SunGard revenues flat as banks defer spending

SunGard revenues flat as banks defer spending

IT services group SunGard reported limited organic growth in the second quarter 2002, with revenues excluding acquisitions increasing by a mere 3% across the group and remaining flat within Investment Support Systems, the vendor's financial markets arm.

Net income for the three months ended 30 June, 2002, was $82.2 million, an increase of 15% over net income of $71.7 million for the same period in 2001, excluding one-time charges for merger costs, other income and goodwill amortization. Revenue for the second quarter including acquired businesses was $623.3 million, an increase of 31% over revenue of $475.0 million reported in the year-ago quarter.

Investment Support Systems (ISS) revenue grew 5% to $340 million for the quarter. Excluding acquired businesses, ISS revenue was flat, roughly mirroring IT spending trends in the financial services sector.

James Mann, chairman and chief executive officer, says the second quarter saw a continuation of market trends with IT spending not significantly better or worse than in the first quarter: "While many of our customers are still taking a wait and see attitude regarding their IT spending, our larger customers continue to spend more with us and are making bigger commitments."

Organic revenue growth is nonetheless expected to remain depressed in the short term, he adds.

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