Revenue for the first quarter was $440.8 million, an increase of 15% over revenue of $384.7 million for the year-ago quarter.
SunGard realized solid revenue and net income results in the first quarter, positioning us well for the year. More and more, financial services institutions rely on integrated SunGard solutions to provide operational and cost benefits and to improve customer retention. Straight-through processing represents a huge opportunity for SunGard, an opportunity not only to help our clients compete, but to influence real change in the financial services industry. SunGard systems are now processing over three million trades daily, routing nearly 70% of Nasdaq trade orders, and managing over $15 trillion in investment assets, commented James L. Mann, chairman and chief executive officer.
The related diluted net income per share was $0.39, up 22% over the $0.32 reported for the first quarter in 2000. Cash earnings per share, which excludes after-tax amortization of acquisition-related intangibles, were $0.46 for the quarter, compared to $0.39 for the same period in 2000.
The financial services industry’s demand for technology fuels our growth. The drive for straight-through processing is even more compelling in the current economic climate, where integration and integrated solutions are viewed as essential for achieving operational efficiencies. With that in mind, we reiterate our outlook for 2001 diluted net income per share in the range of $1.91 to $1.96, Mr. Mann added.
Investment Support Systems (ISS) revenue grew 15% to $323 million for the quarter. With an extensive client base spanning every segment of the financial services industry and well over 300 product offerings, SunGard has a broad and diversified revenue stream. This footprint uniquely positions the company to offer integrated solutions that drive straight-through processing between market participants. In the first quarter, this integrated approach yielded some of SunGard’s largest deals ever.
Robertson Stephens signed an important contract to become the first SunGard PowerStation user. They chose this integrated solution, which extends their contract for Phase3, because it offers far more functionality than any other single solution or suite of products. SunGard PowerStation combines existing, market-leading functionality that enables SunGard clients to provide online investment and trading, financial planning and advice and portfolio management. SunGard PowerStation also integrates with the Phase3 real-time securities processing solution.
Paris-based Dexia, which licensed several integrated SunGard solutions last year, has also signed for APSYS, SunGard’s international, multilingual, multi-currency banking system. This marks the largest deal to date for APSYS.
INVEST ONE signed two multi-million dollar, multi-year renewals for its leading investment accounting solution that provides comprehensive straight-through processing. This business also signed its largest contract ever for professional services.
Business Continuity and Internet Services (BCIS) revenue increased 14% to $110 million. BCIS has been providing business continuity for more than 20 years and enjoys a 100% success rate for system and network recoveries. SunGard clients value the flexibility that enables them to evolve their business from a legacy to Web-enabled and hosted model. BCIS offers clients the ability to support any business continuity paradigm and service level, ranging from traditional disaster recovery to continuous, high-availability infrastructure for mission-critical applications.
SOURCE: COMPANY PRESS RELEASE
