Teradata Reports 2015 Fourth Quarter and Full-Year Results

Feb 04, 2016, 06:55 ET from Teradata Corp.

ATLANTA, Feb. 4, 2016 /PRNewswire/ --  

  • Fourth quarter revenue was $719 million, down 6 percent, down 1 percent in constant currency(1)
  • Full-year revenue of $2.530 billion, down 7 percent, down 2 percent in constant currency(1)
  • GAAP EPS was $0.31 in the fourth quarter, $(0.89) for the full-year period
  • Non-GAAP EPS was $0.70 in the fourth quarter, $2.06 for the full-year period(2)
  • Excluding the Marketing Applications business that Teradata expects to exit in 2016, year over year:
    • 2016 non-GAAP revenue expected to be flat to down 2 percent in constant currency,
    • 2016 non-GAAP EPS expected to be $2.35 - $2.50
  • Teradata is continuing to execute on its business transformation initiatives

Teradata Corp. (NYSE: TDC) reported revenue of $719 million for the quarter ended December 31, 2015, versus $761 million in the fourth quarter of 2014. Fourth quarter revenue decreased 6 percent when compared to the prior year period, a decrease of 1 percent when compared in constant currency.(1) For the full-year 2015, revenue was $2.530 billion, a 7 percent decrease from $2.732 billion in 2014. In constant currency, full-year revenue decreased 2 percent versus 2014.(1)  Currency created a 5 percentage point headwind for both the fourth quarter and full-year revenue comparisons to prior year results.

Gross margin was 50.8 percent, versus 55.8 percent reported in the fourth quarter of 2014 under U.S. Generally Accepted Accounting Principles (GAAP). On a non-GAAP basis, excluding stock-based compensation expense and special items described in footnote #2, gross margin was 52.2 percent, versus 56.9 percent in the prior year period.(2) The decrease in non-GAAP gross margin for the quarter resulted primarily from deal mix and currency impact.  Gross margin reported under GAAP for the full-year 2015 was 50.4 percent, versus 54.1 percent in 2014. On a non-GAAP basis, excluding special items described in footnote #2, 2015 full-year non-GAAP gross margin was 52.0 percent, versus 55.5 percent for the full-year 2014.(2) The decrease in non-GAAP gross margin for the full-year primarily resulted from deal mix and currency impact.  

Teradata reported fourth quarter GAAP net income of $41 million, or $0.31 per diluted share, which compared to net income of $118 million, or $0.77 per diluted share, in the fourth quarter of 2014. Stock-based compensation expense and other special items (including a goodwill impairment charge of $34 million, or $0.25 of earnings per share) reduced Teradata's 2015 fourth quarter net income by $53 million, or $0.39 of earnings per diluted share, as reported under GAAP.(2) Excluding stock-based compensation expense and special items (including goodwill impairment), non-GAAP net income in the fourth quarter of 2015 was $94 million, or $0.70 per diluted share, versus $140 million, or $0.91 per diluted share, in the fourth quarter of 2014.(2)

Full-year net loss reported under GAAP was $(124) million, or $(0.89) per share, which compared to net income of $367 million, or $2.33 per diluted share in 2014. Stock-based compensation expense and other special items (including goodwill impairment of $374 million, or $2.62 of earnings per share) reduced Teradata's 2015 GAAP net income by $416 million, or $2.95 of earnings per share.(2) Excluding stock-based compensation expense and special items (including goodwill impairment), full-year non-GAAP net income was $292 million, or $2.06 per diluted share in 2015, compared to $452 million, or $2.86 per diluted share in 2014.(2)

"I am pleased that Teradata's fourth quarter results were in line with expectations and that we are making solid progress on our transformation plan for Teradata's successful future," said Mike Koehler, president and chief executive officer, Teradata Corporation. 

"We have developed a comprehensive transformation blueprint and are on the path to return the company to meaningful and sustainable revenue growth.  Teradata continues to be universally known as the leader in high performance data analytics. Many of our customers are leaders in their industries, and we are their partner of choice for driving business value from their data. Our transformation plan builds on this position of strength, and will advance our leadership and expand our market opportunity."

Segment Revenue Performance

(in millions)



For the Three Months Ended December 31


2015


2014


% Change as
Reported


% Change in
Constant
Currency(1)

  Data and Analytics

$669


$709


(6%)


(1%)

  Marketing Applications

50


52


(4%)


1%

Total Revenue

$719


$761


(6%)


(1%)



For the Twelve Months Ended December 31


2015


2014


% Change as
Reported


% Change in
Constant
Currency(1)

  Data and Analytics

$2,337


$2,523


(7%)


(2%)

  Marketing Applications

193


209


(8%)


(1%)

Total Revenue

$2,530


$2,732


(7%)


(2%)


Operating Income
Fourth quarter GAAP operating income of $63 million compared to $158 million reported in the fourth quarter of 2014. On a non-GAAP basis, operating income was $134 million versus $187 million in the fourth quarter of 2014.(2) The decrease in non-GAAP operating income was primarily due to lower revenue, lower product gross margin, and currency impact.

Full-year GAAP operating loss was $(92) million in 2015, versus operating income of $503 million in 2014. On a non-GAAP basis, full-year operating income was $409 million, versus $621 million in 2014.(2) The year-over-year decrease in non-GAAP operating income was due to lower revenue, lower gross margin, higher research and development expenses and currency impact.  

Income Taxes
Teradata's GAAP tax rate was 39.7% in the fourth quarter of 2015 versus 24.8% in 2014, and the fourth quarter 2015 non-GAAP tax rate was 28.8% as compared to 25.1% in 2014.(2)  The year-over-year increase for both was driven by incremental tax expense resulting from the actual foreign pre-tax earnings being lower than previously forecasted in 2015.   In addition, the GAAP effective tax rate was higher as a result of the $34 million impairment charge taken in the fourth quarter of 2015, which was treated as a permanent non-deductible tax item.

The full-year 2015 GAAP tax rate was (202.4%) versus 25.7% for 2014.  The 2015 GAAP tax rate was driven by $374 million of goodwill impairment charges in 2015, of which $351 million was treated as a permanent non-deductible tax item; this results in full-year GAAP income tax expense of $83 million, on a pre-tax GAAP loss of $(41) million, causing a negative tax rate of (202.4%).  The full-year 2015 non-GAAP tax rate was 27.5% as compared to 27.2% for 2014.(2)  There were no material discrete tax items impacting the non-GAAP tax rates for full-year 2015 or 2014. The increase between periods was driven by a lower proportion of foreign pre-tax earnings in 2015 versus 2014.

Cash Flow
For the full-year 2015, Teradata generated $401 million of cash from operating activities, compared to $680 million in 2014. Teradata generated $281 million of free cash flow(3) in 2015, versus $551 million in 2014. In addition to lower net income, the timing of accounts receivable collections between the fourth quarter of 2014 and the first quarter of 2015 had a meaningful impact on lower free cash flow in 2015 versus 2014.

Balance Sheet
Teradata ended the quarter with $839 million in cash, with over 95% held outside the United States.

As of December 31, 2015, Teradata had total debt of approximately $780 million, including $600 million outstanding under a term loan and $180 million drawn on its $400 million revolving credit facility.

Share Repurchases
During the fourth quarter, Teradata purchased approximately 3.5 million shares of its stock for $99 million. For the full-year 2015, Teradata acquired approximately 19 million shares for $647 million.

As of the end of 2015, Teradata had approximately $573 million of remaining authorization for share repurchases under its general share repurchase program.  The stock is anticipated to be repurchased on an ongoing basis in open market transactions at management's discretion.

2016 Guidance
Teradata expects to exit the majority of its Marketing Applications business around the end of the first quarter of 2016.  As such, Teradata's GAAP revenue guidance for 2016 includes approximately $40 million of revenue for the Marketing Applications business in the first quarter of 2016, but does not include revenue expectations for the exited business beyond the first quarter of 2016. GAAP revenue guidance for the full year 2016 is expected to be in the $2.315 billion to $2.360 billion range, or down 7 to 8 percent from 2015. On a constant currency basis, GAAP revenue is expected to be down 5 to 7 percent, as Teradata expects 2 percentage points of currency headwind for the full year.

On a non-GAAP basis excluding the Marketing Applications business Teradata expects to exit in 2016, full-year 2016 revenue is expected to be $2.275 billion - $2.320 billion, or down 8 to 10 percent (down 6 to 8 percent on a constant currency basis).(1)  Teradata's 2015 full-year revenue included approximately $152 million of revenue from the Marketing Applications business Teradata expects to exit in 2016. For comparison purposes, when the Marketing Applications business is excluded for both 2015 and 2016, revenue is expected to be down 2 to 4 percent, or flat to down 2 percent in constant currency. 

Full-year 2016 GAAP earnings per share guidance of $1.68 to $1.83 includes the Marketing Applications business for the three months ended March 31, 2016 but excludes any tax expense in connection with the sale of such business.  On a non-GAAP basis, which also excludes stock-based compensation expense and other special items, as well as the expected $(7) million after-tax loss from Teradata's Marketing Applications business in the first quarter of 2016, non-GAAP earnings per share is expected to be in the $2.35 - $2.50 range.(2)  Teradata's Marketing Applications business experienced an approximate $45 million operating loss in 2015. The year over year increase in non-GAAP earnings per share is driven by exiting the Marketing Applications business, as well as the benefits of Teradata's transformation and cost rationalization initiatives.

Business Transformation
Teradata is making good progress in its business transformation, including the expected exit of its Marketing Applications business, and will provide more information regarding these initiatives during its earnings conference call today as well as later this summer at an Analyst Day.    

Relating to the expected exit of the Marketing Applications business, at December 31, 2015 Teradata recorded the "assets held for sale" and "liabilities held for sale" at a current estimate of fair value less expected cost to sell. Future adjustments to these estimates may be necessary as the sale of the business is completed.

Earnings Conference Call
A conference call is scheduled today at 8:30 a.m. ET to discuss the company's fourth quarter and full-year 2015 results and 2016 guidance. 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.        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.



For the Three Months Ended


For the Twelve Months Ended



December 31


December 31



(in millions)


(in millions)


Revenue

2015


2014


% Chg as Rpt'd


% Chg in CC


2015


2014


% Chg as Rpt'd


% Chg in CC


  Products

















 (software/hardware)

$320


$360


(11%)


(7%)


$1,057


$1,227


(14%)


(9%)



















  Consulting services

220


225


(2%)


5%


780


817


(5%)


3%


  Maintenance services

179


176


2%


5%


693


688


1%


6%


     Total Services

399


401


0%


5%


1,473


1,505


(2%)


4%


Total Revenue

$719


$761


(6%)


(1%)


$2,530


$2,732


(7%)


(2%)



















By segment

















  Data and Analytics

$669


$709


(6%)


(1%)


$2,337


$2,523


(7%)


(2%)


  Marketing Applications

50


52


(4%)


1%


193


209


(8%)


(1%)


Total Revenue

$719


$761


(6%)


(1%)


$2,530


$2,732


(7%)


(2%)



2.        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 margin, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, 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.

Special items included in Teradata's 2015 fourth quarter GAAP net income included the following items, net of tax: $10 million of stock-based compensation expense; $5 million of amortization of acquisition-related intangible assets, $9 million of acquisition transaction, integration and reorganization-related expenses, $34 million for impairment of goodwill and $5 million for a gain on an equity investment.

Special items for Teradata's 2015 full-year GAAP net income included the following items, net of tax: $41 million of stock-based compensation expense; $25 million of amortization of acquisition-related intangible assets; $19 million of acquisition transaction, integration and reorganization-related expenses, $35 million for gains on equity investments, and $366 million for impairment of goodwill.

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 items. Our management regularly uses supplemental non-GAAP financial measures, such as gross margin, operating income, net income and EPS, excluding certain items internally, to understand, manage and evaluate our business and support operating decisions. 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 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.

(in millions, except per share data)
















For the Three Months
Ended December 31


For the Twelve Months
Ended December 31

Gross Margin:


2015


2014


% Chg
as Rpt'd


2015


2014


% Chg 
as Rpt'd

 GAAP Gross Margin


$365


$425


(14%)


$1,276


$1,479


(14%)

   % of Revenue


50.8%


55.8%




50.4%


54.1%
















  Excluding:













   Stock-based compensation expense


4


3




14


11
















   Amortization of acquisition-related intangible
     assets


4


5




19


21



   Acquisition, integration and reorganization-
     related costs


2


-




7


5



 Non-GAAP Gross Margin   


$375


$433


(13%)


$1,316


$1,516


(13%)

   % of Revenue


52.2%


56.9%




52.0%


55.5%
















Operating Income:













 GAAP Operating Income(Loss)


$63


$158


(60%)


$(92)


$503


(118%)

   % of Revenue


8.8%


20.8%




(3.6%)


18.4%
















  Excluding:













   Stock-based compensation expense


14


14




58


50
















   Amortization of acquisition-related intangible
     assets


8


12




39


47



   Acquisition, integration and reorganization-
     related costs


15


3




30


21



   Impairment of goodwill


34


-




374


-



 Non-GAAP Operating Income   


$134


$187


(28%)


$409


$621


(34%)

   % of Revenue


18.6%


24.6%




16.2%


22.7%
















Net Income:













 GAAP Net Income(Loss)


$41


$118


(65%)


$(124)


$367


(134%)

   % of Revenue


5.7%


15.5%




(4.9%)


13.4%
















  Excluding:













   Stock-based compensation expense


10


10




41


34
















   Amortization of acquisition-related intangible
     assets


5


8




25


31



   Acquisition, integration and reorganization-
     related costs


9


4




19


14



   Net (gain)/loss on equity investments


(5)


-




(35)


6



   Impairment of goodwill


34


-




366


-



 Non-GAAP Net Income   


$94


$140


(33%)


$292


$452


(35%)

   % of Revenue


13.1%


18.4%




11.5%


16.5%



 

 


For the periods ended December 31

Three Months


Twelve Months

Diluted Earnings Per Share:

2015


2014


2015


2014

GAAP earnings(loss) per share

$0.31


$0.77


$(0.89)


$2.33

  Excluding:








   Stock-based compensation expense

0.07


0.07


0.29


0.22









   Amortization of acquisition-related intangible
     assets

0.04


0.05


0.18


0.20

   Acquisition, integration and reorganization
     related costs

0.07


0.02


0.14


0.08

   Net (gain)/loss on equity investments

(0.04)


-


(0.25)


0.03

   Impairment of goodwill

0.25


-


2.62


-

   Impact of dilution*

-


-


(0.03)


-

 Non-GAAP diluted earnings per share

$0.70


$0.91


$2.06


$2.86


*Represents the impact to earnings per share as a result of moving from basic to diluted shares.  See the Reconciliation of Results – GAAP to Non-GAAP for basic and diluted shares in the twelve months ended December 31, 2015 on the Investor Relations page of the company's website at investor.teradata.com.

 

 






Full-Year




Diluted Earnings Per Share:


2016 Guidance




 GAAP diluted earnings(loss) per share**


$1.68 - $1.83




 Excluding:






   Stock-based compensation expense


0.38










   Amortization of acquisition-related intangible assets


0.05




   Acquisition, integration and reorganization related costs


0.19




   Exit of Marketing Applications business – Q1 2016**


0.05




 Non-GAAP diluted earnings per share


$2.35 - $2.50





*Reflects the expectations of the 1Q 2016 results of operations of the portion of the Teradata Marketing Applications business that we expect to sell around the end of the first quarter of 2016.  However, the GAAP guidance for 2016 currently excludes the incremental tax expense associated with the expected exit of the Marketing Applications business; the current estimated potential impact to GAAP EPS is in the range of $0.40 – $0.45 per share, but the actual expense is highly dependent on a number of variables, including the final terms of the planned sale of the business. Teradata will update its full-year 2016 GAAP expectations after such terms have been finalized.  





3.        As described above, 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.


For the Periods Ended December 31
(in millions)


Three Months


Twelve Months


2015


2014


2015


2014









Cash provided by operating activities (GAAP)

$31


$97


$401


$680

   Less capital expenditures for:








      Expenditures for property and equipment

(9)


(17)


(52)


(54)

      Additions to capitalized software

(17)


(18)


(68)


(75)

           Total capital expenditures

(26)


(35)


(120)


(129)

Free Cash Flow (non-GAAP measure)(3)

$5


$62


$281


$551


















Note to Investors

This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance, within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements include projections of revenue, profit growth and other financial items, future economic performance and statements concerning analysts' earnings estimates, among other things. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause Teradata's actual results to differ materially. In addition to the factors discussed in this release, other risks and uncertainties could affect our future results, and could cause actual results to differ materially from those expressed in such forward-looking statements. Such factors include those relating to: the global economic environment 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, and other general economic and business conditions; the rapidly changing and intensely competitive nature of the information technology industry and the analytics data solutions and marketing applications businesses, including ongoing consolidation activity, threats from new and emerging technologies and competitors, and increased pressure on price/performance for data warehousing solutions; fluctuations in our operating results, unanticipated delays or accelerations in our sales cycles and the difficulty of accurately estimating revenues; failure to realize the anticipated benefits of our business transformation program, divestitures, or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including the impact of economic, political, legal, regulatory, compliance, cultural, foreign currency fluctuations and other conditions abroad; the timely and successful development, production or acquisition and market acceptance of new and existing products and services, including our ability to accelerate market acceptance of new products and services as well as the reliability, quality and operability of new products because of the difficulty and complexity associated with their testing and production; tax rates; turnover of workforce and the ability to attract and retain skilled employees; availability and successful exploitation of new acquisition and alliance opportunities; our ability to execute integration plans for newly acquired entities, including the possibility that expected synergies and operating efficiencies may not be achieved, that such integration efforts may be more difficult, time-consuming or costly than expected, and that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; recurring revenue may decline or fail to be renewed; changes in Generally Accepted Accounting Principles (GAAP) and the resulting impact, if any, on the company's accounting policies; continued efforts to establish and maintain best-in-class internal information technology and control systems; and other factors described from time-to-time in the company'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 reports to stockholders. The company 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.

About Teradata

Teradata (NYSE: TDC) offers a leading portfolio of big data analytic solutions, integrated marketing applications, and services that help organizations gain a sustainable competitive advantage with data. Visit teradata.com.

Get to know Teradata:

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LinkedIn: https://www.linkedin.com/company/teradata  
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Teradata and the Teradata logo are trademarks or registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide. 

 












 

Schedule A











































TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts - unaudited)


















For the Period Ended December 31




Three Months


Twelve Months




2015


2014


% Chg


2015


2014


% Chg

Revenue




























Products 



$             320


$             360


(11%)


$          1,057


$          1,227


(14%)

Services



399


401


(0%)


1,473


1,505


(2%)















Total revenue



719


761


(6%)


2,530


2,732


(7%)















Product gross margin



180


233




617


784



% of Revenue



56.3%


64.7%




58.4%


63.9%



Services gross margin



185


192




659


695



% of Revenue



46.4%


47.9%




44.7%


46.2%

















Total gross margin



365


425




1,276


1,479



% of Revenue



50.8%


55.8%




50.4%


54.1%

















Selling, general and administrative expenses



213


213




766


770



Research and development expenses



55


54




228


206



Impairment of goodwill



34


-




374


-

















Income (loss) from operations



63


158




(92)


503



% of Revenue



8.8%


20.8%




(3.6%)


18.4%

















Other income (expense), net



5


(1)




51


(9)

















Income (loss) before income taxes



68


157




(41)


494



% of Revenue



9.5%


20.6%




(1.6%)


18.1%

















Income tax expense



27


39




83


127



% Tax rate



39.7%


24.8%




(202.4%)


25.7%

















Net income (loss)



$               41


$             118




$           (124)


$             367



% of Revenue



5.7%


15.5%




(4.9%)


13.4%

















Net income (loss) per common share














Basic 



$            0.31


$            0.78




$          (0.89)


$            2.36



Diluted



$            0.31


$            0.77




$          (0.89)


$            2.33

















Weighted average common shares outstanding














Basic



132.1


151.8




139.6


155.3



Diluted



134.0


154.1




139.6


157.8



 

 

 





 

Schedule B






















TERADATA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions -  unaudited)

















December 31,


September  30,


December 31,



2015


2015


2014

Assets














Current assets







Cash and cash equivalents


$                    839


$               874


$               834

Accounts receivable, net


580


486


619

Inventories


49


52


38

Assets held for sale


317


-


-

Other current assets


55


102


81








Total current assets


1,840


1,514


1,572








Property and equipment, net


143


159


159

Capitalized software, net


190


195


199

Goodwill


380


587


948

Acquired intangible assets


22


114


136

Deferred income taxes


37


19


20

Other assets


20


21


98








Total assets


$                 2,632


$            2,609


$            3,132








Liabilities and stockholders' equity














Current liabilities







Current portion of long-term debt


$                      30


$                 23


$                 53

Short-term borrowings


180


110


220

Accounts payable


96


111


126

Payroll and benefits liabilities


120


124


125

Deferred revenue


367


387


370

Liabilities held for sale


58


-


-

Other current liabilities


102


83


101








Total current liabilities


953


838


995








Long-term debt


570


577


195

Pension and other postemployment plan liabilities


89


96


99

Long-term deferred revenue


15


14


18

Deferred tax liabilities


39


60


86

Other liabilities


27


28


32








Total liabilities


1,693


1,613


1,425








Stockholders' equity







Common stock


1


1


1

Paid-in capital


1,128


1,116


1,054

(Accumulated deficit) retained earnings


(114)


(57)


656

Accumulated other comprehensive loss


(76)


(64)


(4)








Total stockholders' equity


939


996


1,707








Total liabilities and stockholders' equity


$                 2,632


$            2,609


$            3,132

 

 

 







 

Schedule C




























TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions - unaudited)












For the Period Ended December 31



Three Months


Twelve Months



2015


2014


2015


2014

Operating activities









Net income (loss)


$                        41


$                      118


$                     (124)


$                      367










Adjustments to reconcile net income to net cash provided









  by operating activities:









Depreciation and amortization


41


41


170


169

Stock-based compensation expense


13


14


56


50

Excess tax benefit from stock-based compensation


4


-


4


(2)

Deferred income taxes


(14)


15


(24)


(2)

(Gain) loss on investments


(6)


-


(56)


9

Impairment of goodwill


34


-


374


-

Changes in assets and liabilities:









Receivables


(133)


(98)


1


101

Inventories


3


6


(11)


18

Current payables and accrued expenses


17


(13)


(8)


(23)

Deferred revenue


11


(15)


24


(28)

Other assets and liabilities


20


29


(5)


21










Net cash provided by operating activities


31


97


401


680










Investing activities









Expenditures for property and equipment


(9)


(17)


(52)


(54)

Additions to capitalized software


(17)


(18)


(68)


(75)

Proceeds from the disposition of investments


16


-


85


-

Business acquisitions and other investing activities


(8)


(20)


(17)


(69)










Net cash provided by (used) in investing activities


(18)


(55)


(52)


(198)










Financing activities









Repurchases of common stock


(116)


(269)


(657)


(551)

Proceeds from long-term borrowings


-


-


600


-

Repayments of long-term borrowings


-


(7)


(247)


(26)

Proceeds from credit facility borrowings


70


220


180


220

Repayments of credit facility borrowings


-


-


(220)


-

Excess tax benefit from stock-based compensation


(4)


-


(4)


2

Other financing activities, net


6


9


24


29










Net cash used in financing activities


(44)


(47)


(324)


(326)










Effect of exchange rate changes on cash and cash equivalents


(4)


(9)


(20)


(17)










(Decrease) Increase in cash and cash equivalents


(35)


(14)


5


139

Cash and cash equivalents at beginning of period


874


848


834


695










Cash and cash equivalents at end of period


$                       839


$                      834


$                       839


$                      834

 

 

 















Schedule D




















































TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions - unaudited)




















For the Three Months Ended December 31


For the Twelve Months Ended December 31



2015


2014


% Change
As Reported


% Change
Constant
Currency


2015


2014


% Change
As Reported


% Change
Constant
Currency

Segment Revenue


































Data and Analytics


$           669


$           709


(6%)


(1%)


$        2,337


$        2,523


(7%)


(2%)

Marketing Applications


50


52


(4%)


1%


193


209


(8%)


(1%)

Total revenue


719


761


(6%)


(1%)


2,530


2,732


(7%)


(2%)


















Segment gross margin


































Data and Analytics


354


411






1,237


1,422





% of Revenue


52.9%


58.0%






52.9%


56.4%






















Marketing Applications


21


22






79


94





% of Revenue


42.0%


42.3%






40.9%


45.0%






















Total segment gross margin


375


433






1,316


1,516





% of Revenue


52.2%


56.9%






52.0%


55.5%






















Reconciling items(1)


(10)


(8)






(40)


(37)






















Total gross margin


$           365


$           425






$        1,276


$        1,479





% of Revenue


50.8%


55.8%






50.4%


54.1%














(1)  Reconciling items include stock-based compensation, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.

 

 

 

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SOURCE Teradata Corp.



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