SunGard Announces First Quarter 2008 Results

Business Wire, May 8, 2008

WAYNE, Pa. -- SunGard, one of the world's leading software and IT services companies, reported today that revenue for the three months ended March 31, 2008 was $1.30 billion, an increase of 17% compared to the same period in 2007. Organic revenue (revenue from businesses owned for at least one year, and excluding revenue from businesses sold in the previous twelve months) grew 13% compared to the same period in 2007, including an approximately 6% increase attributable to one of our broker/dealer businesses and a 1% impact of changes in currency exchange rates overall and in each of our affected segments.

Adjusted income from operations (defined in Note 1 to the Notes to the Consolidated Condensed Financial Information) for the three months ended March 31, 2008 was $257 million, a 13% increase compared to the same period in 2007.

Reported income from operations for the three months ended March 31, 2008 was $124 million, an increase of 9% compared to the same period in 2007. Reported income from operations in the three months ended March 31, 2008 and 2007 includes amortization of acquired intangible assets of $112 million and $104 million, respectively, and stock-based compensation and purchase accounting adjustments and other expenses of $21 million and $9 million, respectively.

For the three months ended March 31, 2008, adjusted EBITDA (defined in Note 2 to the Notes to the Consolidated Condensed Financial Information) was $322 million, an increase of 12% compared to the same period in 2007.

Cristobal Conde, president and chief executive officer, commented, "SunGard's performance for the quarter was particularly strong. Our businesses remain very competitive despite the uncertain economic and IT spending climate. The credit crisis has not impacted our results yet, although it has caused some of our global accounts in Financial Systems to slow their IT spending. We expect to see some impact in the second half of the year but our recurring revenue model and multi-year contracts will help reduce any impact on our results. Overall, we are monitoring our pipelines and the tone of business closely."

Financial Systems revenue increased 27% to $687 million for the quarter. Organic revenue grew approximately 23%. This included an approximately 12% increase attributable to one of our broker/dealer businesses, which exceeded our expectations for the quarter and is not expected to continue. License fees were $30 million for the quarter, an increase of 15% compared to the same period in 2007.

Notable deals in the quarter included the following:

* A large investment management firm renewed its contract for Phase3 and selected WealthStation for its institutional and retail trading and clearing operations and for wealth management.

* A major electricity distribution company based in France selected AvantGard to streamline its payment flows.

* A bank headquartered in Kazakhstan selected Ambit for core banking and customer service management.

Higher Education revenue decreased 5%, all of which was organic, to $126 million for the quarter. License fees were $4 million for the quarter, a decrease of $4 million from the same quarter of 2007.

Notable deals in the quarter included the following:

* A private university in the U.S. extended its relationship with SunGard Higher Education to expand the level of IT service available to its campus community.

* One of the largest community college districts in the U.S. chose SunGard Higher Education to automate its student, human resources, business and foundation information services.

* A public college in the U.S. chose SunGard Higher Education's full range of Banner Unified Digital Campus solutions to integrate all of its information management needs.

Public Sector Systems revenue increased 2% to $101 million for the quarter. Organic revenue grew 1%. License fees were $5 million for the quarter, a decrease of $2 million from the same quarter of 2007.

Notable deals in the quarter included the following:

* A Florida school district selected SunGard Public Sector to provide enterprise resource planning software.

* A county public safety agency in North Carolina selected SunGard Public Sector to provide computer-aided dispatch, records management and mobile support.

* A Colorado school district selected SunGard Public Sector to provide financial and administrative software.

Availability Services revenue increased 13% to $388 million for the quarter. Organic revenue grew 8%.

Notable deals in the quarter included the following:

* A large pharmaceutical manufacturing company selected SunGard for disaster recovery services.

* An educational lending not-for-profit selected SunGard for managed and disaster recovery services.

* An educational services corporation selected SunGard for managed services.

At March 31, 2008, total debt was $7.63 billion, cash balances were $427 million and off-balance sheet debt was $450 million. During the three months ended March 31, 2008, the Company invested $84 million in capital expenditures and $64 million (net of cash acquired) in two acquisitions.