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Teradata 3Q Profit Up 5% Amid Lower Expenses; EPS Tops Views

DOW JONES NEWSWIRES

Teradata Corp.'s (TDC) third-quarter earnings rose 5% amid lower expenses and the results beat analysts' expectations.

The company also raised its 2009 earnings forecast to $1.34 to $1.38 a share from its boosted August view of $1.22 to $1.28.

The company, which stores and analyzes business data, has announced a number of high-profile new clients in recent weeks - including Electronic Arts Inc. ( ERTS), Home Depot Inc. (HD) and Union Pacific Corp. (UNP).

Though Teradata faces competition from heavyweights such as Oracle Corp. ( ORCL) and International Business Machines Corp. (IBM), the company earlier this year announced a partnership with German software company SAP AG (SAP, SAP.XE) to integrate software and systems. Analysts see the SAP relationship as one driver of future growth.

Additionally, Teradata has been adding to its product line and expanding its sales territories and sales force.

Teradata reported earnings of $63 million, or 36 cents a share, compared with $60 million, or 33 cents a share, a year ago. Excluding write-downs and other impacts, profit rose to 38 cents from 36 cents.

Revenue declined 3% to $425 million, with one percentage point of the decline owing to foreign-exchange impacts

Analysts polled by Thomson Reuters expected earnings of 29 cents on revenue of $426 million.

Gross margin fell to 53.4% from 54%.

Revenue in the Americas region dropped 2%, but rose 3% in the Europe, Middle East and Africa segment. The Far East region, meanwhile, posted a 14% decline.

Teradata's shares closed Wednesday at $29.03 and were inactive premarket.

-By Jennifer Hodson, and Tess Stynes, Dow Jones Newswires; 212-416-2269; jennifer.hodson@dowjones.com

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