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LONDON, UK / ACCESSWIRE / June 7, 2018 / If you want access to our free earnings report on Teradata Corp. (NYSE: TDC), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TDC. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The data management Company's revenues grew 3% on a y-o-y basis. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the quarter ended March 31, 2018, Teradata reported revenues of $506 million, up 3% compared to $491 million in Q1 2017. The Company's reported quarter revenue comparison benefited from approximately 4% of foreign currency translation. Teradata's revenue numbers beat analysts' estimates of $496 million.
During Q1 2018, Teradata's recurring revenues were up 11% to $302 million on a y-o-y basis. The Company's Subscription booking mix was 62% in the reported quarter, significantly higher than the anticipated range of 40% - 50%.
For Q1 2018, Teradata's GAAP gross margin was 44.1% versus 45.8% in Q1 2017. On a non-GAAP basis, excluding stock-based compensation expenses and special items, the Company's gross margin was 48.4% in the reported quarter compared to 51.1% in the prior year's same period.
Teradata's operating loss reported under GAAP was $4 million in Q1 2018 compared to breakeven in Q1 2017. On a non-GAAP basis, the Company's operating income was $35 million in the reported quarter versus $59 million in the prior year's comparable quarter. Teradata's non-GAAP operating income was lower due to the shift to subscription and strategic transformation investments.
Teradata's GAAP tax rate was 12.5% in Q1 2018 compared to 0% in Q1 2017. Excluding special items, the Company's non-GAAP tax rate was 25.8% in the reported quarter versus 35.1% in the prior year's corresponding quarter. The drop in the non-GAAP effective tax rate was largely due to the decrease in the US statutory rate, effective in 2018, as a result of the US tax reform enacted in December 2017.
Teradata reported a US GAAP net loss of $7 million, or $0.06 loss per share, in Q1 2018 compared to a net loss of $2 million, or $0.02 loss per share, in Q1 2017. The Company's non-GAAP net income, excluding stock-based compensation expenses and special items, was $23 million, or $0.19 per diluted share, in the reported quarter compared to $37 million, or $0.28 per diluted share, in the year earlier same quarter. Teradata's earnings surpassed Wall Street's estimates of $0.17 per share.
Teradata generated cash from operating activities of $184 million in Q1 2018 compared to $248 million in Q1 2017. For the reported quarter, the Company generated free cash flow of $156 million versus $230 million in the prior year's comparable quarter. The decline in cash from operating activities and free cash flow was due to the Company's ongoing transition to subscription-based purchasing options, which resulted in Teradata collecting less cash in the current period as customers pay over time; the higher expense run rate from strategic transformation investments made in the prior year; and timing of cash collections.
Teradata ended Q1 2018 with $939 million in cash. As of March 31, 2018, the Company had a total debt of $525 million, all of which was outstanding under a term loan. Teradata had no borrowings under its $400 million revolving credit facility as of March 31, 2018.
During Q1 2018, Teradata repurchased $76 million of its common stock, or approximately 2.1 million shares.
For the full fiscal year 2018, Teradata is forecasting revenues to be in the range of $2.15 billion to $2.18 billion. The Company is expecting GAAP earnings per share to be in the band of $0.58 to $0.64. On a non-GAAP basis, which excludes stock-based compensation expenses and special items, the Company's earnings are estimated to be in the range of $1.40 to $1.46.
For the second quarter of the fiscal year 2018, Teradata is expecting revenues to be in the band of $520 million - $530 million. For the upcoming quarter, the Company is estimating GAAP (loss)/earnings per share to be in the range of $(0.02) to $0.00, and non-GAAP earnings per share in the band of $0.17 to $0.19.
Stock Performance Snapshot
June 06, 2018 - At Wednesday's closing bell, Teradata's stock climbed 2.35%, ending the trading session at $42.63.
Volume traded for the day: 986.76 thousand shares.
Stock performance in the last month - up 10.84%; previous three-month period - up 2.50%; past twelve-month period - up 53.68%; and year-to-date - up 10.84%
After yesterday's close, Teradata's market cap was at $5.19 billion.
Price to Earnings (P/E) ratio was at 96.23.
The stock is part of the Technology sector, categorized under the Data Storage Devices industry. This sector was up 0.5% at the end of the session.
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