UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 1, 2012
TERADATA CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 001-33458
Delaware | 75-3236470 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
10000 Innovation Drive
Dayton, Ohio 45342
(Address of principal executive offices and zip code)
Registrants telephone number, including area code: (866) 548-8348
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
The Company is furnishing the following information as required under Item 2.02 Results of Operations and Financial Condition of Form 8-K and Item 7.01 Regulation FD Disclosure. Such information, including Exhibit 99.1 attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.
On November 1, 2012, the Company issued a press release setting forth its third quarter 2012 revenue and earnings per share amounts. A copy of the press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.
Item 7.01 | Regulation FD Disclosure. |
The information set forth above under Item 2.02 Results of Operations and Financial Condition is furnished pursuant to this Item 7.01 and Exhibit 99.1 is hereby incorporated by reference into this Item 7.01.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits:
The following exhibits are attached with this current report on Form 8-K:
Exhibit No. |
Description | |
99.1 | Press Release, dated November 1, 2012, issued by the Company. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TERADATA CORPORATION | ||||
Date: November 1, 2012 | By: | /s/ Stephen M. Scheppmann | ||
Stephen M. Scheppmann | ||||
Executive Vice President and Chief Financial Officer |
Index to Exhibits
Exhibit No. |
Description | |
99.1 | Press Release, dated November 1, 2012, issued by the Company. |
Exhibit 99.1
|
11695 Johns Creek Pkwy. Johns Creek, GA 30097
NEWS RELEASE |
For media information: | For investor information: | |
Mike OSullivan | Gregg Swearingen | |
(937) 242-4786 | (937) 242-4600 | |
mike.osullivan@teradata.com | gregg.swearingen@teradata.com |
For Release on November 1, 2012
Teradata Reports Third Quarter Results
| Revenue increased 10 percent in constant currency(1) |
| Product gross margin increased 350 basis points |
| Non-GAAP operating margin increased 200 basis points |
| GAAP EPS of $0.60, an 18 percent increase from the prior-year period |
| Non-GAAP EPS of $0.69, versus $0.59 in the third quarter of 2011(2) |
| Year-to-date cash from operating activities increased $64 million from prior-year period |
ATLANTA Teradata Corporation (NYSE: TDC) today reported revenue of $647 million for the quarter ended September 30, 2012, an increase of 7 percent from $602 million in the third quarter of 2011. In constant currency, revenue increased 10 percent from the third quarter of 2011, in line with managements expectations.(1)
Gross margin of 55.8 percent, as reported under U.S. Generally Accepted Accounting Principles (GAAP), improved 130 basis points from the third quarter of 2011. On a non-GAAP basis, excluding the special items and stock-based compensation expense described in footnote #2,(2) gross margin was 56.9 percent, a 150 basis point improvement from 55.4 percent in the third quarter of 2011. The increase in gross margin was driven by leverage from revenue growth as well as a favorable product revenue mix.
Stock-based compensation expense and special items had a $15 million negative impact on Teradatas third quarter 2012 net income as reported under GAAP.(2)
Teradata reported GAAP net income of $104 million, or $0.60 per diluted share, which compared to GAAP net income of $87 million, or $0.51 per diluted share, in the third quarter of 2011. Excluding stock-based compensation expense and the special items detailed in footnote #2,(2) non-GAAP net income in the third quarter of 2012 was $119 million, or $0.69 per diluted share, versus $101 million, or $0.59 per diluted share in the third quarter of 2011.(2)
In Q3, Teradata continued to deliver solutions that create value for our customers and solid financial results for Teradata, given the macro-economic environment, said Mike Koehler, president and chief executive officer of Teradata Corporation. Teradatas competitive position has never been stronger, and we are well positioned with our market-leading technology and solutions in
three growing and strategic marketsdata warehousing, big data analytics and integrated marketing management.
Regional Revenue Performance
(in millions)
For the Three Months Ended September 30 | ||||||||||||||||
By segment/region | 2012 | 2011 | % Chg.
as Reported |
% Chg.
in Constant Currency(1) |
||||||||||||
Americas region |
$ | 384 | $ | 375 | 2 | % | 3 | % | ||||||||
EMEA region |
156 | 133 | 17 | % | 28 | % | ||||||||||
APJ region |
107 | 94 | 14 | % | 16 | % | ||||||||||
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Total revenue |
$ | 647 | $ | 602 | 7 | % | 10 | % | ||||||||
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For the Nine Months Ended September 30 | ||||||||||||||||
By segment/region | 2012 | 2011 | % Chg.
as Reported |
% Chg. in Constant Currency(1) |
||||||||||||
Americas region |
$ | 1,170 | $ | 1,021 | 15 | % | 15 | % | ||||||||
EMEA region |
460 | 403 | 14 | % | 23 | % | ||||||||||
APJ region |
295 | 265 | 11 | % | 12 | % | ||||||||||
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Total revenue |
$ | 1,925 | $ | 1,689 | 14 | % | 17 | % | ||||||||
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Operating Income
Third-quarter operating income of $143 million increased from $122 million reported in the third quarter of 2011. On a non-GAAP basis, operating income of $166 million increased 16 percent from the third quarter of 2011.(2) Higher revenue as well as favorable product revenue mix more than offset the increased investment in selling expense.
Cash Flow
Teradata generated $107 million of cash from operating activities, compared to $102 million in the prior-year period. Teradata generated $67 million of free cash flow (cash from operating activities less capital expenditures and additions to capitalized software)(3) in the third quarter of 2012, versus $75 million in the same period in 2011. The decline in free cash flow was due to increased investments in property and equipment, and capitalized software development expenses.
Year-to-date, Teradata generated $451 million of cash from operating activities, a $64 million increase from $387 million generated in the first nine months of 2011. Teradata generated $342 million of free cash flow(3) in the first nine months of 2012, a $42 million increase from the same period in 2011.
For the Periods Ended September 30 (in millions) |
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Three Months | Nine Months | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net Income (GAAP) |
$ | 104 | $ | 87 | $ | 307 | $ | 255 | ||||||||
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Cash provided by operating activities (GAAP) |
$ | 107 | $ | 102 | $ | 451 | $ | 387 | ||||||||
Less capital expenditures for: |
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Expenditures for property and equipment |
(18 | ) | (9 | ) | (49 | ) | (31 | ) | ||||||||
Additions to capitalized software |
(22 | ) | (18 | ) | (60 | ) | (56 | ) | ||||||||
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Total capital expenditures |
(40 | ) | (27 | ) | (109 | ) | (87 | ) | ||||||||
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Free Cash Flow (non-GAAP measure)(3) |
$ | 67 | $ | 75 | $ | 342 | $ | 300 | ||||||||
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Balance Sheet
Teradata ended the third quarter of 2012 with $909 million in cash, an $88 million increase from June 30, 2012.
As of September 30, 2012, Teradata had total debt of $292 million outstanding under a term loan. Additionally, Teradata has $300 million available through a pre-arranged credit facility; however, no funds were drawn from the credit facility.
2012 Outlook
Teradata now expects full-year 2012 revenue growth, on a reported basis, to be at the low end of its previous guidance range of 12-14 percent. On a constant currency basis, Teradata expects revenue growth to be at the low end of its prior guidance range of 14-16 percent.
Teradata expects full-year 2012 GAAP earnings per share to be in the middle to the higher end of its previous range of $2.34 to $2.44. Excluding stock-based compensation expense and special items, non-GAAP EPS for 2012 is expected to be in the middle to the higher end of its prior guidance range of $2.72 to $2.82.(2)
2012 Third-Quarter Earnings Conference Call
A conference call is scheduled today at 8:30 a.m. (ET) to discuss the companys third-quarter 2012 results. Access to the conference call, as well as a replay of the call, is available on Teradatas web site at www.teradata.com/investor.
Supplemental financial information regarding Teradatas operating results is also available on the Investor Relations page of Teradatas web site.
About Teradata
Teradata Corporation (NYSE: TDC) is the worlds leading analytic data solutions company, focused on integrated data warehousing, big data analytics, and business applications. Teradatas innovative products and services deliver data integration and business insight to empower organizations to make the best decisions possible for competitive advantage. Visit teradata.com for details.
# # #
Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries.
1. | The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the companys web site at www.teradata.com/investor, which is used to determine revenue on a constant currency basis. |
For the Three Months Ended September 30 |
For the Nine Months Ended September 30 |
|||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||
Revenue | 2012 | 2011 | % Chg As Rptd |
% Chg CC |
2012 | 2011 | % Chg As Rptd |
% Chg CC |
||||||||||||||||||||||||
Products (software/hardware) |
$ | 306 | $ | 287 | 7 | % | 9 | % | $ | 935 | $ | 791 | 18 | % | 21 | % | ||||||||||||||||
Consulting services |
194 | 176 | 10 | % | 13 | % | 552 | 498 | 11 | % | 14 | % | ||||||||||||||||||||
Maintenance services |
147 | 139 | 6 | % | 9 | % | 438 | 400 | 10 | % | 12 | % | ||||||||||||||||||||
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Total services |
341 | 315 | 8 | % | 12 | % | 990 | 898 | 10 | % | 13 | % | ||||||||||||||||||||
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Total revenue |
$ | 647 | $ | 602 | 7 | % | 10 | % | $ | 1,925 | $ | 1,689 | 14 | % | 17 | % | ||||||||||||||||
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For the Three Months Ended September 30 |
For the Nine Months Ended September 30 |
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(in millions) | (in millions) | |||||||||||||||||||||||||||||||
By segment/region | 2012 | 2011 | % Chg As Rptd |
% Chg CC |
2012 | 2011 | % Chg As Rptd |
% Chg CC |
||||||||||||||||||||||||
Americas region |
$ | 384 | $ | 375 | 2 | % | 3 | % | $ | 1,170 | $ | 1,021 | 15 | % | 15 | % | ||||||||||||||||
EMEA region |
156 | 133 | 17 | % | 28 | % | 460 | 403 | 14 | % | 23 | % | ||||||||||||||||||||
APJ region |
107 | 94 | 14 | % | 16 | % | 295 | 265 | 11 | % | 12 | % | ||||||||||||||||||||
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Total revenue |
$ | 647 | $ | 602 | 7 | % | 10 | % | $ | 1,925 | $ | 1,689 | 14 | % | 17 | % | ||||||||||||||||
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2. | Teradata reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP. However, as described below, the company believes that certain non-GAAP measures (such as non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, which exclude certain items as well as free cash flow) are useful for investors. Our non-GAAP measures are not meant to be considered in isolation or as substitutes for, or superior to results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. |
Special items included in Teradatas third quarter GAAP operating income results as reported in this release included $11 million of amortization of acquisition-related intangible assets; $2 million of acquisition transaction and integration expenses; and $10 million of stock-based compensation expense.
The following tables reconcile Teradatas actual and projected results and EPS, under GAAP to the companys actual and projected non-GAAP results and EPS for the periods presented, which exclude certain items. Our management regularly uses supplemental non-GAAP financial measures, such as gross margin, operating income, net income and EPS, excluding certain items internally, to understand, manage and evaluate our business and support operating decisions. The company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the companys ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the companys operating results excluding special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.
(a) | Gross Margin Reconciliation of GAAP to Non-GAAP Measures |
For the Three Months Ended September 30 (in millions) |
For the Nine Months Ended September 30 (in millions) |
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2012 | 2011 | % chg |
2012 | 2011 | % chg |
|||||||||||||||||||
Gross Margin (GAAP) |
$ | 361 | $ | 328 | 10 | % | $ | 1,081 | $ | 919 | 18 | % | ||||||||||||
% of Revenue (GAAP) |
55.8 | % | 54.5 | % | 56.2 | % | 54.4 | % | ||||||||||||||||
Excluding: |
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Stock-based compensation expense |
1 | 1 | 3 | 3 | ||||||||||||||||||||
Purchase accounting adjustments |
| 3 | 2 | 15 | ||||||||||||||||||||
Amortization of acquisition-related intangible assets |
7 | 4 | 16 | 11 | ||||||||||||||||||||
Transaction, integration and reorganization related costs |
| | 1 | 2 | ||||||||||||||||||||
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Adjusted Gross Margin (non-GAAP) |
$ | 369 | $ | 336 | 10 | % | $ | 1,103 | $ | 950 | 16 | % | ||||||||||||
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% of Revenue (non-GAAP) |
56.9 | % | 55.4 | % | 57.2 | % | 55.7 | % |
(b) | Operating Income Reconciliation of GAAP to Non-GAAP Measures |
For the Three Months Ended September 30 (in millions) |
For the Nine Months Ended September 30 (in millions) |
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2012 | 2011 | % chg |
2012 | 2011 | % chg |
|||||||||||||||||||
Operating Income (GAAP) |
$ | 143 | $ | 122 | 17 | % | $ | 430 | $ | 323 | 33 | % | ||||||||||||
% of Revenue (GAAP) |
22.1 | % | 20.3 | % | 22.3 | % | 19.1 | % | ||||||||||||||||
Excluding: |
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Stock-based compensation expense |
10 | 8 | 31 | 25 | ||||||||||||||||||||
Purchase accounting adjustments |
| 3 | 2 | 15 | ||||||||||||||||||||
Amortization of acquisition-related intangible assets |
11 | 6 | 26 | 18 | ||||||||||||||||||||
Transaction, integration and reorganization related costs |
2 | 4 | 12 | 21 | ||||||||||||||||||||
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Adjusted Operating Income (non-GAAP) |
$ | 166 | $ | 143 | 16 | % | $ | 501 | $ | 402 | 25 | % | ||||||||||||
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% of Revenue (non-GAAP) |
25.6 | % | 23.6 | % | 26.0 | % | 23.6 | % |
(c) | Net Income Reconciliation of GAAP to Non-GAAP Measures |
For the Three Months Ended September 30 (in millions) |
For the Nine Months Ended September 30 (in millions) |
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2012 | 2011 | % chg |
2012 | 2011 | % chg |
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Net Income (GAAP) |
$ | 104 | $ | 87 | 20 | % | $ | 307 | $ | 255 | 20 | % | ||||||||||||
% of Revenue (GAAP) |
16.1 | % | 14.5 | % | 15.9 | % | 15.1 | % | ||||||||||||||||
Excluding: |
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Gain from equity investments |
| | | (22 | ) | |||||||||||||||||||
Stock-based compensation expense |
6 | 5 | 19 | 16 | ||||||||||||||||||||
Purchase accounting adjustments |
| 2 | 1 | 10 | ||||||||||||||||||||
Amortization of acquisition-related intangible assets |
7 | 5 | 17 | 12 | ||||||||||||||||||||
Transaction, integration and reorganization related costs |
2 | 2 | 10 | 15 | ||||||||||||||||||||
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Adjusted Net Income (non-GAAP) |
$ | 119 | $ | 101 | 18 | % | $ | 354 | $ | 286 | 24 | % | ||||||||||||
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% of Revenue (non-GAAP) |
18.4 | % | 16.7 | % | 18.3 | % | 16.8 | % |
(d) | Earnings Per Share Reconciliation of GAAP to Non-GAAP Measures |
For the periods ended September 30 | ||||||||||||||||||||
Three Months | Nine Months | 2012 | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Guidance | ||||||||||||||||
Diluted Earnings Per Share (GAAP) |
$ | 0.60 | $ | 0.51 | $ | 1.78 | $ | 1.48 | $ | 2.34 - $2.44 | ||||||||||
Excluding: |
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Gain from equity investments |
| | | ($ | 0.13 | ) | ||||||||||||||
Stock-based compensation expense |
$ | 0.04 | $ | 0.03 | $ | 0.11 | $ | 0.09 | $ | 0.16 | ||||||||||
Purchase accounting adjustments |
| $ | 0.01 | $ | 0.01 | $ | 0.06 | $ | 0.01 | |||||||||||
Amortization of acquisition-related intangible assets |
$ | 0.04 | $ | 0.03 | $ | 0.10 | $ | 0.07 | $ | 0.14 | ||||||||||
Transaction, integration and reorganization related costs |
$ | 0.01 | $ | 0.01 | $ | 0.06 | $ | 0.09 | $ | 0.07 | ||||||||||
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Adjusted Diluted Earnings Per Share (Non-GAAP) |
$ | 0.69 | $ | 0.59 | $ | 2.06 | $ | 1.66 | $ | 2.72 - $2.82 | ||||||||||
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3. | As described above, the company believes that free cash flow is a useful non-GAAP measure for investors. Teradata defines free cash flow as cash provided/used by operating activities less capital expenditures for property and equipment, and additions to capitalized software. Free cash flow does not have a uniform definition under GAAP and therefore, Teradatas definition may differ from other companies definitions of this measure. Teradatas management uses free cash flow to assess the financial performance of the company and believes it is useful for investors because it relates the operating cash flow of the company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the companys existing businesses, strategic acquisitions, strengthening the companys balance sheet, repurchase of the companys stock and repayment of the companys debt obligations, if any. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure is not meant to be considered in isolation or as a substitute for, or superior to results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. |
Note to Investors
This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance, within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements include projections of revenue, profit growth and other financial items, future economic performance and statements concerning analysts earnings estimates, among other things. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause Teradatas actual results to differ materially. In addition to the factors discussed in this release, other risks and uncertainties could affect our future results, and could cause actual results to differ materially from those expressed in such forward-looking statements. Such factors include those relating to: the global economic environment in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers, and other general economic and business conditions; the rapidly changing and intensely competitive nature of the information technology industry and the data warehousing business, including the increased pressure on price/performance for data warehousing solutions; fluctuations in our operating results, unanticipated delays or accelerations in our sales cycles and the difficulty of accurately estimating revenues; risks inherent in operating in foreign countries, including the impact of economic, political, legal, regulatory, compliance, cultural, foreign currency fluctuations and other conditions abroad; the timely and successful development, production or acquisition and market acceptance of new and existing products and services, including our ability to accelerate market acceptance of new products and services as well as the reliability, quality and operability of new products because of the difficulty and complexity associated with their testing and production; tax rates; turnover of workforce and the ability to attract and retain skilled employees; availability and successful exploitation of new acquisition and alliance opportunities; our ability to execute integration plans for newly acquired entities, including the possibility that expected synergies and operating efficiencies may not be achieved, that such integration efforts may be more difficult, time-consuming or costly than expected, and that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; recurring revenue may decline or fail to be renewed; changes in Generally Accepted Accounting Principles (GAAP) and the resulting impact, if any, on the companys accounting policies; continued efforts to establish and maintain best-in-class internal information technology and control systems; and other factors described from time-to-time in the companys filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K and subsequent quarterly reports on Forms 10-Q, as well as the companys annual reports to stockholders. The company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Schedule A
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
For the Period Ended September 30 | ||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||
2012 | 2011 | % Chg | 2012 | 2011 | % Chg | |||||||||||||||||||
Revenue |
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Products |
$ | 306 | $ | 287 | 7 | % | $ | 935 | $ | 791 | 18 | % | ||||||||||||
Services |
341 | 315 | 8 | % | 990 | 898 | 10 | % | ||||||||||||||||
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Total revenue |
647 | 602 | 7 | % | 1,925 | 1,689 | 14 | % | ||||||||||||||||
Product gross margin |
211 | 188 | 638 | 520 | ||||||||||||||||||||
% of Revenue |
69.0 | % | 65.5 | % | 68.2 | % | 65.7 | % | ||||||||||||||||
Services gross margin |
150 | 140 | 443 | 399 | ||||||||||||||||||||
% of Revenue |
44.0 | % | 44.4 | % | 44.7 | % | 44.4 | % | ||||||||||||||||
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Total gross margin |
361 | 328 | 1,081 | 919 | ||||||||||||||||||||
% of Revenue |
55.8 | % | 54.5 | % | 56.2 | % | 54.4 | % | ||||||||||||||||
Selling, general and administrative expenses |
174 | 163 | 518 | 478 | ||||||||||||||||||||
Research and development expenses |
44 | 43 | 133 | 118 | ||||||||||||||||||||
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Income from operations |
143 | 122 | 430 | 323 | ||||||||||||||||||||
% of Revenue |
22.1 | % | 20.3 | % | 22.3 | % | 19.1 | % | ||||||||||||||||
Other (expense) income, net |
| (1 | ) | (1 | ) | 25 | ||||||||||||||||||
Income before income taxes |
143 | 121 | 429 | 348 | ||||||||||||||||||||
% of Revenue |
22.1 | % | 20.1 | % | 22.3 | % | 20.6 | % | ||||||||||||||||
Income tax expense |
39 | 34 | 122 | 93 | ||||||||||||||||||||
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% Tax rate |
27.3 | % | 28.1 | % | 28.4 | % | 26.7 | % | ||||||||||||||||
Net income |
$ | 104 | $ | 87 | $ | 307 | $ | 255 | ||||||||||||||||
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% of Revenue |
16.1 | % | 14.5 | % | 15.9 | % | 15.1 | % | ||||||||||||||||
Net income per common share |
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Basic |
$ | 0.62 | $ | 0.52 | $ | 1.82 | $ | 1.52 | ||||||||||||||||
Diluted |
$ | 0.60 | $ | 0.51 | $ | 1.78 | $ | 1.48 | ||||||||||||||||
Weighted average common shares outstanding |
||||||||||||||||||||||||
Basic |
168.8 | 167.9 | 168.4 | 168.3 | ||||||||||||||||||||
Diluted |
172.4 | 171.7 | 172.1 | 172.1 |
Schedule B
TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)
September 30, | June 30, | December 31, | ||||||||||
2012 | 2012 | 2011 | ||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
$ | 909 | $ | 821 | $ | 772 | ||||||
Accounts receivable, net |
524 | 505 | 494 | |||||||||
Inventories |
41 | 35 | 61 | |||||||||
Other current assets |
79 | 79 | 85 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
1,553 | 1,440 | 1,412 | |||||||||
Property and equipment, net |
143 | 134 | 120 | |||||||||
Capitalized software, net |
162 | 152 | 140 | |||||||||
Goodwill |
933 | 925 | 742 | |||||||||
Acquired intangible assets |
193 | 200 | 163 | |||||||||
Deferred income taxes |
34 | 33 | 28 | |||||||||
Other assets |
33 | 31 | 11 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
$ | 3,051 | $ | 2,915 | $ | 2,616 | ||||||
|
|
|
|
|
|
|||||||
Liabilities and stockholders equity |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable |
$ | 107 | $ | 100 | $ | 97 | ||||||
Payroll and benefits liabilities |
136 | 121 | 169 | |||||||||
Deferred revenue |
352 | 410 | 339 | |||||||||
Other current liabilities |
99 | 88 | 90 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
694 | 719 | 695 | |||||||||
Long-term debt |
278 | 282 | 290 | |||||||||
Pension and other postemployment plan liabilities |
80 | 76 | 77 | |||||||||
Long-term deferred revenue |
30 | 24 | 24 | |||||||||
Other liabilities |
91 | 79 | 36 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
1,173 | 1,180 | 1,122 | |||||||||
|
|
|
|
|
|
|||||||
Stockholders equity |
||||||||||||
Preferred stock |
| | | |||||||||
Common stock |
2 | 2 | 2 | |||||||||
Paid-in capital |
875 | 844 | 765 | |||||||||
Treasury Stock |
(565 | ) | (562 | ) | (526 | ) | ||||||
Retained earnings |
1,544 | 1,440 | 1,237 | |||||||||
Accumulated other comprehensive income |
22 | 11 | 16 | |||||||||
|
|
|
|
|
|
|||||||
Total stockholders equity |
1,878 | 1,735 | 1,494 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and stockholders equity |
$ | 3,051 | $ | 2,915 | $ | 2,616 | ||||||
|
|
|
|
|
|
Schedule C
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
For the Period Ended September 30 | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Operating activities |
||||||||||||||||
Net income |
$ | 104 | $ | 87 | $ | 307 | $ | 255 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
32 | 25 | 93 | 74 | ||||||||||||
Stock-based compensation expense |
10 | 8 | 31 | 25 | ||||||||||||
Excess tax benefit from stock-based compensation |
(9 | ) | (1 | ) | (33 | ) | (10 | ) | ||||||||
Deferred income taxes |
6 | 20 | 28 | 31 | ||||||||||||
Gain on investments |
| | | (28 | ) | |||||||||||
Changes in assets and liabilities: |
||||||||||||||||
Receivables |
(19 | ) | (25 | ) | (20 | ) | (12 | ) | ||||||||
Inventories |
(5 | ) | (5 | ) | 21 | | ||||||||||
Current payables and accrued expenses |
45 | 30 | 23 | | ||||||||||||
Deferred revenue |
(53 | ) | (38 | ) | 19 | 57 | ||||||||||
Other assets and liabilities |
(4 | ) | 1 | (18 | ) | (5 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
107 | 102 | 451 | 387 | ||||||||||||
Investing activities |
||||||||||||||||
Expenditures for property and equipment |
(18 | ) | (9 | ) | (49 | ) | (31 | ) | ||||||||
Additions to capitalized software |
(22 | ) | (18 | ) | (60 | ) | (56 | ) | ||||||||
Business acquisitions and other investing activities, net |
(1 | ) | (3 | ) | (239 | ) | (722 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
(41 | ) | (30 | ) | (348 | ) | (809 | ) | ||||||||
Financing activities |
||||||||||||||||
Repurchases of common stock |
(2 | ) | (57 | ) | (39 | ) | (95 | ) | ||||||||
Proceeds from long-term borrowings |
| | | 600 | ||||||||||||
Repayments of long-term borrowings |
(4 | ) | | (8 | ) | (300 | ) | |||||||||
Excess tax benefit from stock-based compensation |
9 | 1 | 33 | 10 | ||||||||||||
Other financing activities, net |
12 | 3 | 48 | 19 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) financing activities |
15 | (53 | ) | 34 | 234 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents |
7 | (10 | ) | | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (Decrease) in cash and cash equivalents |
88 | 9 | 137 | (192 | ) | |||||||||||
Cash and cash equivalents at beginning of period |
821 | 682 | 772 | 883 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at end of period |
$ | 909 | $ | 691 | $ | 909 | $ | 691 | ||||||||
|
|
|
|
|
|
|
|
Schedule D
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)
For the Period Ended September 30 | ||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||
2012 | 2011 | % Change As Reported |
% Change Constant Currency |
2012 | 2011 | % Change As Reported |
% Change Constant Currency |
|||||||||||||||||||||||||
Segment Revenue |
||||||||||||||||||||||||||||||||
Americas |
$ | 384 | $ | 375 | 2 | % | 3 | % | $ | 1,170 | $ | 1,021 | 15 | % | 15 | % | ||||||||||||||||
EMEA |
156 | 133 | 17 | % | 28 | % | 460 | 403 | 14 | % | 23 | % | ||||||||||||||||||||
APJ |
107 | 94 | 14 | % | 16 | % | 295 | 265 | 11 | % | 12 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total revenue |
647 | 602 | 7 | % | 10 | % | 1,925 | 1,689 | 14 | % | 17 | % | ||||||||||||||||||||
Segment gross margin |
||||||||||||||||||||||||||||||||
Americas |
229 | 223 | 703 | 592 | ||||||||||||||||||||||||||||
% of Revenue |
59.6 | % | 59.5 | % | 60.1 | % | 58.0 | % | ||||||||||||||||||||||||
EMEA |
81 | 62 | 240 | 208 | ||||||||||||||||||||||||||||
% of Revenue |
51.9 | % | 46.6 | % | 52.2 | % | 51.6 | % | ||||||||||||||||||||||||
APJ |
51 | 43 | 138 | 119 | ||||||||||||||||||||||||||||
% of Revenue |
47.7 | % | 45.7 | % | 46.8 | % | 44.9 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total gross margin |
361 | 328 | 1,081 | 919 | ||||||||||||||||||||||||||||
% of Revenue |
55.8 | % | 54.5 | % | 56.2 | % | 54.4 | % | ||||||||||||||||||||||||
Selling, general and administrative expenses |
174 | 163 | 518 | 478 | ||||||||||||||||||||||||||||
Research and development expenses |
44 | 43 | 133 | 118 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Income from operations |
$ | 143 | $ | 122 | $ | 430 | $ | 323 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
% of Revenue |
22.1 | % | 20.3 | % | 22.3 | % | 19.1 | % |
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