Informix Regains Momentum as It Predicts Increased 2001 Profit
By Dina Bass
Bloomberg.com
quote.bloomberg.com
Menlo Park, California, Feb. 16 (Bloomberg) -- Informix Corp., a database software maker, expects 2001 to be a vast improvement after its financial woes of last year, with profit forecast to increase four- or fivefold.
Investors appear to approve. The stock has more than doubled in 2001 and has had the best performance in the Standard & Poor's Midcap 400 Index. Informix had higher-than-expected fourth-quarter profit excluding some costs, it said three weeks ago, when it gave its outlook for this year.
In contrast, Informix replaced both its chairman and chief executive and cut about 11 percent of its workforce in 2000, when it cut its profit outlook two quarters in a row amid sales losses to rivals such as Oracle Corp. In response, new managers split the company into two divisions with separate marketing plans and sales organizations, Chairman and Chief Executive Peter Gyenes said.
``We've realigned the company so that it can be a business that performs,'' he said. ``The company was trying to focus on too many products with too many separate business groups all inside one corporate structures.''
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Gyenes said he expects the database unit's sales to grow about 5 percent this year to $845 million to $850 million and Ascential's to gain 60 percent to 70 percent to $200 million to $210 million. Informix expects the four- or fivefold profit increase to 36 cents to 45 cents a share because the reorganization reduced costs.
The promise of stability at Informix let the company seal some contracts that had been held up by customers concerned about the company's future, Gyenes said. Companies such as SBC Communications Inc., Sears, Roebuck & Co. and Citicorp's Citibank Ltd. unit closed agreements last quarter after delaying them.
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Sears signed the maintenance contract last quarter and also extended its use of Informix products after Gaidzik met with Gyenes and left reassured that the company would continue to make database products a priority. The software, which Sears uses for tasks such as logistics and credit data, is more reliable and expandable for handling more transactions than Oracle's products, she said.
``It just works and keeps on working, and you don't have to worry about it,'' she said.
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``The Ardent management thought they were going to just sell the company and quietly retire,'' Tholemeier said. Instead, they were tapped to run the company that had bought theirs.
The stock is valued at about $12 a share, Tholemeier said, adding that he wouldn't be surprised if it reaches $20 during the next year.
``They've got some good products and good management; they seem to be turning things around,'' said Morton Cohen, chairman of Clarion Capital, which has less than $1 million in Informix shares. ``I think it's got more legs.''
Thanks to the Yahoo thread. |
