Informatica Sees Benefit From Narrowed Focus - InformationWeek

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10/16/2003
06:10 PM
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Informatica Sees Benefit From Narrowed Focus

Company's decision to get out of the analytical apps market and focus on its infrastructure business is helping it regain its footing.

Data-integration and business-intelligence software vendor Informatica Corp. Thursday reported a narrow loss for its third quarter ending Sept. 30 on a moderate increase in sales. Revenue was up 6% to $50.7 million from $47.6 million in the same period last year, while the $184,000 loss (0 cents per share) was a marked improvement over the $17.3 million loss (22 cents per share) one year ago.

"Our software development is paying off nicely, and our recent strategic moves have energized the sales force," president and CEO Gaurav Dhillon says.

During the quarter, Informatica bailed out of the market for analytical applications to concentrate on its infrastructure business--a point emphasized by its recent $62 million acquisition of mainframe integration software developer Striva Corp. and the release of its SuperGlue metadata management software. Thursday the vendor also revealed an expanded sales and marketing partnership with IBM.

License revenue in the quarter was up 2% to $22.8 million year over year, while service revenue grew 10% to $27.9 million. For the nine months ended Sept. 30, the company reported net income of $4.2 million (5 cents per share) on revenue of $149.8 million, compared with a net loss of $17.1 million (21 cents per share) on revenue of $145.3 million in the first nine months of 2002.

For the current quarter, Informatica expects revenue in the range of $54 million to $56 million and revenue between $230 million and $240 million in 2004.

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