Informatica Q4 Results Top Estimates

(RTTNews) - Data integration software provider Informatica Corp. (INFA) reported Tuesday a profit for the fourth quarter that grew nine percent from last year, boosted by double-digit growth in software revenue. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

Sohaib Abbasi, chairman and chief executive officer of Informatica said, "Our record quarterly software and total revenues in the fourth quarter reflect improved execution and growing customer adoption of our products"

The Redwood City, California-based company reported net income of $43.59 million or $0.40 per share for the fourth quarter, higher than $39.92 million or $0.36 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $61.54 million or $0.56 per share, compared to $54.76 million or $0.49 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 10 percent to $303.74 million from $276.04 million in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $296.14 million. Excluding currency fluctuations, total revenues growth would have been 12 percent.

Software revenues grew 12 percent from last year to a record $150.22 million, with license revenues rising 7 percent to $129.2 million and subscription revenue surging 53 percent to $21.1 million. Service revenues totaled $153.50 million, up from $141.46 million last year.

Total operating expenses for the quarter increased 11 percent from last year to $186.95 million. Operating margin remained flat with last year at 12 percent.

Informatica's Board of Directors has also approved an additional $337 million to augment its existing authorization under the company's stock repurchase program.

Informatica said it plans to repurchase an aggregate of $500 million of common stock, through a $300 million accelerated share repurchase (ASR) program to begin within the next week and subsequent open market purchases or privately negotiated transactions.

"To attain higher long-term growth, we are making good progress in delivering innovative products and in scaling go-to-market resources to pursue four distinct billion dollar market opportunities: cloud integration, MDM, data integration for next generation analytics and data security," Abbasi added.

INFA closed Tuesday's regular trading session at $43.12, up $2.08 or 5.07% on a volume of 6.96 million shares.