Shares of Teradata Corp. (TDC) plunged nearly eleven percent in extended trade on Thursday after the enterprise data warehousing solutions provider lowered its guidance for the full-year 2013 as results for the first quarter missed analysts' expectations. Meanwhile, the company reported a profit that declined from last year, reflecting significantly lower margins and a revenue decline.
"As we expected, Teradata got off to a slow start in the first quarter of 2013. Although we continue to see softness in large capital purchases, we continue to have strong market momentum with our Aster Big Data Analytics and Integrated Marketing solutions as well as our Unified Data Architecture which helps organizations drive value from all of their data," President and CEO Mike Koehler said in a statement.
The Dayton, Ohio-based company reported net income of $59 million or $0.35 per share for the first quarter, lower than $91 million or $0.53 per share in the prior-year quarter.
Excluding stock-based compensation expense, adjusted net income for the quarter was $73 million or $0.43 per share, compared to $103 million or $0.60 per share in the year-ago quarter.
On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the first quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter declined 4 percent to $587 million from $613 million in the same quarter last year, and missed twenty-one Wall Street analysts' consensus estimate of $612.09 million. Revenue decreased only 3 percent in constant currency.
Product (software/hardware) revenues declined 19 percent to $249 million, while total services revenues grew 11 percent to $338 million from last year, with consulting services revenues increasing 13 percent, and maintenance services revenues advancing 9 percent.
Americas revenues declined 9 percent to $355 million, while international revenues grew 3 percent to $232 million from a year-ago quarter.
Operating margin for the quarter contracted 780 basis points to 12.9 percent from last year's 20.7 percent as gross margin declined 310 basis points to 52.0 percent from last year.
Looking ahead to fiscal 2013, Teradata currently expects adjusted earnings at the lower end of its prior guidance range of $3.05 to $3.20 per share, and quarterly revenue growth is also anticipated at the lower end of the earlier forecast of 6 to 10 percent from the $2.67 billion revenue it generated in fiscal 2012, implying annual revenues between $2.83 billion and $2.94 billion.
Street is currently looking for full-year 2013 earnings of $3.08 per share, on annual revenues of $2.88 billion.
"In 2013, we will continue to increase our investments in research and development and market coverage in order to further advance our leadership positions and grow our revenues in Data Warehousing, Big Data Analytics, and Integrated Marketing Management in the years to come," Koehler added.
TDC closed Thursday's regular trading session at $53.06, up $1.72 or 3.35% on a volume of 3.49 million shares. However, the stock plunged $5.80 or 10.93% in after-hours trading.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.