|SunGard Announces Record Revenue and Earnings for 2002|
Tuesday February 18, 5:52 pm ET
Operational Efficiency and Resilience Drive Deeper Client Relationships
WAYNE, Pa.--(BUSINESS WIRE)--Feb. 18, 2003--SunGard (NYSE:SDS), a global leader in integrated IT solutions for financial services and leading provider of information availability services, reported today that GAAP net income for the year ended December 31, 2002 was $326 million, a 32% increase over $246 million for 2001. The related diluted net income per share was $1.12, up 30% over comparable results of $0.86 in 2001.
Excluding merger costs, other one-time items and goodwill amortization, diluted earnings per share for full-year 2002 were $1.15, up 19% over the $0.97 posted in 2001. This is one cent above the top of the range of the company's 2002 outlook of $1.10 to $1.14, which was first announced in February 2002. The related net income was $334 million, up 21% from the $277 million reported in 2001. Further details concerning one-time items are described in the Notes attached to this release.
Cash earnings per share, which exclude after-tax amortization of acquisition-related intangibles, were $1.29 for full-year 2002, up 21% over $1.07 for 2001.
GAAP net income for the quarter ended December 31, 2002 was $96 million, a 46% increase over $66 million reported in the same period in 2001. The related diluted net income per share was $0.33 for the quarter, up 43% over $0.23 reported in 2001.
Excluding merger costs, other one-time items and goodwill amortization, net income and diluted net income per share for the quarter were $96 million and $0.33, increases of 20% and 18%, respectively, over comparable results of $80 million and $0.28 in 2001.
Revenue for full-year 2002 was $2.59 billion, an increase of 31% over the $1.98 billion reported for 2001. Revenue for the quarter was $702 million, an increase of 22% over $576 million reported in the year-ago quarter. Excluding acquired businesses, revenue increased approximately 1% for the year and decreased approximately 1% for the quarter, compared to 2001 results.
"SunGard performed strongly in 2002. We executed on our strategy and realized record revenue and net income," commented Cristobal Conde, president and chief executive officer. "While we operate in the same macro environment as our competitors, we benefit from a large client base that we serve efficiently on shared platforms. This gives us enviable economies of scale. Our focus on operational efficiency and operational resilience matches our clients' priorities. These factors drive clients to deepen their relationships with SunGard."
"In formulating our 2003 outlook, we followed our usual bottoms-up approach and assumed neither a rebound nor a further deterioration in demand. Our outlook for 2003 diluted net income per share, excluding merger costs and other one-time items, is in the range of $1.24 to $1.29, representing growth of between 8% and 12%," added Mr. Conde.
Investment Support Systems (ISS) revenue grew 4% to $1.36 billion for the year. Quarter-over-quarter revenue grew by 2% to $362 million. Excluding acquired businesses, revenue decreased approximately 2% for the year and 4% for the quarter. ISS is broadly diversified both in terms of clients and products.
Availability Services revenue increased 101% to $1.05 billion for the year. Quarter-over-quarter revenue increased 59% to $290 million. Excluding acquired businesses, revenue increased approximately 7% for the year and 4% for the quarter. The integration of both the Guardian iT and Comdisco Availability Solutions businesses continues to proceed well and is ahead of plan.
SunGard has exceptional financial strength and flexibility, enabling it to further invest in its existing businesses and to acquire new ones. Cash balances as of December 31, 2002 were $440 million. During 2002, current and long-term debt decreased $253 million, while approximately $353 million of cash was spent on nine acquisitions and repayment of acquired debt. Following its highly disciplined acquisition methodology, the company continues to identify acquisitions that complement its existing products, expand its presence and have solid growth prospects. During the first quarter of 2003, the company expects to spend approximately $370 million in cash on pending and previously completed acquisitions.