SunGard publishes first quarter results

For the first quarter, revenue was $1.21 billion, up 1% year over year. Excluding the results of one of our global trading businesses, a broker/dealer, revenue was up 3% and organic revenue was up 1%. For the first quarter, operating income was $63 million, compared to $71 million in the first quarter of 2010. Adjusted EBITDA was $282 million and adjusted operating income was $204 million. Adjusted EBITDA, adjusted operating income, and organic revenue are defined in Notes 1, 2 and 3 in the Notes attached to this release.

Cristóbal Conde, president and chief executive officer, commented, "We had a solid start to the year and won some very significant, long-term deals in the quarter which will help our future growth. We saw an improvement in the overall IT spending mood and a strong pickup in demand for our regulatory compliance solutions. We continue to make strategic investments to help our customers capitalize on industry megatrends and opportunities. Overall, our competitiveness is strong and we are more mission critical to our customers than ever."

Financial Systems revenue increased 2% to $672 million in the first quarter. Excluding the broker/dealer business mentioned above, revenue increased 6% and organic revenue increased 3%. License fees were $50 million, an increase of $10 million compared to the first quarter of 2010.

Notable deals in the quarter included the following:

• A global leader in financial services chose SunGard's Asset Arena and related services to help manage investment accounting and fund administration worldwide.
  
• One of the largest banks in South Africa selected SunGard's Front Arena to support cross-asset trading and position management.
  
• A subsidiary of one of the largest banks in Western Canada selected SunGard's Global Plus to help manage its institutional trust and custody business.

Higher Education revenue increased 3% to $140 million in the first quarter. License fees were $4 million, a decrease of $2 million compared to the first quarter of 2010. Effective January 1, 2011, our K-12 Education business was moved from our Public Sector segment into our Higher Education segment. The results for 2010 have been revised to reflect this reporting change.

Notable deals in the quarter included the following:

• One of the largest private universities in the world, based in Puerto Rico, chose SunGard for application hosting services.
  
• A public school district in Illinois selected SunGard's eSchoolPLUS student information and IEPPLUS special education systems to help manage its student population.
  
• A large public research university in Oregon expanded its relationship with SunGard to include business intelligence solutions.

Public Sector revenue decreased 3% to $34 million in the first quarter. License fees were $2 million, unchanged compared to the first quarter of 2010.

Notable deals in the quarter included the following:

• A city in Iowa selected SunGard to provide solutions for computer-aided dispatch, records management, mobile computing and jails management.
  
• A state university in North Carolina selected SunGard to provide its Police & Public
  
• Safety department with computer-aided dispatch, records management and mobile computing solutions.
  
• A U.S. territory in the South Pacific selected SunGard to provide finance and human resources applications.

Availability Services revenue decreased 1% to $364 million in the first quarter of 2011. Organic revenue decreased 3% in the quarter.

Notable deals in the quarter included the following:

• One of the largest health systems in the U.S. selected SunGard to provide recovery planning and consulting services.
  
• A leader in e-signature technology selected SunGard to provide managed network, hosting and security services.
  
• A provider of IT-enabled services for the long-term healthcare industry selected SunGard's Enterprise Cloud Services to support its business operations.

Financial Position

At March 31, 2011, total debt was $8.08 billion and cash was $776 million. During the first quarter, the Company generated $53 million in cash flow from operations, invested $64 million in capital expenditures, and spent $19 million on acquisitions net of acquired cash.