For the third quarter, revenue was $691 million, up 2% year over year (also up 2% adjusting for currency). Operating income was $95 million in the quarter, down 11% year over year, driven by a 5% increase in total costs and expenses due to increased investments in sales and delivery capacity and higher restructuring costs. The operating income margin was 13.7%, down 2.1 points year over year. Adjusted EBITDA was $188 million, down 4% year over year, and the adjusted EBITDA margin was 27.1%, down 1.7 points year over year. Adjusted EBITDA is defined in Note 1 attached to this release.

For reference, during last year’s third quarter, the Company recognized revenue of $11.5 million from the sale of a customer bankruptcy claim. Excluding this sale, third quarter 2014 revenue grew 4%, operating income was down 1% compared to the prior year and adjusted EBITDA increased 2% year over year.

Year to date, revenue was $2.0 billion, up 1% year over year (also up 1% adjusting for currency) and the Company incurred an operating loss of $117 million, which included a $339 million non-cash impairment charge related to the Availability Services split-off in the first quarter. Adjusted EBITDA was $492 million, down 3% year over year, and the adjusted EBITDA margin was 24.4%. Excluding the impairment charge and the sale of the bankruptcy claim in the third quarter of 2013, year to date revenue grew 2%, operating income declined 4%, and adjusted EBITDA was flat.

Russ Fradin, president and chief executive officer, commented, “Over the past few years, we’ve been making investments to help our customers improve their competitiveness and address the litany of risk and compliance issues that are common in today’s marketplace. We’re providing new functionality, an improved end-user experience and superior delivery, and they’re taking hold in both the established and emerging markets around the world. We’re pleased to see taking hold in both the established and emerging markets around the world. We’re pleased to see these long term commitments improving the top line growth of the company. We will continue to make prudent investments to improve our top and bottom line growth in the future.”

Financial Systems (“FS”) segment revenue was $637 million in the third quarter, up 2% year over year (also up 2% year over year adjusting for currency). Growth in services, as well as broker dealer revenues, more than offset a decline in software license fees. FS segment costs and expenses were $453 million, up 4% year over year, due to investments in sales and delivery capacity. Adjusted EBITDA for the period was $184 million, down 3% from the prior year, and the adjusted EBITDA margin was 28.9%, down 1.6 points from last year. Excluding the sale of the bankruptcy claim in the third quarter of 2013, FS revenue grew 4% and adjusted EBITDA grew 3%.

Year to date, FS revenue was $1.9 billion, up 1% year over year (also up 1% adjusting for currency). For the same period, adjusted EBITDA was $477 million, a decrease of 3%, compared to the prior year, and the adjusted EBITDA margin was 25.7%, down 1.2 points from last year. Excluding the sale of the bankruptcy claim in the third quarter of 2013, year to date FS revenue grew 2%, adjusted EBITDA declined 1%.

Notable SunGard solutions in the quarter included the following deals:

• Valdi was selected by one of the world’s largest financial services firms for a three-year deal to support its growing order management, market access, and compliance requirements.
• Aligne was chosen by a large oil and natural gas producer to support the expansion of its pipeline operations platform.
• Omni Retirement Business Process as a Service (BPaaS) was selected by one of the largest financial services firms in the U.S. to aid in the streamlining of its back-office operations and support new business growth.
• Protegent Surveillance was selected by one of North America’s largest independent broker-dealers to assist in meeting regulatory requirements and better manage the risks within its advisory business.
• XSP platform was chosen by one of the world’s largest financial services firms to automate their corporate actions processing.
• Quantum was selected by a large European car manufacturer to supply a treasury management solution hosted in a private cloud environment.
• Prophet Enterprise was selected by one of the UK’s largest insurance companies in a licensing and services agreement to assist in meeting the increased reporting requirements of Solvency II and reduce its risks within a fully auditable environment.
• IntelliMatch was selected by one of the largest banks in Latin America to provide a centralized platform to automate transaction matching and reconciliation processes across the bank’s wholesale, retail, and wealth management operations.

Public Sector and Education (“PS&E”) segment revenue was $54 million in the third quarter, up 2% year over year. Adjusted EBITDA was $17 million, up 1% year over year, and the adjusted EBITDA margin was 31.2%, down 0.2 points from last year. These results continue to reflect strong demand for our public sector solutions.

Year to date, PS&E revenue was $162 million, up 5% year over year. For the same period, adjusted EBITDA was $50 million, an increase of 4%, compared to the prior year, and the adjusted EBITDA margin was 30.9%, down 0.3 points from last year.

Notable SunGard solutions in the quarter included the following deals:

• ONESolution was selected by a county in Maryland to provide public safety solutions for computer-aided emergency dispatch, records management, jails management, and mobile computing.
• eFinancePLUS was selected by a Maryland public school district to help manage financial, procurement, payroll, and personnel functions.
• ONESolution was selected by a sheriff’s department in Ohio to provide public safety solutions for computer-aided emergency dispatch, records management, and mobile computing.
• eSchoolPLUS, IEPPLUS and PerformanceTRACKER software were chosen by a Pennsylvania school district to manage student information, performance data, and special education information.

Financial Position

For the nine months ended September 30, 2014, the continuing operations of the Company generated $222 million in cash flow from operations. Capital expenditures were $98 million, up $28 million year over year, including a $22 million increase in the capitalization of software due to new product investments.

At September 30, 2014, total debt was $4.7 billion and cash was $396 million. The Company’s leverage ratio, as defined in its senior secured credit agreement, was 5.59x, down from 5.64x at the end of the second quarter. The leverage ratio is calculated using adjusted EBITDA as defined in Note 2 attached to this release. See Note 3 attached to this release for supplemental information on debt.

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