Informatica counts the profits

Informatica is about the last pure play ETL/integration player left standing now that Ascential is part of IBM and even little Sunopsis has disappeared into Oracle’s maw.  Hence it is interesting to see their progress as they essentially try to buck the trend that says that data integration technology should best reside in the database.  Informatica has of course moved beyond just ETL into more general integration, and has real time capabilities now that bump it up against EAI vendors like Tibco and WebMethods as well as against other ETL offerings.

This quarter’s results were fairly healthy, with profits in particular doing very well at a net margin of 16%.  This was based on some cost cutting and good renewal rates since license revenues of USD 33.6 million was less than Wall Street expected, though this was still a healthy 19% increase over last year.  Maintenance revenue rose 25%.  The generally difficult market for enterprise software is revealed in the fact that just four deals of over USD 1 million took place compared to nine last quarter, and 27 deals were over USD 300k in size (compared to 33 last quarter). 

Still, overall Informatica can be pleased with these results, especially now that it seems to have got into the habit of making a profit, something it has historically struggled with (its five year average is a negative 11%).