Informatica Q3 Results Top Estimates, Shares Rise - Update

(RTTNews) - Informatica Corp. (INFA), an independent provider of data integration software, Thursday said profit for the third quarter declined from the prior year, amid higher expenses and increased income tax provision, even as revenues saw a significant increase. Adjusted earnings and revenues topped estimates. The stock added close to 6 percent in the extended trade.

Net income declined to $10.40 million or $0.09 per share from $15.50 million or $0.14 per share reported last year.

Adjusted income for the quarter was $37.06 million or $0.33 per share. Adjusted earnings totaled $30.0 million or $0.27 per share last year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.32 for the quarter. Analysts' estimates typically exclude special items.

The latest adjusted results exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, facilities restructuring and facility lease termination costs, building operating expenses related to the headquarters move, acquisition and other charges, acquisition integration-related tax expenses, and share-based compensation.

Revenue increased 24 percent to $235.39 million from $190.32 million last year. Analysts expected revenue of $225.40 million for the quarter.

Software revenues climbed 35 percent from last year to $99.8 million. Within software revenues, license revenues jumped 34 percent and subscription revenues increased 48 percent.

Total operating expenses increased to $162.63 million from $128.43 million and income tax provision climbed to $17.19 million from $9.97 million in the prior year.

Sohaib Abbasi, CEO, said, "Based on our firm conviction in Informatica's long-term growth opportunity, we are increasing our investments in pioneering new technologies to benefit from emerging mega-trends such as cloud computing, big data and the Internet of Things."

INFA closed up 1.9 percent on Thursday at $38.33, and added 5.8 percent in the extended trade to $40.56.