SunGard is reporting a pick up in spending on compliance and regulation after posting "better than expected" first quarter figures.
Across the group, revenue for the three months ended March 2009 was $1.34 billion, an increase of 2.5% compared to the same period in 2008. Adjusted EBITDA declined by just under one per cent to $320 million compared to $322 million in 2008.
Financial systems organic revenue growth was four per cent for the quarter on a constant currency basis. Total revenue from the division increased eight per cent to $742 million for the quarter, bossted by volatility in the broker/dealer segment. Reflecting the challenging sales environment, Q1 license fees slumped to $21 million, down by $9 million on the same quarter in 2008.
Despite the sluggish sales growth, SunGard CEO Cristóbal Conde declared overall performance "better than we expected", and hinted at a change in market sentiment: "While the IT spending mood remains cautious, some of our customers feel that the worst is behind them, and we are starting to see spending pick up in areas such as compliance and regulation."