SunGard has reported that revenue for the three months ended September 30, 2006 was $1.1 billion, an increase of 9 percent over revenue for the three months ended September 30, 2005. These results exclude from the third quarter of 2005 the $12 million reduction in revenue related to purchase accounting adjustments recorded in connection with the acquisition of the company on August 11, 2005 (the ‘deferred revenue adjustment’). Reported revenues including this adjustment increased 11 percent. Revenue from software license fees in the quarter was $53 million, an increase of $11 million from the third quarter of 2005. Internal revenue (revenue from businesses owned for at least one year and further adjusted for the effects of businesses sold in the previous twelve months and the deferred revenue adjustment in the third quarter of 2005) grew 8 percent for the quarter compared to the same period in 2005.

Adjusted income from operations for the three months ended September 30, 2006 was $253 million, compared to $219 million in the same period in 2005.

Reported income from operations for the three months ended September 30, 2006 was $136 million and includes amortization of acquired intangible assets of $99 million, stock-based compensation, purchase accounting adjustments and other expenses of $16 million and merger costs of $2 million. For the three months ended September 30, 2005, reported income from operations was $9 million and included merger costs of $121 million, amortization of acquired intangible assets of $66 million, the deferred revenue adjustment of $12 million and stock-based compensation and other costs of $11 million.

For the three months ended September 30, 2006, adjusted EBITDA was $318 million compared to $280 million for the three months ended September 30, 2005.

Cristobal Conde, president and chief executive officer, commented: "SunGard's performance in the quarter was solid. In both Availability Services and Financial Systems, there was an uptick in demand for consulting services as customers turned to SunGard for domain expertise and deep understanding of their business and technology challenges. Customers continue to favor buy over build decisions and focus on system and vendor rationalization, architecture renewal and integration, all of which align well with our strategy. Our competitiveness remains very strong."

Reported revenue for the first nine months of 2006 increased 7 percent over the same period in 2005 to $3.1 billion. Adjusted income from operations for the nine months ended September 30, 2006 was $695 million compared to $650 million last year. Reported income from operations for the nine months ended September 30, 2006 was $348 million and includes amortization of acquired intangible assets of $297 million, stock-based compensation, purchase accounting adjustments and other expenses of $45 million and merger costs of $5 million. In the first nine months of 2005, reported income from operations was $342 million and included merger costs of $139 million, amortization of acquired intangible assets of $135 million, stock-based compensation, purchase accounting adjustments and other expenses of $23 million and a one-time charge of $11 million related to the relocation of an availability services facility.

At September 30, 2006, total debt was $7.43 billion, cash balances were $268 million and off balance sheet debt was $371 million. Capital expenditures were $222 million company-wide for the nine months ended September 30, 2006.

Full results

•Date: 3rd Nov 2006• Region: US/World •Type: Article •Topic: BC markets
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