European Shorting
| New Threads Only: |  |  |  |
|
|---|---|---|---|---|
| New Threads & Replies: | | | |
|
Forum List » Business News and Headlines SEC Filings, Earing Reports, Press Releases  
TERADATA CORP Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 4, 2011 11:54AM
TERADATA CORP (TDC) filed Quarterly Report for the period ended 2011-09-30. Highlight of Business Operations:Teradata revenue increased 23% in the third quarter of 2011 compared to the third quarter of 2010. The revenue increase included 4% of benefit from foreign currency fluctuations. Product revenue increased 18% in the third quarter of 2011 from the prior-year period, led by growth in the Americas region. Service revenue in the third quarter of 2011 increased 28% from the prior-year period, with an underlying 34% increase in consulting services revenue, and 21% increase in maintenance services revenue, as compared to the prior-year period. Aprimo and Aster Data revenues, after taking into account $4 million in required purchase accounting reductions in the recognition of deferred revenue, accounted for approximately 3 percentage points of the revenue increase in the third quarter 2011 as compared to the third quarter of 2010.Gross margin for the third quarter of 2011 was 54.5% compared to 57.1% in the third quarter of 2010. Product gross margin decreased to 65.5% in the third quarter of 2011, compared to 70.4% in the prior-year period. The lower product margins were driven by $4 million in additional amortization costs of acquired intangible assets, $3 million in additional amortization of capitalized internal software development costs, as well as deal mix as compared to the third quarter of 2010. This impact was offset in part by favorable currency fluctuations. The term “deal mix” refers to the revenue mix of our product sales consummated in a particular period, including both software versus hardware content and mix, and amount and mix of third-party products re-sold. Service gross margin increased to 44.4% in the third quarter of 2011 compared to 43.9% in the prior-year period. The higher service margins were driven primarily by improved maintenance margins in the Americas and EMEA regions, offset in part by the greater proportion of consulting revenue, as compared to maintenance revenue (which typically carries a higher margin). Teradata revenue increased 22% in the first nine months of 2011 compared to the first nine months of 2010. The revenue increase included 4% of benefit from foreign currency fluctuations. Product revenue increased 19% in the first nine months of 2011 from the prior-year period, led by growth in the Americas and EMEA regions. Service revenue in the first nine months of 2011 increased 24% from the prior-year period, with an underlying 31% increase in consulting services revenue, and 17% increase in maintenance services revenue, as compared to the prior-year period. Aprimo and Aster Data revenues, after taking into account $18 million required purchase accounting reductions in the recognition of deferred revenue, accounted for approximately 3% of the revenue increase in first nine months of 2011 as compared to the first nine months of 2010. Gross margin for the first nine months of 2011 was 54.4% compared to 56.4% in the first nine months of 2010. Product gross margin decreased to 65.7% in the first nine months of 2011, compared to 67.7% in the prior-year period. The lower product margins were driven primarily by $13 million in acquisition-related purchase accounting adjustments for deferred revenue of Aprimo and Aster Data at the time of their respective acquisitions for which there was no further performance requirement, $11 million in additional amortization costs of acquired intangible assets, and $8 million in additional amortization of capitalized internal software development costs. Service gross margin decreased to 44.4% in the first nine months of 2011 compared to 46.0% in the prior-year period. The lower service margins were driven primarily by a greater proportion of consulting revenue, as compared to maintenance revenue, as well as lower consulting services margins, primarily due to expanding its headcount in response to growing and driving new business opportunities. Incremental headcount can initially have a negative impact on margins, particularly while the employees are being trained and are not yet fully productive. Service gross margins Total operating expenses, characterized as SG&A and R&D expenses, were $596 million in the first nine months of 2011 compared to $485 million in the first nine months of 2010. The $101 million increase in SG&A expenses was largely driven by higher selling expense, due primarily to our strategic initiative to add sales headcount, as well as increased revenue-driven costs for sales commissions and provisions for accounts receivable. SG&A expenses were also impacted by transaction, integration and reorganization expenses, as well as amortization of intangible assets associated with the acquisitions of Aprimo and Aster Data, which totaled $20 million in the first nine months of 2011, in addition to the impact of added headcount and infrastructure brought on by the Aprimo and Aster Data acquisitions. The $10 million increase in R&D expenses was driven by higher engineering headcount expenses, including new engineering headcount from the Aprimo and Aster Data acquisitions. This increase was offset in part by $19 million more in capitalization of software development cost as compared to the prior-year period.
Sorry, only registered users may post in this forum.
Please Login if you have an account or Create a Free Account if you don't 
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names 
|
Feedback
My Portfolios
Browse Gurus
RSS