Earnings .21 cents pro forma. concensus I beleive was for .17. Looks good for all!
Wednesday January 26, 4:41 pm Eastern Time
Company Press Release
Informix Announces Record Fourth Quarter and
Fiscal Year Results
Quarterly pro forma net income increases 121 percent from prior year
MENLO PARK, Calif.--(BUSINESS WIRE)--Jan. 26, 2000-- Informix© Corporation (Nasdaq: IFMX - news), the
technology leader in enterprise database-powered solutions, today reported results for the fourth quarter ended December 31,
1999.
Revenue for the quarter was a record $251.1 million, compared with $214.9 million for the fourth quarter of 1998, an increase
of 17 percent. Pro forma operating income increased 130 percent to $52.7 million, representing an operating margin of 21.0
percent, as compared to pro forma operating income of $22.9 million and operating margin of 10.7 percent in the fourth
quarter of 1998.
Pro forma net income for the quarter, excluding $2.8 million in charges associated with the acquisition of Cloudscape, Inc. was
$45.4 million, or .21 per share, an increase of 121 percent compared with pro forma net income of $20.5 million, or .11 per
share, in the fourth quarter of 1998. Including non-recurring charges and credits in both quarters, net income for the fourth
quarter of 1999 was $42.6 million, or .20 per share, compared with $20.9 million, or .11 per share, in the same period of
1998.
License revenue totaled $135.3 million and was also a record for the company, representing an increase of 27 percent
sequentially and 15 percent from the fourth quarter of 1998. Service revenue was $115.8 million, an increase of 6 percent
sequentially and 20 percent compared with the fourth quarter of 1998.
Performance was particularly strong in North America, which posted revenue of $128.0 million, up 32 percent from the prior
quarter and 23 percent from the fourth quarter of 1998. Revenue growth in the Europe, Middle East and Africa region was
also strong, increasing 14 percent sequentially and 16 percent from a year ago to $83.0 million. Revenue in the Asia/Pacific
region was $23.0 million, up 10 percent from a year ago, but down 9 percent sequentially, while Latin America posted revenue
of $17.1 million, down 6 percent from the year-ago quarter and down 18 percent from the third quarter of 1999.
The company's balance sheet continued to improve during the quarter, with $229.1 million in cash and short-term investments
and stockholders' equity of $312.5 million.
For the fiscal year, Informix posted revenue of $871.5 million and pro forma net income of $87.1 million, or .42 per share.
This compares with 1998 revenue of $735.5 million and pro forma 1998 net income of $37.1 million, or .20 per share.
Including charges associated with the settlement of the private securities litigation and merger-related expenses, in fiscal 1999
the company posted a net loss of $12.2 million or .06 per share. Reported net income for 1998 was $44.7 million or .25 per
share and included net non-recurring credits of $7.7 million.
Commenting on the company's performance, Informix chief executive officer Jean-Yves Dexmier noted, ``Our record fourth
quarter revenue was fueled by strong acceptance of our new product offerings, in particular Informix Internet
Foundation.2000(TM), Cloudscape(TM), i.Sell(TM) and i.Reach(TM). At the same time, we continued to optimize the
allocation of our resources, which allowed us to deliver operating income above our long-term target and record net income.'
Significant events during the quarter included:
- The announcement of the acquisition of Ardent Software, Inc., the
technology and market share leader in data integration for
business intelligence applications. The combination of Informix's
database-driven web and business intelligence solutions with
Ardent's data integration capabilities will make Informix the
first and only provider of integrated business intelligence and
e-commerce solutions.
- The completion of the acquisition of Cloudscape, a pioneer in
100% Java object relational databases for distributed and mobile
eBusiness applications. With the acquisition, Informix extends
its technology to the rapidly growing market for distributed
eBusiness applications, such as distributed e-commerce,
collaborative supply chain management, and distributed content
management.
- The introduction of Cloudscape 3.0, the latest version of the
company's Java platform for distributed eBusiness applications,
with higher performance and greater functionality for enterprise
environments. Cloudscape 3.0 was selected Sun Microsystems as the
demonstration database for the widely distributed Sun J2EE.
- The expansion of our partnership with Siebel Systems to include
the Informix Internet Foundation.2000 platform. Informix and
Siebel worked closely to tightly integrate Siebel Front Office
Application suite and Informix Internet Foundation.2000.
Looking back over 1999, Dexmier noted that the company met several important milestones. ``Our continued investment in
R&D paid off in 1999 with the introduction of Informix Internet Foundation.2000, new versions of Informix Extended Parallel
Server(TM), Red Brick© Decision Server(TM), and new Internet solutions i.Sell, i.Reach and Media360(TM). With our new
products, the acquisition of complementary technologies from Cloudscape and the anticipated acquisition Ardent products and
technology, we will have a product portfolio optimized for the challenges of i.Economy,' said Dexmier. ``Our vision is to offer
a completely integrated software infrastructure for e-commerce and business intelligence. In 2000, we intend to continue to
execute to this vision with aggressive marketing, new products and solutions and new and expanded partnerships.'
About Informix
Based in Menlo Park, California, Informix Corporation specializes in advanced information management technologies that help
enterprises in the i.Economy get to market quickly, generate new revenue, build a unique strategic advantage, and solve their
most complex business problems. Informix offers customers a complete software infrastructure for the Web that delivers highly
scalable transaction processing, personalized content management, integrated business intelligence, full multimedia capabilities
and complete e-commerce solutions. For more information, contact the sales office nearest you or visit our Web site at
www.informix.com.
This public announcement contains forward-looking statements which are subject to numerous risks and uncertainties. These
forward-looking statements include those as to:
Market acceptance of our products,
The extent to which we can become a leading provider of software products to particular segments of the software
market,
The company's ability to benefit from anticipated opportunities in business-to-business, e-commerce, media asset
management and data warehousing applications,
The approval of both Informix's and Ardent's stockholders of the announced merger and the company's ability to close
the merger and successfully integrate Ardent's operations,
The extent to which the company can sustain or replicate the announced financial results, and
The anticipated benefits of continued heavy investments in R&D and increased investments in marketing and
communications
Any statements contained herein - including without limitation statements to the effect that Informix or its management
``believes,' ``expects,' ``anticipates,' ``plans,' ``may,' ``will,' ``projects,' ``continues,' ``intends,' or ``estimates,' or
statements concerning ``potential,' or ``opportunity' or other variations thereof or comparable terminology or the negative
thereof that are not statements of historical fact should be considered forward-looking statements as a result of certain risks
and uncertainties. These risks and uncertainties could cause actual results and events to differ materially from historical or
anticipated results and events. Investors and potential investors should review carefully the description of the risks and
uncertainties which, together with other detailed information about Informix Corporation, is contained in the periodic reports
that the company files from time to time with the Securities and Exchange Commission.
These risks and uncertainties include, but are not limited to: the intense competition in the company's businesses and the effect
of the competition on the pricing of the company's products and services; rapid changes in the company's businesses due to,
among other things, evolving technological standards; the effect of potential or actual slower growth in the RDBMS market on
sales of the company's products; the risk that the company will not realize the benefits of its recent acquisition of Cloudscape,
the anticipated acquisition of Ardent or future acquisitions or investments in other businesses; the continued, anticipated
development of the Internet; the continued anticipated growth of the data warehousing market; the company's dependence
upon proprietary technology; fluctuations in quarterly results and the seasonal trends in the company's business; the company's
dependence upon and ability to attract and retain qualified employees; the ability of the company's senior management to meet
the company's business objectives and develop new business; the company's international operations and foreign currency
fluctuations; the ability of the company to develop and market new products for which there is demand in the market; and the
need to continue to strengthen the company's internal accounting controls.
This public announcement contains information that is accurate as of January 26, 2000, the date of the public announcement.
Informix disclaims any obligation to update or correct the information as a result of financial, business or any other
developments occurring after January 26, 2000.
Informix Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
-------- ------ ----- -----
(unaudited) (unaudited)
NET REVENUES
Licenses $135,267 $ 118,077 $ 442,829 $ 383,947
Services 115,845 96,841 428,707 351,559
------- ------- ------- -------
251,112 214,918 871,536 735,506
COSTS AND EXPENSES
Cost of software 11,793 8,783 43,097 35,446
distribution
Cost of services 42,030 42,043 173,664 155,947
Sales and
marketing 81,152 75,788 312,139 271,881
Research and
development 42,834 39,521 163,298 149,591
General and
administrative 20,640 25,847 78,627 77,010
------- ------- ------- -------
198,449 191,982 770,825 689,875
------- ------- ------- -------
Operating
income 52,663 22,936 100,711 45,631
OTHER INCOME (EXPENSE)
Interest income 3,079 5,115 11,084 11,728
Interest expense (1,016) (1,213) (4,316) (5,849)
Other, net 2,207 (2,184) 2,452 (4,581)
INCOME BEFORE INCOME
TAXES, excluding
non-recurring
charges 56,933 24,654 109,931 46,929
Income taxes 11,387 2,500 21,881 4,400
------ ------ ------- ------
INCOME, excluding
non-recurring
charges $ 45,546 $ 22,154 $ 88,050 $ 42,529
Preferred stock
dividend (166) (1,662) (995) (3,478)
Value assigned
to warrants -- -- -- (1,982)
------ ------ ------- ------
INCOME APPLICABLE TO
COMMON STOCKHOLDERS,
excluding
non-recurring
charges $ 45,380 $ 20,492 $ 87,055 $ 37,069
NON-RECURRING
CHARGES
Litigation
settlement
expense -- -- 97,016 --
Merger,
restructuring
and other 2,776 (400) 2,198 (7,655)
------- ------- ------- -------
NET INCOME (LOSS)
APPLICABLE
TO COMMON
STOCKHOLDERS $ 42,604 $ 20,892 $ (12,159) $ 44,724
======== ========= ========= ==========
INCOME PER COMMON
SHARE, excluding
non-recurring
charges $ 0.21 $ 0.11 $ 0.42 $ 0.20
SHARES USED IN PER
SHARE CALCULATION,
excluding
non-recurring
charges 218,207 188,735 207,900 182,400
NET INCOME (LOSS)
PER COMMON SHARE
Basic $ 0.20 $ 0.12 $ (0.06) $ 0.26
Diluted $ 0.20 $ 0.11 $ (0.06) $ 0.25
SHARES USED
IN PER SHARE
CALCULATIONS,
Basic 210,561 177,634 199,543 169,581
Diluted 218,207 188,735 199,543 182,400
Informix Corporation
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
1999 1998
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 140,371 $ 185,459
Short-term investments 88,746 41,093
Accounts receivable, net 232,178 187,342
Recoverable income taxes -- 3,255
Deferred Taxes 8,873 --
Other current assets 24,267 20,373
------- -------
Total current assets 494,435 437,522
PROPERTY AND EQUIPMENT,net 60,586 75,845
SOFTWARE COSTS,net 39,011 38,006
LONG-TERM INVESTMENTS 17,272 22,191
INTANGIBLE ASSETS, net 27,991 41,482
OTHER ASSETS 10,246 7,019
--------- --------
Total assets $ 649,541 $ 622,065
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITES:
Accounts payable $ 23,624 $ 29,900
Accrued expenses 50,913 59,558
Accrued employee compensation 64,731 50,649
Income taxes payable 20,190 --
Deferred revenue 136,173 132,390
Advances from customers and financial
institutions 34,302 121,077
Accrued restructuring and
merger costs 1,804 5,813
Other current liabilities 3,878 6,875
------- -------
Total current liabilities 335,615 406,262
OTHER NON-CURRENT LIABILITIES 1,420 3,759
STOCKHOLDERS' EQUITY:
Convertible preferred stock -- 63
Common stock; par value 2,073 1,913
Shares to be issued for
litigation settlement 61,228 --
Additional paid-in capital 496,574 445,352
Accumulated deficit (241,078) (231,934)
Accumulated other comprehensive loss (6,291) (3,350)
--------- -------
Total stockholders' equity 312,506 212,044
Total Liabilities and
Stockholders' equity $ 649,541 $ 622,065
Note to Editors: (c) 2000 Informix Corporation. All rights reserved. The following are trademarks of Informix Corporation or
its affiliates, one or more of which may be registered in the U.S. or other jurisdictions: Informix©, Cloudscape(TM), Informix
Internet Foundation.2000(TM), Informix Extended Parallel Server(TM), i.Sell(TM), i.Reach(TM), Media 360(TM), Red
Brick© Decision Server(TM) and Winning in the i.Economy(TM).
Informix news releases are available at no charge through Business Wire's NewsOnDemand fax service. To immediately
receive an index of available releases, call 1-800/356-0851.
Contact:
Informix Corp.
Melora Foley, 650/926-6443 (editorial)
melora.foley@informix.com
or
Kate Patterson, 650/926-6809 (investor)
kate.patterson@informix.com |
