SAN DIEGO, Aug. 2, 2018 /PRNewswire/ -- Teradata Corp.
(NYSE: TDC) reported revenue of $544
million for the quarter ended June
30, 2018, a 6 percent increase (4 percent in constant
currency(3)) from the second quarter of 2017. Recurring
revenue of $312 million was up 11
percent (10 percent in constant currency(3)) from the
second quarter of 2017. Subscription-based transactions contributed
66 percent of new bookings in the quarter, better than Teradata's
recently increased full-year expectation of 50-60 percent.
Teradata's second quarter year-over-year revenue comparison was
benefited by approximately 2 percentage points of foreign currency
translation(3). However, this was one percentage point
less benefit than assumed when the Company provided guidance on
May 3, 2018.
Teradata reported net income of $4
million under U.S. Generally Accepted Accounting Principles
(GAAP) in the second quarter of 2018, or $0.03 per diluted share, which compared to a net
loss of $(4) million, or $(0.03) per share, in the second quarter of 2017.
Non-GAAP net income in the second quarter of 2018, which excludes
stock-based compensation expense and special items, was
$32 million, or $0.26 per diluted share, as compared to
$28 million, or $0.22 per diluted share in the second quarter of
2017(1).
"I am very pleased with our better than expected second quarter
results, which were delivered even as our business is shifting
faster than we had estimated to subscription-based transactions,"
said Vic Lund, President and CEO of
Teradata. "We are helping customers implement new use cases for
Teradata every day, which provide valuable business outcomes and
increase their desire to consume more of Teradata's software. As a
result, we are even more confident that we are on the path to
success and well positioned to continue to grow as a leading
provider of cloud-based enterprise analytics at scale. Our entire
Teradata team is laser focused on our long-term strategy, as we
partner with our customers to identify and operationalize the
insights that drive their business forward."
Gross Margin
For the second quarter of 2018, gross
margin reported under GAAP was 46.0 percent versus 47.2 percent for
the second quarter of 2017. On a non-GAAP basis, excluding
stock-based compensation expense and special items, gross margin
for second quarter of 2018 was 48.9 percent, versus 51.9 percent in
the prior-year period(1). As the Company shifts more of
its business to subscription-based transactions, the Company's
recognized perpetual revenue is predominantly hardware, which
carries lower margins than software and thus negatively impacts
gross margins.
Operating Income
Operating income reported under GAAP
in the second quarter of 2018 was $10
million compared to $(1)
million operating loss in the second quarter of 2017. On a
non-GAAP basis, excluding stock-based compensation expense and
special items, operating income was $45
million in the second quarter of 2018, versus $48 million in the second quarter of
2017(1). As expected, non-GAAP operating income was
lower due to the shift to subscription-based transactions and
strategic investments compared to the prior year.
Income Taxes
Teradata's tax rate under GAAP was 33.3
percent for the second quarter of 2018 compared to (33.3) percent
in the second quarter of 2017. Excluding special items, Teradata's
non-GAAP tax rate was 22.0 percent in the second quarter of 2018
versus 37.8 percent in the second quarter of 2017(1).
The decrease in the non-GAAP effective tax rate was largely due to
the decrease in the U.S. statutory rate effective in 2018 as a
result of recently enacted U.S. tax reform.
Cash Flow
Teradata generated $106 million of cash from operating activities in
the second quarter of 2018, compared to $61
million in the same period in 2017. In the second quarter of
2018, Teradata generated $72 million
of free cash flow (a non-GAAP measure defined as cash from
operating activities less capital expenditures and additions to
capitalized software), compared to $45
million in the second quarter of 2017(2). Cash
from operating activities and free cash flow were better than
expected and higher than in the prior year period, driven in part
by a customer payment related to a multi-year contract. The
positive impact of the advance payment was partially offset by the
timing of various working capital items as well as the impact of
the Company's ongoing transition to subscription-based purchasing
options, which results in the Company collecting less cash upfront
as customers pay over time.
Year to date, Teradata generated $290
million of cash from operating activities versus
$309 million in 2017. Free cash flow
for the first six months of 2018 was $228
million, compared to $275
million in 2017(2). As expected, the
year-over-year decline for the first half of the year was due to
the Company's ongoing shift to subscription-based transactions as
well as investments in strategic transformation initiatives.
Balance Sheet
Teradata ended the second quarter of
2018 with $882 million of cash.
Teradata repatriated $525 million of
cash previously held internationally as of June 30, 2018 and plans to repatriate a total of
$800 million by the end of 2018.
Teradata anticipates using a portion of these repatriated funds for
share repurchases and expects to retain the remainder for general
corporate purposes.
During the second quarter of 2018, Teradata repurchased 2.1
million shares of the Company's common stock for approximately
$81 million. Year to date, the
Company has repurchased 4.1 million shares for approximately
$157 million. Teradata currently has
approximately $379 million of Board
authorization remaining for share repurchases.
On June 11, 2018, the Company
refinanced its existing term loan and revolving credit facility
into a new $500 million term loan and
$400 million revolving credit
facility, which will expire on June 11,
2023. In connection with the refinancing of the credit
facilities, the Company executed a 5-year interest rate swap to fix
the interest rate at 4.36% (based on the Company's current leverage
tier) on the $500 million term loan.
Total debt balance as of June 30,
2018 was $500 million, all of
which was outstanding on the term loan. There were no funds
drawn on the new $400 million
revolving credit facility at June 30,
2018.
Guidance
As a result of the faster than expected shift
to subscription-based transactions, Teradata now expects its 2018
full year bookings mix to be 65% - 70% subscription-based versus
previous guidance of 50% - 60%. Due to recent negative currency
movement and Teradata's bookings mix shifting faster to
subscription-based transactions than previously expected, where
revenue is recognized over time rather than up front in the current
period, Teradata now expects 2018 full-year revenue to be
approximately $2.130 billion to
$2.150 billion.
Correspondingly, Teradata now expects revenue in the third quarter
of 2018 to be in the $530 million to
$540 million range.
As a result, Teradata also now expects full-year 2018 GAAP
earnings per share to be $0.22 to
$0.26. On a non-GAAP basis, which
excludes stock-based compensation expense and special items,
earnings per share is now expected to be in the $1.20 to $1.24
range(1). GAAP earnings per share in the third quarter
of 2018 is expected to be in the $0.04 to $0.06
range. Non-GAAP earnings per share in the third quarter is expected
to be in the $0.30 to $0.32 range(1).
Earnings Conference Call
A conference call is
scheduled today at 2:00 p.m. (PT) to
discuss the Company's second quarter 2018 results. Access to the
conference call, as well as a replay of the call, is available on
Teradata's website at investor.teradata.com.
Supplemental Financial Information
Additional information regarding Teradata's operating results is
provided below as well as on the Investor Relations page of
Teradata's website.
1. Teradata reports its results in
accordance with GAAP. However, as described below, the Company
believes that certain non-GAAP measures such as non-GAAP gross
profit, non-GAAP operating income, non-GAAP net income, and
non-GAAP earnings per diluted share, or EPS, all of which exclude
certain items (as well as free cash flow) are useful for investors.
Our non-GAAP measures are not meant to be considered in isolation
or as substitutes for, or superior to, results determined in
accordance with GAAP, and should be read only in conjunction with
our condensed consolidated financial statements prepared in
accordance with GAAP.
The following tables reconcile Teradata's actual and projected
results and EPS under GAAP to the Company's actual and projected
non-GAAP results and EPS for the periods presented, which exclude
certain specified items. Our management internally uses
supplemental non-GAAP financial measures, such as gross profit,
operating income, net income and EPS, excluding certain items, to
understand, manage and evaluate our business and support operating
decisions on a regular basis. The Company believes such non-GAAP
financial measures (1) provide useful information to investors
regarding the underlying business trends and performance of the
Company's ongoing operations, (2) are useful for period-over-period
comparisons of such operations and results, that may be more easily
compared to peer companies and allow investors a view of the
Company's operating results excluding stock-based compensation
expense and special items, (3) provide useful information to
management and investors regarding present and future business
trends, and (4) provide consistency and comparability with past
reports and projections of future results.
Teradata's reconciliation of GAAP to non-GAAP results included
in this release.
|
|
For the Three
Months
|
|
|
|
For the
Six
Months
|
|
|
(in millions, except
per share data)
|
|
ended June
30
|
|
|
ended June
30
|
|
|
Gross
Profit:
|
|
2018
|
|
2017
|
|
%
Chg.
|
|
2018
|
|
2017
|
|
%
Chg.
|
GAAP Gross
Profit
|
|
$250
|
|
$242
|
|
3%
|
|
$473
|
|
$467
|
|
1%
|
% of
Revenue
|
|
46.0%
|
|
47.2%
|
|
|
|
45.0%
|
|
46.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
4
|
|
4
|
|
|
|
8
|
|
7
|
|
|
Acquisition, integration, reorganization related, and other
costs
|
|
0
|
|
1
|
|
|
|
3
|
|
3
|
|
|
Amortization of capitalized software
|
|
12
|
|
19
|
|
|
|
27
|
|
40
|
|
|
Non-GAAP Gross
Profit
|
|
$266
|
|
$266
|
|
-
|
|
$511
|
|
$517
|
|
(1%)
|
% of
Revenue
|
|
48.9%
|
|
51.9%
|
|
|
|
48.7%
|
|
51.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income/(Loss)
|
|
$10
|
|
$(1)
|
|
|
|
$6
|
|
$(1)
|
|
|
% of
Revenue
|
|
1.8%
|
|
(0.2%)
|
|
|
|
0.6%
|
|
(0.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
16
|
|
19
|
|
|
|
35
|
|
34
|
|
|
Amortization of acquisition-related intangible assets
|
|
1
|
|
1
|
|
|
|
3
|
|
3
|
|
|
Acquisition, integration, reorganization related, and other
costs
|
|
6
|
|
10
|
|
|
|
9
|
|
31
|
|
|
Amortization of capitalized software
|
|
12
|
|
19
|
|
|
|
27
|
|
40
|
|
|
Non-GAAP
Operating Income
|
|
$45
|
|
$ 48
|
|
(6%)
|
|
$80
|
|
$107
|
|
(25%)
|
% of
Revenue
|
|
8.3%
|
|
9.4%
|
|
|
|
7.6%
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income/(Loss)
|
|
$4
|
|
$(4)
|
|
|
|
$(3)
|
|
$(6)
|
|
|
% of
Revenue
|
|
0.7%
|
|
(0.8%)
|
|
|
|
(0.3%)
|
|
(0.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
16
|
|
19
|
|
|
|
35
|
|
34
|
|
|
Amortization of acquisition-related intangible assets
|
|
1
|
|
1
|
|
|
|
3
|
|
3
|
|
|
Acquisition, integration reorganization related, and other
costs
|
|
6
|
|
9
|
|
|
|
9
|
|
30
|
|
|
Amortization of capitalized software
|
|
12
|
|
19
|
|
|
|
27
|
|
40
|
|
|
Income
tax adjustments*
|
|
(7)
|
|
(16)
|
|
|
|
(16)
|
|
(36)
|
|
|
Non-GAAP Net
Income
|
|
$32
|
|
$28
|
|
14%
|
|
$55
|
|
$65
|
|
(15%)
|
% of
Revenue
|
|
5.9%
|
|
5.5%
|
|
|
|
5.2%
|
|
6.5%
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
|
|
ended June
30
|
|
ended June
30
|
|
|
|
|
Earnings Per
Share:
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
Q3
Guidance
|
|
2018
FY
Guidance
|
GAAP Earnings/(Loss) Per Share
|
$0.03
|
|
$(0.03)
|
|
$(0.02)
|
|
$(0.05)
|
|
$0.04 -
0.06
|
|
$0.22 -
0.26
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
0.13
|
|
0.15
|
|
0.29
|
|
0.26
|
|
0.14
|
|
0.55
|
Amortization of acquisition-related intangible assets
|
0.01
|
|
0.01
|
|
0.02
|
|
0.02
|
|
0.01
|
|
0.05
|
Acquisition, integration and reorganization related
costs
|
0.05
|
|
0.07
|
|
0.07
|
|
0.23
|
|
0.09
|
|
0.26
|
Amortization of capitalized software
|
0.10
|
|
0.15
|
|
0.22
|
|
0.31
|
|
0.09
|
|
0.40
|
Income
tax adjustments*
|
(0.06)
|
|
(0.13)
|
|
(0.13)
|
|
(0.28)
|
|
(0.07)
|
|
(0.28)
|
Impact
of dilution **
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
-
|
Non-GAAP
Diluted Earnings Per Share
|
$0.26
|
|
$0.22
|
|
$0.45
|
|
$0.50
|
|
$0.30 -
0.32
|
|
$1.20 –
1.24
|
|
|
*
|
Represents the income
tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP
income based on the applicable jurisdictional statutory tax rate of
the underlying item. Including the income tax effect assists
investors in understanding the tax provision associated with those
adjustments and the effective tax rate related to the underlying
business and performance of the Company's ongoing operations. As a
result of these adjustments, the Company's non-GAAP effective tax
rate for the second quarter of 2018 was 22.0% and 37.8% in the
second quarter of 2017.
|
**
|
Represents the impact
to earnings per share as a result of moving from basic to diluted
shares.
|
2. As described below, the Company
believes that free cash flow is a useful non-GAAP measure for
investors. Teradata defines free cash flow as cash provided/used by
operating activities less capital expenditures for property and
equipment, and additions to capitalized software. Free cash flow
does not have a uniform definition under GAAP and therefore,
Teradata's definition may differ from other companies' definitions
of this measure. Teradata's management uses free cash flow to
assess the financial performance of the Company and believes it is
useful for investors because it relates the operating cash flow of
the Company to the capital that is spent to continue and improve
business operations. In particular, free cash flow indicates the
amount of cash generated after capital expenditures for, among
other things, investment in the Company's existing businesses,
strategic acquisitions, strengthening the Company's balance sheet,
repurchase of the Company's stock and repayment of the Company's
debt obligations, if any. Free cash flow does not represent the
residual cash flow available for discretionary expenditures since
there may be other nondiscretionary expenditures that are not
deducted from the measure. This non-GAAP measure is not meant to be
considered in isolation, as a substitute for, or superior to,
results determined in accordance with GAAP, and should be read only
in conjunction with our condensed consolidated financial statements
prepared in accordance with GAAP.
(in
millions)
|
Three
months
|
|
Six
months
|
|
ended June
30
|
|
ended June
30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities (GAAP)
|
$106
|
|
$61
|
|
$290
|
|
$309
|
Less
capital expenditures for:
|
|
|
|
|
|
|
|
Expenditures for
property and equipment
|
(32)
|
|
(14)
|
|
(58)
|
|
(30)
|
Additions to
capitalized software
|
(2)
|
|
(2)
|
|
(4)
|
|
(4)
|
Total capital expenditures
|
(34)
|
|
(16)
|
|
(62)
|
|
(34)
|
Free Cash Flow
(non-GAAP measure)
|
$72
|
|
$45
|
|
$228
|
|
$275
|
3. The impact of currency is
determined by calculating the prior-period results using the
current-year monthly average currency rates. See the foreign
currency fluctuation schedule on the Investor Relations page of the
Company's web site at investor.teradata.com, which is used to
determine revenue on a constant currency ("CC") basis.
Revenue
|
|
(in
millions)
|
|
|
For the Three
Months ended June 30
|
|
2018
|
|
2017
|
|
% Change as
Reported
|
|
% Change in
Constant Currency
|
Recurring
revenue
|
$312
|
|
$281
|
|
11%
|
|
10%
|
Perpetual software
licenses and hardware
|
97
|
|
91
|
|
7%
|
|
5%
|
Consulting
services
|
135
|
|
141
|
|
(4%)
|
|
(6%)
|
Total
revenue
|
$544
|
|
$513
|
|
6%
|
|
4%
|
|
|
|
|
|
|
|
|
Americas
|
$287
|
|
$271
|
|
6%
|
|
6%
|
International
|
257
|
|
242
|
|
6%
|
|
2%
|
Total
revenue
|
$544
|
|
$513
|
|
6%
|
|
4%
|
|
For the Six Months
ended June 30
|
|
2018
|
|
2017
|
|
% Change as
Reported
|
|
% Change in
Constant Currency
|
Recurring
revenue
|
$614
|
|
$554
|
|
11%
|
|
8%
|
Perpetual software
licenses and hardware
|
166
|
|
181
|
|
(8%)
|
|
(11%)
|
Consulting
services
|
270
|
|
269
|
|
-
|
|
(3%)
|
Total
revenue
|
$1,050
|
|
$1,004
|
|
5%
|
|
2%
|
|
|
|
|
|
|
|
|
Americas
|
$551
|
|
$538
|
|
2%
|
|
3%
|
International
|
499
|
|
466
|
|
7%
|
|
1%
|
Total
revenue
|
$1,050
|
|
$1,004
|
|
5%
|
|
2%
|
Note to Investors
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities and Exchange Act of 1934.
Forward-looking statements generally relate to opinions, beliefs
and projections of expected future financial and operating
performance, business trends, and market conditions, among other
things. These forward-looking statements are based upon current
expectations and assumptions and involve risks and uncertainties
that could cause actual results to differ materially, including the
factors discussed in this release and those relating to: the global
economic environment and business conditions in general or on the
ability of our suppliers to meet their commitments to us, or the
timing of purchases by our current and potential customers; the
rapidly changing and intensely competitive nature of the
information technology industry and the data analytics business,
including the increased pressure on price/performance for data
analytics solutions and changes in customer's buying patterns;
fluctuations in our operating results, including as a result of the
pace and extent to which customers shift from perpetual to
subscription-based licenses; our ability to realize the anticipated
benefits of our business transformation program or other
restructuring and cost saving initiatives; risks inherent in
operating in foreign countries, including the impact of economic,
political, and legal conditions, and foreign currency fluctuations;
risks associated with data privacy, cyber-attacks and maintaining
secure and effective internal information technology and control
systems; the timely and successful development, production or
acquisition and market acceptance of new and existing products and
services; tax rates and the impact of recent tax reform
legislation; turnover of workforce and the ability to attract and
retain skilled employees; protecting our intellectual property;
availability and successful exploitation of new acquisition and
alliance opportunities ; recurring revenue may decline or fail to
be renewed; the impact on our business and financial reporting from
changes in accounting rules, including Topic ASC 606; and
other factors described from time to time in Teradata's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 10-K and subsequent quarterly reports on
Forms 10-Q, as well as the Company's annual report to stockholders.
Teradata does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
About
Teradata
Teradata helps companies achieve high-impact business outcomes.
With a portfolio of cloud-based business analytics solutions,
architecture consulting, and industry leading big data and
analytics technology, Teradata unleashes the potential of great
companies. Visit teradata.com.
https://twitter.com/teradata
https://www.facebook.com/Teradata
https://www.linkedin.com/company/teradata
https://www.youtube.com/user/teradata
Teradata and the Teradata logo are trademarks or registered
trademarks of Teradata Corporation and/or its affiliates in the
U.S. and worldwide.
INVESTOR CONTACT:
Gregg
Swearingen
Teradata Investor
Relations
(937)
242-4600
gregg.swearingen@teradata.com
|
MEDIA
CONTACT:
Jennifer
Donahue
Teradata Public
Relations
(858)
485-3029
jennifer.donahue@teradata.com
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Schedule
A
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TERADATA
CORPORATION
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
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(in millions,
except per share amounts - unaudited)
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For the Period
Ended June 30
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Three
Months
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Six
Months
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2018
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2017
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%
Chg
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2018
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2017
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%
Chg
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Revenue
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Recurring
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$
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312
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$
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281
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11%
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$
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614
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$
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554
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11%
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Perpetual software
licenses and hardware
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97
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91
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7%
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166
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181
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(8%)
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Consulting
services
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135
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141
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(4%)
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270
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269
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0%
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Total
revenue
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544
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513
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6%
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1,050
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1,004
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5%
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Gross
profit
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Recurring
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224
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209
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436
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415
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% of
Revenue
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71.8%
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74.4%
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71.0%
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74.9%
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Perpetual software
licenses and hardware
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24
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34
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45
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63
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% of
Revenue
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24.7%
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37.4%
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27.1%
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34.8%
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Consulting
services
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2
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(1)
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(8)
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(11)
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% of
Revenue
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1.5%
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(0.7%)
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(3.0%)
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(4.1%)
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Total gross
profit
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250
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242
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473
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467
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% of
Revenue
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46.0%
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47.2%
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45.0%
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46.5%
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Selling, general and
administrative expenses
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163
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165
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315
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320
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Research and
development expenses
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77
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78
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152
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148
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Income (loss) from
operations
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10
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(1)
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6
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(1)
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% of
Revenue
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1.8%
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(0.2%)
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0.6%
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(0.1%)
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Other expense,
net
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(4)
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(2)
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(8)
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(4)
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Income (loss)
before income taxes
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6
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(3)
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(2)
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(5)
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% of
Revenue
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1.1%
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(0.6%)
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(0.2%)
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(0.5%)
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Income tax
expense
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2
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1
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1
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1
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% Tax rate
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33.3%
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(33.3%)
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(50.0%)
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(20.0%)
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Net income
(loss)
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$
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4
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$
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(4)
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$
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(3)
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$
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(6)
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% of
Revenue
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0.7%
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(0.8%)
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(0.3%)
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(0.6%)
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Net income (loss)
per common share
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Basic
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$
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0.03
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$
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(0.03)
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$
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(0.02)
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$
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(0.05)
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Diluted
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$
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0.03
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$
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(0.03)
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$
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(0.02)
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$
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(0.05)
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Weighted average
common shares outstanding
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Basic
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119.5
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127.9
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120.4
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129.2
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Diluted
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121.5
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127.9
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120.4
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129.2
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Schedule
B
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TERADATA
CORPORATION
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(in millions
- unaudited)
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June 30,
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March 31,
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December
31,
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2018
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2018
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2017
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Assets
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Current
assets
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Cash and cash
equivalents
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$
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882
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$
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939
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$
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1,089
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Accounts receivable,
net
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369
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451
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554
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Inventories
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28
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43
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30
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Other current
assets
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104
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97
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77
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Total current
assets
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1,383
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1,530
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1,750
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Property and
equipment, net
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187
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172
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162
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Capitalized software,
net
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95
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107
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121
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Goodwill
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397
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401
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399
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Acquired intangible
assets, net
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19
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21
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23
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Deferred Income
Taxes
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54
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58
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57
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Other
assets
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68
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66
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44
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Total
assets
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$
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2,203
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$
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2,355
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$
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2,556
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Liabilities and
stockholders' equity
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Current
liabilities
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Current portion of
long-term debt
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$
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6
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$
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68
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$
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60
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Short-term
borrowings
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-
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-
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240
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Accounts
payable
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83
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110
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74
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Payroll and benefits
liabilities
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136
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110
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173
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Deferred
revenue
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|
461
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532
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|
414
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Other current
liabilities
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|
88
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93
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102
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Total current
liabilities
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|
774
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913
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1,063
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Long-term
debt
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491
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456
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478
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Pension and other
postemployment plan liabilities
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109
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111
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109
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Long-term deferred
revenue
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109
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72
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85
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Deferred tax
liabilities
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8
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9
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4
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Other
liabilities
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140
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150
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149
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Total
liabilities
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1,631
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1,711
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1,888
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Stockholders'
equity
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Common
stock
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1
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1
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1
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Paid-in
capital
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1,376
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1,350
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1,320
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Accumulated
deficit
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(714)
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(637)
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(579)
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Accumulated other
comprehensive loss
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(91)
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(70)
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(74)
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Total
stockholders' equity
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572
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644
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668
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Total liabilities
and stockholders' equity
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$
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2,203
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$
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2,355
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$
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2,556
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Schedule
C
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TERADATA
CORPORATION
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in millions -
unaudited)
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For the Period
Ended June 30
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|
Three
Months
|
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Six
Months
|
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|
2018
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2017
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|
2018
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2017
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Operating
activities
|
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Net income
(loss)
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$
|
4
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$
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(4)
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$
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(3)
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$
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(6)
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Adjustments to
reconcile net income (loss) to net cash provided
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by operating
activities:
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Depreciation and
amortization
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30
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34
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64
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70
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Stock-based
compensation expense
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16
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19
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|
35
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35
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Deferred income
taxes
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(1)
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(12)
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(6)
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(20)
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Changes in assets and
liabilities:
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Receivables
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102
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|
86
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185
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|
192
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Inventories
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|
15
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(2)
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|
2
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(8)
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Current payables and
accrued expenses
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(4)
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|
31
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|
(31)
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(13)
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Deferred
revenue
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|
(34)
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|
(87)
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|
90
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|
58
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|
Other assets and
liabilities
|
|
(22)
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|
(4)
|
|
(46)
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|
1
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
106
|
|
61
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|
290
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|
309
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|
|
|
|
|
|
|
|
|
|
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Investing
activities
|
|
|
|
|
|
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Expenditures for
property and equipment
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|
(32)
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|
(14)
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(58)
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|
(30)
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Additions to
capitalized software
|
|
(2)
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|
(2)
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(4)
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|
(4)
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Business acquisitions
and other investing activities
|
|
-
|
|
(18)
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|
-
|
|
(18)
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|
|
|
|
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Net cash used in
investing activities
|
|
(34)
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|
(34)
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|
(62)
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|
(52)
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|
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|
|
|
|
|
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Financing
activities
|
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
(97)
|
|
(108)
|
|
(157)
|
|
(151)
|
|
Repayments of
long-term borrowings
|
|
(25)
|
|
(7)
|
|
(40)
|
|
(15)
|
|
Repayments of credit
facility borrowings
|
|
-
|
|
-
|
|
(240)
|
|
-
|
|
Other financing
activities, net
|
|
8
|
|
5
|
|
18
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(114)
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|
(110)
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|
(419)
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|
(154)
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|
|
|
|
|
|
|
|
|
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|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(15)
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|
4
|
|
(15)
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|
8
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash, cash equivalents and restricted
cash
|
|
(57)
|
|
(79)
|
|
(206)
|
|
111
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
|
940
|
|
1,164
|
|
1,089
|
|
974
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
883
|
|
$
|
1,085
|
|
$
|
883
|
|
$
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
D
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TERADATA
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions -
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30
|
|
|
For the Six Months
Ended June 30
|
|
|
2018
|
|
2017
|
|
% Change
As
Reported
|
|
% Change
Constant
Currency (2)
|
|
|
2018
|
|
2017
|
|
% Change As
Reported
|
|
% Change
Constant
Currency (2)
|
Segment
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
287
|
|
$
|
271
|
|
6%
|
|
6%
|
|
|
$
|
551
|
|
$
|
538
|
|
2%
|
|
3%
|
International
|
|
257
|
|
242
|
|
6%
|
|
2%
|
|
|
499
|
|
466
|
|
7%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
revenue
|
|
544
|
|
513
|
|
6%
|
|
4%
|
|
|
1,050
|
|
1,004
|
|
5%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
154
|
|
158
|
|
|
|
|
|
|
301
|
|
309
|
|
|
|
|
% of
Revenue
|
|
53.7%
|
|
58.3%
|
|
|
|
|
|
|
54.6%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
112
|
|
108
|
|
|
|
|
|
|
210
|
|
208
|
|
|
|
|
% of
Revenue
|
|
43.6%
|
|
44.6%
|
|
|
|
|
|
|
42.1%
|
|
44.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
gross profit
|
|
266
|
|
266
|
|
|
|
|
|
|
511
|
|
517
|
|
|
|
|
% of
Revenue
|
|
48.9%
|
|
51.9%
|
|
|
|
|
|
|
48.7%
|
|
51.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items(1)
|
|
(16)
|
|
(24)
|
|
|
|
|
|
|
(38)
|
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross
profit
|
|
$
|
250
|
|
$
|
242
|
|
|
|
|
|
|
$
|
473
|
|
$
|
467
|
|
|
|
|
% of
Revenue
|
|
46.0%
|
|
47.2%
|
|
|
|
|
|
|
45.0%
|
|
46.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Reconciling items include stock-based compensation, capitalized
software, amortization of
|
acquisition-related
intangible assets and acquisition, integration and
reorganization-related items.
|
(2)
The impact of currency is determined by calculating the prior
period results using the current-year
|
|
|
monthly average currency
rates.
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/teradata-reports-2018-second-quarter-results-300691427.html
SOURCE Teradata Corp.