SunGard Data Systems Inc. Announces Second Quarter 1999 Results.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)--July 15, 1999-- 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. Data Systems Inc. (NYSE NYSE See: New York Stock Exchange :SDS 1. (company) SDS - Scientific Data Systems. 2. (tool) SDS - Schema Definition Set. ) reported today that 1999 second quarter net income and 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, excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, were $42,614,000 and $0.35, respectively, increases of 41% and 25% over originally reported 1998 second quarter net income and diluted net income per share of $30,322,000 and $0.28, respectively. For the first six months of 1999, net income and diluted net income per share, excluding one-time items and restatements, were $79,760,000 and $0.66, respectively, increases of 40% and 25% over originally reported net income and diluted net income per share for the first six months of 1998 of $57,166,000 and $0.53, respectively. Revenues for the 1999 second quarter were $333,436,000, an increase of 18% over originally reported 1998 second quarter revenues of $282,347,000. For the first six months of 1999, revenues were $653,017,000 excluding restatements, an increase of 19% over originally reported revenues for the first six months of 1998 of $546,900,000. Restating 1998 and the first quarter of 1999 for applicable poolings of interests (see Note 1 to Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Financial Information), 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 income after extraordinary items and related pro forma diluted net income per share for the first six months of 1999 were $32,006,000 and $0.26, respectively, while 1998 pro forma net income and pro forma diluted net income per share were $55,357,000 and $0.47, respectively. For the second quarter of 1999, pro forma net income and pro forma diluted net income per share were $37,861,000 and $0.31, respectively, and 1998 second quarter pro forma net income and pro forma diluted net income per share were $32,427,000 and $0.27, respectively. On a restated basis, 1999 second quarter revenue increased 10% compared to restated second quarter 1998 revenue of $303,888,000. For the first six months of 1999, restated revenue increased 13% to $665,224,000, compared to restated 1998 revenue of $589,381,000. 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, "We are very pleased with our second quarter results. Revenue and income continued their steady growth, and we reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re both our confidence that we will continue to grow at least 20% as well as our outlook for 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 $1.43 before the effect of one-time items and restatements." (See "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 below.) SunGard's business is computer service and application software. The Company is the only large specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. provider of proprietary investment support systems and is the pioneer and a leading provider of comprehensive computer disaster recovery services. Its common stock is reported on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol SDS. "Safe Harbor" 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 1999 outlook 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. . Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. 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, especially 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 year 2000 issues on software and services buying decisions, the timing and scope of technological advances and year 2000 compliance, the integration and performance of acquired businesses, the prospects for future acquisitions, and the overall condition of the 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. 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 Gain on Sale of
Subsidiaries (See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
June 30,
-----------------------------------------------
Six Months Ended Three Months Ended
--------------------- ---------------------
1999 1998 1999 1998
-------- -------- -------- ---------
Revenues $653,017 $546,900 $333,436 $282,347
-------- -------- -------- ---------
Costs and expenses:
Cost of sales and
direct operating 277,775 230,001 141,690 117,790
Sales, marketing
and administration 134,861 119,080 66,311 61,537
Product
development 58,514 52,234 30,075 27,377
Depreciation of
property and
equipment 30,084 27,156 15,327 13,829
Amortization of
intangible
assets 24,571 24,145 12,488 11,876
-------- -------- -------- ---------
525,805 452,616 265,891 232,409
-------- -------- -------- ---------
Income from
operations,
excluding
merger costs 127,212 94,284 67,545 49,938
Interest income 7,455 2,851 4,100 1,531
Interest expense (841) (734) (461) (338)
--------- --------- --------- ---------
Income before
income taxes,
excluding merger
costs and gain on
sale of
subsidiaries 133,826 96,401 71,184 51,131
Income taxes 54,066 39,235 28,570 20,809
-------- -------- -------- --------
Net income,
excluding merger
costs and gain
on sale of
subsidiaries $ 79,760 $ 57,166 $ 42,614 $ 30,322
-------- -------- -------- --------
Basic net income
per common share,
excluding
merger costs
and gain on
sale of
subsidiaries $ 0.68 $ 0.55 $ 0.36 $ 0.29
-------- -------- -------- ---------
Shares used to
compute basic
net income per
common share 117,104 103,090 119,262 103,695
-------- -------- -------- --------
Diluted net income
per common share,
excluding
merger costs and
gain on sale of
subsidiaries $ 0.66 $ 0.53 $ 0.35 $ 0.28
-------- -------- -------- ---------
Shares used to
compute diluted
net income per
common share 120,980 107,097 122,627 107,543
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Supplemental Income Statement Information
Excluding Restatements, Merger Costs, and Gain on Sale
of Subsidiaries (See Notes 1 and 2)
(In thousands)
(Unaudited)
June 30,
-----------------------------------------------
Six Months Ended Three Months Ended
--------------------- ---------------------
1999 1998 1999 1998
--------- -------- -------- ---------
Revenues:
Investment
support systems $462,259 $376,618 $235,567 $196,383
Disaster
recovery services 155,839 129,759 81,120 67,183
Computer services
and other 34,919 40,523 16,749 18,781
-------- -------- -------- --------
$653,017 $546,900 $333,436 $282,347
-------- -------- -------- --------
Income from operations:
Investment
support systems $ 93,594 $ 71,837 $ 44,773 $ 37,637
Disaster recovery
services 36,056 23,241 22,854 13,028
Computer services
and other 5,715 5,389 3,974 2,418
Corporate
administration (8,153) (6,183) (4,056) (3,145)
--------- --------- --------- ---------
$127,212 $ 94,284 $ 67,545 $ 49,938
-------- -------- -------- --------
Operating margin:
Investment
support systems 20.2% 19.1% 19.0% 19.2%
--------- --------- --------- ---------
Disaster
recovery services 23.1% 17.9% 28.2% 19.4%
--------- --------- --------- ---------
Computer services
and other 16.4% 13.3% 23.7% 12.9%
--------- --------- --------- ---------
Total 19.5% 17.2% 20.3% 17.7%
--------- --------- --------- ---------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Income Statements
Including Restatements, Merger Costs, and Gain on Sale
of Subsidiaries (See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
June 30,
----------------------------------------------
Six Months Ended Three Months Ended
--------------------- --------------------
1999 1998 1999 1998
-------- -------- -------- --------
Revenues $665,224 $589,381 $333,436 $303,888
-------- -------- -------- --------
Costs and expenses:
Cost of sales
and direct
operating 284,421 249,530 141,690 128,263
Sales, marketing
and administration 136,734 126,623 66,311 65,426
Product development 60,304 57,467 30,075 29,829
Depreciation of
property and
equipment 30,456 28,416 15,327 14,483
Amortization of
intangible assets 24,788 24,386 12,488 11,993
Merger costs 86,600 8,747 5,200 600
-------- -------- -------- --------
623,303 495,169 271,091 250,594
-------- -------- -------- --------
Income from
operations 41,921 94,212 62,345 53,294
Interest income 7,756 3,561 4,100 1,914
Interest expense (842) (770) (461) (359)
--------- --------- --------- ---------
Income before income
taxes and
extraordinary item 48,835 97,003 65,984 54,849
Income taxes 54,581 40,328 28,570 21,896
-------- -------- -------- --------
Net income (loss)
before
extraordinary item (5,746) 56,675 37,414 32,953
Extraordinary item
resulting from
gain on sale of
subsidiaries, net
of income taxes
of $6,096 10,371 - - -
-------- -------- -------- --------
Net income 4,625 56,675 37,414 32,953
Pro forma income
tax expense
(benefit) resulting
from acquired
Sub S
corporation (27,381) 1,318 (447) 526
--------- -------- --------- --------
Pro forma net
income after
extraordinary
item $ 32,006 $ 55,357 $ 37,861 $ 32,427
-------- -------- --------- --------
Pro forma basic net
income per
common share:
Before extraordinary
item $ 0.18 $ 0.49 $ 0.32 $ 0.28
-------- -------- -------- --------
After extraordinary
item $ 0.27 $ 0.49 $ 0.32 $ 0.28
-------- -------- -------- --------
Shares used to compute
pro forma basic
net income per
common share 118,522 113,526 119,262 114,196
-------- -------- -------- --------
Pro forma diluted net
income per
common share:
Before extraordinary
item $ 0.18 $ 0.47 $ 0.31 $ 0.27
-------- -------- -------- -------
After extraordinary
item $ 0.26 $ 0.47 $ 0.31 $ 0.27
-------- -------- -------- -------
Shares used to compute
pro forma diluted net
income per
common share 122,494 118,678 122,627 119,191
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited) Dec. 31,
June 30, 1999 1998 (3)
--------------- ---------
Assets:
Current:
Cash, equivalents
and short-term
investments $ 343,880 $ 284,847
Accounts
receivable, net 304,452 295,845
Prepaid expenses
and other current assets 58,193 53,789
---------- ----------
Total current assets 706,525 634,481
Property and
equipment, net 154,303 144,842
Software products, net 83,062 72,250
Goodwill, deferred
income taxes and
other intangible
assets, net 396,422 295,857
---------- ----------
$1,340,312 $1,147,430
---------- ----------
Liabilities and Stockholders' Equity:
Current:
Short-term and current
portion of long-term debt $ 12,559 $ 14,766
Accounts payable and
accrued expenses 143,504 180,080
Deferred revenue 140,833 139,733
---------- ----------
Total current
liabilities 296,896 334,579
Long-term debt 2,883 2,816
Stockholders' equity 1,040,533 810,035
---------- ----------
$1,340,312 $1,147,430
---------- ----------
See Notes to Consolidated Condensed Financial Information.
-0- 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 Gain on Sale of Subsidiaries: --------------------------------------------------------- a) Includes all poolings of interests only from the beginning of the period during which the merger was completed. The operating results related to FDP FDP fibrin (fibrinogen) degradation product. Corp. are included from April 1, 1999. The operating results related to 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. Securities Clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel , Ltd. (ASC ASC Ambulatory surgery center, see there ) and Sterling Wentworth Wentworth may refer to: People
b) Excludes all one-time merger costs and extraordinary gain resulting from sale of subsidiaries, described in Note 2. Including Restatements, Merger Costs, and Gain on Sale of Subsidiaries : --------------------------------------------------------- a) Includes all poolings of interests that require restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of previously reported results (ASC, FDP Corp., and Sterling Wentworth Corporation) for all periods presented. b) Includes all one-time merger costs and extraordinary gain resulting from sale of subsidiaries, described in Note 2. Note 2. Merger Costs and Extraordinary Gain on Sale of Subsidiaries: Six months ended June June: see month. 30, 1999 and 1998: ---------------------------------------- During 1999, merger costs of $86,600 ($58,725 pro forma 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. , or $0.48 per pro forma diluted share) were recorded. The one-time merger costs are associated with poolings of interests, including a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. in connection with a pre-existing Adj. 1. pre-existing - existing previously or before something; "variations on pre-existent musical themes" pre-existent, preexistent, preexisting antecedent - preceding in time or order employment agreement with an executive of ASC, which obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. ASC to issue to the executive 25% of the shares issued in the merger. The fair value of those shares and related payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. 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 The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting 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 after-tax extraordinary gain of $10,371 ($0.08 per diluted share). During 1998, one-time costs of $8,747 ($7,648 after-tax, or $0.06 per diluted share) were recorded. The one-time costs include merger and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs associated with the acquisition of Infinity infinity, in mathematics, that which is not finite. A sequence of numbers, a1, a2, a3, … , is said to "approach infinity" if the numbers eventually become arbitrarily large, i.e. Financial Technology, Inc. and costs associated with the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the Company's offer to acquire Rolfe Rolfe , John 1585-1622. English colonist in America and husband of Pocahontas. & Nolan PLC. Three months ended June 30, 1999 and 1998: ------------------------------------------ During 1999, merger costs of $5,200 ($3,765 pro forma after-tax, or $0.03 per pro forma diluted share) were recorded. During 1998, merger costs of $600 (both before and after-tax, or less than $0.01 per diluted share) were recorded. Note 3. The December December: see month. 31, 1998 Balance Sheet has been restated for poolings of interests with ASC, FDP Corp., and Sterling Wentworth Corporation. |
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