Teradata Corp (TDC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $58 million, or $ 0.44 a share in the quarter, against a net loss of $49 million, or $0.37 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $89 million, or $0.67 a share compared with $101 million or $0.75 a share, a year ago. Revenue during the quarter dropped 12.93 percent to $626 million from $719 million in the previous year period. Gross margin for the quarter contracted 45 basis points over the previous year period to 50.32 percent. Operating margin for the quarter period stood at positive 15.65 percent as compared to a negative 5.56 percent for the previous year period.
Operating income for the quarter was $98 million, compared with an operating loss of $40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $126 million compared to $143 million in the prior year period. At the same time, adjusted operating margin improved 24 basis points in the quarter to 20.13 percent from 19.89 percent in the last year period.
"Entering 2017, the Teradata team continues its steady execution on our strategic initiatives. Our customers tell us that Teradata is becoming more responsive to their wants and needs while helping them gain business value from their analytics," said Victor Lund, president and chief executive officer, Teradata Corporation. "This indicates we are effectively calibrating our customer engagements-providing more choices, more innovation, more expertise, and more reasons to rely on us. While we have work ahead of us, I have confidence that we are on the right track as the global demand for big data analytics solutions and services continues to rise."
For the first-quarter 2017, Teradata Corp forecasts revenue to be $500 million. The company projects diluted earnings per share to be in the range of $0.01 to $0.06. On an adjusted basis, the company projects diluted earnings per share to be in the range of $2.50 to $2.70.
Operating cash flow improves
Teradata Corp has generated cash of $446 million from operating activities during the year, up 11.22 percent or $45 million, when compared with the last year. The company has spent $35 million cash to meet investing activities during the year as against cash outgo of $52 million in the last year.
The company has spent $262 million cash to carry out financing activities during the year as against cash outgo of $324 million in the last year period.
Cash and cash equivalents stood at $974 million as on Dec. 31, 2016, up 16.09 percent or $135 million from $839 million on Dec. 31, 2015.
Working capital increases
Teradata Corp has recorded an increase in the working capital over the last year. It stood at $894 million as at Dec. 31, 2016, up 14.47 percent or $113 million from $781 million on Dec. 31, 2015. Current ratio was at 2.24 as on Dec. 31, 2016, up from 1.82 on Dec. 31, 2015.
Debt comes down significantly
Teradata Corp has recorded a decline in total debt over the last one year. It stood at $568 million as on Dec. 31, 2016, down 26.90 percent or $209 million from $777 million on Dec. 31, 2015. Total debt was 23.62 percent of total assets as on Dec. 31, 2016, compared with 30.71 percent on Dec. 31, 2015. Debt to equity ratio was at 0.58 as on Dec. 31, 2016, down from 0.92 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
