Informatica Posts Record 1Q Revenue, Profits Jump 65 Percent

Published: April 25, 2007

by Alex Woodie

Informatica, a provider of data integration software and services, last week reported a 19 percent increase in revenue for its first quarter on the back of strong license revenue growth. Profits jumped 65 percent during the quarter, which ended March 31.

Informatica sells extract, transform, and load (ETL) software for moving data from a variety of production systems into data warehouses where powerful analytical tools can drill deep down into the data to find actionable information. The company's flagship product, called PowerCenter, competes with IBM's Ascential business unit, in addition to tools offered by other business intelligence vendors.

For the first quarter, Redwood City, California-based Informatica reported revenues of $87.1 million, a $15 million increase from the same quarter a year ago. Much of this increase came from sales of software licenses, which accounted for $37.6 million during the quarter, a 15 percent increase from a year ago. Net income for the quarter rose from of $5.3 million a year ago to $9.1 million this year, or $0.10 per diluted share.

Sohaib Abbasi, chairman and CEO of Informatica, says demand is strong. "Our customers' top-ranked business imperatives are driving greater demand for our technology across more types of data integration and data quality projects," he said. "The growing adoption of our latest product releases is fueling license growth, and our expanding partnerships are further strengthening our competitive position. Overall, the first quarter was a strong beginning to 2007."

During the quarter, Informatica re-signed 176 existing customers, including Bank of America, Blue Cross Blue Shield of Massachusetts, and Toyota Motor Credit Corp. It also added 41 new customers, including eHarmony.com, Centene, and Collect America. It currently has 2,790 customers.

Informatica is in the middle of a product transition toward software as a service (SaaS). While some of its largest customers will never stop using the powerful ETL tool in-house, Informatica is looking to expand its customer base by offering easy access to basic ETL capabilities delivered over the Web.

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