SunGard has posted a 14% jump in profits for the second quarter ending June 30 2004 compared to the same period last year, helped by an improved business environment.
Cristobal Conde, president and chief executive officer, says the tone of business is better than it was a year ago, which bodes well for the longer-term prospects of the business. He says customers' priorities are shifting from cost cutting and containment to strategic investment in revenue opportunities and regulatory compliance.
The vendor reported net income of $103m in the quarter, compared with $90m in the same period last year.
But the company, which has bought out more than 100 businesses, continues to drive profits and revenues through its acquisition drive. While overall revenue for the second quarter increased 22% to $899m, internal revenue from businesses owned for more than a year was up just three per cent. However, excluding the Brut ECN, the sale of which is pending, SunGard's internal revenue growth for the quarter was zero.
At Investment Support Systems (ISS), the umbrella group for SunGard's diverse financial services business, revenue grew 18% to $464m for the quarter. ISS internal revenue grew four per cent, but excluding the impact of Brut, internal revenue growth for unit was zero.
Revenue at SunGard's Availability Services (AS) unit increased one percent to $294 million for the quarter.
Conde says internal revenue growth for the balance of 2004, excluding Brut, will be similar to or modestly better than in the second quarter.
SunGard announced in May it was selling the Brut ECN to Nasdaq for $190m in cash.