)          17,065 
  Sales and marketing             41,438      (1,367)          40,071 
  General and administrative      10,806      (1,183)           9,623 
  Amortization of intangible 
   assets                          2,051      (2,051)              -- 
  Facilities restructuring 
   charges                           809        (809)              -- 
                               ---------- ----------------  ----------
    Total operating expenses      73,287      (6,528)          66,759 
                               ---------- ----------------  ----------
    Income from operations        14,994       8,616           23,610 
 Interest income and other, net      886          --              886 
                               ---------- ----------------  ----------
    Income before income taxes    15,880       8,616           24,496 
 Income tax provision              4,821       2,542            7,363 
                               ---------- ----------------  ----------
    Net income                  $ 11,059     $ 6,074         $ 17,133 
                               ========== ================  ==========
                                                                      
 Net income per share:                                                
    Basic                       $   0.13                     $   0.20 
                               ==========                   ==========
    Diluted (2)                 $   0.12                     $   0.18 
                               ==========                   ==========
                                                                      
 Weighted shares used to 
  compute net income per 
  share:                                             
    Basic                         86,862                       86,862 
                               ==========                   ==========
    Diluted                      100,430         411 (3)      100,841 
                               ========== ================  ==========


                                          Three Months Ended
                                            March 31, 2008
                               ---------------------------------------
                                  GAAP     Adjustments (1)   Non-GAAP
                               ---------- ----------------  ----------
                               
 Revenues:                     
  License                       $ 44,209     $    --         $ 44,209
  Service                         59,501          --           59,501
                               ---------- ----------------  ----------
    Total revenues               103,710          --          103,710
                               ---------- ----------------  ----------
                                           
 Cost of revenues:                         
  License                            693          --              693
  Service                         19,785        (546)          19,239
  Amortization of acquired 
   technology                        620        (620)              --
                               ---------- ----------------  ----------
    Total cost of revenues        21,098      (1,166)          19,932
                               ---------- ----------------  ----------
                                           
 Gross profit                     82,612       1,166           83,778
                                                           
 Operating expenses:                                       
  Research and development        17,724      (1,064)          16,660
  Sales and marketing             42,787      (1,373)          41,414
  General and administrative       8,369      (1,131)           7,238
  Amortization of intangible 
   assets                            362        (362)              --
  Facilities restructuring 
   charges                           947        (947)              --
                               ---------- ----------------  ----------
    Total operating expenses      70,189      (4,877)          65,312
                               ---------- ----------------  ----------
    Income from operations        12,423       6,043           18,466
 Interest income and other, net    3,558          --            3,558
                               ---------- ----------------  ----------
    Income before income taxes    15,981       6,043           22,024
 Income tax provision              4,757       1,554            6,311
                               ---------- ----------------  ----------
    Net income                  $ 11,224     $ 4,489         $ 15,713
                               ========== ================  ==========
                                                                      
 Net income per share:                                                
    Basic                       $   0.13                     $   0.18
                               ==========                   ==========
    Diluted (2)                 $   0.12                     $   0.16
                               ==========                   ==========
                                                           
 Weighted shares used to 
  compute net income per 
  share:                      
    Basic                         88,128                       88,128
                               ==========                   ==========
    Diluted                      103,727         979 (3)      104,706
                               ========== ================  ==========
                                                                      

  (1) The following table summarizes the Non-GAAP adjustments for
      the respective periods presented:

                                                 Three Months Ended
                                                      March 31,
                                               -----------------------
                                                  2009         2008
                                               ----------   ----------
   
      Net income, GAAP basis                    $ 11,059     $ 11,224
       Amortization of acquired technology         1,557          620
       Amortization of intangible assets           2,051          362
       Facilities restructuring charges              809          947
       Share-based payments                        4,199        4,114
       Tax benefit for amortization of 
        intangible assets and restructuring 
        charges                                   (1,653)        (752)
       Tax benefit of share-based payments          (889)        (802)
                                               ----------   ----------
      Net income, Non-GAAP basis                $ 17,133     $ 15,713
                                               ==========   ==========

  (2) Diluted EPS is calculated under the "if converted" method for
      the three months ended March 31, 2009 and 2008. This includes
      the add-back of $1.1 million of interest and convertible notes
      issuance cost amortization, net of applicable income taxes for
      both periods.

  (3) Anti-diluted shares generated from the unrecognized
      share-based payments under the "treasury stock method" have
      been added back to the non-GAAP diluted weighted shares due to
      non-GAAP results excluding the share-based payments.


            

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