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The “earnings season” gathers speed, with financial software provider SunGard Data Systems Inc. having just reported a set of robust results for the third quarter of 2015, with revenues and profits staging a rise in annual terms.
For the three months to September 30, 2015, revenue was $702 million, up 2% year over year. Financial Systems segment revenue was $646 million in the quarter, up 1% year over year, supported by growth in SaaS and cloud, as well as Services revenue. Public Sector & Education segment revenue was $56 million in the quarter, staging a rise of 4% year over year, with the rise supported by growth in all revenue categories.
Operating income for the third quarter was $120 million, up 26% year over year.
Adjusted EBITDA for the third quarter was $199 million, up 6% year over year.
Net income for the third quarter was $67 million, compared to $11 million a year earlier.
For the first nine months of 2015, revenue was $2.1 billion, 2% higher than in the corresponding period in 2014. Operating income was $343 million and the operating income margin was 16.7%, compared to an operating loss of $117 million for the first nine months of 2014.
Russ Fradin, president and chief executive officer, commented,
“We’re pleased with the advances we’ve made in building a stronger, more streamlined software and services company with a leading position in the global financial services industry. Our transformation has been focused on making the right investments in great software products and a broad array of services to continually improve our organic growth rate. Clients have responded positively to our initiatives as reflected in another strong quarter of growth. We look forward to becoming part of FIS, a global leader in banking and payments technology as well as consulting and outsourcing solutions. The combination with FIS will make us even stronger in serving our clients.”
On August 12, 2015, SunGard entered into a definitive agreement to be acquired by FIS for an enterprise value of more than $9 billion, which includes the assumption, repayment or refinancing of all of SunGard’s outstanding debt, totaling $4.7 billion. The transaction, subject to customary closing conditions, is expected to close in the fourth quarter.
You can view the full announcement from SunGard by clicking here.