Tech Industry

Informix sales up, profits down

Database maker Informix announces record revenue for the fourth quarter, but its take-home pay was slightly lower than that for the same quarter a year ago.

Database maker Informix's (IFMX) stock held fairly steady during morning trading, a day after the company reported record revenues for its fourth quarter and fell short of analyst expectations.

Informix reported income of $34 million, or 22 cents per share, as opposed to $35.9 million or 23 cents per share in the fourth quarter last year.

The company announced quarterly revenues of $270.8 million, a $50 million increase over the fourth quarter 1995. But expenses, led by $123 million spent on sales and marketing, ballooned to $225 million for the quarter.

The 22 cents per share was below an average analysts' estimate of 25 cents. But if per-share income is calculated based on operating income, Informix actually exceeded analysts' expectations at 29 cents per share.

Back in December, analysts predicted Informix would be a solid performer in 1997 and that the company's earnings per share would hit 98 cents. Today's report gave no indication of such a rise for the near future as earnings per share for 1996 hit 63 cents, down 2 cents from 1995's figure.

The company's $97.8 million net income for the entire 1996 year was virtually the same as 1995's total, despite a jump of over $200 million in annual revenue.

Informix's North American revenues of $108.6 million led the quarter; Europe followed with $101.8 million, and the rest of the world came to $60.4 million.