Press Releases

SunGard Announces Third Quarter 2011 Results

October 28, 2011 — Wayne, PA

SunGard, one of the world’s leading software and technology services companies, today reported results for the third quarter ended September 30, 2011.  For the third quarter, revenue was $1.11 billion, up 3% year over year (flat adjusting for currency).  Excluding one of our global trading businesses, a broker/dealer, revenue increased 6% (3% adjusting for currency).  Operating income was $61 million in the quarter and included $48 million of restructuring charges, compared to an operating loss of $118 million in the third quarter of 2010 which included a goodwill impairment charge of $205 million and $5 million of restructuring charges.  Adjusted EBITDA was $303 million and adjusted operating income was $183 million.  Adjusted EBITDA and adjusted operating income are defined in Notes 1 and 2 in the Notes attached to this release.  During the quarter, the Company announced the sale of its Higher Education business, which is treated as a discontinued operation and is no longer reported in continuing operations.

Russ Fradin, president and chief executive officer, commented, “We continue to hold up well in a challenging environment driven by growth in Financial Systems.  However, we see real opportunities to improve our performance.  Based on my assessment after my first hundred days, we began a performance improvement program this quarter which we believe will create a stronger enterprise that will accelerate growth and improve margins over the long term.”

Financial Systems revenue was $695 million in the third quarter, up 5% year over year (2% adjusting for currency).  Excluding the broker/dealer business mentioned above, revenue increased 10% (7% adjusting for currency).  License fees were $38 million, an increase of $5 million compared to the third quarter of 2010.

Notable deals in the quarter included the following:

  • A leading European asset management firm selected SunGard’s Asset Arena to help upgrade its fund management and front-office operations.
  • A large Canadian financial institution selected SunGard’s Adaptiv to help analyze and manage market and credit risk.
  • A leading Munich-based investment firm selected SunGard’s AvantGard to help provide a treasury management solution with bank connectivity services.

Availability Services revenue was $364 million, flat year over year (down 2% adjusting for currency).

Notable deals in the quarter included the following:

  • A leading hospital system and medical research center selected SunGard to provide managed services and consulting services.
  • A leading health insurance group in the Western US selected SunGard to provide a comprehensive managed recovery solution and consulting services.
  • A leading provider of integrated care management software solutions selected SunGard to provide cloud services for hosting and infrastructure management.

All Other revenue, comprised of our Public Sector and K-12 businesses, was $51 million, down 6% year over year.

For the nine months ended September 30, 2011, revenue was $3.33 billion, up 1% year over year (down 1% adjusting for currency).  Excluding the broker/dealer business mentioned above, revenue increased 4% (2% adjusting for currency). Operating income was $187 million and included $62 million of restructuring charges, compared to operating income of $33 million for the nine months ended September 30, 2010 which included a goodwill impairment charge of $205 million and $28 million of restructuring charges.  Adjusted EBITDA was $839 million and adjusted operating income was $566 million. 

Financial Position
Year to date, the continuing operations of the Company generated $354 million in cash flow from operations, invested $183 million in capital expenditures and spent $35 million on acquisitions net of acquired cash.  The Company has also used available cash to repay $218 million of debt.  At September 30, 2011, total debt was $7.85 billion and cash was $746 million, compared to total debt of $8.06 billion and cash of $771 million at December 31, 2010.

Conference Call & Webcast
SunGard will host a conference call and live web broadcast to discuss third quarter 2011 results today at 9:00 a.m. (Eastern Time).  The dial-in number for the conference call is 706-902-1370, and the conference ID number is 20096629.  You may also listen to the call at www.investorcalendar.com by clicking on the "audio" icon for SunGard. An audio replay will be available two hours after the call ends through midnight on November 11, 2011.  To listen to the replay, please dial 1-855-859-2056 or 404-537-3406 and enter the conference ID number 20096629.  A replay will also be available two hours after the call ends through midnight on November 11, 2011 at www.investorcalendar.com.

Download earnings release with financial exhibits .

About SunGard
SunGard is one of the world’s leading software and technology services companies. SunGard has more than 20,000 employees and serves over 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $5 billion, SunGard is ranked 434 on the Fortune 500 and is the largest privately held business software and IT services company.  Look for us wherever the mission is critical.  For more information, visit www.sungard.com.

Trademark Information: SunGard, the SunGard logo, Adaptiv, Asset Arena and AvantGard are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries.  All other trade names are trademarks or registered trademarks of their respective holders. 

SunGard’s "Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
Statements in this release other than historical facts constitute forward-looking statements.  You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions.  All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements.  In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments.  All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected.  We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions.  While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results.  Some of the factors that we believe could affect our results include:  our high degree of leverage; general economic and market conditions; the overall condition of the financial services industry, including the effect of any further consolidation among financial services firms; the integration of acquired businesses, the performance of acquired businesses, and the prospects for future acquisitions; the effect of war, terrorism, natural disasters or catastrophic events; the effect of disruptions to our systems and infrastructure; the timing and magnitude of software sales; the timing and scope of technological advances; customers taking their information availability solutions in-house; the trend in information availability toward solutions utilizing more dedicated resources; the market and credit risks associated with clearing broker operations; the ability to retain and attract customers and key personnel; risks relating to the foreign countries where we transact business; the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents; a material weakness in our internal controls; and unanticipated changes in our tax provision or the adoption of new tax legislation.  The factors described in this paragraph and other factors that may affect our business or future financial results are discussed in our periodic filings with the Securities and Exchange Commission, copies of which may be obtained from us without charge.  We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.