|SunGard Announces Record Results for 2003|
Thursday February 12, 5:25 pm ET
Net Income per Share Grew 13%
Revenue Grew 14%
WAYNE, Pa.--(BUSINESS WIRE)--Feb. 12, 2004--SunGard (NYSE:SDS), a global leader in integrated software and processing solutions for financial services and the pioneer and leading provider of information availability services, reported today that net income for the year ended December 31, 2003 was $370 million, a 14% increase over $326 million for 2002.
Full-year 2003 diluted net income per share was $1.27, up 13% over comparable results of $1.12 in 2002. Merger costs and related items were less than $0.01 per share in 2003 and were $0.03 per share in 2002. Diluted net income per share before merger costs increased 10% for the year.
Net income for the quarter ended December 31, 2003 was $112 million, a 17% increase over the $96 million reported in the fourth quarter of 2002. The related diluted net income per share was $0.38 for the quarter, up 15% over the $0.33 reported in 2002. The fourth quarter diluted net income per share in 2003 included $0.01 per share benefit from the reversal of previously-recorded merger costs. Diluted net income per share before merger costs was $0.37 for the quarter, representing an increase of 12% from the fourth quarter of last year. Details concerning merger costs and related items are described in the Notes attached to this release.
Revenue for full-year 2003 was $2.96 billion, an increase of 14% over the $2.59 billion reported for 2002. Revenue for the fourth quarter was $804 million, an increase of 15% over the $702 million reported in the fourth quarter of 2002. Revenue from businesses owned for at least a year (internal revenue) was flat for 2003 and increased 2% in the fourth quarter.
"SunGard grew stronger in 2003 and posted record revenue and net income," commented Cristobal Conde, president and chief executive officer. "We continued to expand our business and enhanced our already extensive range of solutions and capabilities through a combination of product development and acquisitions. We also deepened our customer relationships and benefited from customers wanting to do more business with fewer, more strategic vendors. SunGard's competitiveness is stronger than ever."
"In formulating our outlook for 2004, we followed our usual bottoms-up approach and assumed the continuation of the current demand environment for our products and services. Our outlook for 2004 diluted net income per share, excluding merger costs and related items, is in the range of $1.37 to $1.42 per share, representing growth of between 8% and 12%. Because the timing and magnitude of merger costs are unpredictable, this outlook assumes no merger-related items in 2004," added Mr. Conde.
Investment Support Systems (ISS) revenue grew 14% to $1.61 billion for the year. Quarter-over-quarter revenue grew by 20% to $455 million. ISS internal revenue declined 2% for the year but grew 2% in the fourth quarter. ISS license sales were $151 million for the year and $56 million for the quarter.
Availability Services revenue increased 11% to $1.17 billion for the year. Quarter-over-quarter revenue increased 4% to $302 million.
Other Businesses revenue increased 35% to $179 million for the year due to the acquisition last March of H.T.E., Inc. The previously announced acquisition of Systems & Computer Technology Corporation (SCT) closed today, for total cash consideration of approximately $590 million. As a result, this segment is now named "Higher Education and Public Sector Systems."
SunGard has exceptional financial strength and flexibility, enabling it to further invest in its existing businesses and to pursue acquisition opportunities. Cash balances as of December 31, 2003 were $479 million and total debt was $200 million. For 2003, cash flow from operations was approximately $645 million. Year-over-year cash balances increased $39 million after spending $435 million on nine acquisitions, $212 million on capital expenditures company wide and a $6 million reduction in total debt. On January 15, 2004, SunGard borrowed $500 million by issuing two tranches of unsecured senior notes: $250 million of 3.75% notes due January 15, 2009, and $250 million of 4.875% notes due January 15, 2014. The net proceeds from the sale of the notes were used to acquire SCT.