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Organization
and Operations
The
Company is a leading multinational supplier of information
management software and solutions to governments and enterprises
worldwide. The Company designs, develops, manufactures, markets
and supports relational and object-relational database management
systems, connectivity interfaces and gateways and graphical
and character-based application development tools for building
database applications that allow customers to access, retrieve
and manipulate business data. The Company also offers complete
solutions, which include its database management software,
its own and third party software and consulting services to
help customers design and rapidly deploy data warehousing
(decision support), web-based enterprise repository and electronic
commerce applications.
The
principal geographic markets for the Company’s products are
North America, Europe, Asia/Pacific, and Latin America. Customers
include businesses ranging from small corporations to Fortune
1000 companies, principally in the manufacturing, financial
services, telecommunications, media, retail/wholesale, hospitality,
and government services sectors.
Basis
of Presentation
The
consolidated financial statements have been prepared to give
retroactive effect to the merger with Cloudscape, Inc. (“Cloudscape”)
on October 8, 1999. The consolidated financial statements
have been restated for all periods presented as if Cloudscape
and the Company had always been combined.
Prior
to the combination, Cloudscape’s fiscal year ended March 31.
In recording the pooling-of-interests combination, Informix’s
statements of operations for the years ended December 31,
1998 and 1997 have been combined with the Cloudscape statements
of operations for the years ended March 31, 1999 and 1998,
respectively. As a consequence, the results of Cloudscape
for the three-month period
ended March 31, 1999 are included in the results of operations
for both the year ended December 31, 1998 and the year ended
December 31, 1999. Cloudscape revenues and net loss for the
three-month period ended March 31, 1999 were $347,000 and
$2,020,000, respectively. The consolidated balance sheet of
Informix at December 31, 1998 has been combined with the balance
sheet of Cloudscape as of March 31, 1999.
Use
of Estimates
The
preparation of financial statements in conformity with generally
accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported
in the financial statements and accompanying notes. Actual
results could differ from those estimates.
Principles
of Consolidation
The
consolidated financial statements include the accounts of
Informix Corporation and its wholly owned subsidiaries. All
material intercompany balances and transactions have been
eliminated in consolidation.
Foreign
Currency Translation
For
foreign operations with the local currency as the functional
currency, assets and liabilities are translated at year-end
exchange rates, and statements of operations are translated
at the exchange rates during the year. Exchange gains or losses
arising from translation of such foreign entity financial
statements are included as a component of other comprehensive
income (loss).
For
foreign operations with the U.S. dollar as the functional
currency, monetary assets and liabilities are remeasured at
the year-end exchange rates as appropriate and non-monetary
assets and liabilities are remeasured at historical exchange
rates. Statements of operations are remeasured at the exchange
rates during the year. Foreign currency transaction gains
and losses are included in other income (expense), net. The
Company recorded net foreign currency transaction gains (losses)
of $(0.3) million, $(4.8) million and $8.0 million for the
years ended December 31, 1999, 1998 and 1997, respectively.
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