Highly acquisitive SunGard Data Systems has reported record net income for the fourth quarter and year-end December 2003.
SunGard posted net income for the year of $370 million, a 14% increase over $326 million for 2002, with revenues also up 14% to $2.96 billion. Net income for the quarter rose to $112 million, up 17% from $96 million in the same period last year.
The Wayne, Pennsylvania-based company, which has acquired more than 100 businesses, has propelled profits and revenues through its acquisition drive.
However, revenue from businesses owned for at least a year was flat for 2003 and increased only two per cent in the fourth quarter.
Investment Support Systems, the umbrella group for SunGard's diverse financial services business, reported revenue growth of 14% to $1.61 billion for the year. Quarter-over-quarter revenue grew by 20% to $455 million.
Revenue from continuing operations declined two per cent for the year but grew two per cent in the fourth quarter. ISS license sales were $151 million for the year and $56 million for the quarter.
Sungard president and CEO Cristobal Conde, is forecasting growth of between 8% and 12% over 2004 as customers look to do more business with fewer, more strategic vendors. "This outlook assumes no merger-related items in 2004," he adds.
Further acquisitions are likely however, as SunGard nurses as $479 million cash pile. 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.