Informatica Reports Solid Financial Results, Nabs MDM Vendor Siperian
February 2, 2010 Alex Woodie
It was tough to see any indication of the Great Recession in the financial results released last week by data integration vendor Informatica. In addition to recording its fifth consecutive record-breaking year and breaking through the $500 million barrier for revenues for the first time, the vendor announced the acquisition of master data management (MDM) company Siperian for $130 million.
For the quarter ended December 31, 2009, Informatica reported $150.9 million in revenues, including $71.6 million in license revenues, a 25 percent increase from the same quarter in 2008. Net income for the quarter was $25 million, up 19 percent from the same quarter in 2008. For fiscal year 2009, which ended the same day, Informatica reported $500.7 million in revenues, an increase of 10 percent from the previous year. License revenue for the year was $214.3 million, up 9 percent from fiscal year 2009. Net income for the year was $64.2 million, a 13 percent improvement from the previous year.
Informatica added 74 new customers to its roll last year, bringing the total to 3,931. Over the last five years, Informatica has grown faster than the overall enterprise software industry, notes Sohaib Abbasi, chairman and CEO of the Redwood City, California, company. “Clearly, our singular mission, compelling value proposition, and the team’s relentless pace of innovation are driving record results in all economic times.”
The pace of change for Informatica will continue as it seeks a foothold in the burgeoning market for MDM software with the acquisition of Siperian. MDM, which is related to the data quality capabilities that Informatica provides, is on the minds of many IT executives and is growing quickly, according to Informatica. The company cites a study that says the MDM infrastructure market is growing at 20 percent per year, and will account for $1 billion in spending this year.
Informatica likes Siperian’s approach to multi-domain MDM, which refers to the process of identifying and managing data relationships among multiple entities, applications, and lines of business. Informatica thinks Siperian has a better approach to multi-domain MDM than the other leading vendor in this category, IBM.
Siperian was founded in April 2001, and is headquartered in Foster City, California, not far from Informatica’s headquarters. The company counts 60 customers, including Pfizer, Bank of America, and Lexis Nexis.