Teradata Corp (TDC) has reported a 37.18 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $49 million, or $0.37 a share in the quarter, compared with $78 million, or $0.55 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $91 million, or $0.69 a share compared with $85 million or $0.60 a share, a year ago. Revenue during the quarter dropped 8.91 percent to $552 million from $606 million in the previous year period. Gross margin for the quarter expanded 260 basis points over the previous year period to 53.26 percent. Total expenses were 83.88 percent of quarterly revenues, down from 87.29 percent for the same period last year. This has led to an improvement of 342 basis points in operating margin to 16.12 percent.
Operating income for the quarter was $89 million, compared with $77 million in the previous year period.
However, the adjusted operating income for the quarter stood at $122 million compared to $117 million in the prior year period. At the same time, adjusted operating margin improved 279 basis points in the quarter to 22.10 percent from 19.31 percent in the last year period.
"In the third quarter, the Teradata team delivered revenue in line with our guidance and better than expected earnings per share while reshaping our business to deliver greater value to our customers and shareholders," said Victor Lund, president and chief executive officer, Teradata Corporation. "We advanced our business analytic solutions, ecosystem architecture consulting and our hybrid cloud offerings with industry-first initiatives like Teradata Everywhere and Borderless Analytics, which exemplify the new Teradata. We are accelerating execution of our strategy to better serve our customers and create new opportunities for our company."
For financial year 2016, Teradata Corp forecasts diluted earnings per share to be in the range of $0.94 to $0.99. The company forecasts diluted earnings per share to be in the range of $2.45 to $2.50 on adjusted basis.
For the fourth-quarter 2016, Teradata Corp projects revenue to be in the range of $620 million to $640 million. The company forecasts diluted earnings per share to be in the range of $0.43 to $0.48. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.57 to $0.62.
Operating cash flow improves
Teradata Corp has generated cash of $395 million from operating activities during the nine month period, up 6.76 percent or $25 million, when compared with the last year period. The company has spent $5 million cash to meet investing activities during the nine month period as against cash outgo of $34 million in the last year period.
The company has spent $244 million cash to carry out financing activities during the nine month period as against cash outgo of $280 million in the last year period.
Cash and cash equivalents stood at $988 million as on Sep. 30, 2016, up 13.04 percent or $114 million from $874 million on Sep. 30, 2015.
Working capital increases
Teradata Corp has recorded an increase in the working capital over the last year. It stood at $829 million as at Sep. 30, 2016, up 22.63 percent or $153 million from $676 million on Sep. 30, 2015. Current ratio was at 2.20 as on Sep. 30, 2016, up from 1.81 on Sep. 30, 2015.
Days sales outstanding went up to 78 days for the quarter compared with 76 days for the same period last year.
Debt comes down
Teradata Corp has recorded a decline in total debt over the last one year. It stood at $575 million as on Sep. 30, 2016, down 19.01 percent or $135 million from $710 million on Sep. 30, 2015. Total debt was 24.85 percent of total assets as on Sep. 30, 2016, compared with 27.21 percent on Sep. 30, 2015. Debt to equity ratio was at 0.62 as on Sep. 30, 2016, down from 0.71 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
