Thursday, Teradata Corp. (TDC), a provider of enterprise data warehousing solutions, reported a decline in profit for the second quarter, due to lower revenues which is negatively affected by currency translation by 5 percentage points. However, the company's per share earnings beat the analysts estimates by a penny.
Net income for the second quarter declined to $62 million or $0.36 per share from $69 million or $0.38 per share in the previous year.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 7% to $421 million from $455 million last year. Revenue decreased 2% from the second quarter of 2008, when adjusted for 5 percentage points of negative impact from currency fluctuation. Three analysts had a consensus revenue estimate of $413.93 million for the quarter.
Products revenue declined 16% to $185 million from $221 million a year earlier. Services revenue increased to $236 million from $234 million a year ago.
By geography, revenues from Americas declined 3% to $229 million from $236 million last year. Revenue declined 1%, when adjusted for 2 percentage points of negative impact from currency translation.
Europe, Middle East and Africa or EMEA region reported revenues of $118 million, down 8% from $128 million a year ago. Revenue increased 6% when adjusted for currency translation, which negatively impacted the revenue comparison in the EMEA region by 14 percentage points.
Revenues from Asia Pacific/Japan region declined 19% to $74 million from $91 million in the previous year. The revenue decline in the APJ region was 17%, when adjusted for 2 percentage points of negative impact from currency translation.
Gross margin for the quarter increased to 55.3% from $54.7% in the previous year.
For the six-month period, net income declined to $107 million or $0.61 per share from $111 million or $0.61 per share in the same period of the previous year. Total revenues for the period declined 5% to $788 million from $830 million a year ago.
Looking forward, the company expects earnings in the range of $1.22 to $1.28 per share for the full year 2009. Analysts expect the company to report earnings of $1.18 for the fiscal 2009.
TDC is currently trading at $26.75, up 1.83 or 7.36%, on a volume of 1.87 million shares on the NYSE.
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