Informix Reports Higher Sequential Revenue for Fourth Quarter 2000, Fueled By Strong License Revenue Growth.Business Editors 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 IFMX Informix Corporation ), 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 di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, before charges primarily related to the Company's previously announced plans to establish two separate, independent operating companies operating company A business that engages in transactions with outsiders. . 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . 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 As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase 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 re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. 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 repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. 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 RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the 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 op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our growth prospects for 2001. E-Business, data warehousing See data warehouse. data warehousing - data warehouse , 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 In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. , as well as the anticipated positive impact from our Cloudscape cloud·scape n. 1. A work of art representing a view of clouds: an Impressionist painting that is a vast cloudscape of buoyant, floating forms. 2. 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 Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for this business to continue to improve sequentially throughout the year, with operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: 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 Aera Energy LLC (Aera) is the California-based joint venture of Shell Oil Company and Mobil Oil. Approximately 1,100 Aera employees are based in California. The company's head office is in Bakersfield, California. , Humana Inc., Fidelity Investments Limited, MX Health, BankBoston, NexTel Communications, Inc., Suncorp Metway Ltd., International Truck and Engine (an operating company of Navistar International Navistar International Corporation (Pink Sheets: NAVZ) (formerly International Harvester Company) is a manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Corporation brand school buses, Workhorse brand chassis for motor homes and step vans, Corporation), Britannia Building Society Overview One of the major UK mutual building societies remaining today is the Britannia Building Society, with headquarters in Staffordshire, England. Britannia is the second largest building society in the United Kingdom based on total assets of £35 billion at 31 , Premera Blue Cross Premera Blue Cross is a nonprofit Blue Cross Blue Shield licensed health insurance company based in Mountlake Terrace, Washington. It sells health insurance plans under the Blue Cross license in Washington state except Clark County and under both the Blue Cross and Blue Shield , 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 DST Systems Inc. (NYSE: DST) is a software development firm that specializes in information processing and management, with the goal of improving efficiency, productivity, and customer service. 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 UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Warburg, Seliance, the internet subsidiary of Credit Lyonnais, and Zeborg Inc., an e-commerce company focused on streamlining the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. process. -- Added 11 new Media360 customers, including Sears Roebuck and Co., Canadian Broadcasting Corporation “Radio-Canada” redirects here. For the French language TV arm of the CBC, see Télévision de Radio-Canada. The Canadian Broadcasting Corporation (CBC), a Canadian crown corporation, is the country’s national public radio and television broadcaster. , Ferrari Racing Team, Latin-American Institute of Educational Communication (ILCE ILCE Instituto Latinoamericano de la Comunicacion Educativa (Spanish: Latin American Institute of Educative Communication) ), Sistema Brasileiro de Televisao and the Office of the U.S. Marshalls. -- Announced Axielle(TM), the company's enterprise portal See corporate 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 (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. service provider, and Orange, the multinational wireless telecommunications service provider A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. . -- 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 The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, and a strategic partnership with Allegra Al·leg·ra A trademark for the drug fexofenadine hydrochloride. fexofenadine hydrochloride Allegra, Telfast (UK) Pharmacologic class: Peripherally selective piperidine, selective histamine 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 For the U.S. Supreme Court case commonly known as Arthur Andersen, see . Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing , 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 See Web 2.0 and Internet2. 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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. , financial, higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , 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 A subset of a data warehouse for a single department or function. A data mart may have tens of gigabytes of data rather than hundreds of gigabytes for the entire enterprise. See data warehouse. for SAP and Peoplesoft), EBIZ EBIZ Electronic Business (network security) and Jasmine jasmine (jăs`mĭn, jăz–) or jessamine (jĕs`əmĭn), any plant of the genus Jasminum of the family Oleaceae (olive family). and Sorrento (network management). -- Renewed and expanded its agreement with SAP to resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. 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 (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. , Ltd., SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. , 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 For the Washington, DC area grocery chain, see . Shoppers Drug Mart Corporation TSX: SC is Canada's largest pharmacy chain with more than 1000 stores operating under the names Shoppers Drug Mart across 9 provinces and 2 territories and Pharmaprix in Quebec. chose the award winning Cloudscape Java database for its point of sale application. -- Announced the strategy for Arrowhead arrowhead, any plant of the genus Sagittaria, widely distributed marsh or aquatic herbs of the primitive family Alismataceae (water-plantain family). The name derives from the arrowhead-shaped leaves of many species. (TM), which is envisioned to deliver a single database management system that meets the converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. 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 (1) See XML Paper Specification. (2) A brand name for certain models of Inspiron laptops from Dell. ), 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 Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. 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 re·use tr.v. re·used, re·us·ing, re·us·es To use again, especially after salvaging or special treatment or processing. re·us information assets that drive business success. Ascential's unique framework for Information Asset Management enables customers to easily collect, validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data , 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This public announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Noun 1. approximate range - near to the scope or range of something; "his answer wasn't even in the right ballpark" ballpark ambit, range, scope, reach, compass, orbit - an area in which something acts or operates or has power or control: "the range of a 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 con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. in 2001 to establishing Ascential as a separate publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. (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
======== ========
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