Fintech firm SunGard says license revenue at its financial systems division fell $9 million to $29m in the third quarter ending 30 September 2005, a 24% drop from a year ago.
SunGard is reporting overall group revenue in Q3 2005 at $977m, a nine per cent increase from a year ago. But third quarter adjusted Ebitda fell three per cent to $278m, compared to $286m a year ago.
Reported revenue at the group's financial systems unit fell three per cent in Q3 2005 to $449 million. The results for the third quarter of 2004 include the results of Brut LLC, which was sold in September of 2004. Internal revenue from businesses owned for more than a year grew approximately three per cent.
Elsewhere the group's availabilty services division posted a 12% rise in reported revenue to $323 million, although this was due primarily to the acquisition of Inflow in the first quarter of 2005.
The group's higher education and public sector systems reported a 28% revenue increase to $193 million for the third quarter, due primarily to the acquisition of Vivista Holdings in Q1 2005.
Cristobal Conde, SunGard's president and chief executive officer, maintains that the performance year to date is consistent with overall expectations for the year "despite some softness in our license-based businesses in the third quarter".
SunGard's $10.8 billion acquisition by a consortium of seven private equity firms was completed in the third quarter. Conde says the acquisition has been received positively and as a privately-held company, the interests of various stakeholders are now more closely aligned.