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TERADATA CORP Reports Operating Results (10-Q)

August 03, 2012 | About:
10qk

10qk

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TERADATA CORP (TDC) filed Quarterly Report for the period ended 2012-06-30.

Teradata Corporation has a market cap of $11.52 billion; its shares were traded at around $72.29 with a P/E ratio of 29.4 and P/S ratio of 4.9. Teradata Corporation had an annual average earning growth of 12% over the past 5 years.
This is the annual revenues and earnings per share of TDC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TDC.


Highlight of Business Operations:

Teradata revenue increased 14% in the second quarter of 2012 compared to the second quarter of 2011. The revenue increase included 4% of adverse impact from foreign currency fluctuations. Product revenue increased 19% in the second quarter of 2012 from the prior-year period, led by growth in the Americas region. Service revenue in the second quarter of 2012 increased 10% from the prior-year period, with an underlying 9% increase in consulting services revenue, and 12% increase in maintenance services revenue, as compared to the prior-year period.

Gross margin for the second quarter of 2012 was 57.4% compared to 54.4% in the second quarter of 2011. Product gross margin increased to 69.2% in the second quarter of 2012, compared to 65.4% in the prior-year period. The increase in product margin was largely a result of an improved product revenue mix in the Americas region, with a greater proportion of enterprise data warehouse (“EDW”) product revenue, as opposed to appliance product revenue, when compared to the prior period. Product gross margin in the second quarter of 2012 also included $4 million of costs from amortization of acquired intangible assets, as compared to $11 million of combined purchase accounting adjustments and amortization of acquired intangible assets in the second quarter of 2011. The decrease in acquisition-related costs was offset in part by $2 million of additional amortization of capitalized internal software development costs in the second quarter of 2012. Service gross margin increased to 46.5% in the second quarter of 2012 compared to 44.9% in the prior-year period. The increase in services margins was driven by improved maintenance margins in all three regions, as well as improved consulting margins in the Asia Pacific and Japan (“APJ”) region.

Total operating expenses, characterized as SG&A and Research and Development (“R&D”) expenses, were $222 million in the second quarter of 2012 compared to $206 million in the second quarter of 2011. The $14 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. The $2 million increase in R&D expenses was driven by higher engineering headcount expenses, which was offset in part by $2 million more in capitalization of software development expenses.

Gross margin for the six months ended June 30, 2012 was 56.3% compared to 54.4% for the six months ended June 30, 2011. Product gross margin increased to 67.9% in the first half of 2012, compared to 65.9% in the prior-year period. The increase in product margin was driven primarily by improved product revenue mix in the Americas region, as compared to the prior period. Product gross margin in the first six months of 2012 also included $8 million of amortization costs from acquired intangible assets, as compared to $18 million of combined purchase accounting adjustments and amortization of acquired intangible assets in the first six months of 2011. The decrease in acquisition-related costs was offset in part by $5 million of additional amortization of capitalized internal software development costs in the first half of 2012. Service gross margin increased to 45.1% in the first half of 2012 compared to 44.4% in the prior-year period. The increase in services margins was driven by improved consulting services margins in the APJ region, and improved maintenance services margins across all three regions.

Total operating expenses, characterized as SG&A and R&D expenses, were $433 million in the first half of 2012 compared to $390 million in the first half of 2011. The $29 million increase in SG&A expenses was largely driven by higher selling expense, due primarily to our strategic initiative to add sales headcount (including sales headcount from acquisitions closed in 2011), as well as increased revenue-driven costs for sales commissions. These increases were offset in part by $5 million less in acquisition-related transaction, integration and reorganization expenses, as well as amortization expenses from acquired intangible assets. The $14 million increase in R&D expenses was driven by higher engineering headcount expenses, including incremental engineering headcount from the Aprimo and Aster Data acquisitions completed in 2011.

Read the The complete Report

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