3rd quarter results for SunGard
29 October 2010 Pennsylvania
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SunGard has reported results for the third quarter ended September 30, 2010. For the quarter, revenue was $1.24 billion, down seven per cent year over year.
Adjusted EBITDA was $338 million, down 10 per cent, and adjusted income from operations was $251 million, down 16 per cent. Excluding the results of one of its trading systems businesses, a broker/dealer, revenue was down two per cent.
For the third quarter, the company reported a loss from operations of $219 million, including a $328 million noncash write-down of goodwill which represents approximately five per cent of its total goodwill balance, compared to reported income from operations of $132 million in the third quarter of 2009 which had no such write-down of goodwill. Reported results in both periods include amortisation of acquired intangible assets, stock-based compensation, purchase accounting adjustments, and other expenses which are excluded from adjusted income from operations.
Organic revenue was down six per cent in the third quarter. Excluding the results of the broker/dealer business mentioned above, organic revenue was flat year over year. This broker/dealer revenue was down 67 per cent compared to the prior year due primarily to the industry-wide dynamic by which active trading firms are opting to become broker/dealers and trade on their own behalf.
Cristobal Conde, president and chief executive officer, commented: "In the quarter, we continued to see solid organic revenue growth in our FS business excluding one of our broker/dealer businesses. While the business outlook showed signs of improvement in the first half of the year, our customers are still cautious about the outlook and are focused on reducing the costs of their core platforms and capturing more value from their existing systems. Our industry knowledge, services-led approach to creating value for our customers, and mission-critical software are helping to differentiate us in a very challenging environment."
Adjusted EBITDA was $338 million, down 10 per cent, and adjusted income from operations was $251 million, down 16 per cent. Excluding the results of one of its trading systems businesses, a broker/dealer, revenue was down two per cent.
For the third quarter, the company reported a loss from operations of $219 million, including a $328 million noncash write-down of goodwill which represents approximately five per cent of its total goodwill balance, compared to reported income from operations of $132 million in the third quarter of 2009 which had no such write-down of goodwill. Reported results in both periods include amortisation of acquired intangible assets, stock-based compensation, purchase accounting adjustments, and other expenses which are excluded from adjusted income from operations.
Organic revenue was down six per cent in the third quarter. Excluding the results of the broker/dealer business mentioned above, organic revenue was flat year over year. This broker/dealer revenue was down 67 per cent compared to the prior year due primarily to the industry-wide dynamic by which active trading firms are opting to become broker/dealers and trade on their own behalf.
Cristobal Conde, president and chief executive officer, commented: "In the quarter, we continued to see solid organic revenue growth in our FS business excluding one of our broker/dealer businesses. While the business outlook showed signs of improvement in the first half of the year, our customers are still cautious about the outlook and are focused on reducing the costs of their core platforms and capturing more value from their existing systems. Our industry knowledge, services-led approach to creating value for our customers, and mission-critical software are helping to differentiate us in a very challenging environment."
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