SunGard Announces First Quarter 2000 Results.Business Editors/Hi-Tech Writers WAYNE Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. , Pa.--(BUSINESS WIRE)--April 18, 2000 SunGard (SunGard Data Systems Inc., Wayne, PA, www.sungard.com) A computer software and services company specializing in financial services, investment support systems and business continuity. SunGard was formed in 1983 from four subsidiaries of the Philadelphia-based Sun Company. (NYSE NYSE See: New York Stock Exchange :SDS 1. (company) SDS - Scientific Data Systems. 2. (tool) SDS - Schema Definition Set. ) reported today that net income for the three months ended March 31, 2000, excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges for merger costs, was $43.1 million, up 16% over originally reported net income of $37.1 million for the same period in 1999. The related diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share was $0.32 for the quarter, a 3% increase over originally reported first quarter 1999 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.31 before merger costs and an extraordinary gain. Earnings per share excluding after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. amortization of acquisition-related intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. were $0.39 for the first quarter, a 5% increase over the corresponding quarter last year. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. L. Mann, chairman and chief executive officer, stated, "This was a solid quarter for SunGard. Our leadership in eProcessing is demonstrated every day by increased throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and expanded scope of our straight-through-processing solutions. Moreover, several large contracts were signed in the quarter for both integrated solutions and application outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. . With SunGard solutions processing over 2 million trades daily, routing nearly 70% of Nasdaq trade orders and managing over $7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. in assets, we are confident in our outlook that 2000 will be a good year." For the first quarter, revenues were $384.7 million, an increase of 20%, compared to originally reported revenues of $319.6 million for the same period in 1999. On a restated basis, revenues increased 9%. Investment Support Systems (ISS ISS See Institutional Shareholder Services (ISS). ) revenues increased 24% to $281.4 million. The Company continued the development of e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and Internet-enabled product offerings across all businesses, as well as end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. , straight-through-processing (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) solutions. The brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and execution business continued the strength it saw last year, demonstrated by a large contract with a brokerage firm for SunGard's integrated online brokerage solution and record trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. processed through Phase3. A large, New York-based bank greatly expanded its usage of SunGard's securities processing solutions for its custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. business. Business Continuity and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Services (BCIS BCIS Bureau of Citizenship and Immigration Services (US Department of Homeland Security) BCIS Building Cost Information Service (Royal Institution of Chartered Surveyors - UK) ) saw revenues rise 17% to $96.4 million in the first quarter. The formation of SunGard eSourcing See e-sourcing. was announced in February February: see month. , leveraging the Company's business continuity record and competency COMPETENCY, evidence. The legal fitness or ability of a witness to be heard on the trial of a cause. This term is also applied to written or other evidence which may be legally given on such trial, as, depositions, letters, account-books, and the like. 2. in outsourcing. This unit is focused on Internet services and high-availability infrastructure for e-commerce hosting, co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. and ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). . Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , eSourcing has signed ten new clients including SunGard's largest outsourcing deal ever. During the quarter, SunGard completed four acquisitions that enrich its end-to-end STP solutions. In the banking and treasury area, the Company acquired Microbank Software Inc. and Global Information Solutions Ltd. (GIS (1) (Geographic Information System) An information system that deals with spatial information. Often called "mapping software," it links attributes and characteristics of an area to its geographic location. ). Microbank is an exception management system that repairs transactions that fail automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. processing. Microbank also provides an Internet infrastructure for Web-enabled customer statements for the online brokerage industry. GIS expands the Company's international presence in treasury management systems. In the brokerage and execution area, SunGard acquired US Virtual, Inc., an Internet-based order entry and trading application for futures trading; and Cassidy Cassidy (O'Caiside in Irish) is a common Irish surname. The surname translates to 'descendent of Caiside'. The family were a sept of County Fermanagh. The Caiside's were originally a medical family, who were hereditary physicians to the Maguires. & Jones Inc., a floor brokerage firm on the NYSE that leverages SunGard's wireless STP trading solutions. Net income after merger costs and diluted net income per share for the first quarter were $41.5 million and $0.31, respectively, as compared to a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss after extraordinary items and a pro forma diluted net loss per share of $8.8 million and $0.07, respectively, for the first quarter of 1999. The Company will make available a replay of the investor conference call beginning April 19, 2000 at 12 noon EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT through midnight on Wednesday Wednesday: see week. , April 26, 2000. To listen to the replay, dial 719/457-0820; passcode No. 471618. A Webcast replay and formal comments made on the call will be posted on the Company's Web-site at www.sungard.com. SunGard (NYSE:SDS) is a global leader in integrated IT solutions and eProcessing for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . SunGard is also the pioneer and a leading provider of high-availability infrastructure for business continuity. With annual revenues in excess of $1 billion, SunGard serves more than 10,000 clients in over 50 countries, including 47 of the world's 50 largest financial services institutions. Visit SunGard at www.sungard.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Statements about the Company's outlook for 2000 and all other statements in this release other than historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that may change at any time and differ from actual results. Forward-looking statements include information about possible or assumed future financial results of the Company and usually contain words such as "believes," "intends," "expects," "anticipates," or similar expressions. The Company derives most of its forward-looking statements from its operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. and forecasts, which are based upon many detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting certain important factors, such as the timing and magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of software sales, the effect of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 issues on software and services buying decisions, the timing and scope of technological advances, the integration and performance of acquired businesses, the prospects for future acquisitions, the ability to attract and retain key personnel, and the overall condition of the financial services industry. These factors, as and when applicable, are discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , a copy of which may be obtained from the Company without charge.
SunGard Data Systems Inc.
Consolidated Condensed Income Statements
Excluding Restatements, Merger Costs, and Extraordinary Items
(See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
--------------------
March 31,
--------------------
2000 1999
-------- --------
Revenues $384,665 $319,581
-------- --------
Costs and expenses:
Cost of sales and direct operating 164,267 136,085
Sales, marketing and administration 85,385 68,550
Product development 34,179 28,439
Depreciation and amortization 20,747 17,036
Amortization of acquisition-related
intangible assets 13,129 9,804
-------- --------
317,707 259,914
-------- --------
Income from operations, excluding
merger costs 66,958 59,667
Interest income 5,367 3,355
Interest expense (457) (380)
-------- --------
Income before income taxes, excluding
merger costs and extraordinary items 71,868 62,642
Income taxes 28,747 25,496
-------- --------
Net income, excluding merger costs and
extraordinary items $ 43,121 $ 37,146
-------- --------
Basic net income per common share,
excluding merger costs and
extraordinary items $ 0.33 $ 0.32
-------- --------
Shares used to compute basic net income
per common share 131,191 114,945
-------- --------
Diluted net income per common share,
excluding merger costs and
extraordinary items $ 0.32 $ 0.31
-------- --------
Shares used to compute diluted net
income per common share 134,194 119,333
-------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Supplemental Income Statement Information
Excluding Restatements, Merger Costs, and Extraordinary Items
(See Notes 1 and 2)
(In thousands)
(Unaudited)
Three Months Ended
--------------------
March 31,
--------------------
2000 1999
-------- --------
Revenues:
Investment support systems $281,355 $226,692
Business continuity and Internet
services 96,363 82,188
Other businesses 6,947 10,701
-------- --------
$384,665 $319,581
-------- --------
Income from operations:
Investment support systems $ 46,726 $ 48,821
Business continuity and Internet
services 23,048 14,865
Other businesses 1,426 78
Corporate administration (4,242) (4,097)
-------- --------
$ 66,958 $ 59,667
-------- --------
Operating margin:
Investment support systems 16.6% 21.5%
-------- --------
Business continuity and Internet services 23.9% 18.1%
-------- --------
Other businesses 20.5% 0.7%
-------- --------
Total 17.4% 18.7%
-------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Income Statement
Including Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
--------------------
March 31,
--------------------
2000 1999
-------- --------
Revenues $384,665 $351,647
-------- --------
Costs and expenses:
Cost of sales and direct operating 164,267 152,395
Sales, marketing and administration 85,385 76,797
Product development 34,179 31,694
Depreciation and amortization 20,747 18,342
Amortization of acquisition-related
intangible assets 13,129 10,390
Merger costs, including non-cash of
$71,459 (see Note 2) 1,600 85,224
-------- --------
319,307 374,842
-------- --------
Income (loss) from operations 65,358 (23,195)
Interest income 5,367 3,680
Interest expense (457) (526)
-------- --------
Income (loss) before income taxes and
extraordinary items 70,268 (20,041)
Income taxes 28,747 26,340
-------- --------
Net income (loss) before extraordinary
items 41,521 (46,381)
Extraordinary items, net of income taxes - 10,670
-------- --------
Net income (loss) 41,521 (35,711)
Pro forma income tax expense (benefit)
resulting from acquired Sub S
corporation - (26,934)
-------- --------
Pro forma net income (loss) after
extraordinary items $ 41,521 ($8,777)
-------- --------
Pro forma basic net income (loss) per
common share:
Before extraordinary items $ 0.32 ($0.16)
-------- --------
After extraordinary items $ 0.32 ($0.07)
-------- --------
Shares used to compute pro forma basic
net income per common share 131,191 123,420
-------- --------
Pro forma diluted net income (loss) per
common share:
Before extraordinary items $ 0.31 ($0.16)
-------- --------
After extraordinary items $ 0.31 ($0.07)
-------- --------
Shares used to compute pro forma
diluted net income per common share 134,194 123,420
-------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Income Statement
Including Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands)
(Unaudited)
Three Months Ended
--------------------
March 31,
--------------------
2000 1999
-------- --------
Revenues:
Investment support systems $281,355 $258,758
Business continuity and Internet services 96,363 82,188
Other businesses 6,947 10,701
-------- --------
$384,665 $351,647
-------- --------
Income (loss) from operations:
Investment support systems $ 46,726 $ 51,183
Business continuity and Internet services 23,048 14,865
Other businesses 1,426 78
Corporate administration (4,242) (4,097)
Merger costs (1,600) (85,224)
-------- --------
$ 65,358 ($23,195)
-------- --------
Operating margin (excluding merger costs):
Investment support systems 16.6% 19.8%
-------- --------
Business continuity and Internet services 23.9% 18.1%
-------- --------
Other businesses 20.5% 0.7%
-------- --------
Total 17.4% 17.6%
-------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
March 31, Dec. 31,
2000 1999
---------- ----------
Assets:
Current:
Cash, equivalents and short-term
investments $ 357,225 $ 391,225
Accounts receivable, net 332,735 334,402
Prepaid expenses and other current
assets 66,424 61,180
---------- ----------
Total current assets 756,384 786,807
Property and equipment, net 186,976 182,682
Software products, net 133,579 110,355
Goodwill, deferred income taxes and
other intangible assets, net 594,257 484,918
---------- ----------
$1,671,196 $1,564,762
---------- ----------
Liabilities and Stockholders' Equity:
Current:
Short-term and current portion of
long-term debt $ 10,923 $ 7,755
Accounts payable and accrued expenses 183,876 174,857
Deferred revenue 183,438 165,866
---------- ----------
Total current liabilities 378,237 348,478
Long-term debt 9,377 5,517
Stockholders' equity 1,283,582 1,210,767
---------- ----------
$1,671,196 $1,564,762
---------- ----------
See Notes to Consolidated Condensed Financial Information
SunGard Data Systems Inc.
Supplemental 1999 Reclassified Income Statement Information
(In thousands)
(Unaudited)
Three Months Ended Year Ended
-------------------------------------- ----------
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1999 1999 1999 1999 1999
-------- -------- -------- -------- ----------
Revenues:
Investment support
systems $258,758 $255,004 $255,003 $283,613 $1,052,378
Business
continuity and
Internet services 82,188 90,512 88,963 96,274 357,937
Other businesses 10,701 7,357 7,713 8,415 34,186
-------- -------- -------- -------- ----------
$351,647 $352,873 $351,679 $388,302 $1,444,501
======== ======== ======== ======== ==========
Income (loss) from
operations:
Investment support
systems $51,183 $44,710 $45,378 $48,553 $189,824
Business
continuity and
Internet services 14,865 25,582 24,979 28,945 94,371
Other businesses 78 1,246 1,976 1,724 5,024
Corporate
administration (4,097) (4,056) (2,970) (2,997) (14,120)
Merger costs (85,224) (5,222) (8,738) 0 (99,184)
-------- -------- -------- -------- ----------
($23,195) $62,260 $60,625 $76,225 $175,915
======== ======== ======== ======== ==========
Operating margin
(excluding merger
costs):
Investment support
systems 19.8% 17.5% 17.8% 17.1% 18.0%
Business
continuity and
Internet services 18.1% 28.3% 28.1% 30.1% 26.4%
Other businesses 0.7% 16.9% 25.6% 20.5% 14.7%
Total 17.6% 19.1% 19.7% 19.6% 19.0%
Note: 1999 information has been reclassified to reflect the formation
of the eSourcing business within BCIS. This reclassification had no
impact on previously reported results for ISS.
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information
(In thousands, except per share amounts)
Note 1. Basis of Income Statement Presentation:
Excluding Restatements, Merger Costs, and Extraordinary Items:
a) Excludes all one-time merger costs and extraordinary items, as
described in Note 2.
b) Includes all 1999 poolings of interests only from the
beginning of the quarter during which the merger was
completed.
Including Restatements, Merger Costs, and Extraordinary Items:
a) Includes all poolings of interests that resulted in the
restatement of previously reported results (Automated
Securities Clearance, Ltd., FDP Corp., Oshap Technologies,
Ltd., Pentamation Enterprises Inc. and Sterling Wentworth
Corporation) for all periods presented.
b) Includes all one-time merger costs and extraordinary items, as
described in Note 2.
c) Shares used to compute 1999 diluted net income per common
share exclude 4,607 shares which are anti-dilutive because of
a net loss during the quarter.
Note 2. Merger Costs and Extraordinary Items:
Three months ended March 31, 2000 and 1999:
During 2000, merger costs of $1,600 (both before- and after-tax,
or $0.01 per diluted share) were recorded. These one-time costs
are associated with a pooling-of-interests transaction, and
include investment banking, legal and accounting fees.
During 1999, merger costs of $85,224 ($58,784 pro forma
after-tax, or $0.46 per pro forma diluted share) were recorded.
The one-time merger costs are associated with poolings of
interests, including a non-cash charge in connection with a
pre-existing employment agreement with an executive of ASC,
which obligated ASC to issue to the executive 25% of the shares
issued in the merger. The fair value of those shares and related
payroll costs totalling $71,459 were recorded as one-time costs
associated with the merger. ASC was an "S" corporation prior to
the merger with SunGard; therefore, substantially all income
passed through directly to and substantially all income taxes
were paid directly by the shareholder of ASC. Pro forma net
income is presented since generally accepted accounting
principles require that pro forma income taxes be reflected on
the Statement of Income for all periods presented, thereby
reflecting income taxes that would have been paid by ASC if ASC
had been a "C" corporation.
Also during 1999, the Company sold two subsidiaries which
resulted in an extraordinary gain of $16,467 ($10,371 after-tax,
or $0.08 per diluted share). In addition, the company recorded
an extraordinary gain of $299 resulting from the repurchase of
convertible debt by an unconsolidated subsidiary acquired in a
pooling-of-interests transaction.
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