SunGard Data Systems, the financial software house which is soon to be taken private in the largest-ever buy-out of a technology firm, has posted a five per cent increase in first quarter profit, as higher expenses took their toll on 13% revenue growth.
First quarter profits rose to $89.6 million from $85.6 million in the same period last year. Charges related to the aborted spin-off its availability services business, a data centre relocation and the coming acquisition dampened earnings from revenues of $946.5 million, up 13% from $840.6 million in Q1 2004.
Financial Systems revenue was $456 million for the quarter and declined two per cent from the first quarter of 2004, primarily due to the sale of the Brut ECN to Nasdaq in September 2004. Internal revenue grew approximately six per cent in the quarter, including a one per cent gain from favourable exchange rates. Income in the segment dipped to $77.51 million from $67.5 million a year earlier. License sales were $44 million for the quarter.
The firm is forecasting low to mid single digit growth across its businesses for the full year 2005
SunGard's $10.8 billion acquisition by a consortium of seven private equity firms is expected to close in the third quarter.