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Q3 2012 Earnings Call
October 25, 2012 5:00 pm ET
Stephanie Wakefield - Vice President of Investor Relations
Sohaib Abbasi - Chairman, Chief Executive Officer and President
John McGee - Executive Vice President of Worldwide Field Operations
Previous Statements by INFA
» Informatica Management Discusses Q2 2012 Results - Earnings Call Transcript
» Informatica's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Informatica's CEO Discusses Q4 2011 Results - Earnings Call Transcript
Brent Thill - UBS Investment Bank, Research Division
Thomas Ernst - Deutsche Bank AG, Research Division
Raimo Lenschow - Barclays Capital, Research Division
Richard G. Sherlund - Nomura Securities Co. Ltd., Research Division
Chris Koh - Stifel, Nicolaus & Co., Inc., Research Division
Edward Maguire - Credit Agricole Securities (USA) Inc., Research Division
Chaitanya Yaramada - Robert W. Baird & Co. Incorporated, Research Division
Pinjalim Bora - Piper Jaffray Companies, Research Division
Michael Turits - Raymond James & Associates, Inc., Research Division
Stewart Materne - Evercore Partners Inc., Research Division
Shawn Yuan - Roth Capital Partners, LLC, Research Division
Michael B. Nemeroff - Crédit Suisse AG, Research Division
Steven R. Koenig - Wedbush Securities Inc., Research Division
Patrick D. Walravens - JMP Securities LLC, Research Division
Kash G. Rangan - BofA Merrill Lynch, Research Division
Aaron Schwartz - Jefferies & Company, Inc., Research Division
Good afternoon. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Informatica Third Quarter 2012 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Ms. Stephanie Wakefield, Vice President of Investor Relations. Ms. Wakefield, you may begin.
Good afternoon, and thank you for joining us today. I'm here with Sohaib Abbasi, our CEO; Earl Fry, our CFO; and John McGee, our EVP of Worldwide Sales to discuss our Q3 2012 results and to talk about our outlook for the business. I'll read the Safe Harbor and then hand it over to Sohaib for his comments.
Some of the comments we'll make today are forward-looking statements, including statements concerning our projected financial results for future periods, our growth and operational strategies, our initiatives to address recent challenges in improving performance, our marketing growth opportunities, our ability to scale our business, our technology leadership and product development, our product portfolio and product opportunities, customer adoption of and the demands for our products and services, including product upgrades, new releases and new products, the expected use of and benefits from our products and services, the expected benefits of our partnerships and acquisitions, our effective tax rate and income tax provisions, our pipeline conversion rates, hiring plans, our international and public sector businesses, as well as our takeover offer for Heiler Software AG, the timing of the offer and overall process and any associated integration benefits or potential synergies, the impact of Heiler on our future financial results and our expectations regarding industry trends and macroeconomic development.
All forward-looking statements are based upon current expectations and beliefs. However, the 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 our quarterly report on Form 10-K for the quarter ended June 30, 2012, for a detailed description of the risk factors that may affect our results. Copies of these documents may be obtained from the SEC or by contacting our Investor Relations department. For additional information on the takeover offer for Heiler Software AG, please refer to the www.informatica-offer.com.
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 attached in the earnings press release and are also available in the Supplemental Metrics section of the Informatica Investor Relations website at www.informatica.com/investor.
Before I hand it off to Sohaib, I'd like to remind you that this call is being webcast and also will be available for replay on the Informatica Investor Relations website. [Operator Instructions]
With that, I'll turn it to Sohaib.
Thank you, Stephanie. Our top priority is to regain our operational discipline with an intense sense of urgency and attain our financial guidance goals. This afternoon, I will outline both our recent challenges and our aggressive steps to improve performance in each region.
Next, John McGee, Executive Vice President of Worldwide Sales, will provide his perspective and elaborate on our confidence to address these issues and successfully scale the organization. Then after Earl's review of our financial performance, I will discuss upcoming developments that reinforce our continued conviction in the long-term opportunity.
In the U.S, our results reflected organizational stabilization and some improvement compared to our second quarter 2012 results due to better operational discipline. Even though the effects of the recent changes in our sales organization are taking longer than expected, compared to Q2, we are beginning to obtain results that are closer to our expectations.
In particular, the U.S. vertical segment of our business continues to deliver consistent results led by public sector in Q3. We have identified specific areas of improvement and are broadly applying practices and experiences exemplified by our U.S. verticals team. We continue to benefit from broader customer demand across industry verticals to enable top business imperatives.
As an example, in Q3, a leading retailer selected Informatica for its 10-year IT modernization initiative. Using Informatica, they expect to reduce their IT expenses by millions of dollars across a variety of projects, including data migration to SAP, data synchronization between the legacy and modern applications and data replication to the analytics appliance, Netezza.