SunGard cautiously optimistic despite Q2 net loss
07 August 2009 | 5354 views | 0
Despite swinging to a net loss for the second quarter, SunGard says its overall performance was "better than we expected" with broker/dealer business providing a notable bright spot.
Across the group, a net loss of $7 million was recorded, compared to a net profit of $2 million for the same period the previous year. Revenue for the three months was $1.37 billion, up one per cent. Adjusted EBITDA slipped two per cent to $355 million.
Financial systems organic revenue growth was two per cent for the quarter on a constant currency basis. Systems revenue for the unit increased eight per cent to $766 million although license fees fell $18 million to $33 million.
SunGard says broker/dealer revenue has remained "uncharacteristically" high - a function of market volatility and customer mix. Just one broker/dealer business contributed approximately six percentage points to overall organic revenue growth.
In contrast to financial services, the firm's public sector and higher education units both recorded revenue declines.
Cristóbal Conde, CEO, SunGard, says the company has met its targets in "a very challenging environment", with performance better than expected at the start of the year.
"The fog is starting to lift and quarter on quarter the mood is slightly on the uptick," he says. "However, we expect the second half of the year to remain challenging given that enterprise IT spending continues to be cautious, with long sales cycles and tough pricing pressure being the new normal," he warns.