SunGard reported 2013 Q4 revenue of $1.1bn, flat year over year with income $179m, down 7%.
Adjusted EBITDA was $372 million, down 6% year over year.
For the full year, revenue was $4.1bn, down 2% year over year.
On January 24, 2014, the Company announced its intent to split-off its Availability Services business from the Software and Processing businesses. It is expected this transaction will close as early as March 31, 2014.
Andrew Stern, chief executive officer of SunGard Availability Services: “We’ve made progress at SunGard Availability Services to strengthen and broaden our portfolio of products beyond traditional disaster recovery. As an independent company with $1.4 billion in revenue, we will have the scale, services, and focus to help ensure the availability of critical systems and data for our customers. Our fourth quarter results reflect the significant investments we’ve made in our Enterprise Managed Services, Cloud, and Recovery-as-a-Service (RaaS) solutions. Our infrastructure and services address today’s availability challenges, positioning us well for future growth.”
Full company operating income was $461 million and the operating margin improved to 11.2%, compared to an operating income of $71 million last year, which included a goodwill impairment charge of $385 million.
Adjusted EBITDA was $1.2 billion, down 2% year over year, and the adjusted EBITDA margin was 29.1%, down 0.1 points year over year.
Availability Services revenue was $344 million in the fourth quarter, down 2% year over year (down 3% adjusting for currency), reflecting a reduction in traditional recovery services business. Investments in Recovery-as-a-Service and Cloud-based offerings resulted in adjusted EBITDA of $112m, down 14% from the prior year. For the full year, AS revenue was $1.4 billion, down 2% year over year (also down 2% adjusting for currency), and adjusted EBITDA was $436 million, down 9% from prior year, and the adjusted EBITDA margin was 31.8%, down 2.4 points from last year.
Financial Systems (“FS”) revenue was $717 million in the fourth quarter, up 1% year over year (flat year over year adjusting for currency). Growth in software license fees of 6%, to $97 million, and Professional Services of 7%, to $149 million, was partially offset by modest declines in other areas of the business.
At the end of January 2014, the Company completed the sale of two small businesses within the FS segment with combined annual revenues of $48 million. These businesses are included in our 2013 financial results as discontinued operations.