Informatica Q1 Profit Up 39%, Results Beat View

(RTTNews) - Data integration software provider Informatica Corp. (INFA) on Thursday reported a 39 percent increase in profit for the first quarter from last year, boosted by double-digit growth in software revenue. Both revenue and adjusted earnings beat analysts' estimates. The company's shares gained more than 3 percent in extended trades.

Sohaib Abbasi, chairman and chief executive officer of Informatica said, "The first quarter highlights included strong subscription revenue growth and improved sales operational discipline in Europe. Informatica is well positioned for sustainable, profitable growth with our investments to benefit from secular, disruptive trends that are redefining next-generation analytics, business computing and data security."

The company's net income for the first quarter increased to $24.85 million or $0.22 per share from $17.91 million or $0.16 per share in the prior-year period.

Excluding items, adjusted net income for the quarter was $39.53 million or $0.35 per share, compared to $34.78 million or $0.31 per share in the same period last year. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 13 percent to $243.10 million from $214.30 million in the same period last year. Analysts had a consensus revenue estimate of $242.37 million for the quarter.

Software revenues grew 17 percent from last year to $103.04 million. Within software revenues, license revenues rose 13 percent to $88.5 million and subscription revenue surged 49 percent to $14.5 million.

Total operating expenses for the quarter increased 9 percent from last year to $158.95 million. Operating margin increased to 15 percent from 12 percent in the year-ago period.

INFA closed Thursday's regular trading at $37.69, down $0.19 or 0.50 percent on a volume of 1.45 million shares. However, in after-hours, the stock gained $1.31 or 3.48 percent to $39.00.