Niklas Bjorkman wrote: Firstly I agree with your conclusion. NewSQL takes the best of the traditional databases and NoSQL databases to combine the benefits of both worlds. I do not agree that NewSQL vendors focus on giving scale-out features to transactional data. The NewSQL market is focusing on giving true ACID support combined with extreme performance, stepping away from the traditional relational structures in databases. A lot of developers appreciate the ease of accessing data using SQL and I think we will see more and more databases supporting standard SQL.
As you said - NewSQL databases often maintain the...
SunGard, one of the world’s leading software and technology services
companies, today reported results for the fourth quarter and full-year
ended December 31, 2012. For the fourth quarter, revenue was $1.13
billion, down 2% year over year. Currency had no material impact on
fourth quarter revenue growth. Operating income was $196 million in the
quarter, up 33% year over year, driven by a 7% decline in total costs
and expenses, and operating margin was 17.3% for the quarter. Adjusted
operating income was $321 million, up 3% year over year, and adjusted
operating margin was 28.4%, up 1.4 points year over year. Adjusted
EBITDA was $406 million, up 3% year over year, and adjusted EBITDA
margin was 35.9%, up 1.7 points year over year. Adjusted EBITDA and
adjusted operating income are non-GAAP measures and are defined in Notes
1 and 2 in the Notes attached to this release.
For the full-year 2012, revenue was $4.26 billion, down 4% year over
year (down 3% adjusting for currency). Excluding one of our Financial
Systems businesses, a broker/dealer, revenue decreased 3% (down 2%
adjusting for currency). Operating income was $74 million, which
included a non-cash goodwill impairment charge of $385 million, compared
to operating income of $337 million in 2011, which included a non-cash
goodwill impairment charge of $48 million. Operating margin was 1.7%.
Adjusted operating income was $911 million, up 1% year over year, and
adjusted operating margin was 21.4%, up 1 point year over year. Adjusted
EBITDA was $1,245 million, up 1% year over year, and adjusted EBITDA
margin was 29.2%, up 1.5 points year over year.
Russ Fradin, president and chief executive officer, commented, “I’m
pleased with our fourth quarter results, which capped a good performance
in a challenging environment. In the quarter, license fees remained
strong, while weakness in professional services revenue caused a small
decline in total revenue. I’m encouraged by our improved margins, and
I’m proud of the way our team finished the year. As a result of our
continued focus on operating cost management, both profit and cash flow
improved, even as we increased key investments in the business. These
initiatives will help drive our long-term growth and enable us to add
greater value to our clients.”
Financial Systems revenue was $726 million in the fourth quarter,
down 2% year over year (down 1% adjusting for currency). License fees
were $93 million, an increase of $10 million, or 11%, compared to the
fourth quarter of 2011.
For the full year, Financial Systems revenue was $2.65 billion, down 4%
year over year (down 3% adjusting for currency). Excluding a
broker/dealer business and adjusting for currency, revenue declined 1%.
License fees were $229 million, a decrease of $11 million, or 5%,
compared to last year (down 2% adjusting for currency).
During December, we acquired XcitekSolutionsPlus, LLC (XSP), a leading
provider of end-to-end, automated corporate actions solutions. XSP
offers a range of deployed, hosted and SaaS-based solutions that help
automate the corporate actions processing lifecycle, including data
sourcing and cleansing, position monitoring, notification and response
and entitlement processing. XSP became a part of SunGard’s Financial
Systems segment and will help us deliver specialist corporate actions
expertise and solutions to our customers.
Notable deals in the quarter included the following:
One of the world’s top 20 global banks renewed and expanded its
relationship with SunGard and selected SunGard’s InvestOne, Investar,
Investran and Investier asset management solutions, including private
network hosting, private equity administration and expansion of
business on existing platforms.
One of the world’s largest asset managers selected SunGard to provide
a global fund accounting platform.
One of Europe’s largest international banks has renewed SunGard’s
Stream Derivatives solution suite to support its global
exchange-traded derivatives post-trade processing operations.
One of America’s largest banks renewed SunGard’s Apex product to
support their repurchase trading and position management worldwide.
A leading Japanese investment bank selected SunGard’s Adaptiv Riskbox
solution to help improve and enhance its global market risk
infrastructure and capabilities.
A major Australian bank selected SunGard’s Ambit Asset Finance
platform to help unify its leasing operations and support the
development of its domestic and regional asset finance businesses.
A leading Medicaid managed care provider selected SunGard’s iWORKS
healthcare to provide insurance-related professional services and
managed services.
A global financial services company selected SunGard’s AvantGard
Treasury as a hosted solution to help consolidate and globalize its
treasury operations.
Availability Services revenue was $353 million in the fourth
quarter, down 4% year over year (down 4% as well adjusting for
currency). For the full year, revenue was $1.40 billion, down 4% year
over year (down 3% adjusting for currency).
Notable deals in the quarter included the following:
A FTSE 100 international services company selected SunGard to help run
its global IT operations, including cloud services, managed hosting
and systems integration. SunGard was chosen based on our ability to
manage complex global IT infrastructures and bring additional
technology capabilities to our customer’s clients.
A global Fortune 500 leader in labeling technology and materials
management selected SunGard to provide advanced recovery services,
including SAN replication, virtual tape library replication and
recovery through our Managed Recovery Program.
All Other revenue, comprised of our Public Sector and K-12
Education businesses, was $52 million in the fourth quarter, up 6% year
over year. For the full year, other revenue was $204 million, flat year
over year.
Notable deals in the quarter included the following:
A county in Minnesota selected SunGard’s ONESolution public
administration solution for finance and human resources.
A city in Iowa selected SunGard’s ONESolution public safety solution
to provide computer-aided dispatch, records management, mobile
computing and jails management.
Financial Position
For the full-year 2012, the continuing operations of the Company
generated $645 million in cash flow from operations, and the Company
invested $260 million in capital expenditures and spent $40 million on
two acquisitions net of acquired cash. At December 31, 2012, total debt
was $6.7 billion, a decline of $1.2 billion from year end 2011, and cash
was $546 million. The Company’s leverage ratio as defined in its senior
secured credit agreement was 4.75x, the lowest year-end leverage ratio
since the Company was taken private in 2005, down from 4.96x at the end
of 2011.
During the quarter, the Company successfully issued $1 billion of new
6.625% Senior Subordinated Notes due 2019, the proceeds of which were
used to repurchase or redeem all of its existing 10.25% Senior
Subordinated Notes due 2015. The Company also successfully issued $720
million of new term loans maturing in 2020 under its senior secured
credit agreement and used the proceeds to pay a dividend of $724
million. In addition, the Company utilized available cash to prepay $217
million of debt and pay almost $70 million in taxes, a majority of which
related to the sale of its Higher Education business.
Conference Call & Webcast
SunGard will host a conference call and live web broadcast to discuss
fourth quarter and full-year 2012 results today at 9:00 a.m. (Eastern
Time). The dial-in number for the conference call is 706-902-1370, and
the conference ID number is 94549985. You may also listen to the call at www.investorcalendar.com
by clicking on the "audio" icon for SunGard. An audio replay will be
available two hours after the call ends through midnight on February 21,
2013. To listen to the replay, please dial 1-855-859-2056 or
404-537-3406 and enter the conference ID number 94549985. A replay will
also be available two hours after the call ends through midnight on
February 21, 2013 at www.investorcalendar.com.
About SunGard
SunGard is one of the world’s leading software and technology services
companies. SunGard serves approximately 25,000 customers in more than 70
countries and has approximately 17,000 employees. SunGard provides
software and processing solutions for financial services, education and
the public sector. SunGard also provides disaster recovery services,
managed IT services, information availability consulting services and
business continuity management software. With annual revenue of over
$4.0 billion, SunGard is the largest privately held software and
services company and was ranked 480 on the Fortune 500. For more
information, please visit www.sungard.com.
Trademark Information: SunGard, the SunGard logo, Adaptiv, Ambit,
Apex, AvantGard, InvestOne, Investar, Investier, Investran, iWORKS,
ONESolution, SunGard Stream, XcitekSolutionsPlus and XSP are trademarks
or registered trademarks of SunGard Data Systems Inc. or its
subsidiaries in the U.S. and other countries. All other trade names are
trademarks or registered trademarks of their respective holders.
SunGard’s "Safe Harbor" Statement under Private Securities Litigation
Reform Act of 1995
Statements in this release other than historical facts constitute
forward-looking statements. You can identify forward-looking statements
because they contain words such as "believes," "expects," "may," "will,"
"would," "should," "seeks," "approximately," "intends," "plans,"
"estimates," or "anticipates" or similar expressions which concern our
strategy, plans or intentions. All statements we make relating to
estimated and projected earnings, margins, costs, expenditures, cash
flows, growth rates, financial results and pro forma estimates are
forward-looking statements. In addition, we, through our senior
management, from time to time make forward-looking public statements
concerning our expected future operations and performance and other
developments. All of these forward-looking statements are subject to
risks and uncertainties that may change at any time, and, therefore, our
actual results may differ materially from those we expected. We derive
most of our forward-looking statements from our operating budgets and
forecasts, which are based upon many detailed assumptions. While we
believe that our assumptions are reasonable, we caution that it is very
difficult to predict the impact of known factors, and, of course, it is
impossible for us to anticipate all factors that could affect our actual
results. Some of the factors that we believe could affect our results
include: our high degree of leverage; general economic and market
conditions; the overall condition of the financial services industry,
including the effect of any further consolidation among financial
services firms; the integration of acquired businesses, the performance
of acquired businesses, and the prospects for future acquisitions; the
effect of war, terrorism, natural disasters or catastrophic events; the
effect of disruptions to our systems and infrastructure; the timing and
magnitude of software sales; the timing and scope of technological
advances; customers taking their information availability solutions
in-house; the trend in information availability toward solutions
utilizing more dedicated resources; the market and credit risks
associated with clearing broker operations; the ability to retain and
attract customers and key personnel; risks relating to the foreign
countries where we transact business; the ability to obtain patent
protection and avoid patent-related liabilities in the context of a
rapidly developing legal framework for software and business-method
patents; a material weakness in our internal controls; and unanticipated
changes in our tax provision or the adoption of new tax legislation. The
factors described in this paragraph and other factors that may affect
our business or future financial results are discussed in our periodic
filings with the Securities and Exchange Commission, copies of which may
be obtained from us without charge. We assume no obligation to update
any written or oral forward-looking statement made by us or on our
behalf as a result of new information, future events or other factors.
SunGard Data Systems Inc.
Consolidated Statements of Operations
(in millions)
(Unaudited)
Three Months Ended Dec. 31,
2011
2012
Revenue:
Services
$
1,040
$
1,010
License and resale fees
96
107
Total products and services
1,136
1,117
Reimbursed expenses
18
15
Total revenue
1,154
1,132
Costs and expenses:
Cost of sales and direct operating
432
419
Sales, marketing and administration
266
260
Product development and maintenance
91
91
Depreciation and amortization
67
76
Amortization of acquisition-related intangible assets
103
90
Goodwill impairment charges
48
-
Total costs and expenses
1,007
936
Operating income (loss)
147
196
Interest expense and amortization of deferred financing fees
(128
)
(103
)
Loss on extinguishment of debt
(1
)
(31
)
Other income
-
(2
)
Income from continuing operations before income taxes
18
60
Benefit (provision) from income taxes
61
(6
)
Income from continuing operations
79
54
Income from discontinued operations, net of tax
15
15
Net Income
$
94
$
69
SunGard Data Systems Inc.
Consolidated Statements of Operations
(in millions)
(Unaudited)
Twelve Months Ended Dec. 31,
2011
2012
Revenue:
Services
$
4,056
$
3,926
License and resale fees
289
275
Total products and services
4,345
4,201
Reimbursed expenses
95
62
Total revenue
4,440
4,263
Costs and expenses:
Cost of sales and direct operating
1,848
1,740
Sales, marketing and administration
1,108
1,039
Product development and maintenance
393
353
Depreciation and amortization
271
287
Amortization of acquisition-related intangible assets
435
385
Goodwill impairment charges
48
385
Total costs and expenses
4,103
4,189
Operating income (loss)
337
74
Interest income
3
1
Interest expense and amortization of deferred financing fees
(524
)
(428
)
Loss on extinguishment of debt
(3
)
(82
)
Loss from continuing operations before income taxes
(187
)
(435
)
Benefit from income taxes
118
38
Loss from continuing operations
(69
)
(397
)
Income (loss) from discontinued operations, net of tax
(80
)
331
Net loss
$
(149
)
$
(66
)
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(in millions)
(Unaudited)
Dec. 31,
Dec. 31,
2011
2012
Assets:
Current:
Cash and cash equivalents
$
867
$
546
Accounts receivable, net
934
900
Clearing broker assets
213
6
Prepaid expenses and other current assets
117
224
Assets related to discontinued operations
1,350
-
Total current assets
3,481
1,676
Property and equipment, net
893
874
Software products, net
554
411
Customer base, net
1,574
1,367
Other assets, net
1,163
1,151
Goodwill
4,885
4,539
Total Assets
$
12,550
$
10,018
Liabilities and Stockholder's Equity:
Current:
Short-term and current portion of long-term debt
$
10
$
56
Accounts payable and accrued expenses
780
680
Clearing broker liabilities
179
4
Deferred revenue
862
836
Deferred income taxes
76
-
Liabilities related to discontinued operations
246
-
Total current liabilities
2,153
1,576
Long-term debt
7,819
6,606
Deferred and other income taxes
1,117
1,120
Total liabilities
11,089
9,302
Stockholder's equity
1,461
716
Total Liabilities and Stockholder's Equity
$
12,550
$
10,018
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Statements of Cash Flows
(in millions)
(Unaudited)
Twelve Months Ended Dec. 31,
2011
2012
Cash flow from operations:
Cash flow from (used in) continuing operations
$
606
$
645
Cash flow from (used in) discontinued operations
72
(401
)
Cash flow from (used in) operations
678
244
Investment activities:
Cash paid for acquired businesses, net of cash acquired
(35
)
(40
)
Cash paid for property and equipment and software
(276
)
(260
)
Other investing activities
(4
)
3
Cash provided by (used in) continuing operations
(315
)
(297
)
Cash provided by (used in) discontinued operations
(11
)
1,758
Cash provided by (used in) investment activities
(326
)
1,461
Financing activities:
Cash received from borrowings, net of fees
1
1,715
Cash used to repay debt
(239
)
(2,946
)
Premium paid to retire debt
-
(48
)
Dividends Paid
-
(724
)
Other financing activities
(15
)
(36
)
Cash provided by (used in) continuing operations
(253
)
(2,039
)
Cash provided by (used in) discontinued operations
-
-
Cash provided by (used in) financing activities
(253
)
(2,039
)
Effect of exchange rate changes on cash
(4
)
7
Increase (decrease) in cash and cash equivalents
95
(327
)
Beginning cash and cash equivalents includes cash of discontinued
operations (2011: $23, 2012: $6)
778
873
Ending cash and cash equivalents includes cash of discontinued
operations (2011: $6, 2012: $-)
$
873
$
546
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)
Note 1. Reconciliation of Income (Loss) from Continuing
Operations to EBITDA and Reconciliation of EBITDA to Adjusted EBITDA
EBITDA represents income (loss) from continuing operations before
interest expense, income taxes and depreciation and amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to give effect
to certain items that are required in calculating covenant
compliance under our senior secured credit facilities, as amended,
our senior notes and senior subordinated notes. Adjusted EBITDA is
calculated by subtracting from or adding to EBITDA items of income
or expense described below. EBITDA and Adjusted EBITDA are not
recognized terms under generally accepted accounting principles
(GAAP). EBITDA and Adjusted EBITDA do not represent net income
(loss), as that term is defined under GAAP, and should not be
considered as an alternative to net income (loss) as an indicator of
our operating performance. Additionally, EBITDA and Adjusted EBITDA
are not intended to be measures of free cash flow available for
management or discretionary use as such measures do not consider
certain cash requirements such as capital expenditures (including
capitalized software expense), tax payments and debt service
requirements. SunGard considers EBITDA and Adjusted EBITDA to be key
indicators of our ability to pay our debt. EBITDA and Adjusted
EBITDA as presented herein are not necessarily comparable to
similarly titled measures. The following is a reconciliation of
EBITDA and Adjusted EBITDA to net income (loss), the GAAP measure we
believe to be most directly comparable to EBITDA and Adjusted
EBITDA. Further information regarding this reconciliation is
included in our periodic filings with the U.S. Securities and
Exchange Commission.
Three Months Ended Dec. 31,
(in millions)
2011
2012
Total revenue
$
1,154
$
1,132
Income from continuing operations
$
79
$
54
Interest expense, net
128
103
Provision (benefit) from income taxes
(61
)
6
Depreciation and amortization
170
166
EBITDA
316
329
Goodwill impairment charge
48
-
Purchase accounting adjustments
3
2
Non-cash charges
11
9
Restructuring and other
15
34
Acquired EBITDA, net of disposed EBITDA
1
1
Loss on extinguishment of debt
1
31
Adjusted EBITDA - senior secured credit facilities, senior notes due
2018 and 2020 and senior subordinated notes due 2019
$
395
$
406
Adjusted EBITDA margin
34.2
%
35.9
%
Twelve Months Ended Dec. 31,
(in millions)
2011
2012
Total revenue
$
4,440
$
4,263
Loss from continuing operations
$
(69
)
$
(397
)
Interest expense, net
521
427
Benefit from income taxes
(118
)
(38
)
Depreciation and amortization
706
672
EBITDA
1,040
664
Goodwill impairment charges
48
385
Purchase accounting adjustments
11
9
Non-cash charges
34
39
Restructuring and other
94
63
Acquired EBITDA, net of disposed EBITDA
1
3
Loss on extinguishment of debt
3
82
Adjusted EBITDA - senior secured credit facilities, senior notes due
2018 and 2020 and senior subordinated notes due 2019
$
1,231
$
1,245
Adjusted EBITDA margin
27.7
%
29.2
%
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)
Note 2. Reconciliation of Operating Income to Adjusted Operating
Income
Adjusted operating income represents operating income adjusted for
goodwill impairment charges, amortization of acquisition-related
intangible assets, restructuring and other costs and management fee
expense. Adjusted operating income is not a recognized term under
generally accepted accounting principles (GAAP). Adjusted operating
income does not represent operating income, as that term is defined
under GAAP, and should not be considered as an alternative to
operating income as an indicator of our operating performance. We
have included information concerning adjusted operating income
because we use this information when evaluating the underlying
performance of the Company. While these charges are not of a
non-recurring nature, by excluding these charges, in particular when
they materially change from period to period, we are able to perform
additional analysis of our business which we believe is important in
understanding the operating results of the business. We regularly
communicate our results, separately identifying these charges, to
our board of directors. We changed how we define adjusted operating
income and have conformed prior periods to the current period
presentation. Adjusted operating income as presented herein is not
necessarily comparable to similarly titled measures. The following
is a reconciliation between adjusted operating income and operating
income, the GAAP measure we believe to be most directly comparable
to adjusted operating income.
Three Months Ended Dec. 31,
Twelve Months Ended Dec. 31,
(in millions)
GAAP Revenue and Operating Income
2011
2012
change
2011
2012
change
Total revenue
$
1,154
$
1,132
(2%)
$
4,440
$
4,263
(4%)
Operating income (loss)
$
147
$
196
33%
$
337
$
74
(78%)
Operating income margin
12.8%
17.3%
7.6%
1.7%
Reconciliation to Adjusted Operating Income
Goodwill impairment
48
-
48
385
Amortization of acquisition-related intangible assets
103
90
435
385
Restructuring and other costs
11
31
73
53
Management fees
3
4
12
14
Adjusted operating income
$
312
$
321
3%
$
905
$
911
1%
Adjusted operating income margin
27.0%
28.4%
20.4%
21.4%
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)
Note 3. Impact of Broker/Dealer on Reported Revenue Growth of
Continuing Operations
Beginning in 2007, the Company experienced significant revenue
volatility in one of its Financial Systems businesses, a
broker/dealer business with inherently lower margins than the rest
of the financial systems business, and whose revenue is a function
of market volatility and customer mix. Reported revenue growth with
and without the broker/dealer business for the total Company and
Financial Systems for 2010, 2011 and 2012 follows:
Quarter Ended
Full Year
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sept-12
Dec-12
2010
2011
2012
Revenue growth as reported:
Total SunGard
1%
1%
3%
-3%
-4%
-4%
-6%
-2%
-7%
0%
-4%
Financial Systems
2%
1%
5%
-4%
-6%
-4%
-6%
-2%
-9%
1%
-4%
Revenue growth as reported without broker/dealer business:
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New, "Super-Sized" 4-Day Cloud Computing Bootcamp is a brief introduction to cloud computing carefully created and devised to help you keep up with evolving trends like Big Data, PaaS, APIs, Mobile, Social and Data Analytics. Solutions built around these topics require a sound cl...
Enterprise cloud adoption revolves around pushing the BYOD movement and focusing on data security.
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