Sungard Data Systems Inc. Announces 1998 Results

Business Wire, Feb 12, 1999

WAYNE, Pa.--(BUSINESS WIRE)--Feb. 11, 1999--SunGard Data Systems Inc. (NYSE:SDS) reported today that net income for the twelve months ended Dec. 31, 1998, excluding one-time charges for merger costs, was $128,565,000, up 49% over originally reported net income of $86,541,000 for the same period in 1997.

The related diluted net income per share was $1.19 for the year, a 23% increase over originally reported 1997 diluted earnings per share of $0.97.

For the quarter ended Dec. 31, 1998, net income and diluted net income per share, excluding such charges, were $37,702,000 and $0.35, respectively, increases of 48% and 25% over the $25,420,000 and $0.28, originally reported for the fourth quarter of 1997.

Restated for the pooling-of-interests with Infinity Financial Technology Inc., full-year net income and diluted net income per share before one-time charges increased 37% and 32%, respectively, from $93,521,000 and $0.90 for the same period in 1997.

Including one-time charges, net income and diluted net income per share for full-year 1998 were $118,933,000 and $1.10, respectively, compared to restated 1997 net income and diluted net income per share of $83,975,000 and $0.81, respectively.

On a restated basis, fourth-quarter 1998 net income and diluted net income per share, before merger costs, increased 42% and 40%, respectively, over restated fourth-quarter 1997 results of $26,474,000 and $0.25.

Including the merger costs, fourth-quarter 1998 net income and diluted net income per share were $38,228,000 and $0.35, compared to restated fourth-quarter 1997 net income and diluted net income per share of $23,622,000 and $0.22, respectively.

For the full year 1998, revenues were $1,159,748,000 an increase of 35%, compared to originally reported revenues for full-year 1997 of $862,151,000. On a restated basis, revenues for the full year 1998 increased 25%. For the three months ended Dec. 31, 1998, revenues were $320,866,000, an increase of 27%, compared to originally reported fourth-quarter 1997 revenues of $252,594,000. On a restated basis, fourth-quarter 1998 revenues increased 19%.

James L. Mann, chairman and chief executive officer, stated, "Having reached our year 2000 revenue target of $1 billion more than a year early, we are very proud of our 1998 results. Revenue and income continue to grow steadily. Over the past five years, revenues have increased at an annual compound growth rate of nearly 25%, with net income increasing at a rate greater than 25%. More importantly, net income, excluding merger costs and other nonrecurring items, has grown at a five year annual compound growth rate of approximately 30%."

Mann added, "Our style of managed entrepreneurship has served us very well since 1983, enabling SunGard to achieve consistent and substantial growth. It has supported our growth in revenue to exceed $1 billion in 1998, and will continue to serve us well as we grow toward $2 billion. We are confident that we will continue to grow by at least 20%, which indicates an outlook for 1999 diluted earnings per share of $1.43." (See box below, including, in particular the reference to the potential impact of year 2000 issues on software buying decisions.)

SunGard's business is computer service and application software. The Company is the only large specialized provider of proprietary investment support systems and is the pioneer and a leading provider of comprehensive computer disaster recovery services. Its common stock is reported on the New York Stock Exchange under the symbol SDS.

"Safe Harbor" Statement under Private Securities Litigation

Reform Act of 1995

Statements about the Company's 1999 outlook and all other statements in this release other than historical facts are forward-looking statements. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.

The Company derives most of its forward-looking statements from its operating budgets and forecasts, which are based upon many detailed assumptions.

While the Company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting certain important factors, especially the timing and magnitude of software sales, the effect of year 2000 issues on software and services buying decisions, the timing and scope of technological advances and year 2000 compliance, the integration and performance of acquired businesses, the prospects for future acquisitions, and the overall condition of the financial services industry.

These factors, as and when applicable, are discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K, a copy of which may be obtained from the Company without charge. -0-