Informix Reports Higher Sequential Revenue for Fourth Quarter 2000, Fueled By Strong License Revenue Growth
WESTBORO, Mass.--(BUSINESS WIRE)--Jan. 24, 2001--
-- Company Earns $14.9 million, or $0.05 Per Share, Before
Charges
-- License Revenue Increases 23% at Informix Software, 22% at
Ascential Software
-- Projects Continued Sequential Growth throughout 2001
Informix(R) Corporation (Nasdaq: IFMX), a technology leader for the new economy, today reported results for the fourth quarter ended December 31, 2000. Revenue for the fourth quarter totaled $226.8 million, compared with $211.1 million in the third quarter of 2000, and $299.8 million in the same quarter last year.
The net profit for the quarter was $14.9 million, or $0.05 per diluted share, before charges primarily related to the Company's previously announced plans to establish two separate, independent operating companies. This compares to a net loss before charges in the 2000 third quarter of $18.5 million or $(0.06) per diluted share, and net profit of $52.5 million, or $0.18 per diluted share in the fourth quarter of 1999.
Including charges of $14.7 million as described above, Informix reported a net profit of $0.3 million in the fourth quarter of 2000.
Peter Gyenes, Chairman and Chief Executive Officer, commented, "As we had projected, we are pleased to report a return to profitability in the fourth quarter led by a 23% sequential gain in license sales, as well as a 6% sequential reduction in operating expenses. Informix Corporation has turned the corner and is now on its way to delivering stockholder returns equal to the high quality of its products."
Revenue of Ascential(TM) Software, the recently renamed e-Business software infrastructure and solutions company, was $33.7 million, compared with $29.1 million in the third quarter of 2000, a 16% sequential increase. This increase was fueled by strong sales of data integration and content management products, Datastage(R) and Media360(TM), respectively. Revenue of Informix Software, the Company's database business, grew to $193.1 million in the 2000 fourth quarter, from $182.0 million in the third quarter, driven by sales of database licenses, which rose 23% sequentially.
International sales represented 51% of the Company's revenue during the fourth quarter of 2000.
For the year 2000, Informix Corporation reported sales of $929.3 million compared to $1,039.1 million for 1999. Revenue of Informix Software was $807.6 million for the full year 2000, compared to $955.0 million in 1999. Ascential Software revenue was $121.7 million for the year versus pro forma revenues of $84.1 million in 1999. The Company's net profit before non-recurring charges was $28.3 million, or $0.09 per diluted share, in 2000 versus $110.2 million, or $0.40 per diluted share last year. Including charges of $126.8 million mostly related to merger, realignment and other charges, Informix reported a net loss of $98.5 million, or $(0.34) per diluted share.
At December 31, 2000, Informix Corporation had $217 million in cash and no debt. The Company said that although cash declined during the period as a result of planned non-recurring costs, mostly related to the charges described above, it expects to be a significant net cash generator throughout 2001.
"We look back on 2000 as a year of rebuilding and repositioning Informix for sustained revenue and earnings growth," said Mr. Gyenes. "The third quarter of 2000 represented a turning point in our efforts to regain the Company's previous stature and momentum, and the fourth quarter of 2000 represents evidence that our strategies are producing results."
Mr. Gyenes continued, "Our renewed and expanded relationships with strategic partners such as SAP and Broadvision, the resumption of growth in our database license sales, accelerating revenue growth at Ascential, and our improved financial performance, all provide the base from which we expect to continue to build sequential revenue and earnings growth as the year progresses."
"We are optimistic about our growth prospects for 2001. E-Business, data warehousing, business intelligence and analytical applications, and media content management each represent market demand growth drivers. These are the areas where the offerings of Ascential Software and Informix Software shine," Mr. Gyenes concluded.
Pete Fiore, President of Ascential Software said, "Our outlook for Ascential Software in 2001 is for approximately 80% to 100% license revenue growth. This growth will be driven by the unique capability of our products to address the requirement of virtually every company today to integrate large volumes of disparate data, enhance its value, and to deliver that information in a useable format when and where it's needed. This should result in overall revenue growth of 65-70%, or total revenues of $200-$210 million. Accordingly, we anticipate achieving operating profitability for Ascential during the fourth quarter of 2001," concluded Mr. Fiore.
Jim Foy, President of Informix Software said, "We expect growth of Informix Software in 2001 to be driven by 15% to 20% growth in enterprise database software licenses, as well as the anticipated positive impact from our Cloudscape offering for mobile and wireless database applications. This high-growth segment of our database business is expected to result in approximately 10% growth in database software licenses overall, and at least 5% in total revenue, or $845 million to $850 million. We expect operating income for this business to continue to improve sequentially throughout the year, with operating margins averaging 25%," concluded Mr. Foy.
"Accordingly, we would expect earnings per share, before charges, of Informix Corporation to be approximately four to five times higher in 2001 than in 2000", Mr. Gyenes concluded.
The Company reaffirmed its intention to create a separate publicly traded identity for Ascential Software as market conditions warrant.
Selected Quarterly Highlights
During the quarter, Ascential Software reestablished momentum in the data integration and business intelligence markets, and extended its product portfolio to provide a complete software solution framework that addresses the requirements for Information Asset Management. Highlights of the quarter include:
-- Ranked ninth by DM Review magazine among the world's top 100
business intelligence companies.
-- Signed 126 new DataStage customers, including: SITEL
Corporation, Aera Energy LLC, Humana Inc., Fidelity
Investments Limited, MX Health, BankBoston, NexTel
Communications, Inc., Suncorp Metway Ltd., International Truck
and Engine (an operating company of Navistar International
Corporation), Britannia Building Society, Premera Blue Cross,
Aspecta Assurance International, Kinko's Inc., and
AgipPetroli.
-- Delivered DataStage/XE 390, the industry's only data
integration solution with native support for mainframe, Unix,
and NT platforms. Northwest Airlines and DST Systems Inc. are
among new customers currently implementing this solution.
-- Provided Warehouse to Web(TM) solutions that integrate data
warehouse, e-commerce, and internet applications to a growing
list of clients, including PersonalPath Systems Inc., UBS
Warburg, Seliance, the internet subsidiary of Credit Lyonnais,
and Zeborg Inc., an e-commerce company focused on streamlining
the procurement process.
-- Added 11 new Media360 customers, including Sears Roebuck and
Co., Canadian Broadcasting Corporation, Ferrari Racing Team,
Latin-American Institute of Educational Communication (ILCE),
Sistema Brasileiro de Televisao and the Office of the U.S.
Marshalls.
-- Announced Axielle(TM), the company's enterprise portal
solution and signed New Enterprise & Technology (NE&T) as the
first Axielle client. The Company has also implemented Axielle
as its internal employee portal and signed Primix Solutions
and Professional Access as the first two Axielle system
integration partners.
-- Signed new i.Decide Web Success clients, including Answers, an
Internet CRM service provider, and Orange, the multinational
wireless telecommunications service provider.
-- Expanded its strategic partnerships including an alliance with
Business Objects aimed at addressing the needs of telecom
customers, a new joint initiative with Hewlett Packard aimed
at integrating legacy data in data warehousing environments in
the telecom and financial services industries, and a strategic
partnership with Allegra Solutions, Inc., to provide
comprehensive asset management solutions to leading
broadcasting and media companies. The Company also leveraged
existing channel partnerships to generate new sales at XM
Satellite Radio with Arthur Andersen, and at Glidden Paints
and Things Remembered with Relational Solutions.
During the quarter, revenue growth at Informix Software, the database company, was driven by the demand for data warehousing, business intelligence, and new Internet applications. Highlights of the quarter include:
-- Added over 600 new customers worldwide, including many through
channels delivering data warehouse and e-business solutions in
retail, telecommunications, financial, higher education,
public safety and many other vertical markets. Major new
customers include Citibank, Speedtrak, Clickability, Genuity
and Rythms Netconnections.
-- Recruited 17 new channel partners including Fiserv (Internet
banking), Newtec (Business Intelligence data marts for SAP and
Peoplesoft), EBIZ (network security) and Jasmine and Sorrento
(network management).
-- Renewed and expanded its agreement with SAP to resell Informix
database products. SAP also selected Informix as the database
platform for their internal deployment of MySAP.com.
-- Was chosen by Citibank in conjunction with Broadvision for
their internet-based banking application.
-- Demonstrated continued strength in the telecommunications
market with significant wins including Orange PCS, Ltd., SBC,
Lucent Technologies, Vodafone, Nextel, Alcatel, L.M Ericcson,
Cisco, AT&T, Motorola, Nortel and Telefonica del Peru.
-- Won significant data warehouse projects with Fidelity
Investments, Galileo International, Vodafone (NZ), Speedtrak,
Barnes & Noble, Premier Systems and Bundesanstalt fuer Arbeit.
-- Shoppers Drug Mart chose the award winning Cloudscape Java
database for its point of sale application.
-- Announced the strategy for Arrowhead(TM), which is envisioned
to deliver a single database management system that meets the
converging data demands of the new economy.
-- Expanded and enriched its data warehouse offerings for web and
Linux environments with releases of the Red Brick(R) Decision
Server(TM) 6.1, its latest database engine for data
warehousing in web and decision-support environments and the
Extended Parallel Server(TM) (XPS), its "high performance and
scalability without limits" database.
About Informix Software
Informix Software, the database company, is a leading provider of database management systems for data warehousing, transaction processing and e-Business applications. With more than 100,000 customers worldwide, Informix Software delivers high-performance database systems in markets including retail, financial services, government, healthcare, manufacturing, media and publishing, and telecommunications. For more information, visit the Informix Web site www.informix.com.
About Ascential Software
Ascential Software, Inc. an independent operating business of Informix Corporation, is the leading provider of Information Asset Management solutions to the Global 2000. Customers use Ascential products to turn vast amounts of disparate, unrefined data into reusable information assets that drive business success. Ascential's unique framework for Information Asset Management enables customers to easily collect, validate, organize, administer and deliver information assets to realize more value from their enterprise data, reduce costs and increase profitability. Headquartered in Westboro, Mass., Ascential has offices worldwide and supports more than 1500 customers, in such industries as telecommunications, insurance, financial services, healthcare, media/entertainment and retail. For more information visit the Ascential Web site www.ascentialsoftware.com.
Safe Harbor Statement
This public announcement contains forward-looking statements that are subject to numerous risks and uncertainties. These forward-looking statements include, without limitation, those as to:
Whether the Company will be able to deliver stockholder returns equal to the high value of its products; whether the Company will be able to separate its operations into two independent operating companies, hire and retain qualified personnel for both companies, and realize the anticipated profitability and resulting stockholder value of the two independent companies; whether there will be continued growth in the Company's database license sales; whether the Company will be able to renew and expand relationships with strategic partners; whether Ascential will be able to achieve accelerating revenue growth; whether there will be continued increased market demand for the Company's E-business, data warehousing, business intelligence and analytical applications products; whether the Ascential will be able to achieve an approximately 80% to 100% license revenue growth in 2001, overall revenue growth of approximately 65-70%, and approximate total revenues of $200-$210 million; whether there will be continued acceptance of Acential's products in the marketplace; whether Ascential will be able to achieve operating profitability during the fourth quarter of 2001; whether there will be continued high demand for Ascential's data integration and content management products offerings; whether the Company will be able to achieve continued sequential revenue and earnings growth throughout 2001; whether Informix Software will be able to achieve approximately 15% to 20% growth in enterprise database software licenses; whether the anticipated market will develop for Software's products for mobile and wireless database applications, and whether that segment of Software's business will result in approximately10% growth in database software licenses overall; whether Software will be able to increase its total revenue by at least 5% in 2001in an approximate range of at least $45-$50 million; whether Software will be able to improve operating income sequentially throughout 2001 with average operating margins of 25%; whether the Company will be able to achieve earnings per share, before charges, of approximately four to five times higher in 2001 than in 2000; whether the Company will be a significant cash generator throughout 2001; and whether market conditions will be conducive in 2001 to establishing Ascential as a separate publicly traded company
(c)2001 Informix Corporation. All rights reserved. The following are trademarks of Informix Corporation or its affiliates, one or more of which may be registers in the U.S. or other jurisdictions: Informix(R); Media360(TM); Datastage(R); i.Decide(TM), LoadPACK(TM), Red Brick(R), and Decision Server(TM). Ascential(TM) is a trademark of Ascential Software, Inc. and may be registered in other jurisdictions.
INFORMIX CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
NET REVENUES
Licenses $101,165 $163,043 $404,421 $535,879
Services 125,671 136,790 524,898 503,232
--------- --------- --------- ---------
226,836 299,833 929,319 1,039,111
COSTS AND EXPENSES
Cost of software
distribution 13,084 14,269 50,422 50,157
Cost of services 39,583 51,775 184,581 207,979
Sales and marketing 95,866 97,151 402,569 370,701
Research and development 39,136 49,684 166,076 188,105
General and administrative 24,576 23,593 100,027 89,445
--------- --------- --------- ---------
212,245 236,472 903,675 906,387
Operating income 14,591 63,361 25,644 132,724
--------- --------- --------- ---------
OTHER INCOME (EXPENSE)
--
Interest income 3,642 3,486 14,339 12,362
Interest expense (76) (1,076) (454) (4,504)
Other, net 778 2,266 5,002 2,574
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES,
excluding non-recurring
charges 18,935 68,037 44,531 143,156
Income taxes 4,000 15,366 16,018 31,983
--------- --------- --------- ---------
INCOME, excluding
non-recurring charges $14,935 $52,671 $28,513 $111,173
Preferred stock dividend -- (166) (191) (995)
--------- --------- --------- ---------
INCOME APPLICABLE TO COMMON
STOCKHOLDERS,
excluding non-recurring
charges $14,935 $52,505 $28,322 $110,178
======== ======== ========= ========
NON-RECURRING CHARGES
Litigation settlement
expense -- -- -- 97,016
Merger, realignment and
other charges 14,658 2,776 126,828 12,093
Write-off of acquired
research and development -- -- -- 5,052
--------- --------- --------- ---------
-----
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $277 $49,729 $(98,506) $(3,983)
======== ======== ========= ========
INCOME PER COMMON SHARE,
excluding non-recurring
charges $0.05 $0.18 $0.09 $0.40
======== ======== ========= ========
SHARES USED IN PER SHARE
CALCULATION,
excluding non-recurring
charges 300,353 293,221 312,644 273,093
======== ======== ========= ========
NET INCOME (LOSS) PER COMMON
SHARE
Basic $0.00 $0.17 $(0.34) $(0.02)
======== ======== ========= ========
Diluted $0.00 $0.17 $(0.34) $(0.02)
======== ======== ========= ========
SHARES USED IN PER SHARE
CALCULATIONS
Basic 285,760 278,423 286,138 262,645
======== ======== ========= ========
Diluted 300,353 293,221 286,138 262,645
======== ======== ========= ========
INCOME PER SHARE, excluding
non-recurring charges and
amortization of purchased
intangibles $0.06 $0.20 $0.14 $0.47
======== ======== ========= ========
INFORMIX CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS December 31, 1999 December 31, 2000
CURRENT ASSETS
Cash and cash equivalents $128,420 $170,118
Short-term investments 88,541 102,469
Accounts receivable, net 235,429 247,196
Deferred income taxes -- 5,544
Other current assets 17,330 38,056
------ ------
Total current assets 469,720 563,383
PROPERTY AND EQUIPMENT, net 67,617 68,581
SOFTWARE COSTS, net 41,444 45,722
LONG-TERM INVESTMENTS 11,185 17,272
INTANGIBLE ASSETS, net 48,258 81,843
OTHER ASSETS 17,657 16,536
------ ------
Total Assets $655,881 $793,337
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $27,881 $30,694
Accrued expenses 38,922 48,353
Accrued employee compensation 66,167 70,875
Income taxes payable 23,139 21,803
Deferred revenue 141,735 147,118
Advances from customers 10,492 34,302
Accrued merger and restructuring costs 28,210 8,675
Other current liabilities 427 3,878
--- -----
Total current liabilities 336,973 365,698
OTHER NON-CURRENT LIABILITIES 787 1,420
STOCKHOLDERS' EQUITY
Convertible preferred stock -- --
Common stock; par value 2,867 2,756
Shares to be issued for litigation
settlement 61,228 61,228
Additional paid-in capital 669,606 632,743
Accumulated deficit (359,132) (260,817)
Treasury stock (36,803) (3,163)
Accumulated other comprehensive loss (19,645) (6,528)
Total stockholders' equity 318,121 426,219
------- -------
Total Liabilities and Stockholders'
Equity $655,881 $793,337
======== ========
CONTACT:
Press Contact:
Informix Corporation
Paul Collins, 508/366-3888
paul.collins@informix.com
or
Investor Contact:
Morgen-Walke Associates, Inc.
Gordon McCoun or Stephanie Prince, 212/850-5600
Gmccoun@morgenwalke.com
Sprince@morgenwalke.com
KEYWORD: MASSACHUSETTS
BW2560 JAN 24,2001
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