Achieves 20 Percent Year-Over-Year License Revenue Growth

• Record third quarter total revenues of $195.9 million, up 21 percent year-over-year    
  
  
• Record third quarter license revenues of $83.7 million, up 20 percent year-over-year   
  
  
• Record third quarter GAAP earnings per diluted share of $0.24 and non-GAAP earnings per diluted share of $0.34   
  
  
• Achieves 20 percent GAAP net income growth and 29 percent non-GAAP net income growth 

REDWOOD CITY, Calif., Oct. 20, 2011 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the third quarter ended September 30, 2011.

"Our third quarter results showcase the growing adoption of our expansive product portfolio," said Sohaib Abbasi, chairman and CEO, Informatica. "The third quarter extends the Informatica track record as the thirty-fourth consecutive quarter of sustained year-over-year revenue growth, despite the Great Recession."

Financial Highlights for the Third Quarter Ended September 30, 2011

Total revenues for the third quarter of 2011 were $195.9 million, an increase of 21 percent from $161.3 million in the third quarter of 2010. License revenues were $83.7 million, an increase of 20 percent from $69.8 million in the third quarter of 2010.

Income from operations for the third quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $37.2 million, up 15 percent from $32.4 million in the third quarter of 2010.

GAAP net income for the third quarter of 2011 was $27.0 million or $0.24 per diluted share, up over 14 percent from $22.5 million or $0.21 per diluted share in the third quarter of 2010.

Non-GAAP income from operations for the third quarter of 2011 was $53.5 million, up 27 percent from $42.3 million in the third quarter of 2010. Non-GAAP net income for the third quarter of 2011 was $38.1 million or $0.34 per diluted share, up over 21 percent from $29.4 million or $0.28 per diluted share in the third quarter of 2010. 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, acquisitions and other expenses, investment gains and stock compensation. A reconciliation of GAAP results to non-GAAP results is included below.

For the nine month period ended September 30, 2011, revenues were $556.6 million, an increase of 23 percent from the $452.0 million recorded for the first nine months of 2010. License revenues for the first nine months of 2011 were $241.6 million, up 24 percent from $194.9 million in the first nine months of 2010. GAAP net income for the first nine months of 2011 was $75.1 million or $0.67 per diluted share, up over 34 percent from $51.7 million or $0.50 per diluted share in the first nine months of 2010. Non-GAAP net income for the first nine months of 2011 was $106.7 million or $0.95 per diluted share, up over 30 percent from $76.2 million or $0.73 per diluted share in the first nine months of 2010. For the nine month periods ended September 30, 2011 and September 30, 2010, earnings per diluted share was calculated on an "if converted" basis, including the add-back of $0.8 million and $2.9 million, respectively, of interest and convertible notes issuance cost amortization, net of applicable income taxes. The add-back of $0.8 million for the nine month period ended September 30, 2011 represents interest and convertible note issuance cost amortization until the redemption of the convertible notes on March 18, 2011.

Additional Highlights Achieved Since July 2011:

• Signed repeat business with 325 customers. Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included: Amtrak, Enerplus Resources Fund, Hawaiian Airlines, Juniper Networks, Landesbank Baden-Württemberg, LeapFrog Enterprises, Nielsen Media Research and Prime Therapeutics.
   
• Added 80 new customers. Informatica increased its customer base to 4,526 companies. New customers included: Arby's Restaurant Group, Federal Home Loan Bank of Des Moines, Gate Gourmet Switzerland, Hoag Memorial Hospital Presbyterian, Panther Energy Trading, PT Sayap Mas Utama and Qualicorp Administradora de Benefícios.
   
• Introduced Data Replication solutions to support big data. With high-speed data cloning, customers will benefit from timely analytics of their big data. As part of the Informatica Platform, this will enable a broad range of data replication projects, ranging from high-speed data cloning to sophisticated data replication with complex transformations required by active data warehousing.
   
• Delivered industry's first Dynamic Data Masking solution. Informatica Dynamic Data Masking provides policy-driven obfuscation of sensitive data to address data privacy requirements without requiring any changes to application source codes.
   
• Received top marks in Customer Satisfaction Survey for sixth consecutive year. Informatica received top marks for the sixth time in Customer Loyalty in the 2011 Data Integration Customer Satisfaction survey conducted by independent research firm TNS, a global market leader in insight and information.
   
• Identified as a Leader in Data Quality. The Gartner 2011 Magic Quadrant for Data Quality Tools report cited Informatica as a "Leader." According to Gartner, "Leaders in the market demonstrate strength across a complete range of data quality functionality, including profiling, parsing, standardization, matching, validation and enrichment. They exhibit a clear understanding and vision of where the market is headed, including recognition of non-customer data quality issues and the delivery of enterprise-level data quality implementations. Leaders have an established market presence, significant size and a multinational presence (directly or as a result of a parent company)."
   
• Grew Informatica Marketplace to largest open data integration marketplace. In its first year, the Informatica Marketplace has grown 280 percent in number of solutions offered. It has also added four specialized Malls: Cloud Integration, Debugging Tools, Productivity Tools and Big Data.
   
• Selected as a 2011 Teradata Epic Award Winner. Informatica was selected as the winner of the Independent Software Vendor (ISV) Partner Award for Collaborative Revenue Contribution as the ISV partner who influenced the largest year-over-year incremental revenue growth for Teradata, expanding its presence in over 20 accounts.
   
• Launched Informatica Cloud Administration Application for iPhone and iPad. The new release, available on the AppStore, enables users to remotely monitor and administer cloud integration jobs, taking action from any iPhone or iPad device.
   
• Expanded into new facility in Bangalore, India. The new facility houses Informatica's second-largest team across all functions.
   
• Informatica Executives' Leadership Recognized. Ron Papas, general manager, Informatica Cloud, won the 2011 Innovator Award in the Cloud Computing and E-Commerce category at the 53rd Annual TechAmerica David Packard Medal of Achievement and Innovator Awards. In the annual International Business Awards, Stephanie Wakefield, vice president, Investor Relations, won the Stevie Award for Communications, Investor Relations or PR Executive of the Year.
   
• Approved Additional $75 million Stock Repurchase Authorization. Informatica's Board of Directors has approved an additional $75 million to augment the existing authorization under the company's common stock repurchase program. The company expects to repurchase shares to offset the otherwise dilutive impact of stock option exercise and restricted stock vesting activity. Purchases may be made, from time to time, in the open market and will be funded from available working capital. The number of shares to be purchased and the timing of purchases will be based on several factors, including the price of Informatica's stock, general business and market conditions and other investment opportunities. 

Conference Call and Webcast

Informatica will discuss its third quarter 2011 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 706-645-9291, reservation number 57567095.

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 gain a competitive advantage with timely, relevant and trustworthy data for their top business imperatives. Worldwide, over 4,500 enterprises depend on Informatica for data integration, data quality and big data solutions to access, integrate and trust their information assets residing on premise and in the Cloud. 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 the expansion of our markets, acquisitions and the critical role of data integration. 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; and uncertainty in the state of IT spending and the growth of the market for data integration solutions in general. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, 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 October 20, 2011 and Informatica undertakes no duty to update this information. 

Note: Informatica, PowerCenter, Informatica Cloud, Informatica Cloud Administration, Informatica Data Replication, Informatica Dynamic Data Masking and Informatica Marketplace 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.