STOCKREPORTS		 Informix Corporation Nasdaq Symbol IFMX
In S&P MidCap 400
19-JUL-97 Industry:
Computer (Software & Services)		 Summary: This company develops and markets high-performance relational database management and applications development software.

Recent Price 9.31
52 Wk Range 28.88 - 6.84		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
B
Technical Evaluation:
BEARISH since 10/96
Rel. Strength Rank (1 Lowest - 99 Highest)
17
Insider Activity
Neutral

Overview 13-MAY-97

Revenues in the first quarter of 1997 declined over 30%, owing to sluggishness associated with product transition uncertainties stemming from the shipment of Universal Server and the failure to close several large deals. Growth in 1996 also fell below original expectations. We expect revenue growth to rebound in the second quarter of 1997 and through year end, from depressed first quarter levels, aided by the company's refocused efforts on its core relational database management system software and related services. However, despite the enactment of expense reduction programs, including layoffs, Informix is unlikely to return to profitability before the 1997 fourth quarter. Reported earnings in 1997 should be penalized by first quarter charges totaling $37.5 million ($0.25 a share).

Valuation 13-MAY-97

The shares of this major vendor of relational database software collapsed in early April on news that the first quarter would disappoint. We expect that revenues will pick up and losses moderate in the second and third quarters of 1997, with a return to profitability expected in the fourth quarter. Revenue and earnings estimates are uncertain, however, reflecting a reluctance by customers and employees alike, to commit to vendors with financial troubles. However, the relational database software market is growing at 30%-35% annually and we view favorably the company's technological lead and relationships with major industry vendors. The stock seems to have bottomed and trades at about 16 times our current $0.50 a share 1998 estimate. In light of the company's fundamental earnings power, the high risk shares should outperform the market in the next six to 12 months.

Key Stock Statistics

S&P EPS Est. 1997 -1.35
P/E on S&P Est. 1997 NM
S&P EPS Est. 1998 0.50
Dividend Rate/Share Nil
Shs. outstg. (M) 151.7
Avg. daily vol. (M) 1.912
Tang. Bk. Value/Share 2.70
Beta 0.47
Shareholders 3,400
Market cap. (B) $ 1.4
Inst. holdings 39%
Value of $10,000 invested 5 years ago:$ 54,178

Fiscal Year Ending Dec. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 133.7 204.0 147.8 96.10 77.09 59.10
Q2 NA 226.3 163.6 105.7 84.33 60.30
Q3 NA 238.2 180.5 116.8 90.07 68.20
Q4 NA 270.8 217.1 150.1 101.4 96.03
Year NA 939.3 709.0 468.7 352.9 283.6

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 -0.93 0.10 0.14 0.09 0.08 0.09
Q2 E-0.35 0.14 0.16 0.10 0.09 0.07
Q3 E-0.10 0.17 0.18 0.13 0.10 0.09
Q4 E0.03 0.22 0.28 0.17 0.13 0.12
Year E-1.35 0.63 0.76 0.49 0.42 0.38

Dividend Data: No cash dividends have been paid.

Business Summary 13-MAY-97

Informix Corp. engages primarily in the design, development, marketing and support of relational database management system (RDMS) software products and also provides related training, consulting and maintenance services. Its database products are based on Structured Query Language (SQL), an industry standard created by IBM.

The company's INFORMIX-OnLine, INFORMIX-OnLine Dynamic Server, INFORMIX-OnLine Extended Parallel Server and INFORMIX-SE relational database management software products are used primarily on midrange computers running on the UNIX, Windows and Windows/NT operating systems.

In February 1996, IFMX acquired Illustra Information Technologies, a provider of object-relational database systems and tools. Informix integrated the functionality of these object-relational products into its core database technology and released its Universal Server product in December 1996.

Various database development tools allow users to build and maintain applications. The company's newest generation of application development tools is INFORMIX-NewEra, an object-oriented, client/server development environment. INFORMIX-NewEra allows customers to create new graphical applications; it also enables existing character-based programs built with its INFORMIX-4GL character-based developing environment to be transformed into the graphical format.

Connectivity products allow data from various databases to be accessed and manipulated across a network.

The company provides maintenance services to its database customers on an optional basis for fees ranging from 10% to 18% of the license fees paid by the customer. Service revenues, which include maintenance, consulting and training fees, represented 25% of total revenues in 1996 (24% in 1995).

Net sales from international customers accounted for 58% of net revenues in both 1996 and 1995.

Important Developments

Apr. '97 In the first quarter of 1997, revenues declined 34%, year to year, as a 17% gain in services (to $62.0 million) was outweighed by a 49% decline in database revenues ($59.0 million) and a 64% drop in tools ($12.6 million).
Apr. '97 In the first quarter of 1997, the company recorded a $30.5 million ($0.20 a share) charge for the write-off of goodwill and other long-term assets, largely related to operations in Japan. Also in the 1997 first quarter, Informix recorded a $7 million charge ($0.05 a share), related to the acquisition of CenterView Software, a provider of software that enables database application development.

Capitalization

Long Term Debt: None (3/97).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 3.56 2.83 2.10 1.60 1.05 0.48 0.36 0.75 0.69 0.65
Cash Flow 1.35 1.05 0.61 0.50 0.45 0.19 -0.15 0.13 0.05 0.10
Earnings 0.63 0.76 0.49 0.42 0.38 0.10 -0.23 0.06 0.00 0.08
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Prices - High 36 3/4 34 3/8 16 1/8 13 5/8 9 1/2 2 2 3/16 1 15/16 3 1/4 3 7/8
- Low 16 7/8 14 5/8 7 1/8 6 3/4 1 11/16 5/16 7/16 15/16 13/16 1 1/4
P/E Ratio - High 58 45 33 33 25 20 NM 31 NM 47
- Low 27 19 15 16 4 3 NM 15 NM 15

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 939 709 469 353 284 180 146 145 104 42.0
Oper. Inc. 205 200 119 96.8 81.9 24.3 -6.7 16.9 3.7 10.0
Depr. 61.8 41.1 16.2 11.4 9.9 8.8 7.5 6.3 4.0 1.0
Int. Exp. 2.6 1.0 0.4 0.4 2.3 2.8 3.0 1.8 NA 0.1
Pretax Inc. 148 166 103 87.7 61.7 13.9 -22.7 10.1 0.6 10.5
Eff. Tax Rate 34% 36% 36% 36% 23% 12% NM 37% 36% 44%
Net Inc. 97.8 105 66.2 56.1 47.8 12.2 -23.1 6.4 0.4 5.9

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 261 252 192 144 119 41.9 20.5 25.2 27.8 31.5
Curr. Assets 558 472 348 269 196 97.0 69.0 107 83.0 48.0
Total Assets 904 674 444 327 231 133 110 143 116 54.0
Curr. Liab. 300 226 154 113 97.0 53.4 41.4 36.5 23.2 8.6
LT Debt 1.5 0.8 0.3 0.5 1.3 25.4 29.8 30.3 24.4 0.2
Common Eqty. 571 423 276 207 133 54.2 38.1 74.0 66.4 44.6
Total Cap. 603 448 291 213 134 80.0 68.0 106 93.0 46.0
Cap. Exp. 148 52.9 25.2 22.1 9.7 4.2 6.6 6.3 17.6 3.8
Cash Flow 210 146 82.4 67.5 57.7 21.0 -15.6 12.7 4.4 6.9

Curr. Ratio 1.9 2.1 2.3 2.4 2.0 1.8 1.7 2.9 3.6 5.5
% LT Debt of Cap. 0.2 0.2 0.1 0.2 0.9 31.9 43.9 28.5 26.3 0.5
% Net Inc.of Revs. 10.4 14.9 14.1 15.9 16.8 6.8 NM 4.4 0.4 14.3
% Ret. on Assets 12.3 18.8 17.1 19.9 25.1 9.9 NM 4.9 0.4 14.9
% Ret. on Equity 19.5 30.0 27.3 32.6 49.4 26.0 NM 9.0 0.6 18.7

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--4100 Bohannon Dr., Menlo Park, CA 94025. Tel--(415) 926-6300. Website--http://www.informix.com Chrmn, Pres & CEO--P. E. White. VP, Treas & Investor Contact--Margaret Brauns. VP & Secy--D. H. Stanley. Dirs--A. F. Knorp Jr., J. L. Koch, T. A. McDonnell, P. E. White, C. J. Yansouni. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in Delaware in 1986. Empl-- 4,600. S&P Analyst: Peter C. Wood, CFA


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