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Informatica (INFA)

Q4 2009 Informatica Earnings Conference Call

January 28, 2010 5:00 p.m. ET


Stephanie Wakefield - VP, IR

Earl Fry - CFO

Sohaib Abbasi - CEO


Tom Ernst - Deutsche Bank

Mark Murphy - Piper Jaffray

Tom Roderick - Thomas Weisel Partners

Nathan Schneiderman - Roth Capital Partners

Frank Sparacino - First Analysis

Michael Torrence - Raymond James

Nabil Elsheshai - Pacific Crest

Brent Williams - Benchmark Capital

Brad Whitt - Broadpoint Capital

Matesh Durove - Bank of America, Merrill Lynch

Derrick Wood - Wedbush Securities

Brad Sills - Barclays Capital



Good afternoon. My name is Christian and I will be your conference operator today. At this time, I would like to welcome everyone to Informatica's Q4 2009 financial results conference call. All lines have been placed on mute to prevent any backgrounds noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, than the number ‘1’ on your telephone keypad. If you would like to withdraw your question, press the pound key. Please remember to limit yourselves to one question at a time. Thank you. I will now turn the call over to Ms. Stephanie Wakefield, Vice President of Investor Relations. Madam, you may begin your conference.

Stephanie Wakefield

Good afternoon and thank you for joining us today. I'm here with Sohaib Abbasi, our CEO and Earl Fry, our CFO, to discuss our Q4 2009 and full year 2009 results and to talk about our Outlook for the business. And then I will hand over to Sohaib for his comments.

Some of the comments we’ll make today are forward-looking statements, including statements concerning our being well positioned to pursue our growth strategy, our projected financial results for future periods, opportunities for growth in the data integration market, the expected benefits to our customers and products with the acquisition of Siperian, our integration with Siperian, its employees and its technology, the planned use of our products by some customers for more than traditional data warehousing projects, the strength of customer demand for our products, customer adoption of our latest product lines, efforts being conducted with strategic partners, and our expectations regarding future industry trends and macroeconomic development.

All future-looking statements are based upon current expectations and beliefs. However, actual results could differ materially. There are many reasons why actual results may differ from our current expectations. These forward-looking statements should not be relied upon as representing our views as of any subsequent date, and Informatica undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date that they are made.

Please refer to our recent SEC filings, including the Form 10-Q for the quarter ended September 30, 2009 for a detailed description of the risk factors that may affect our results. Copies of these documents maybe obtained from the SEC or by contacting our Investor Relations department.

During this afternoon’s discussion, we will be using GAAP and non-GAAP numbers. Our GAAP results and the reconciliation of the GAAP results to the non-GAAP results are contained in and attached to the earnings press release, and in the supplemental metric section of the Informatica Investor relation website at

Before I hand it off to Sohaib, I would like to remind you that this call is being webcast and will also be available for replay at I would also like to ask you when we get to the Q&A period to please confine yourself to just one question. We will allow additional questions if time permits. Thank you.

Sohaib Abbasi

Thank you, Stephanie. I am very pleased to report that Informatica attained two major milestones with our all-time record results in Q4, 2009. Not only was Q4 our first ever quarter with total revenues over a $150 million, it also capped the first ever fiscal year with annual revenues over $500 million.

By consistently achieving year-over-year growth rate that is significantly faster than that of the enterprise software industry, 2009 was our fifth consecutive record year. Today, I will highlight the key accomplishments of this quarter, and the full year 2009. After Earl's presentation of our financial results, I will showcase our key initiatives, particularly our acquisition of Siperian, to maintain our growth momentum in 2010. In Q4 2009, total revenue grew by 21% year-over-year to an all-time record of $150.9 million. License revenue grew by 25% year-over-year last quarter to get another record of $71.6 million. With non-GAAP operating margin up 29% and non-GAAP EPS of 31 cents, we achieved the most profitable quarter today. With a full year 2009, despite the challenges of the great recession, total revenues grew by 10% to an all-time record of $500.7 million and non-GAAP operating margin increased by 280 basis points to 25%. By all these measures, Q4 2009 was our best quarter ever and Cap the best year ever.

Clearly, our singular mission – compelling value proposition and the teams with relentless pace of innovation is driving record results in all economic times. Our singular mission is to establish Informatica as the dominant leader in the data integration market. By pursuing this mission, over the past five years, we attained a compound annual growth rate for revenue of 18% and for non-GAAP operating income up 61%.

Unlike most enterprise software companies, Informatica grew year-over-year every quarter, even during the great recession. Our consistent long-term results are a testament to our compelling value for all economic times. Informatica enables our customers top business imperatives, the business survival initiatives in the great recession, to the business survival initiatives during the recovery. And with our relentless pace of innovation, we [inaudible] the frontiers of data integration to continually expand our addressable market. I would like to commend and thank the entire Informatica team for there extraordinary efforts to obtain our record results despite the challenging macroeconomic environment during most of the year.

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