August 6, 2009 / 12:09 PM / 9 years ago

UPDATE 2-Teradata 2nd-qtr profit beats Street; shares up

* Q2 EPS of 36 cents beat estimates by 11 cents

* Sees 2009 EPS above Street view

* Shares up 8 pct (Recasts; adds conference call details, analyst comments, updates share movement)

By Shrutika Verma

BANGALORE, Aug 6 (Reuters) - Teradata Corp (TDC.N) posted a better-than-expected quarterly profit helped by improved margins, and guided earnings for the year above Wall Street view, sending its shares to a year-high.

The maker of computers that companies use to analyze business trends said gross margins in the second quarter were 55.3 percent, up from 54.7 percent a year ago.

Teradata said its margins benefited from higher utilization rates at its professional services segment, which accounts for about 30 percent of its overall revenue.

Sales at lower margin products segment dropped 16 percent to $185 million during the quarter.

For 2009, the Miamisburg, Ohio-based company forecast per-share earnings of $1.22 to $1.28 a share. Analysts are expecting the company to earn $1.19 a share, excluding items, according to Reuters Estimates.

The world’s biggest data warehousing systems provider expects full-year revenue to be down 1 percent to 3 percent on a constant currency basis, from $1.76 billion a year ago.

“Growth is challenging, budgets are tight, sales cycle are long and they are doing a good job controlling cost,” Pacific Crest Securities analyst Mabil Elsheshai said.

Selling, general and administrative expenses were down $10 million from a prior-year period.


Second-quarter net income fell to $62 million, or 36 cents per share, from $69 million, or 38 cents per share, a year earlier.

Revenue fell in all its three regional operating segments, dropping 7 percent to $421 million.

Analysts expected earnings of 25 cents a share, excluding exceptional items, on revenue of $414.3 million, according to Reuters Estimates.

Companies use Teradata’s products as part of business intelligence systems that analyze data about their operations, finances and customers. Its customers include financial companies, large hotel chains and manufacturing firms.

Teradata’s new customer wins in the second quarter include Scandisk Corp SNDK.O data center, which supports the IT needs of more than 140 banks in the Scandinavian region, and car maker Jaguar Landrover (TAMO.BO), the company said on a conference call with analysts.

Shares of the company rose as much as 8 percent before losing some of their gains to trade up about 5 percent at $26.05 in late morning trade on the New York Stock Exchange. (Editing by Ratul Ray Chaudhuri and Saumyadeb Chakrabarty)

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