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Informatica Corp. announced Thursday during its second-quarter earnings call that it will stop selling its packaged analytical applications directly to customers, making them available only through systems integration and software application development partners.
The company will instead focus on its core data integration and business intelligence platform. Informatica will continue to support current analytic applications customers with future upgrades to the underlying Informatica data integration platform and its business intelligence software, company officials in Redwood City, Calif. said.
Gaurav Dillon, president and CEO of Informatica, said the move was made in direct response to customer feedback.
“Our customers want industry expertise that our systems integrator partners are best positioned to provide, along with customization, vertical-industry knowledge, and expert turnkey solutions,” Dillon said in a statement.
Dillon said Informatica would instead focus on providing the infrastructure to enable real-time data integration as well as focus on its PowerAnalyzer business intelligence platform.
Mark Smith, CEO and senior vice president of research at Ventana Research, said Informatica was re-focusing on its products “real value.”
“Their re-focus on the basics is to be greatly applauded and the importance of data Integration and BI being tightly integrated is critical for global organizations,” said Smith, in Belmont, Calif.
For the second quarter ended June 30, Informaticas revenues were up slightly to $50.5 million from $49.1 million in the year-ago period. A surge in services revenue helped as software license revenue dropped from $26.4 million to $24.2 million.
Net income increased however, from $434,000 in last years second quarter to $3.2 million this year.
Informatica signed 53 new customers during the quarter and repeat business with 144 customers.
In other earnings news this week:
Call center solutions provider Aspect Communications Corp. returned to profitability, posting net income of $6.5 million after losing $14.3 million in last years second quarter. Revenues fell though, from $98.1 million to $89.4 million year-to-year. The San Jose, Calif.-based companys hardware business was particularly hard-hit, with revenues dropping from $17.8 million in last years second quarter to $11.2 million.
Revenues climbed at contact center software developer Concerto Software Inc., from $24.7 million to $26.3 million year-to-year. License revenue was nearly constant at $11.8 million, up from $11.5 million in last years second quarter. The Westford, Mass.-based company increased its profits from $245,000 in the year-ago period to $647,000.
Documentum Inc. saw revenues surge to $68.2 million from $54 million in last years second quarter. License revenue climbed to $32.7 million from $27 million. That helped the Pleasanton, Calif.-based content management and collaboration software developer post a $575,000 profit after losing $473,000 in the year-ago period.
Fellow collaboration and content management software developer iManage Inc. also enjoyed a revenue increase, from $9.6 million to $11.8 million year-to-year, with license revenues up to $5.2 million from $4.3 million. That helped the Foster City, Calif.-based company post a $134,000 profit after losing $2.7 million in last years second quarter
Content management software developer Optika Inc. enjoyed a more modest revenue gain, from $4.5 million to $4.7 million, year-to-year. License revenues accounted for the difference, coming in at $1.5 million in this years second quarter after hitting $1.3 million last year. Colorado Springs, Colo.-based Optikas net loss increased though, to $288,000 from $74,000 in the year-ago period.