0001193125-12-445225.txt : 20121101 0001193125-12-445225.hdr.sgml : 20121101 20121101080459 ACCESSION NUMBER: 0001193125-12-445225 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20121101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121101 DATE AS OF CHANGE: 20121101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TERADATA CORP /DE/ CENTRAL INDEX KEY: 0000816761 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPUTERS [3571] IRS NUMBER: 753236470 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33458 FILM NUMBER: 121172164 BUSINESS ADDRESS: STREET 1: 10000 INNOVATION DRIVE CITY: DAYTON STATE: OH ZIP: 45342 BUSINESS PHONE: 937-242-4800 MAIL ADDRESS: STREET 1: 10000 INNOVATION DRIVE CITY: DAYTON STATE: OH ZIP: 45342 8-K 1 d431703d8k.htm 8-K 8-K

 

 

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)

Registrant’s 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.
EX-99.1 2 d431703dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

  

11695 Johns Creek Pkwy.

Johns Creek, GA 30097

 

NEWS RELEASE

 

For media information:    For investor information:
Mike O’Sullivan    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 management’s 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 Teradata’s 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. “Teradata’s competitive position has never been stronger, and we are well positioned with our market-leading technology and solutions in


three growing and strategic markets—data 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
  

 

 

    

 

 

      

Total revenue

   $ 647       $ 602         7     10
  

 

 

    

 

 

      

 

     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
  

 

 

    

 

 

      

Total revenue

   $ 1,925       $ 1,689         14     17
  

 

 

    

 

 

      

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)

 
     Three Months     Nine Months  
     2012     2011     2012     2011  

Net Income (GAAP)

   $ 104      $ 87      $ 307      $ 255   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash provided by operating activities (GAAP)

   $ 107      $ 102      $ 451      $ 387   

Less capital expenditures for:

        

Expenditures for property and equipment

     (18     (9     (49     (31

Additions to capitalized software

     (22     (18     (60     (56
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

     (40     (27     (109     (87
  

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow (non-GAAP measure)(3)

   $ 67      $ 75      $ 342      $ 300   
  

 

 

   

 

 

   

 

 

   

 

 

 

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 company’s third-quarter 2012 results. Access to the conference call, as well as a replay of the call, is available on Teradata’s web site at www.teradata.com/investor.

Supplemental financial information regarding Teradata’s operating results is also available on the Investor Relations page of Teradata’s web site.


About Teradata

Teradata Corporation (NYSE: TDC) is the world’s leading analytic data solutions company, focused on integrated data warehousing, big data analytics, and business applications. Teradata’s 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 company’s 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
Rpt’d
    %
Chg
CC
    2012      2011      %
Chg

As
Rpt’d
    %
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
  

 

 

    

 

 

        

 

 

    

 

 

      

Total services

     341         315         8     12     990         898         10     13
  

 

 

    

 

 

        

 

 

    

 

 

      

Total revenue

   $ 647       $ 602         7     10   $ 1,925       $ 1,689         14     17
  

 

 

    

 

 

        

 

 

    

 

 

      
    

For the Three Months Ended

September 30

   

For the Nine Months Ended

September 30

 
     (in millions)     (in millions)  
By segment/region    2012      2011      % Chg
As
Rpt’d
    %
Chg
CC
    2012      2011      %
Chg

As
Rpt’d
    %
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
  

 

 

    

 

 

        

 

 

    

 

 

      

Total revenue

   $ 647       $ 602         7     10   $ 1,925       $ 1,689         14     17
  

 

 

    

 

 

        

 

 

    

 

 

      

 

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 Teradata’s 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 Teradata’s actual and projected results and EPS, under GAAP to the company’s 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 company’s 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 company’s 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)
 
     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:

            

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     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted Gross Margin (non-GAAP)

   $ 369      $ 336        10   $ 1,103      $ 950        16
  

 

 

   

 

 

     

 

 

   

 

 

   

% 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)
 
     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:

            

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     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted Operating Income (non-GAAP)

   $ 166      $ 143        16   $ 501      $ 402        25
  

 

 

   

 

 

     

 

 

   

 

 

   

% 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)
 
     2012     2011     %
chg
    2012     2011     %
chg
 

Net Income (GAAP)

   $ 104      $ 87        20   $ 307      $ 255        20

% of Revenue (GAAP)

     16.1     14.5       15.9     15.1  

Excluding:

            

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     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted Net Income (non-GAAP)

   $ 119      $ 101        18   $ 354      $ 286        24
  

 

 

   

 

 

     

 

 

   

 

 

   

% 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:

             

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   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted Diluted Earnings Per Share (Non-GAAP)

   $ 0.69       $ 0.59       $ 2.06       $ 1.66      $ 2.72 - $2.82   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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, Teradata’s definition may differ from other companies’ definitions of this measure. Teradata’s 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 company’s existing businesses, strategic acquisitions, strengthening the company’s balance sheet, repurchase of the company’s stock and repayment of the company’s 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 Teradata’s 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 company’s 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 company’s 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 company’s 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

 

LOGO

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

            

Products

   $ 306      $ 287        7   $ 935      $ 791        18

Services

     341        315        8     990        898        10
  

 

 

   

 

 

     

 

 

   

 

 

   

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  
  

 

 

   

 

 

     

 

 

   

 

 

   

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  

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     
  

 

 

   

 

 

     

 

 

   

 

 

   

% Tax rate

     27.3     28.1       28.4     26.7  

Net income

   $ 104      $ 87        $ 307      $ 255     
  

 

 

   

 

 

     

 

 

   

 

 

   

% of Revenue

     16.1     14.5       15.9     15.1  

Net income per common share

            

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

 

LOGO

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

 

LOGO

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

 

LOGO

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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