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Informatica Posts Disappointing Quarter

The software vendor says second-quarter sales rose nearly 5%, but net income fell from $3.3 million to $1 million.
Data-integration software vendor Informatica Corp. reported that sales grew nearly 5% to $53.0 million in its second quarter ended June 30, but net income dropped to $1.0 million, or 1 cent per share, from $3.3 million, or 4 cents per share, in the same period a year ago.

Earlier this month, Informatica warned Wall Street that sales would come in below expectations at $52.5 million to $53.5 million. In a statement Tuesday CFO Earl Fry called the second-quarter results "disappointing," but expressed the belief that productivity improvements the company is making in sales and marketing will pay off in the second half of the year.

Software license revenue, a key growth indicator, was $23.3 million in the quarter, down slightly from the year-ago quarter. The company said two-thirds of its orders came from its installed base of 2,000 customers.