Teradata looking up
For the quarter ended June 30, 2012, Teradata Corporation reported a revenue increase of $ 665 million, as compared to the $ 581 million in the second quarter of 2011. Currency translation reduced the second quarter revenue comparison by 4 percentage points.
There was a considerable increase in the gross margin, which went up from 54.4 percent in the second quarter of 2011 to 57.4 percent. On a non- Generally Accepted Accounting Principle ( GAAP) basis, excluding special items and stock- based compensation expense, gross margin was 58.5 percent, a 260 basis point improvement from 55.9 percent in the second quarter of 2011. The increase in gross margin was driven by leverage from revenue growth as well as a favourable product and services revenue mix.
Special items and stockbased compensation expense had a $ 20 million negative impact on Teradata’s second quarter 2012 net income as reported under U. S GAAP.
As compared to the second quarter of 2011, which resulted in $ 103 million or $ 0.60 per diluted share, Teradata corp. reported second quarter GAAP net income of $ 112 million or $ 0.65 per diluted share. The non- GAAP net income in the first quarter of 2011 was $ 103 million or $ 0.60 per diluted share. After excluding the stock- based compensation expense and special items, non- GAAP net income in the second quarter of 2012 was $ 132 million or $ 0.77 per diluted share.
Mike Koehler, president and chief executive of Teradata Corporation said, “Teradata delivered another strong quarter in Q2 with revenue growth of 18 percent in constant currency, and Non- GAAP EPS growth of 28 percent. As a result, we are increasing our guidance for constant currency revenue growth and EPS for 2012”. He added, “Strong execution across the company led to 20 percent constant currency revenue growth in the first half of 2012 and record operating margin. Our technology leadership and expertise in data warehousing, big data analytics and integrated marketing management uniquely position Teradata to help customers realise the greatest value from their information assets, while enabling them to reduce infrastructure costs.” Mike Koehler also added that they were pleased with their betterthan- expected quarter results.