Teradata Grows Revenues by 24 Percent in Q2

Posted on August 04, 2011 By Stuart J. Johnston


Data analytics firm Teradata announced Thursday that it increased revenues by 24 percent in its second quarter of 2011 from the same quarter last year, bringing in $581 million in the quarter ended June 30 compared to $470 million in 2010.

Overall, Teradata (NYSE: TDC) reported net income for the quarter of $103 million compared to $74 million in the year ago quarter. That translates into $0.60 diluted earnings per share (EPS) for the second quarter of 2011 as opposed to $0.44 diluted EPS in the same quarter of 2010, according to the company's financial statement.

The second quarter revenue comparison included a 6 percent gain from currency translation. Additionally, GAAP results reflect $28 million in equity investment gains.

"[These gains] offset $6 million of acquisition-related purchase accounting adjustments; $9 million of amortization of acquisition-related intangible assets; $10 million of transaction, integration, and reorganization costs; and $8 million of stock based compensation expense," Teradata's financial statement said.

Excluding special accounting items, the company reported gross margins of 55.9 percent for the quarter compared to 57 percent for the same period last year.

"The decrease in non-GAAP gross margin from the strong prior-year period resulted from a significant increase in consulting services revenue which generates lower gross margin than product revenue," the company added.

Revenues in the company's three sales regions -- Americas; Europe, Middle East, and Africa; and Asia Pacific/Japan -- were all up by double digits over the same period last year.

In addition, operating income for the quarter hit $110 million, a gain from $106 million last year while, excluding accounting items, non-GAAP operating income was up 28 percent to $143 million.

At the end of the second quarter, Teradata had $682 million in cash and short-term receivables -- down $96 million from the beginning of the quarter -- due primarily to share repurchases and acquisitions.

P>Stuart J. Johnston is a contributing editor at InternetNews.com, the news service of Internet.com, the network for technology professionals. Follow him on Twitter @stuartj1000.

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