SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 13, 1997 (August 7, 1997)
Date of report (Date of earliest event reported)
INFORMIX CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-15325
(Commission File Number)
94-3011736
(I.R.S. Employer Identification No.)
4100 Bohannon Drive
Menlo Park, California 94025
(Address of Principal Executive Offices) (Zip Code)
650-926-6300
(Registrant's Telephone Number, Including Area Code)
Item 5. Other Events.
On August 7, 1997, Informix Corporation (the "Company") issued a
press release concerning (i) results for the quarter ended June 29,
1997, (ii) the discovery of errors in the recording of revenue in 1996,
(iii) the anticipated restatement of the Company's 1996 financial
statements to reflect adjustments to revenue that will decrease revenue
and net income from previously reported amounts and (iv) a planned
restructuring and reorganization. A copy of the press release is
attached hereto as Exhibit 99.1 and is incorporated herein.
The filing of the Company's Quarterly Report on Form 10-Q for the
quarter ended June 29, 1997 will be delayed until the Company completes
its review of its financial statements for the period ended December 31,
1996.
Item 7. Exhibits.
Exhibit Number Description
99.1 Press Release dated August 7, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this Current Report to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Menlo
Park, State of California, on August 13, 1997.
INFORMIX CORPORATION
(Registrant)
By /s/ David H. Stanley,
David H. Stanley,
Vice President,
Legal and Corporate Services,
General Counsel and Secretary
INDEX TO EXHIBITS
Exhibit
Number
- -------
99.1 Press Release dated August 7, 1997
Editorial Contacts:
Margaret Brauns Robert Manetta Jill Lindstedt
Financial Analysts Public Relations Industry Analysts
650-926-6025 650-926-6978 650-926-1940
INFORMIX REPORTS SECOND QUARTER 1997 RESULTS
Company to Restate 1996 Financials
MENLO PARK, CA, Aug. 7, 1997 - Informix Corporation (NASDAQ:
IFMX), today announced that revenues for the second quarter ended June
29 were $164.7 million, up 23 percent sequentially from the first
quarter of 1997. The company reported a net loss of $120.5 million or
$(0.79) per share for the period, including a restructuring charge of
$62.1 million related to personnel reductions and writedowns of certain
assets.
Informix also announced that it has discovered errors in the
recording of revenue in 1996. The company anticipates that its 1996
financial statements will be restated to reflect adjustments to revenue
that will decrease revenue and net income from previously reported
amounts.
The company and its independent auditors are in the process of
determining the extent of transactions, which based on findings and
information now known, should not have been recognized in 1996. At a
minimum, some of the revenue from those transactions should have been
deferred to subsequent periods.
Based on the work completed to date, Informix estimates that
approximately $70 million to $100 million of revenue will be adjusted.
The final amount will be dependent on the outcome of the work underway.
Informix will provide 1996 financial information based on the
restatement as soon as possible. Said Bob Finocchio, who was named
chairman and chief executive officer in July: "We have applied our
revenue recognition policies very conservatively in Q2, resulting in
recording revenue only for products and services sold directly to end
users or through our partners for identified customers. There were no
increases in general "pool of funds" revenues from resellers this
quarter." "We are taking steps to position Informix with a solid
foundation for the future. We continue to benefit from customer and
partner loyalty, demand for our products, and our market-leading
technology," he continued.
Summary Financial Results
Quarter Ended
June 29, 1997
Revenue $ 164,678,000
Operating(loss) $(142,571,000)
Pretax (loss) $(138,497,000)
Net (loss) $(120,492,000)
Net (loss) per share $(0.79)
North American revenues increased by 14 percent to $78.9 million in the
second quarter, up from $69.1 million in Q1 1997. European revenues
were $49.3 million, 35 percent up from $36.5 million in the prior
quarter. And Intercontinental revenues increased 30 percent to $36.5
million, from $28.1 million in the first quarter of 1997. Informix
ended the second quarter with approximately $104 million in cash and
investments.
Q3 Restructuring and Reorganization Plans
The company is focused on five near-term priorities: improving its
operations and execution performance; building financial stability and
strength including getting revenues and expenses in balance; clearly
articulating its market position and strategy; developing a strong
management team, including hiring a new CFO as quickly as possible; and
building on the company's strong foundation of partnerships.
The company is already taking action in several areas. It stated
that its number of employees was reduced from about 4,630 in Q1 to 4,190
at the end of Q2. In the second quarter, the company downsized or
closed a number of offices and will continue to consolidate facilities
in Q3. The company plans further personnel reductions in Q3 of
approximately 10 to 15 percent of its existing workforce, with the
primary reduction being in sales and marketing. Temporary employees and
contractors will also be reduced. A restructuring charge will be taken
in Q3 to cover the additional severance costs and asset writedowns.
In addition, the company is reorganizing and realigning for better
control and cost-effectiveness - centralizing European and U. S.
administrative and finance functions, technical support, and operations.
The company said that it will not build a new headquarters campus in
Santa Clara on land acquired in January, and will put the Santa Clara
real estate on the market.
Informix's Information Superstores will be resized, repositioned
and renamed, becoming part of the company's consulting practice
business. "Informix's growing consulting business is becoming
increasingly important to large enterprise customers," Finocchio said.
"This capability will help us design, test and prototype solutions more
effectively for customers as part of our revenue-generating consulting
engagements."
Q2 Customer Wins
Informix had a significant number of wins in the second quarter,
including Liberty Mutual Insurance Company; Sears, Roebuck and Co.; the
City of Phoenix; Octel Communications Corporation; Sutter Health System;
Wells Fargo & Company; Disney; Bank of America; Fidelity Investments;
Clark Material Handling Co.; BellSouth Advertising & Publishing
Corporation; Modi Telstra (India); Steelmark (Australia); AGIP (Italy);
SIRIM (Malaysia); Mirror Newspapers (U.K.); GPT (U.K.); and Grenada
Media Group (U.K.). "We are encouraged by the customer support of
Informix, as evidenced by record attendance at the recent Informix
Worldwide User Conference and demand for our products, especially among
new customers. For example, the majority of transactions that we closed
with Baan in Q2 were with companies with whom we had never done
business," Finocchio said. CLARK Material Handling Company selected the
Baan/Informix combination in Q2 to transition from an outdated mainframe
system to a more flexible relational database system for handling all
its equipment resource planning. "The Baan/Informix partnership
impressed us," says Jerry Bull, CIO at Clark Material. "Baan and
Informix are very strategically aligned. We perceive a better cultural
fit between Clark, Baan, and Informix. In addition, the Informix-based
solution was significantly more cost effective than competitive database
products." (For additional information on customer wins, see the press
release "Informix Closes Significant Deals in Second Quarter" issued
today.)
The strength of Informix's mainstream products was reaffirmed by
numerous customers in Q2, including Modi Telstra Pvt. Ltd, a leading
cellular phone service provider in India. The company bought Informix
software to implement what is believed to be the first relational OLAP-
based enterprise-wide data warehouse in India.
In July, at the worldwide user conference, Informix unveiled its
plans for a targeted Windows NT enterprise strategy that leverages the
company's expertise in UNIX and NT interoperability to bring NT out of
the department and scale it into the enterprise. Informix's strategy
reduces the risks involved with NT deployment at the enterprise level by
breaking down its scalability barriers on a number of dimensions,
thereby allowing customers to take advantage of NT's ease-of-use and
cost-effective hardware, deployment and maintenance.
As of the end of June, INFORMIX-Universal Server had been shipped
to several hundred customers worldwide, many of them Fortune 500 firms.
"Market acceptance of INFORMIX-Universal Server continues to grow,"
Finocchio said. "The product is an important part of our future, and we
are committed to it."
About Informix
Informix Software, Inc., the Company's operating subsidiary based
in Menlo Park, Calif., provides innovative database technology that
enables the world's leading corporations to manage and grow their
businesses. Informix is widely recognized as the technology leader for
corporate computing environments ranging from workgroups to very large
OLTP and data warehouse applications. Informix's database servers,
application development tools, superior customer service, and strong
partnerships enable the Company to be at the forefront of many leading-
edge information technology solution areas. Informix information is
accessible via the World Wide Web at http://www.informix.com.
# # #
The comparisons between first and second quarter results may be
subject to change as a result of the anticipated restatement of
Informix's 1996 financial statements and a resulting change to first and
second quarter results.
The information in this release with respect to the anticipated
amount and components of the restatement of prior results constitutes
forward looking information within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, and is subject to the safe harbor created by those sections. Among
the factors that could cause the actual amounts and components of the
restatement to differ are the following: discovery of additional
information with respect to previously recorded transactions; and
recommendations by the company's independent auditors with respect to
appropriate accounting treatment of such transactions.
Informix's future results can be impacted by a number of factors
including but not necessarily limited to the following, any of which
could cause actual results to vary materially from Informix's
anticipated future results: The timing and amount of Informix's
revenues are subject to a number of factors that make estimation of
operating results prior to the end of a quarter extremely uncertain.
The market for Informix's products is extremely competitive and there
can be no assurance that Informix's current products will remain
competitive, or that Informix's development efforts will produce
products with the cost and performance characteristics necessary to
remain competitive. The market for Informix's products and services is
characterized by rapidly changing technology and frequent new product
introductions. Informix's success will depend on its ability to enhance
its existing products and to introduce new products on a timely and cost
effective basis.
The market for Informix's common stock is highly volatile.
The demand for Informix's employees is very high and the loss of key
employees could affect future results.
The other risk factors listed from time to time in Informix's SEC
filings, including but not limited to the annual report on Form 10-K for
the year ended December 31, 1996 (Part II, Item 7) and the quarterly
report on Form 10-Q for the quarter ended March 30, 1997.
The following are trademarks of Informix Software, Inc.: Informix(R),
OnLine Dynamic Server(TM) and MetaCube(TM). All other company and
product names may be trademarks of their respective owners.
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