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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
    Washington, D.C. 20549
      FORM 10-K
      þ  Annual
    report pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934For the year ended December 31, 2007oro  Transition
    report pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934   Commission File Number:
    0-25871
  INFORMATICA
    CORPORATION
 (Exact name of registrant as
    specified in its charter)
  Delaware(State or other jurisdiction of
    incorporation or organization)

77-0333710(I.R.S. Employer
    Identification No.)   100 Cardinal Way
 Redwood City, California
    94063
 (Address of principal executive
    offices and zip code)
  (650) 385-5000
 (Registrants telephone
    number, including area code)
 Securities registered pursuant to
    Section 12(b) of the Act:
  Title of each class

Name of exchange on which registeredCommon Stock, par value $0.001 per share

The NASDAQ Stock Market LLC(NASDAQ Global Select Market)   Securities registered pursuant to
    Section 12(g) of the Act:
 Preferred Stock Purchase
    Rights
  þ o
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
 þ o o o
  Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K




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##### 



INFORMATICA
    CORPORATION
  TABLE OF
    CONTENTS
  Page No.PART IItem 1.


Business


2Item 1A.


Risk Factors


9Item 1B.


Unresolved Staff Comments


22Item 2.


Properties


22Item 3.


Legal Proceedings


22Item 4.


Submission of Matters to a Vote of Security
    Holders


24Executive Officers of the Registrant


24PART IIItem 5.


Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


25Item 6.


Selected Financial Data


27Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


28Item 7A.


Quantitative and Qualitative Disclosures About
    Market Risk


45Item 8.


Financial Statements and Supplementary Data


46Item 9.


Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


84Item 9A.


Controls and Procedures


84Item 9B.


Other Information


84PART IIIItem 10.


Directors, Executive Officers and Corporate
    Governance


84Item 11.


Executive Compensation


84Item 12.


Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


85Item 13.


Certain Relationships and Related Transactions,
    and Director Independence


85Item 14.


Principal Accountant Fees and Services


85PART IVItem 15.


Exhibits and Financial Statement Schedules


85Signatures


86EXHIBIT 3.4EXHIBIT 10.4EXHIBIT 10.19EXHIBIT 10.20EXHIBIT 21.1EXHIBIT 23.1EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1   1




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PART I  ITEM 1.
    BUSINESS  Overview
          and/or
 2




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(650) 385-5000. www.informatica.com
  Form 10-K, Form 10-Q, Form 8-K, www.sec.gov.
  Our
    Products
           3




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PowerCenter Standard Edition (SE)
  PowerCenter Advanced Edition (AE)
  Informatica PowerExchange
  Informatica Data Explorer
  Informatica Data Quality
  Complex Data Exchange
  Informatica On Demand
  Additional Options.
  1.
    Data Cleanse and Match Option supplies powerful,
    integrated cleansing and matching capabilities. This option
    corrects and removes duplicate customer data to maximize the
    value of an organizations information assets.2.
    Data Federation Option provides virtual data
    federation services or enterprise information integration (EII)
    capabilities. Combining traditional physical and virtual data
    integration approaches in a single platform, this option creates
    a powerful tool for delivering holistic data quickly, easily,
    and cost-effectively.3.
    Data Profiling Option offers comprehensive,
    accurate information about the content, quality, and structure
    of data in virtually any operational system.4.
    Enterprise Grid Option provides scalability within
    a grid computing environment. This option reduces the
    administrative overhead of supporting a grid. It also delivers
    optimal performance by automatically load balancing in response
    to run-time changes in data volumes or node utilization rates.5.
    High Availability Option furnishes high
    availability and seamless failover and recovery of all
    PowerCenter components. This option minimizes service
    interruption in the event of a hardware
    and/or
    software outage and reduces costs associated with data downtime. 4




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6.
    Mapping Generation Option provides the ability to
    automatically generate PowerCenter data integration mappings
    from best practice templates, as well as the ability to
    reverse-engineer existing mappings into reusable template form.
    This option increases developer productivity, reduces time to
    results, and simplifies the data integration lifecycle.7.
    Metadata Exchange Options coordinate technical and
    business metadata from data modeling tools, business
    intelligence tools, source and target database catalogs, and
    PowerCenter repositories. This family of options helps
    organizations leverage the time and effort already invested in
    defining data structures.8.
    Partitioning Option executes optimal parallel
    sessions by dividing data processing into subsets that run in
    parallel and are spread among available CPUs in a
    multi-processor system. This option helps organizations maximize
    their technology investments by enabling hardware and software
    to jointly scale to handle large volumes of data and users.9.
    Pushdown Optimization Option enables data
    transformation processing, where appropriate, to be pushed
    down into any relational database. This option saves
    hardware costs by making better use of existing database assets
    and helps organizations cost-effectively scale to meet increased
    data demand.10.
    Real Time Option extends PowerCenters
    capabilities to transform and process operational data in real
    time. This option helps organizations integrate real-time
    operational data with historical information stored in
    enterprise data warehouses, powering business processes and
    accelerating decision making.11.
    Team-Based Development Option extends PowerCenter
    SEs capabilities to facilitate cross-functional
    collaboration by creating and managing multiple versions of a
    reusable development asset, controlling the development
    lifecycle, tracking changes, and migrating specific groups of
    assets from one repository to another.12.
    Unstructured Data Option expands
    PowerCenters data access capabilities to include
    unstructured and semi-structured data formats. This option
    provides organizations with almost universal access to all
    enterprise data formats, creating a powerful tool to help
    organizations achieve a holistic view of data, increase IT
    productivity, and achieve regulatory compliance.  Services
       5




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Our
    Partners
  and/or
  Our
    Customers
    Our
    Market Strategy
  Broader Enterprise Data Integration: Beyond the Data
    Warehouse.
  Data Quality: Strategic Product and Market
    Opportunity.
  Horizontal Data Integration Solutions: Migration and
    Consolidation.
  Informatica On Demand: Solving the Cross-Enterprise Data
    Integration Challenge.
 6




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Complex Data Exchange: Integrating Additional Data
    Formats.
  Customers, Consulting Partners, and Third-Party
    Developers: Leveraging Installed Base and Community to Extend
    Informaticas Presence.
  Partnerships and Strategic Alliances: Extending the
    Ecosystem.
  Sales,
    Marketing, and Distribution
       7




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Research
    and Development
        Competition
  Harte-Hanks),
    If we do not compete effectively
    with companies selling data integration products, our revenues
    may not grow and could decline
  Seasonality
   8




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Intellectual
    Property and Other Proprietary Rights
      Employees
    ITEM 1A.
    RISK
    FACTORS  Form 10-K,
  If we
    do not compete effectively with companies selling data
    integration products, our revenues may not grow and could
    decline.
  Harte-Hanks),
   9




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New
    product introductions and product enhancements may impact market
    acceptance of our products and affect our results of
    operations.
  and/or
  n
    delay in completion, launch, delivery, or availability;n
    delay in customer purchases in anticipation of new products not
    yet released;n
    product quality issues, including the possibility of defects;n
    market confusion based on changes to the product packaging and
    pricing as a result of a new product release;n
    interoperability issues with third-party technologies;n
    loss of existing customers that choose a competitors
    product instead of upgrading or migrating to the new product; andn
    loss of maintenance revenues from existing customers that do not
    upgrade or migrate.    We
    have experienced and could continue to experience fluctuations
    in our quarterly operating results, especially the amount of
    license revenues we recognize each quarter, and such
    fluctuations have caused and could cause our stock price to
    decline.
   10




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quarter-to-quarter
  If we
    are unable to accurately forecast revenues, we may fail to meet
    stock analysts and investors expectations of our
    quarterly operating results, which could cause our stock price
    to decline.
    We
    rely on our relationships with our strategic partners. If we do
    not maintain and strengthen these relationships, our ability to
    generate revenue and control expenses could be adversely
    affected, which could cause a decline in the price of our common
    stock.
   11




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We
    have experienced reduced sales pipeline and pipeline conversion
    rates in prior years, which have adversely affected the growth
    of our company and the price of our common stock.
  quarter-to-quarter
  Our
    international operations expose us to greater risks, including
    but not limited to those regarding intellectual property,
    collections, exchange rate fluctuations, and regulations, which
    could limit our future growth.
     12




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n
    greater difficulty in protecting our ownership rights to
    intellectual property developed in foreign countries, which may
    have laws that materially differ from those in the United States;n
    communication delays between our main development center in
    Redwood City, California and our development centers in India,
    Ireland, Israel, the Netherlands, and the United Kingdom as a
    result of time zone differences, which may delay the
    development, testing, or release of new products;n
    greater difficulty in relocating existing trained development
    personnel and recruiting local experienced personnel, and the
    costs and expenses associated with such activities; andn
    increased expenses incurred in establishing and maintaining
    office space and equipment for the development centers.    n
    greater risk of uncollectible accounts and longer collection
    cycles;n
    higher risk of unexpected changes in regulatory practices,
    tariffs, and tax laws and treaties;n
    greater risk of a failure of our foreign employees to comply
    with both U.S. and foreign laws, including antitrust
    regulations, the Foreign Corrupt Practices Act, and any trade
    regulations ensuring fair trade practices;n
    potential conflicts with our established distributors in
    countries in which we elect to establish a direct sales presence;n
    our limited experience in establishing a sales and marketing
    presence and the appropriate internal systems, processes, and
    controls in Asia-Pacific, especially China, Singapore, South
    Korea, and Taiwan;n
    fluctuations in exchange rates between the U.S. dollar and
    foreign currencies in markets where we do business, if we
    continue to not engage in hedging activities; andn
    general economic and political conditions in these foreign
    markets.   13




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If
    adverse changes in the U.S. or global economies negatively
    affect sales of our products and services, our operating results
    would be harmed, and the price of our common stock could
    decline.
        Although
    we believe we currently have adequate internal control over
    financial reporting, we are required to assess our internal
    control over financial reporting on an annual basis, and any
    future adverse results from such assessment could result in a
    loss of investor confidence in our financial reports and have an
    adverse effect on our stock price.
  Form 10-K
    Accounting for Uncertainty in Income Taxes
     14




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As a
    result of our products lengthy sales cycles, our expected
    revenues are susceptible to fluctuations, which could cause us
    to fail to meet stock analysts and investors
    expectations, resulting in a decline in the price of our common
    stock.
    n
    our customers budgetary constraints and internal
    acceptance review procedures;n
    the timing of our customers budget cycles;n
    the seasonality of technology purchases, which historically has
    resulted in stronger sales of our products in the fourth quarter
    of the year, especially when compared to lighter sales in the
    first quarter of the year;n
    our customers concerns about the introduction of our
    products or new products from our competitors; orn
    potential downturns in general economic or political conditions
    that could occur during the sales cycle.    If our
    products are unable to interoperate with hardware and software
    technologies developed and maintained by third parties that are
    not within our control, our ability to develop and sell our
    products to our customers could be adversely affected, which
    would result in harm to our business and operating
    results.
    The
    loss of our key personnel, an increase in our sales force
    personnel turnover rate, or the inability to attract and retain
    additional personnel could adversely affect our ability to grow
    our company successfully and may negatively impact our results
    of operations.
   15




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If the
    market in which we sell our products and services does not grow
    as we anticipate, we may not be able to increase our revenues at
    an acceptable rate of growth, and the price of our common stock
    could decline.
    n
    not fully value the benefits of using our products;n
    not achieve favorable results using our products;n
    experience technical difficulties in implementing our products;
    orn
    use alternative methods to solve the problems addressed by our
    products.    We
    rely on the sale of a limited number of products, and if these
    products do not achieve broad market acceptance, our revenues
    would be adversely affected.
   16




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We may
    not be able to successfully manage the growth of our business if
    we are unable to improve our internal systems, processes, and
    controls.
    The
    price of our common stock fluctuates as a result of factors
    other than our operating results, such as the actions of our
    competitors and securities analysts, as well as developments in
    our industry and changes in accounting rules.
    n
    the announcement of new products or product enhancements by our
    competitors;n
    quarterly variations in our competitors results of
    operations;n
    changes in earnings estimates and recommendations by securities
    analysts;n
    developments in our industry; andn
    changes in accounting rules.    The
    recognition of share-based payments for employee stock option
    and employee stock purchase plans has adversely impacted our
    results of operations.
  Share-Based Payment, Share-Based Payments Summary of Significant Accounting Policies
 17




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We
    rely on a number of different distribution channels to sell and
    market our products. Any conflicts that we may experience within
    these various distribution channels could result in confusion
    for our customers and a decrease in revenue and operating
    margins.
    Any
    significant defect in our products could cause us to lose
    revenue and expose us to product liability claims.
      Our
    effective tax rate is difficult to project. Changes in such tax
    rate and/or results of tax examinations could adversely affect
    our operating results.
      and/or
 18




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If we
    are unable to successfully respond to technological advances and
    evolving industry standards, we could experience a reduction in
    our future product sales, which would cause our revenues to
    decline.
    We
    recognize revenue from specific customers at the time we receive
    payment for our products, and if these customers do not make
    timely payment, our revenues could decrease.
    The
    conversion provisions of our convertible senior notes and the
    level of debt represented by such notes will dilute the
    ownership interests of stockholders, could adversely affect our
    liquidity, and could impede our ability to raise additional
    capital.
    If we
    are not able to adequately protect our proprietary rights, third
    parties could develop and market products that are equivalent to
    our own, which would harm our sales efforts.
     19




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Litigation,
  We may
    face intellectual property infringement claims that could be
    costly to defend and result in our loss of significant
    rights.
    n
    we may be forced to enter into royalty or licensing agreements,
    which may not be available on terms favorable to us, or at all;n
    we may be required to indemnify our customers or obtain
    replacement products or functionality for our customers;n
    we may be forced to significantly increase our development
    efforts and resources to redesign our products as a result of
    these claims; andn
    we may be forced to discontinue the sale of some or all of our
    products. 20




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We may
    engage in future acquisitions or investments that could dilute
    our existing stockholders or could cause us to incur contingent
    liabilities, debt, or significant expense or could be difficult
    to integrate in terms of the acquired entitys products,
    personnel and operations.
    We
    have substantial real estate lease commitments that are
    currently subleased to third parties, and if subleases for this
    space are terminated or cancelled, our operating results and
    financial condition could be adversely affected.
  Facilities
    Restructuring Charges,
  Delaware
    law and our certificate of incorporation and bylaws contain
    provisions that could deter potential acquisition bids, which
    may adversely affect the market price of our common stock,
    discourage merger offers, and prevent changes in our management
    or Board of Directors.
      Business
    interruptions could adversely affect our business.
   21




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ITEM 1B.
    UNRESOLVED
    STAFF COMMENTS    ITEM 2.
    PROPERTIES      Facilities Restructuring Charges Commitments and Contingencies,
  ITEM 3.
    LEGAL
    PROCEEDINGS  In re
    Informatica Corporation Initial Public Offering Securities
    Litigation, Civ.
    No. 01-9922
    (SAS) (S.D.N.Y.) In re Initial Public
    Offering Securities Litigation, 21 MC 92 (SAS) (S.D.N.Y.). and/or and/or
     22




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Miles v. Merrill Lynch & Co. In re Initial Public Offering Securities
    Litigation
      AT&T Corp. v. Microsoft Corp. AT&T Corp. v. Microsoft Corp
       23




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ITEM 4.
    SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS   Executive
    Officers of the Registrant    Name

Age

Position(s)Sohaib Abbasi


51


Chairman of the Board, Chief Executive Officer, and PresidentEarl Fry


49


Chief Financial Officer, Executive Vice President, and SecretaryPaul Hoffman


57


Executive Vice President, Worldwide Field OperationsGirish Pancha


43


Executive Vice President and General Manager, Data Integration     Mr. Abbasi
  Mr. Fry
  Mr. Hoffman
  Mr. Pancha
 24




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PART II  ITEM 5.
    MARKET
    FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES  Price
    Range of Common Stock
    High


LowYear ended December 31, 2007:Fourth quarter

$
18.28


$
15.12Third quarter

$
16.02


$
13.24Second quarter

$
15.39


$
13.45First quarter

$
14.25


$
12.29Year ended December 31, 2006:Fourth quarter

$
14.29


$
11.37Third quarter

$
16.24


$
11.60Second quarter

$
17.00


$
12.40First quarter

$
17.07


$
11.98   Holders
    of Record
    Dividends
    Purchases
    of Equity Securities by the Issuer and Affiliated
    Purchasers
   25




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Stockholders Equity,
  Total Numberof Shares


Approximate DollarPurchased as


Value of SharesPart of


That May Yet Be(1) Total


Average Price


Publicly Announced


PurchasedNumber of


Paid per


Plans or


Under the Plans orPeriod

Shares Purchased


Share


Programs


Programs(In thousands)October 1  October 31


50,000


$
17.04



50,000


$
29,909November 1  November 30


462,300


$
16.15



462,300


$
22,445December 1  December 31













$
22,445Total


512,300


$
16.23



512,300   (1)
    
    All shares repurchased in
    open-market transactions under the repurchase programs.   26




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ITEM 6.
    SELECTED
    FINANCIAL DATA    Years Ended December 31,2007


2006


2005


2004


2003(In thousands, except per share data)Selected Consolidated Statements of Operations Data:Revenues:License

$
175,318


$
146,092


$
120,182


$
97,941


$
94,590Service


215,938



178,506



147,249



121,740



110,943Total revenues


391,256



324,598



267,431



219,681



205,533Cost of revenues:License


3,693



6,978



4,465



3,778



3,139Service(1)


69,174



58,402



46,801



40,346



38,856Amortization of acquired technology


2,794



2,118



922



2,322



1,031Total cost of revenues


75,661



67,498



52,188



46,446



43,026Gross profit


315,595



257,100



215,243



173,235



162,507Operating expenses:Research and development(1)


69,908



54,997



42,585



51,322



47,730Sales and marketing(1)


158,298



138,851



118,770



94,900



86,810General and administrative(1)


35,531



28,187



20,583



20,755



20,921Amortization of intangible assets


1,441



653



188



197



147Facilities restructuring charges


3,014



3,212



3,683



112,636



Purchased in-process research and development






1,340











4,524Total operating expenses


268,192



227,240



185,809



279,810



160,132Income (loss) from operations


47,403



29,860



29,434



(106,575
)


2,375Interest income and other, net


15,237



11,823



6,544



3,391



7,059Income (loss) before income taxes


62,640



41,683



35,978



(103,184
)


9,434Income tax provision


8,024



5,477



2,174



1,220



2,124Net income (loss)(2)

$
54,616


$
36,206


$
33,804


$
(104,404
)

$
7,310Basic net income (loss) per common
    share(2)

$
0.63


$
0.42


$
0.39


$
(1.22
)

$
0.09Diluted net income (loss) per common
    share(2)

$
0.57


$
0.39


$
0.37


$
(1.22
)

$
0.09Shares used in computing basic net income (loss) per common share


87,164



86,420



87,242



85,812



82,049Shares used in computing diluted net income (loss) per common
    share


103,252



92,942



92,083



85,812



85,200   27




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Years Ended December 31,2007


2006


2005


2004


2003(In thousands)Selected Consolidated Balance Sheet Data:Cash and cash equivalents

$
203,661


$
120,491


$
76,545


$
88,941


$
82,903Short-term investments


281,197



280,149



185,649



152,160



140,890Restricted cash


12,122



12,016



12,166



12,166



12,166Working capital(3)


410,275



311,174



187,759



173,816



167,011Total assets


798,644



696,765



441,022



409,768



402,808Long-term obligations, less current portion


















Total stockholders equity


312,542



227,163



222,730



195,722



289,599   (1)
    
    Amortization of stock-based
    compensation has been reclassified for periods prior to
    December 31, 2004 to cost of service revenues, research and
    development, sales and marketing, and general and administrative
    expense.(2)
    
    Net income and net income per share
    include the impact of SFAS 123(R) share-based payments of
    $16.0 million and $14.1 million for the years ended
    December 31, 2007 and 2006, respectively, which are not
    included in years prior to 2006. See Note 2. Summary of
    Significant Accounting Polices.(3)
    
    A portion of deferred revenues has
    been reclassified to long-term for periods prior to
    December 31, 2004.  ITEM 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS  Form 10-K
    Overview
     28




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
    Competition: Inherent in our industry are risks
    arising from competition with existing software solutions,
    including solutions from IBM, Oracle, and SAP, technological
    advances from other vendors, and the perception of cost savings
    by solving data integration challenges through customer
    hand-coded development resources. Our prospective customers may
    view these alternative solutions as more attractive than our
    offerings. Additionally, the consolidation activity in our
    industry (including Business Objects acquisition of
    FirstLogic, Oracles acquisition of Sunopsis and Hyperion
    Solutions, IBMs acquisition of DataMirror and Cognos,
    SAPs acquisition of Business Objects, and Oracles
    agreement to acquire BEA Systems) could pose challenges as
    competitors market a broader suite of software products or
    solutions to our prospective customers.
    New Product Introductions: To address the
    expanding data integration and data integrity needs of our
    customers and prospective customers, we continue to introduce
    new products and technology enhancements on a regular basis. For
    example, in March 2007, we launched Informatica On Demand Data
    Replicator, a multi-tenant, on-demand service for
    cross-enterprise data integration. In September 2007, we
    announced a new Informatica On Demand service: Informatica Data
    Quality Assessment for salesforce.com which uses pre-defined
    rules to identify missing, invalid, and duplicate data. In
    October 2007, we delivered the generally available release of
    PowerCenter 8.5, PowerExchange 8.5, and Informatica Data Quality
    8.5, a version upgrade to our entire data integration platform.
    New product introductions
    and/or
    enhancements have inherent risks including, but not limited to,
    product availability, product quality and interoperability, and
    customer adoption or the delay in customer purchases. Given the
    risks and new nature of the products, we cannot predict their
    impact on our overall sales and revenues.
    Quarterly and Seasonal Fluctuations: Historically,
    purchasing patterns in the software industry have followed
    quarterly and seasonal trends and are likely to do so in the
    future. Specifically, it is normal for us to recognize a
    substantial portion of our new license orders in the last month
    of each quarter and sometimes in the last few weeks of each
    quarter, though such fluctuations are mitigated somewhat by
    recognition of backlog orders. In recent years, the fourth
    quarter has had the highest level of license revenue and order
    backlog, and we have generally had weaker demand for our
    software products and services in the first and third quarters. 29




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We rely on our relationships with our strategic
    partners. If we do not maintain and strengthen these
    relationships, our ability to generate revenue and control
    expenses could be adversely affected, which could cause a
    decline in the price of our common stock
      Critical
    Accounting Policies and Estimates
  Summary of Significant Accounting Policies
 30




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Revenue
    Recognition
    97-2 Software Revenue Recognition, , Revenue Recognition, Revenue
    Recognition Summary of Significant
    Accounting Policies,
  and/or
  and/or and/or
    time-and-materials
     31




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Facilities
    Restructuring Charges
      Facilities Restructuring Charges, of
  Accounting
    for Income Taxes
  Accounting for
    Income Taxes. Accounting for Uncertainties in Income Taxesan
    Interpretation of FASB Statement 109
       32




---



##### Table of Contents



Accounting
    for Impairment of Goodwill
  Goodwill and Other Intangible
    Assets
    Acquisitions
      Share-Based
    Payments
     33




---



##### Table of Contents



37-41% 43-52%
       34




---



##### Table of Contents



Results
    of Operations
    Years Ended December 31,2007


2006


2005Revenues:License


45
%


45
%


45
%Service


55



55



55Total revenues


100



100



100Cost of revenues:License


1



2



2Service


18



18



18Amortization of acquired technology






1



Total cost of revenues


19



21



20Gross profit


81



79



80Operating expenses:Research and development


18



17



16Sales and marketing


41



43



44General and administrative


9



9



8Amortization of intangible assets










Facilities restructuring charges


1



1



1Purchased in-process research and development










Total operating expenses


69



70



69Income from operations


12



9



11Interest income and other, net


4



4



3Income before income taxes


16



13



14Income tax provision


2



2



1Net income


14
%


11
%


13
%   Revenues
      Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)License

$
175,318


$
146,092


$
120,182



20
%


22
%Service revenues:Maintenance


151,246



124,955



103,573



21
%


21
%Consulting and education


64,692



53,551



43,676



21
%


23
%Total service revenues


215,938



178,506



147,249



21
%


21
%Total revenues

$
391,256


$
324,598


$
267,431



21
%


21
%  35




---



##### Table of Contents



Service
    Revenues
  Maintenance
    Revenues
    Consulting
    and Education Services Revenues
    International
    Revenues
      Future
    Revenues (New Orders, Backlog, and Deferred Revenue)
   36




---



##### Table of Contents



Cost of
    Revenues
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Cost of license revenues

$
3,693


$
6,978


$
4,465



(47
)%


56
%Cost of service revenues


69,174



58,402



46,801



18
%


25
%Amortization of acquired technology


2,794



2,118



922



32
%


130
%Total cost of revenues

$
75,661


$
67,498


$
52,188



12
%


29
%Cost of license revenues, as a percentage of license revenues


2
%


5
%


4
%


(3
)%


1
%Cost of service revenues, as a percentage of service revenues


32
%


33
%


32
%


(1
)%


1
%   Cost
    of License Revenues
    Cost
    of Service Revenues
    Amortization
    of Acquired Technology
   37




---



##### Table of Contents



Operating
    Expenses
  Research
    and Development
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Research and development

$
69,908


$
54,997


$
42,585



27
%


29
%     Sales
    and Marketing
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Sales and marketing

$
158,298


$
138,851


$
118,770



14
%


17
%    38




---



##### Table of Contents



General
    and Administrative
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)General and administrative

$
35,531


$
28,187


$
20,583



26
%


37
%     Purchased
    In-Process Research and Development (IPR&D)
  Years Ended December 31,2007


2006


2005(In thousands)Purchased in-process research and development

$



$
1,340


$
       Facilities
    Restructuring Charges
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Facilities restructuring charges

$
3,014


$
3,212


$
3,683



(6
)%


(13
)%   Facilities
    Restructuring Charges,
 39




---



##### Table of Contents



2004 Restructuring Plan.
  2001 Restructuring Plan.
    Facilities
    Restructuring Charges,
  Interest
    Income and Other, Net
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Interest income

$
21,820


$
18,188


$
7,256



20
%


151
%Interest expense


(7,196
)


(5,782
)






24
%


*
%Other income (expense), net


613



(583
)


(712
)


(205
)%


(18
)%$
15,237


$
11,823


$
6,544



29
%


81
%   *
    
    Percentage is not meaningful.   40




---



##### Table of Contents



Income
    Tax Provision
  Percentage Change2006


2005Years Ended December 31,


to


to2007


2006


2005


2007


2006(In thousands, except percentages)Income tax provision

$
8,024


$
5,477


$
2,174



47
%


152
%Effective tax rate


12.8
%


13.1
%


6.0
%


(0.3
)%


7.1
%   Accounting for Uncertainties in Income Taxesan
    Interpretation of FASB Statement 109
        Liquidity
    and Capital Resources
     41




---



##### Table of Contents



Operating Activities:
      Investing Activities:
  Financing Activities:
   42




---



##### Table of Contents



Contractual
    Obligations and Operating Leases
    Payment Due by Period2009


2011


2013and


and


andTotal


2008


2010


2012


BeyondOperating lease obligations:Operating lease payments

$
120,131


$
23,552


$
46,681


$
37,962


$
11,936Future sublease income


(10,848
)


(2,752
)


(2,029
)


(4,722
)


(1,345
)Net operating lease obligations


109,283



20,800



44,652



33,240



10,591Debt obligations:Principal payments*


230,000















230,000Interest payments


127,650



6,900



13,800



13,800



93,150Other obligations**


600



600











$
467,533


$
28,300


$
58,452


$
47,040


$
333,741   *
    
    Holders of the Notes may require us
    to repurchase all or a portion of their Notes at a purchase
    price in cash equal to the full principle amount of the Notes
    plus any accrued and unpaid interest on March 15, 2011,
    March 15, 2016, and March 15, 2021, or upon the
    occurrence of certain events including a change in control. We
    have the right to redeem some or all of the Notes after
    March 15, 2011.**
    
    Other purchase obligations and
    commitments include minimum royalty payments under license
    agreements and do not include purchase obligations discussed
    below.    Income
    Taxes
 43




---



##### Table of Contents



Contractual
    Obligations
    agreed-upon
  Operating
    Leases
  Facilities Restructuring Charges Commitments and Contingencies,
            Other
    Uses of Cash
   44




---



##### Table of Contents



Letters
    of Credit
    Off-Balance
    Sheet Arrangements
    Recent
    Accounting Pronouncements
  Summary of Significant Accounting Policies,
  ITEM 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK    Interest
    Rate Risk
  Cash,
    Cash Equivalents and Short-Term Investments,
    Years EndedDecember 31,2007


2006Cash and short-term investments

$
381,921


$
351,373Average rate of return


5.1
%


4.9
%    45




---



##### Table of Contents



Foreign
    Currency Risk
      ITEM 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA  Form 10-K.
 46




---



##### Table of Contents



REPORT OF
    MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL
    REPORTING
  Rules 13a-15(f) 15d-15(f)
  
    pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of the company;
    provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the company are being made
    only in accordance with authorizations of management and
    directors of the company; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    companys assets that could have a material effect on the
    financial statements.          SOHAIB
    ABBASI
   Chief Executive Officer
   EARL
    FRY
   Chief Financial Officer
  47




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
                ERNST &
    YOUNG LLP
    48




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
              ERNST &
    YOUNG LLP
    49




---



##### Table of Contents



INFORMATICA
    CORPORATION
  CONSOLIDATED
    BALANCE SHEETS
 (In
    thousands, except par value)
 December 31,2007


2006AssetsCurrent assets:Cash and cash equivalents

$
203,661


$
120,491Short-term investments


281,197



280,149Accounts receivable, net of allowances of $1,299 in 2007 and
    $1,666 in 2006


72,643



65,407Deferred tax assets


18,294



Prepaid expenses and other current assets


14,693



10,424Total current assets


590,488



476,471Restricted cash


12,122



12,016Property and equipment, net


10,124



14,368Goodwill


166,916



170,683Other intangible assets, net


12,399



16,634Long-term deferred tax assets


462



Other assets


6,133



6,593Total assets

$
798,644


$
696,765Liabilities and Stockholders EquityCurrent liabilities:Accounts payable

$
4,109


$
3,641Accrued liabilities


25,381



26,505Accrued compensation and related expenses


33,053



25,793Income taxes payable


248



5,236Accrued facilities restructuring charges


18,007



18,758Deferred revenues


99,415



85,364Total current liabilities


180,213



165,297Convertible senior notes


230,000



230,000Accrued facilities restructuring charges, less current portion


56,235



65,052Long-term deferred revenues


13,686



7,035Long-term deferred tax liabilities






2,218Long-term income taxes payable


5,968



Total liabilities


486,102



469,602Commitment and contingencies (Note 9)Stockholders equity:Common stock, $0.001 par value; 200,000 shares
    authorized; 87,475 shares and 85,933 shares issued and
    outstanding at December 31, 2007 and 2006, respectively


87



86Additional paid-in capital


377,277



350,359Accumulated other comprehensive income


5,640



1,796Accumulated deficit


(70,462
)


(125,078
)Total stockholders equity


312,542



227,163Total liabilities and stockholders equity

$
798,644


$
696,765    50




---



##### Table of Contents



INFORMATICA
    CORPORATION
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
 (In
    thousands, except per share data)
  Years Ended December 31,2007


2006


2005Revenues:License

$
175,318


$
146,092


$
120,182Service


215,938



178,506



147,249Total revenues


391,256



324,598



267,431Cost of revenues:License


3,693



6,978



4,465Service


69,174



58,402



46,801Amortization of acquired technology


2,794



2,118



922Total cost of revenues


75,661



67,498



52,188Gross profit


315,595



257,100



215,243Operating expenses:Research and development


69,908



54,997



42,585Sales and marketing


158,298



138,851



118,770General and administrative


35,531



28,187



20,583Amortization of intangible assets


1,441



653



188Facilities restructuring charges


3,014



3,212



3,683Purchased in-process research and development






1,340



Total operating expenses


268,192



227,240



185,809Income from operations


47,403



29,860



29,434Interest income


21,820



18,188



7,256Interest expense


(7,196
)


(5,782
)


Other income (expense), net


613



(583
)


(712
)Income before income taxes


62,640



41,683



35,978Income tax provision


8,024



5,477



2,174Net income

$
54,616


$
36,206


$
33,804Basic net income per common share

$
0.63


$
0.42


$
0.39Diluted net income per common share

$
0.57


$
0.39


$
0.37Shares used in computing basic net income per common share


87,164



86,420



87,242Shares used in computing diluted net income per common share


103,252



92,942



92,083    51




---



##### Table of Contents



INFORMATICA
    CORPORATION
  CONSOLIDATED
    STATEMENTS OF STOCKHOLDERS EQUITY
 (In
    thousands)
  AccumulatedAdditional


Deferred


Other





TotalCommon Stock


Paid-in


Stock-based


Comprehensive


Accumulated


StockholdersShares


Amount


Capital


Compensation


Income (Loss)


Deficit


EquityBalances, December 31, 2004


86,771


$
87


$
389,948


$
(1,000
)

$
1,775


$
(195,088
)

$
195,722Components of comprehensive income:Net income






















33,804



33,804Foreign currency translation adjustment


















(2,257
)






(2,257
)Unrealized loss on investments


















(57
)






(57
)Comprehensive income


























31,490Common stock options exercised


2,504



2



16,736















16,738Common stock issued under employee stock purchase plan


909



1



4,764















4,765Repurchase and retirement of common stock


(2,843
)


(3
)


(26,705
)














(26,708
)Deferred stock-based compensation adjustments and other










(90
)


90











Amortization of stock-based compensation














723











723Balances, December 31, 2005


87,341



87



384,653



(187
)


(539
)


(161,284
)


222,730Components of comprehensive income:Net income






















36,206



36,206Foreign currency translation adjustment


















1,776







1,776Unrealized gain on investments


















559







559Comprehensive income


























38,541Common stock options exercised


2,709



3



17,019















17,022Common stock issued under employee stock purchase plan


1,126



1



6,814















6,815Issuance of common stock and assumption of stock options in
    conjunction with acquisitions


122







6,458















6,458Share-based payments










14,138















14,138Repurchase and retirement of common stock


(5,365
)


(5
)


(78,536
)














(78,541
)Deferred stock-based compensation adjustments and other










(187
)


187











Balances, December 31, 2006


85,933



86



350,359







1,796



(125,078
)


227,163Components of comprehensive income:Net income






















54,616



54,616Foreign currency translation adjustment


















3,480







3,480Unrealized gain on investments


















364







364Comprehensive income


























58,460Common stock options exercised


2,782



3



20,239















20,242Common stock issued under employee stock purchase plan


734



1



7,457















7,458Share-based payments










15,947















15,947Tax benefit of share-based payments










12,215















12,215Repurchase and retirement of common stock


(1,974
)


(3
)


(28,940
)














(28,943
)Balances, December 31, 2007


87,475


$
87


$
377,277


$



$
5,640


$
(70,462
)

$
312,542    52




---



##### Table of Contents



INFORMATICA
    CORPORATION
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
 (In
    thousands)
  Years Ended December 31,2007


2006


2005Operating activities:Net income

$
54,616


$
36,206


$
33,804Adjustments to reconcile net income to net cash provided by
    operating activities:Depreciation and amortization


10,507



10,104



9,198Share-based payments


15,971



14,138



723Deferred income taxes


(20,974
)


2,218



Tax benefits from stock option plans


12,215







Excess tax benefits from share-based payments


(5,492
)






Amortization of intangible assets and acquired technology


4,235



3,605



1,144Impairment of property and equipment






2,668



Allowance (recovery) for doubtful accounts and sales returns
    allowances


215



(32
)


350Purchased in-process research and development






1,340



Non-cash facilities restructuring charges


3,014



3,212



3,683Changes in operating assets and liabilities:Accounts receivable


(6,982
)


(11,434
)


(8,348
)Prepaid expenses and other assets


(1,974
)


(172
)


(3,596
)Accounts payable and accrued liabilities


(180
)


997



(2,571
)Accrued compensation and related expenses


7,260



4,328



4,769Income taxes payable


1,291



399



1,606Accrued facilities restructuring charges


(12,419
)


(13,772
)


(18,299
)Deferred revenues


20,702



13,098



15,472Net cash provided by operating activities


82,005



66,903



37,935Investing activities:Purchases of property and equipment


(5,926
)


(3,767
)


(9,913
)Purchases of investments


(462,566
)


(462,367
)


(227,132
)Maturities of investments


392,578



249,624



104,586Sales of investments


69,537



118,802



89,000Business acquisitions, net of cash acquired






(95,763
)


Net cash used in investing activities


(6,377
)


(193,471
)


(43,459
)Financing activities:Net proceeds from issuance of common stock


27,700



23,837



21,503Repurchases and retirement of common stock


(28,943
)


(78,541
)


(26,500
)Excess tax benefits from share-based payments


5,492







Issuance of convertible senior notes






230,000



Payment of issuance costs on convertible senior notes






(6,242
)


Net cash provided by financing activities


4,249



169,054



(4,997
)Effect of foreign exchange rate changes on cash and cash
    equivalents


3,293



1,460



(1,875
)Net increase in cash and cash equivalents


83,170



43,946



(12,396
)Cash and cash equivalents at beginning of the year


120,491



76,545



88,941Cash and cash equivalents at end of the year

$
203,661


$
120,491


$
76,545Supplemental disclosures:Interest paid

$
6,900


$
3,488


$
122Income taxes paid

$
11,945


$
2,905


$
1,014Supplemental disclosures of non-cash investing and financing
    activities:Deferred stock-based compensation related to options granted and
    other

$



$



$
90Common stock issued for acquisitions

$



$
1,583


$
Unrealized gain (loss) on investments

$
364


$
559


$
(57
)    53




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  1.
    Organization
    and Business    2.
    Summary
    of Significant Accounting Policies    Reclassifications
    Use of
    Estimates
    Cash,
    Cash Equivalents, and Restricted Cash
    Allowance
    for Doubtful Accounts
   54




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  Investments
  available-for-sale available-for-sale
  Property
    and Equipment
    Software
    Development Costs
  Accounting for the Costs of
    Computer Software to Be Sold, Leased, or Otherwise Marketed
  No. 98-1 ,
    Accounting for Costs of Computer Software Developed or Obtained
    for Internal Use,
  Goodwill
  Goodwill and Other Intangible Assets,
 55




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Impairment
    of Long-Lived Assets
  Accounting for the
    Impairment or Disposal of Long-Lived Assets, Property and Equipment Goodwill and Intangible Assets Facilities Restructuring Charges
  Fair
    Value of Financial Instruments, Concentrations of Credit Risk,
    and Credit Evaluations
        Revenue
    Recognition
  SOP 97-2, Software Revenue Recognition, SOP 98-9, Modification of
    SOP 97-2,
    Software Revenue Recognition, With Respect to Certain
    Transactions, SOP 81-1 ,
    Accounting for Performance of Construction-type and Certain
    Production-type Contracts, , Revenue Recognition,
  SOP 97-2,
  Persuasive evidence of an arrangement exists.
  Delivery has occurred.
  The fee is fixed or determinable.
 56




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Collection is probable.
  and/or
    and/or and/or
    time-and-materials
    Facilities
    Restructuring Charges
  Accounting
    for Costs Associated with Exit or Disposal Activities. No. 88-10, Costs Associated with Lease Modification or Termination. No. 88-10 Facilities Restructuring Charges.
   57




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    and/or No. 88-10. No. 88-10, and/or and/or
  Shipping
    and Handling Costs
  cost-of-license
  Advertising
    Expense
    Net
    Income per Common Share
  Earnings per
    Share,
 58




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Years Ended December 31,2007


2006


2005Net income

$
54,616


$
36,206


$
33,804Effect of convertible senior notes, net of related tax effects


4,399







Net income adjusted

$
59,015


$
36,206


$
33,804Weighted-average shares outstanding


87,164



86,420



87,266Weighted-average unvested common shares subject to repurchase










(24
)Shares used in computing basic net income per common share


87,164



86,420



87,242Dilutive effect of employee stock options, net of related tax
    benefits


4,588



6,522



4,841Dilutive effect of convertible senior notes


11,500







Shares used in computing diluted net income per common share


103,252



92,942



92,083Basic net income per common share

$
0.63


$
0.42


$
0.39Diluted net income per common share

$
0.57


$
0.39


$
0.37   Earnings per Share,
    Income
    Taxes
  Accounting for
    Income Taxes.
     59




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Share-Based
    Payments
  Share-Based Payment, Accounting for
    Stock-Based Compensation. Accounting for Stock Issued to
    Employees Statement of
    Cash Flows.
  Summary
    of Assumptions
   60




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Years Ended December 31,2007


2006


2005Option grants:Expected volatility


37-41
%


43-52
%


57
%Weighted-average volatility


39
%


48
%


57
%Expected life (in years)


3.3



3.9



3.3Expected dividends










Risk-free interest rate


4.5
%


4.8
%


3.9
%ESPP:Expected volatility


35
%


40
%


44
%Weighted-average volatility


35
%


40
%


44
%Expected dividends










Expected term of ESPP (in years)


0.5



1.25



1.25Risk-free interest rateESPP


5.1
%


5.1
%


3.5
%     Year Ended December 31,2007


2006Cost of service revenues

$
1,670


$
1,474Research and development


3,751



3,094Sales and marketing


5,796



4,877General and administrative


4,754



4,693Total share-based payments


15,971



14,138Tax benefit of share-based payments


(3,119
)


Total share-based payments, net of tax benefit

$
12,852


$
14,138  61




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  Stock
    Option Plan Activity
    WeightedWeighted-


AverageAverage


Remaining


AggregateNumber of


Exercise Price


Contractual


IntrinsicShares


per Share


Term (years)


ValueOutstanding at December 31, 2004


17,885



7.47



6.34


$
24,064Granted


3,735



8.99Exercised


(2,504
)


6.68Forefeited or expired


(2,003
)


10.51Outstanding at December 31, 2005


17,113



7.56



5.63


$
78,980Granted


3,866



12.79Exercised


(2,709
)


6.28Forefeited or expired


(987
)


11.29Outstanding at December 31, 2006


17,283


$
8.72



5.11


$
69,835Granted


4,129


$
14.58Exercised


(2,782
)

$
7.27Forefeited or expired


(1,295
)

$
12.63Outstanding at December 31, 2007


17,335


$
10.05



4.66


$
138,392Exercisable at December 31, 2007


10,991


$
8.35



4.06


$
106,527      62




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Options Outstanding


Options ExercisableWeighted-Average


Weighted





WeightedNumber


Remaining


Average


Number


AverageRange of

of


Contractual Life


Exercise Price


of


Exercise PriceExercise Prices

Options


(Years)


per Share


Options


per Share$ 0.54 to $ 4.05


497



3.12


$
2.66



479


$
2.71$ 4.51 to $ 5.69


2,653



6.53


$
5.68



2,256


$
5.68$ 5.72 to $ 7.48


2,730



3.26


$
7.02



2,368


$
7.01$ 7.50 to $ 7.90


3,152



2.87


$
7.82



2,781


$
7.83$ 7.91 to $12.64


3,059



4.81


$
11.13



1,596


$
10.24$12.65 to $14.95


2,622



5.81


$
14.46



680


$
14.09$15.04 to $42.56


2,622



5.34


$
16.05



831


$
16.0817,335



4.66


$
10.05



10,991


$
8.35   Pro
    Forma Disclosure for Years Ended December 31,
    2005
    Net income as reported(1)

$
33,804Add: Share-based employee compensation expense included in
    reported net income as reported, net of related tax
    effects(2)


723Deduct: Total share-based employee compensation expense using
    the fair value method for all awards, net of related tax
    effects(2) and(3)


(16,010
)Net income, pro forma

$
18,517Basic net income per common share:As reported(1)

$
0.39Pro forma(4)

$
0.21Diluted net income per common share:As reported(1)

$
0.37Pro forma(4)

$
0.20   (1)
    
    Net income and net income per share
    as reported for periods prior to 2006 did not include
    share-based compensation expense for stock options and our
    Employee Stock Purchase Plan because we did not adopt the
    recognition provisions of SFAS No. 123.(2)
    
    Tax effects on share-based
    compensation have been fully reserved by way of a valuation
    allowance.(3)
    
    Share-based compensation expense
    for periods prior to 2006 is calculated based on the pro forma
    application of SFAS No. 123.(4)
    
    Net income and net income per share
    including share-based employee compensation for periods prior to
    2006 are based on the pro forma application of
    SFAS No. 123. 63




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
   Summary
    of Plans
  1999
    Stock Incentive Plan
  1-year 7-year
  1999
    Non-Employee Director Stock Incentive Plan
    2000
    Employee Stock Incentive Plan
    Assumed
    Option Plans
   64




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##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  Employee
    Stock Purchase Plan
  , 6-month 24-month
  Disclosures
    Pertaining to All Share-Based Payment Plans
      Reporting
    Segments
  Disclosures about Segments of an
    Enterprise and Related Information
    Foreign
    Currency Translation
    Recent
    Accounting Pronouncements
   65




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  FAS 157-2) FAS 157-2.
  The
    Fair Value Option for Financial Assets and Financial Liabilities instrument-by-instrument
  Business Combinations,
  Noncontrolling Interests in Consolidated Financial
    Statements, an amendment of ARB No. 51
  3.
    Acquisitions  Itemfield
    Similarity
   66




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##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
      Years Ended December 31,2006


2005Pro forma adjusted total revenue

$
330,385


$
277,069Pro forma adjusted net income

$
24,868


$
18,520Pro forma adjusted net income per sharebasic

$
0.29


$
0.21Pro forma adjusted net income per sharediluted

$
0.27


$
0.20Pro forma weighted-average basic shares


86,636



87,458Pro forma weighted-average diluted shares


93,234



92,375   4.
    Cash,
    Cash Equivalents and Short-Term Investments  available-for-sale available-for-sale
 67




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    December 31, 2007Gross


GrossUnrealized


Unrealized


EstimatedCost


Gains


Losses


Fair ValueCash

$
102,939


$



$



$
102,939Cash equivalents:Money market funds


35,240











35,240Commercial paper


24,448



1







24,449Federal agency notes and bonds


41,037







(4
)


41,033Total cash equivalents


100,725



1



(4
)


100,722Total cash and cash equivalents


203,664



1



(4
)


203,661Short-term investments:Commercial paper


51,642



7



(4
)


51,645Corporate notes and bonds


51,308



103



(25
)


51,386Federal agency notes and bonds


150,049



371



(12
)


150,408U.S. government notes and bonds


5,494



8



(1
)


5,501Municipal notes and bonds


1,200



7







1,207Auction rate securities


21,050











21,050Total short-term investments


280,743



496



(42
)


281,197Total cash, cash equivalents, and short-term investments

$
484,407


$
497


$
(46
)

$
484,858     December 31, 2006Gross


GrossUnrealized


Unrealized


EstimatedCost


Gains


Losses


Fair ValueCash

$
49,267


$



$



$
49,267Cash equivalents:Money market funds


14,448











14,448Commercial paper


37,639







(8
)


37,631Federal agency notes and bonds


19,138



7







19,145Total cash equivalents


71,225



7



(8
)


71,224Total cash and cash equivalents


120,492



7



(8
)


120,491Short-term investments:Money market funds


449











449Commercial paper


14,575



13



(13
)


14,575Certificates of deposit


750











750Corporate notes and bonds


29,984



5



(22
)


29,967Federal agency notes and bonds


169,482



41



(165
)


169,358Auction rate securities


65,050











65,050Total short-term investments


280,290



59



(200
)


280,149Total cash, cash equivalents, and short-terminvestments

$
400,782


$
66


$
(208
)

$
400,640  68




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  No. 03-1, available-for-sale
  Less Than 12 months


More Than 12 months


TotalGross





Gross





GrossUnrealized





Unrealized





UnrealizedFair Value


Losses


Fair Value


Losses


Fair Value


LossesCorporate notes and bonds

$
15,798


$
(25
)

$



$



$
15,798


$
(25
)Commercial paper


993















993



Federal agency notes and bonds


66,100



(16
)










66,100



(16
)U.S. government notes and bonds


2,010



(1
)










2,010



(1
)$
84,901


$
(42
)

$



$



$
84,901


$
(42
)       Cost


Fair ValueDue within one year

$
292,307


$
292,466Due one year to two years


68,111



68,403Due after two years


21,050



21,050$
381,468


$
381,919       5.
    Property
    and Equipment    December 31,2007


2006Computer and office equipment

$
39,262


$
34,532Furniture and fixtures


4,346



3,379Leasehold improvements


16,343



15,554Capital
    work-in-progress






33159,951



53,796Less: Accumulated depreciation and amortization


(49,827
)


(39,428
)$
10,124


$
14,368  69




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    6.
    Goodwill
    and Intangible Assets    2007


2006Gross








GrossCarrying


Accumulated


Net


Carrying


Accumulated


NetAmount


Amortization


Amount


Amount


Amortization


AmountDeveloped and core technology

$
18,135


$
(10,091
)

$
8,044


$
18,135


$
(7,297
)

$
10,838Customer relationships


4,175



(1,895
)


2,280



4,175



(1,057
)


3,118Other:Trade names


700



(208
)


492



700



(8
)


692Covenant not to compete


2,000



(417
)


1,583



2,000



(14
)


1,986$
25,010


$
(12,611
)

$
12,399


$
25,010


$
(8,376
)

$
16,634       December 31,2007


2006Beginning balance

$
170,683


$
81,066Goodwill recorded in acquiring Similarity






46,415Goodwill recorded in acquiring Itemfield






43,202Subsequent goodwill adjustments


(3,767
)


Ending balance

$
166,916


$
170,683    70




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##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  7.
    Facilities
    Restructuring Charges  2004
    Restructuring Plan
      2001
    Restructuring Plan
       71




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Accrued














AccruedRestructuring














RestructuringCharges at














Charges atDecember 31,


Restructuring


Net Cash


Non-cash


December 31,2006


Charges


Adjustments


Payment


Reclass


20072004 Restructuring PlanExcess lease facilities

$
71,678


$
3,894


$
(183
)

$
(10,780
)

$
(163
)

$
64,4462001 Restructuring PlanExcess lease facilities


12,132







(697
)


(1,639
)






9,796$
83,810


$
3,894


$
(880
)

$
(12,419
)

$
(163
)

$
74,242     Accrued














AccruedRestructuring














RestructuringCharges at














Charges atDecember 31,


Restructuring


Net Cash


Non-cash


December 31,2005


Charges


Adjustments


Payment


Reclass


20062004 Restructuring PlanExcess lease facilities

$
78,129


$
4,309


$
(854
)

$
(9,744
)

$
(162
)

$
71,6782001 Restructuring PlanExcess lease facilities


16,404







(244
)


(4,028
)






12,132$
94,533


$
4,309


$
(1,098
)

$
(13,772
)

$
(162
)

$
83,810       8.
    Convertible
    Senior Notes   72




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Accounting for Derivative Instruments
    and Hedging Activities EITF 00-19, Accounting for Derivative Financial Instruments Indexed to,
    and Potentially Settled in, a Companys Own Stock
      Over-the-Counter
  9.
    Commitments
    and Contingencies  Lease
    Obligations
   73




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    Facilities
    Restructuring Charges
    Operating


SubleaseLeases


Income


Net2008

$
23,552


$
2,752


$
20,8002009


23,390



1,622



21,7682010


23,291



407



22,8842011


18,791



2,094



16,6972012


19,171



2,628



16,543Thereafter


11,936



1,345



10,591$
120,131


$
10,848


$
109,283     Warranties
  Accounting for Contingencies.
  Indemnification
   74




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
        Accounting for Contingencies.
  10.
    Stockholders
    Equity  Preferred
    Stock
    Common
    Stock
    Stockholders
    Rights Plan
   75




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  Stock
    Repurchase Plan
    11.
    Comprehensive
    Income      Years Ended December 31,2007


2006


2005Net income, as reported

$
54,616


$
36,206


$
33,804Other comprehensive income (loss):Unrealized gain (loss) on investments*


364



559



(57
)Cumulative translation adjustment*


3,480



1,776



(2,257
)Comprehensive income

$
58,460


$
38,541


$
31,490   *
    
    The tax effects on unrealized gain
    on investments were $233,000 for the year ended
    December 31, 2007, and negligible for both years ended
    December 31, 2006, and 2005. The tax effects on cumulative
    translation adjustments for the years ended December 31,
    2007, 2006 and 2005 were negligible.  December 31,2007


2006Unrealized gain (loss) on
    available-for-sale
    investments

$
221


$
(143
)Cumulative translation adjustment


5,419



1,939$
5,640


$
1,796   12.
    Employee
    401(K) Plan   76




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    13.
    Income
    Taxes    Years Ended December 31,2007


2006


2005Current tax provision:Federal

$
20,825


$
(177
)

$
350State


3,679



1,100



450Foreign


2,688



3,561



1,374Total current tax provision


27,192



4,484



2,174Deferred tax provision:Federal


(12,958
)


853



State


(6,210
)


140



Total deferred tax provision


(19,168
)


993



Total provision for income taxes

$
8,024


$
5,477


$
2,174     Years Ended December 31,2007


2006


2005Domestic

$
39,066


$
52,571


$
42,343Foreign


23,574



(10,888
)


(6,365
)$
62,640


$
41,683


$
35,978     Years Ended December 31,2007


2006


2005Income tax provision computed at federal statutory tax rate

$
21,924


$
14,589


$
12,592Federal alternative minimum tax










1,062State taxes, net of federal benefit


1,497



715



293Foreign earnings taxed at different rates


(4,815
)


9,633



4,385Share-based compensation


1,562



1,646



642Return to provision
    true-up


1,615



(603
)


(229
)Other


589







(325
)Valuation allowance


(14,348
)


(20,503
)


(16,246
)Total provision for income taxes

$
8,024


$
5,477


$
2,174  77




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
    December 31,2007


2006Deferred tax assets:Net operating loss carryforwards

$
4,082


$
7,873Tax credit carryforwards


5,378



12,790Deferred revenue


8,133



5,648Reserves and accrued costs not currently deductible


2,277



2,960Depreciable assets


16,442



15,986Accrued restructuring costs


29,051



32,949Amortization of intangibles


1,746



3,227Capitalized research and development


463



1,911Share-based compensation


3,849



3,654Other


155



214Valuation allowance


(47,142
)


(82,626
)Total deferred tax assets


24,434



4,586Deferred tax liabilities:Non-deductible intangible assets


(4,453
)


(5,579
)Foreign earnings


(1,225
)


(1,225
)Total deferred tax liabilities


(5,678
)


(6,804
)Net deferred tax assets (liabilities)

$
18,756


$
(2,218
)        78




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  and/or
  Accounting for Uncertainties in
    Income Taxesan Interpretation of FASB Statement
    No. 109
  Balance at January 1, 2007

$
6,145Additions for tax positions of prior years


965Reductions for tax positions of prior years


(1,543
)Additions based on tax positions related to the current year


1,519Reduction due to lapse of statute of limitations


Reduction due to settlements


Balance at December 31, 2007

$
7,086       14.
    Litigation  In re
    Informatica Corporation Initial Public Offering Securities
    Litigation, Civ.
    No. 01-9922
    (SAS) (S.D.N.Y.) In re Initial Public
    Offering Securities Litigation, 21 MC 92 (SAS) (S.D.N.Y.). and/or and/or
 79




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
        Miles v. Merrill Lynch & Co. In re Initial Public Offering Securities
    Litigation
     80




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  AT&T Corp. v. Microsoft Corp. AT&T Corp. v. Microsoft Corp
        15.
    Related
    Party Transaction    16.
    Significant
    Customer Information and Segment Information      Years Ended December 31,2007


2006


2005Revenues:North America

$
264,167


$
226,731


$
185,118Europe


101,933



80,117



73,398Other


25,156



17,750



8,915$
391,256


$
324,598


$
267,431  81




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  December 31,2007


2006Long-lived assets (excluding assets not allocated):North America

$
19,247


$
27,995Europe


1,769



1,984Other


1,507



1,023$
22,523


$
31,002     For the Years Ended December 31,2007


2006


2005License

$
175,318


$
146,092


$
120,182Maintenance


151,246



124,955



103,573Consulting and education


64,692



53,551



43,676$
391,256


$
324,598


$
267,431   17.
    Selected
    Quarterly Financial Information (Unaudited)  Three Months EndedDecember 31,


September 30,


June 30,


March 31,2007


2007


2007


2007(In thousands, except per share data)Total revenues

$
113,877


$
96,003


$
94,262


$
87,114Gross profit


93,337



77,338



75,647



69,273Facilities restructuring charges


(64
)


1,003



1,026



1,049Income from operations


19,978



11,344



9,073



7,008Net income


20,620



14,446



10,456



9,094Net income per common share:Basic

$
0.24


$
0.17


$
0.12


$
0.11Diluted

$
0.21


$
0.15


$
0.11


$
0.10Shares used in computing basic net incomeper common share:Basic


87,465



87,428



87,293



86,448Diluted


103,452



103,151



103,206



102,638   82




---



##### Table of Contents



INFORMATICA
    CORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS(Continued)
  Three Months EndedDecember 31,


September 30,


June 30,


March 31,2006


2006


2006


2006(In thousands, except per share data)Total revenues

$
91,801


$
78,930


$
80,810


$
73,057Gross profit


72,008



63,321



63,874



57,897Facilities restructuring charges


(174
)


1,108



1,129



1,149Income from operations


12,382



7,403



6,021



4,054Net income


13,925



9,384



7,629



5,268Net income per common share:Basic

$
0.16


$
0.11


$
0.09


$
0.06Diluted

$
0.15


$
0.10


$
0.08


$
0.06Shares used in computing basic net incomeper common share:Basic


86,168



86,187



85,860



87,566Diluted


103,176



92,412



93,062



97,147   Earning per Share,
  period-to-period
 83




---



##### Table of Contents



ITEM 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE    ITEM 9A.
    CONTROLS
    AND PROCEDURES  Evaluation of disclosure controls and
    procedures. Form 10-K.
  Managements annual report on internal control
    over financial reporting. Form 10-K,
  Change in internal control over financial
    reporting.
  ITEM 9B.
    OTHER
    INFORMATION   PART III  ITEM 10.
    DIRECTORS,
    EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE  Regulation S-K
  ITEM 11.
    EXECUTIVE
    COMPENSATION   84




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##### Table of Contents



ITEM 12.
    SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS    ITEM 13.
    CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
    INDEPENDENCE    ITEM 14.
    PRINCIPAL
    ACCOUNTANT FEES AND SERVICES   PART IV  ITEM 15.
    EXHIBITS AND
    FINANCIAL STATEMENT SCHEDULES  Form 10-K:
  1. Consolidated Financial Statements:
    2. Financial Statement Schedule:
        Schedule IIValuation
    and Qualifying Accounts (In
    thousands)
  Balance


Charged to








Balanceat Beginning


Costs and








at EndDescription

of Period


Expenses


Acquisitions


Deductions


of PeriodProvision for Doubtful Accounts:Year ended December 31, 2007

$
1,666


$
215


$
(468
)

$
(114
)

$
1,299Year ended December 31, 2006

$
870


$
(32
)

$
837


$
(9
)

$
1,666Year ended December 31, 2005

$
811


$
150


$



$
(91
)

$
870   3. Exhibits
  Form 10-K.
 85




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##### Table of Contents



SIGNATURES    INFORMATICA CORPORATION
  By:
    /s/  Sohaib
    Abbasi   Chief Executive Officer, President, and
 Chairman of the Board
  Form 10-K
  Signature

Title

Date/s/  Sohaib
    AbbasiSohaib
    Abbasi

Chief Executive Officer, President, and Chairman of the Board of
    Directors (Principal Executive Officer)

February 27, 2008/s/  Earl
    FryEarl
    Fry

Chief Financial Officer, Executive Vice President, and Secretary
    (Principal Financial and Accounting Officer)

February 27, 2008/s/  David
    PidwellDavid
    Pidwell

Director

February 27, 2008/s/  Mark
    BertelsenMark
    Bertelsen

Director

February 27, 2008/s/  Janice
    ChaffinJanice
    Chaffin

Director

February 27, 2008/s/  Charles
    RobelCharles
    Robel

Director

February 27, 2008/s/  Brooke
    SeawellBrooke
    Seawell

Director

February 27, 2008Geoff
    Squire

Director/s/  Godfrey
    SullivanGodfrey
    Sullivan

Director

February 27, 2008/s/  Carl
    YankowskiCarl
    Yankowski

Director

February 27, 2008  86




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##### Table of Contents



INFORMATICA
    CORPORATION
  EXHIBITS TO
    FORM 10-K
    ANNUAL REPORT
  For the
    year ended December 31, 2007
  ExhibitNumber

Document2
.1

Share Purchase Agreement for the sale and purchase of the entire
    issued share capital of Similarity Systems Limited dated
    January 26, 2006, (incorporated by reference to
    Exhibit 2.1 to the Companys Annual Report on
    Form 10-K
    filed on February 28, 2007, Commission File
    No. 0-25871).3
.1

Amended and Restated Certificate of Incorporation of Informatica
    Corporation (incorporated by reference to Exhibit 3.1 to
    Amendment No. 1 of the Companys Registration
    Statement on
    Form S-1
    (Commission File
    No. 333-72677)
    filed on April 8, 1999).3
.2

Certificate of Amendment to the Companys Amended and
    Restated Certificate of Incorporation to increase the aggregate
    number of shares of the Companys common stock authorized
    for issuance from 100,000,000 to 200,000,000 shares
    (incorporated by reference to Exhibit 3.4 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on August 14, 2000, Commission File
    No. 0-25871).3
.3

Certificate of Designation of the Rights, Preferences and
    Privileges of Series A Participating Preferred Stock of
    Informatica Corporation (incorporated by reference to
    Exhibit 3.5 to the Companys Registration Statement on
    Form 8-A
    filed on November 6, 2001, Commission File
    No. 0-25871).3
.4

Bylaws, as amended, of Informatica Corporation.4
.1

Reference is made to Exhibits 3.1 through 3.4.4
.2

Preferred Stock Rights Agreement, dated as of October 17,
    2001, between Informatica Corporation and American Stock
    Transfer & Trust Company (incorporated by
    reference to Exhibit 4.2 to the Companys Registration
    Statement on
    Form 8-A
    filed on November 6, 2001, Commission File
    No. 0-25871).4
.3

Indenture, dated March 13, 2006, between the Company and
    U.S. Bank National Association (incorporated by reference to
    Exhibit 4.1 of the Companys Current Report on
    Form 8-K
    filed on March 14, 2006, Commission File
    No. 0-25871).4
.4

Form of 3% Convertible Senior Note due 2026 (incorporated
    by reference to Exhibit A to Exhibit 4.1 of the
    Companys Current Report on
    Form 8-K
    filed on March 14, 2006, Commission File
    No. 0-25871).4
.5

Registration Rights Agreement, dated as of March 13, 2006,
    between the Company and UBS Securities LLC (incorporated by
    reference to Exhibit 4.3 of the Companys Current
    Report on
    Form 8-K
    filed on March 14, 2006, Commission File
    No. 0-25871).10
.1*

Companys 2000 Employee Stock Incentive Plan, as amended
    (incorporated by reference to Exhibit 10.1 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on August 8, 2001, Commission File
    No. 0-25871).10
.2*

Form of Indemnification Agreement between the Company and each
    of its executive officers and directors (incorporated by
    reference to Exhibit 10.6 to Amendment No. 1 of the
    Companys Registration Statement on
    Form S-1
    (Commission File
    No. 333-72677)
    filed on April 8, 1999).10
.3*

Companys 1996 Flexible Stock Incentive Plan, including
    forms of agreements thereunder (incorporated by reference to
    Exhibit 10.10 to the Companys Registration Statement
    on
    Form S-1
    (Commission File
    No. 333-72677)
    filed on February 19, 1999).10
.4*

Companys 1999 Stock Incentive Plan, as amended.10
.5*

Companys 1999 Employee Stock Purchase Plan, as amended,
    including forms of agreements thereunder (incorporated by
    reference to Exhibit 10.1 to the Companys Quarterly
    Report on
    Form 10-Q
    filed on May 9, 2006, Commission File
    No. 0-25871).10
.6*

Companys 1999 Non-Employee Director Stock Incentive Plan
    (incorporated by reference to Exhibit 10.13 to Amendment
    No. 1 of the Companys Registration Statement on
    Form S-1
    (Commission File
    No. 333-72677)
    filed on April 8, 1999).10
.7

Lease Agreement regarding Building 1 Lease, dated as of
    February 22, 2000, by and between the Company and Pacific
    Shores Center LLC (incorporated by reference to
    Exhibit 10.14 to the Annual Report on
    Form 10-K
    filed on March 30, 2000, Commission File
    No. 0-25871).10
.8

Lease Agreement regarding Building 2 Lease, dated as of
    February 22, 2000, by and between the Company and Pacific
    Shores Center LLC (incorporated by reference to
    Exhibit 10.15 to the Annual Report on
    Form 10-K
    filed on March 30, 2000, Commission File
    No. 0-25871). 87




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##### Table of Contents



ExhibitNumber

Document10
.9*

Description of management arrangement with Earl E. Fry
    (incorporated by reference to Exhibit 10.20 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on November 13, 2002, Commission File
    No. 0-25871).10
.10*

Amendment to 1999 Non-Employee Director Stock Incentive Plan
    (incorporated by reference to Exhibit 10.21 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on August 7, 2003, Commission File
    No. 0-25871).10
.11*

Employment Agreement dated July 19, 2004 by and between
    Company and Sohaib Abbasi (incorporated by reference to
    Exhibit 10.26 of the Companys Quarterly Report on
    Form 10-Q
    filed on August 5, 2004, Commission File
    No. 0-25871).10
.12

Lease Agreement dated as of October 7, 2004, by and between
    the Company and Seaport Plaza Associates, LLC (incorporated by
    reference to Exhibit 10.28 of the Companys Annual
    Report on
    Form 10-K
    filed on March 8, 2005, Commission File
    No. 0-25871).10
.13*

Form of Executive Severance Agreement dated November 15,
    2004 by and between the Company and each of Earl E. Fry and
    Girish Pancha (incorporated by reference to Exhibit 10.29
    of the Companys Annual Report on
    Form 10-K
    filed on March 8, 2005, Commission File
    No. 0-25871).10
.14*

Offer Letter dated January 4, 2005, by and between the
    Company and Paul J. Hoffman (incorporated by reference to
    Exhibit 10.31 of the Companys Quarterly Report on
    Form 10-Q
    filed on May 9, 2005, Commission File
    No. 0-25871).10
.15*

Executive Severance Agreement dated January 4, 2005 by and
    between the Company and Paul J. Hoffman (incorporated by
    reference to Exhibit 10.31 of the Companys Quarterly
    Report on
    Form 10-Q
    filed on May 9, 2005, Commission File
    No. 0-25871).10
.16*

2007 Cash Bonus Plan (incorporated by reference to
    Exhibit 10.1 of the Companys Quarterly Report on
    Form 10-Q
    filed on May 9, 2007, Commission File
    No. 0-25871).10
.17*

Offer Letter dated February 22, 2006 by and between the
    Company and Brian Gentile (incorporated by reference to
    Exhibit 10.3 to the Companys Quarterly Report on
    Form 10-Q
    filed May 9, 2006, Commission File
    No. 0-25871).10
.18*

Executive Severance Agreement dated February 22, 2006 by
    and between the Company and Brian Gentile (incorporated by
    reference to Exhibit 10.3 to the Companys Quarterly
    Report on
    Form 10-Q
    filed May 9, 2006, Commission File
    No. 0-25871).10
.19*

Severance Agreement dated November 13, 2007 by and between
    the Company and Brian Gentile.10
.20*

Form of Amendment to Executive Severance Agreement dated
    January 30, 2008 by and between the Company and each of
    Earl E. Fry, Paul J. Hoffman and Girish Pancha.21
.1

List of Subsidiaries.23
.1

Consent of Independent Registered Public Accounting Firm.31
.1

Certification of Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.31
.2

Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32
.1

Certification of Chief Executive Officer and Chief Financial
    Officer pursuant to 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.   *
    
    Indicates management contract or
    compensatory plan or arrangement. 88