<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period ended
September 30, 1994 or
------------
[ ] Transition report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934 for the transition period from
________to________
COMMISSION FILE NUMBER 0-14232
SUNGARD(R) DATA SYSTEMS INC.
-------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 51-0267091
- - ------------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1285 DRUMMERS LANE, WAYNE, PENNSYLVANIA 19087
---------------------------------------------
(Address of principal executive offices, including zip code)
(610) 341-8700
---------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
There were 18,860,916 shares of the registrant's common stock, par value $.01
per share, outstanding at September 30, 1994.
<PAGE>
SUNGARD DATA SYSTEMS INC.
AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PAGE
----
<C> <S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets as of September 30, 1994
(unaudited) and December 31, 1993...................................... 1
Consolidated Statements of Income for the nine and three months
ended September 30, 1994 and 1993 (unaudited).......................... 2
Supplemental Income Statement Information for the nine and three
months ended September 30, 1994 and 1993 (unaudited)................... 2
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1994 and 1993 (unaudited).......................... 3
Notes to Consolidated Financial Statements (unaudited)................. 4
Calculation of Net Income Per Share (unaudited)........................ 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operation............................................... 6
PART II. OTHER INFORMATION
Item 1. Legal Proceedings...................................................... 9
Item 2. Changes in Securities.................................................. 9
Item 3. Defaults upon Senior Securities........................................ 9
Item 4. Submission of Matters to a Vote of Security Holders.................... 9
Item 5. Other Information...................................................... 9
Item 6. Exhibits and Reports on Form 8-K....................................... 9
SIGNATURES ..................................................................... 10
LIST OF EXHIBITS ............................................................... 11
</TABLE>
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
- - ----------------------------
SUNGARD DATA SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Sept. 30
1994 Dec. 31,
(Unaudited) 1993
----------- ----------
<S> <C> <C>
ASSETS
Current:
Cash and equivalents................................................................................... $ 53,162 $ 51,955
Short-term investments, at cost, which approximates market............................................. 35,797 32,824
Trade receivables, less allowance for doubtful accounts of $8,760 and $6,969........................... 77,868 74,053
Earned but unbilled receivables........................................................................ 12,104 12,213
Prepaid expenses and other current assets.............................................................. 14,695 13,895
Deferred income taxes.................................................................................. 7,111 5,690
---------- ---------
Total current assets................................................................................. 200,737 190,630
Property and equipment, less accumulated depreciation of $101,254 and $85,098........................... 84,729 77,556
Software products, less accumulated amortization of $44,431 and $37,931................................. 26,013 27,615
Goodwill, less accumulated amortization of $14,273 and $11,888.......................................... 96,122 84,852
Other tangible and intangible assets, less accumulated amortization of $19,917 and $14,535.............. 55,791 37,482
---------- ---------
$ 463,392 $ 418,135
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Short-term and current portion of long-term debt....................................................... $ 8,259 $ 3,162
Accounts payable....................................................................................... 9,200 7,191
Accrued compensation and benefits...................................................................... 18,345 19,466
Other accrued expenses................................................................................. 13,705 11,528
Accrued income taxes................................................................................... 6,790 4,069
Deferred revenues...................................................................................... 45,356 45,633
---------- ---------
Total current liabilities............................................................................ 101,655 91,049
---------- ---------
Long-term debt.......................................................................................... 3,184 3,361
---------- ---------
Deferred income taxes................................................................................... 7,652 6,765
---------- ---------
Stockholders' equity:
Preferred stock, par value $.01 per share; 5,000 shares authorized..................................... - -
Common stock, par value $.01 per share; 60,000 shares authorized;
18,861 and 18,801 issued.............................................................................. 189 188
Capital in excess of par value......................................................................... 162,023 161,149
Restricted stock plans................................................................................. (1,226) (2,156)
Retained earnings...................................................................................... 192,619 162,034
Foreign translation adjustment......................................................................... (2,639) (4,041)
---------- ---------
350,966 317,174
Treasury stock, at cost, 2 and 6 shares................................................................ (65) (214)
---------- ---------
Total stockholders' equity............................................................................ 350,901 316,960
---------- ---------
$ 463,392 $ 418,135
========== =========
</TABLE>
See accompanying notes
1
<PAGE>
SUNGARD DATA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------ ------------------------
1994 1993 1994 1993
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues...................................... $ 316,652 $ 276,198 $ 109,908 $ 94,031
---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales and direct operating.......... 143,240 126,744 49,504 42,265
Sales, marketing and administration......... 63,514 55,334 21,836 18,677
Product development......................... 26,562 25,466 9,119 8,398
Depreciation of property and equipment...... 17,484 14,590 6,126 5,178
Amortization of intangible assets........... 15,626 11,572 5,798 4,212
---------- ---------- ---------- ----------
266,426 233,706 92,383 78,730
---------- ---------- ---------- ----------
Income from operations........................ 50,226 42,492 17,525 15,301
Gain on sale of product line................ - 4,071 - -
Interest income............................. 2,223 2,201 827 696
Interest expense............................ (610) (3,184) (142) (178)
---------- ---------- ---------- ----------
Income before income taxes.................... 51,839 45,580 18,210 15,819
Income taxes................................ 21,254 17,719 7,466 6,487
---------- ---------- ---------- ----------
Net income.................................... $ 30,585 $ 27,861 $ 10,744 $ 9,332
========== ========== ========== ==========
Net income per common share:
Primary..................................... $ 1.59 $ 1.59 $ 0.56 $ 0.49
========== ========== ========== ==========
Fully diluted............................... $ 1.59 $ 1.54 $ 0.56 $ 0.49
========== ========== ========== ==========
Shares used to compute net income per common share:
Primary..................................... 19,256 17,529 19,251 19,171
========== ========== ========== ==========
Fully diluted............................... 19,256 19,145 19,251 19,187
========== ========== ========== ==========
====================================================================================================================================
</TABLE>
SUNGARD DATA SYSTEMS INC.
SUPPLEMENTAL INCOME STATEMENT INFORMATION
(IN THOUSANDS)
UNAUDITED
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------ ------------------------
1994 1993 1994 1993
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Investment support systems.................. $ 195,872 $ 176,674 $ 66,700 $ 58,987
Disaster recovery services.................. 100,683 81,206 36,213 28,878
Computer services and other................. 20,097 18,318 6,995 6,166
---------- ---------- ---------- ----------
$ 316,652 $ 276,198 $ 109,908 $ 94,031
========== ========== ========== ==========
Income from operations:
Investment support systems.................. $ 31,896 $ 28,035 $ 10,447 $ 8,595
Disaster recovery services.................. 20,747 17,673 7,873 7,278
Computer services and other................. 3,411 1,985 1,294 978
Corporate administration.................... (5,828) (5,201) (2,089) (1,550)
---------- ---------- ---------- ----------
Operating margin: $ 50,226 $ 42,492 $ 17,525 $ 15,301
========== ========== ========== ==========
Investment support systems.................. 16.3% 15.9% 15.7% 14.6%
========== ========== ========== ==========
Disaster recovery services.................. 20.6% 21.8% 21.7% 25.2%
========== ========== ========== ==========
Computer services and other................. 17.0% 10.8% 18.5% 15.9%
========== ========== ========== ==========
Total....................................... 15.9% 15.4% 15.9% 16.3%
========== ========== ========== ==========
</TABLE>
See accompanying notes
2
<PAGE>
SUNGARD DATA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------
1994 1993
---------- ----------
<S> <C> <C>
CASH FLOW FROM OPERATIONS:
Net income................................................................................... $ 30,585 $ 27,861
Reconciliation of net income to cash flow from operations:
Depreciation and amortization............................................................... 33,110 26,162
Net gain on sale of product line............................................................ - (3,371)
Charges for incentive stock plans........................................................... 1,094 1,072
Other noncash charges (credits)............................................................. (25) (865)
Deferred income tax provision (benefit)..................................................... (3,072) 1,012
---------- ---------
61,692 51,871
Cash provided by (used for) working capital, net of effect of acquired businesses
and sale of product line:
Accounts receivable and other current assets................................................ (3,248) (6,000)
Accounts payable and accrued expenses....................................................... 291 (4,749)
Deferred revenues........................................................................... (1,129) (3,451)
---------- ---------
Cash flow from operations.................................................................. 57,606 37,671
---------- ---------
FINANCING ACTIVITIES:
Proceeds from employee stock plans........................................................... 572 1,690
Repayments of notes payable and long-term debt............................................... (1,331) (2,866)
---------- ---------
Total financing activities................................................................. (759) (1,176)
---------- ---------
LONG-TERM INVESTMENT ACTIVITIES:
Cash paid for acquired businesses............................................................ (27,761) (23,627)
Cash paid for property and equipment......................................................... (22,196) (26,277)
Cash paid for software and other assets...................................................... (2,710) (4,128)
Proceeds from sale of assets................................................................. - 11,237
---------- ---------
Total long-term investment activities..................................................... (52,667) (42,795)
---------- ---------
Increase in cash and equivalents before short-term investment activities...................... 4,180 (6,300)
SHORT-TERM INVESTMENT ACTIVITIES:
Purchase of short-term investments........................................................... (39,268) (23,320)
Maturities of short-term investments......................................................... 36,295 14,823
---------- ---------
Increase in cash and equivalents.............................................................. 1,207 (14,797)
Beginning cash and equivalents................................................................ 51,955 60,097
---------- ---------
Ending cash and equivalents................................................................... $ 53,162 $ 45,300
========== =========
NON-CASH ACTIVITIES:
Reduction of long-term debt, net of debt issuance costs, resulting from conversion of
subordinated convertible debentures into common stock....................................... - (83,993)
========== =========
SUPPLEMENTAL INFORMATION:
Acquired businesses:
Property and equipment...................................................................... 2,012 4,273
Software products........................................................................... 2,620 2,372
Goodwill and other intangible assets........................................................ 37,418 24,179
Debt assumed or created..................................................................... (6,214) (1,965)
Deferred income taxes....................................................................... (3,234) -
Net current assets acquired (liabilities assumed)........................................... (4,841) (5,232)
---------- ---------
Cash paid for acquired businesses, net........................................................ $ 27,761 $ 23,627
========== =========
</TABLE>
See accompanying notes
3
<PAGE>
SUNGARD DATA SYSTEMS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions for Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the nine month period ended September 30, 1994 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1994. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended December 31, 1993.
2. Effective April 30, 1994, the Company's disaster recovery business
completed the acquisition of disaster recovery subscriber contracts and
certain other assets of XL/DataComp, Inc., a wholly-owned subsidiary of
Storage Technology Corporation. The acquisition is not expected to have a
material effect on the Company's financial condition or results of
operations.
3. On May 9, 1994, stockholders approved an increase to the number of
authorized shares of common stock by 30 million shares, bringing total
authorized shares of common stock to 60 million shares.
4. On September 8, 1994, the Company's investment support systems business
completed the acquisition of Portfolio Administration Limited, a London-
based provider of portfolio administration, record keeping and portfolio
valuation processing services. The acquisition is not expected to have a
material effect on the Company's financial condition or results of
operations.
4
<PAGE>
SUNGARD DATA SYSTEMS INC.
CALCULATION OF NET INCOME PER SHARE
(THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------- --------------------
1994 1993 1994 1993
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Primary:
Average shares outstanding......................................... 18,828 17,062 18,855 18,714
Dilutive stock options, net of treasury shares..................... 428 467 396 457
--------- --------- --------- ---------
Adjusted shares outstanding........................................ 19,256 17,529 19,251 19,171
========= ========= ========= =========
Net income......................................................... $ 30,585 $ 27,861 10,744 $ 9,332
========= ========= ========= =========
Net income per share............................................... $ 1.59 $ 1.59 0.56 $ 0.49
========= ========= ========= =========
=======================================================================================================================
Fully Diluted:
Average shares outstanding......................................... 18,828 17,062 18,855 18,714
Assumed conversion of 8.25% subordinated debentures................ - 1,608 - -
Dilutive stock options, net of treasury shares..................... 428 475 396 473
--------- --------- --------- ---------
Adjusted shares outstanding........................................ 19,256 19,145 19,251 19,187
========= ========= ========= =========
Net income......................................................... $ 30,585 $ 27,861 10,744 $ 9,332
Assumed interest expense savings on
subordinated debentures, net of income taxes..................... - 1,565 - -
--------- --------- --------- ---------
Adjusted net income................................................ $ 30,585 $ 29,426 10,744 $ 9,332
========= ========= ========= =========
Net income per share............................................... $ 1.59 $ 1.54 0.56 $ 0.49
========= ========= ========= =========
</TABLE>
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
INCOME FROM OPERATIONS:
Investment Support Systems (ISS):
The ISS operating margin increased slightly during the nine month period
ended September 30, 1994, compared to the corresponding period in 1993, due
primarily to higher software license revenues and a net improvement in margins
of businesses acquired since 1992. The ISS operating margin increased during
the three month period ended September 30, 1994, compared to the corresponding
period in 1993, due primarily to higher software license revenues. The Company
expects that the ISS operating margin for the full year 1994 will be comparable
to the 1993 ISS operating margin.
Disaster Recovery Services (DRS):
The DRS operating margin declined during the nine and three month periods
ended September 30, 1994, compared to the corresponding periods in 1993. The
declines were due primarily to costs associated with equipment expenditures and
new marketing programs, partially offset by the favorable effect of businesses
acquired since May 1993. The nine month operating margin comparison was also
affected by higher disaster fees in 1993 due to the World Trade Center bombing
in February 1993. The Company expects that the DRS operating margin will remain
at approximately 20% for the full year 1994.
Computer Services and Other (CS):
The CS operating margin increased during the nine and three month periods
ended September 30, 1994, compared to the corresponding periods in 1993. The
increases were due primarily to an increase in revenues, partially offset by
1993 revenues from the product line sold, as well as the effect of a charge
recorded in 1993 in connection with the move of certain Computer Services
operations. The Company expects that the CS operating margin will be higher for
the full year 1994 compared to 1993.
The Company believes that its business is not seasonal; nevertheless, the
timing and magnitude of software sales, commitments for equipment and
facilities, product development efforts and disaster recovery activities may
cause profitability to fluctuate from one quarter to another.
REVENUES:
Total revenues for the nine and three month periods ended September 30,
1994 increased $40.5 million, or 15%, and $15.9 million, or 17%, compared to the
corresponding periods in 1993. Acquired businesses, net of the 1993 product
line sold, account for approximately $16.5 million and $4.1 million of the
respective increases. Recurring revenues derived from remote processing
services, alternate-site services and software maintenance are $269.5 million
and $234.7 million for the nine month periods ended September 30, 1994 and 1993,
respectively, representing 85% of consolidated revenues.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(Continued)
REVENUES:
(Continued)
Investment Support Systems:
ISS revenues for the nine and three month periods ended September 30, 1994
increased $19.2 million, or 11%, and $7.7 million, or 13%, compared to the
corresponding periods in 1993. Acquired businesses account for approximately
$6.4 million and $1.5 million of the respective increases. During the nine
month period, the remaining increase is attributable to increases in data
processing and software maintenance revenues of $9.3 million and software
license and professional services revenues of $3.5 million. In the three month
period, the remaining increase is attributable to an increase in data processing
and software maintenance revenues of $3.0 million and software license and
professional services revenues of $3.2 million.
The Company expects that ISS revenues will be higher for the full year 1994
compared to 1993. The Company believes that the trend of mergers in the
financial services industry, especially banks and mutual funds, will continue,
but it is unable to predict the overall effect, if any, future mergers may have.
Disaster Recovery Services:
DRS revenues for the nine and three month periods ended September 30, 1994
increased $19.5 million, or 24%, and $7.3 million, or 25%, compared to the
corresponding periods in 1993. Acquired businesses account for approximately
$9.1 million and $2.6 million of the respective increases. Alternate-site
services revenues resulting primarily from new contract signings and renewals
account for the balance of the increases. The Company expects that DRS revenues
will be higher for the full year 1994 compared to 1993 due primarily to new
contracts and acquired businesses.
The Company believes that mainframe computer platforms will continue to
play an integral role in data processing solutions for the foreseeable future
and, therefore, will continue to provide a market for the Company's principal
DRS services. In addition, the Company believes that midrange and client/server
and local- and wide-area-network technologies increasingly will become
components of distributed data processing systems, and that they represent
incremental market opportunities for the DRS business.
Computer Services and Other:
CS revenues for the nine and three month periods ended September 30, 1994
increased $1.8 million, or 10%, and $0.8 million, or 13%, compared to the
corresponding periods in 1993. Excluding 1993 revenues from the product line
sold in February 1993, revenues during the first nine
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(Continued)
REVENUES:
(Continued)
months of 1994 increased $2.8 million, or 16%. The Company expects that CS
revenues will be higher for the full year 1994 compared to 1993.
COSTS AND EXPENSES:
Total costs and expenses for the nine and three month periods ended
September 30, 1994 increased $32.7 million and $13.7 million, or 14% and 17%,
respectively, compared to the corresponding periods in 1993.
Cost of sales and direct operating expenses for the nine and three month
periods ended September 30, 1994 increased $16.5 million and $7.2 million, or
13% and 17%, respectively, compared to corresponding periods in 1993. The
increase is due primarily to acquired businesses net of the product line sold,
equipment upgrades, and servicing remote access customers.
Sales, marketing and administration expenses for the nine and three month
periods ended September 30, 1994 increased $8.2 million and $3.2 million, or 15%
and 17%, respectively, compared to the corresponding periods in 1993. The
increase is due primarily to acquired businesses net of the product line sold,
and expansion of sales and marketing efforts in the DRS business.
Product development expenses for the nine and three month periods ended
September 30, 1994 increased $1.1 million and $0.7 million, or 4% and 9%,
respectively, compared to the corresponding periods in 1993. The increase is
due primarily to development spending in connection with certain trust and
shareholder systems products.
Depreciation of property and equipment for the nine and three month periods
ended September 30, 1994 increased $2.9 million and $1.0 million, or 20% and
18%, respectively, compared to the corresponding periods in 1993. The increase
is due primarily to acquired businesses net of the product line sold, and DRS
and ISS equipment additions.
Amortization of intangible assets for the nine and three month periods
ended September 30, 1994 increased $4.0 million and $1.6 million, or 35% and
38%, respectively, compared to the corresponding periods in 1993. The increase
is due primarily to acquired businesses, net of the product line sold.
Interest expense for the nine month period ended September 30, 1994
decreased $2.6 million compared to the corresponding period in 1993 due
primarily to the conversion of the Company's subordinated convertible debentures
on May 12, 1993.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(Continued)
COSTS AND EXPENSES:
(Continued)
The Company's effective income tax rate is higher for the nine month period
ended September 30, 1994 compared to the corresponding period in 1993 due
primarily to a lower effective tax rate associated with the gain on the 1993
sale of the product line.
LIQUIDITY AND CAPITAL RESOURCES:
At September 30, 1994, cash and short-term investments increased $4.2
million to $89.0 million from $84.8 million at December 31, 1993. Capital
expenditures for property and equipment were $22.2 million during the first nine
months of 1994. The Company believes that existing cash resources and cash
generated from operations will be sufficient to meet its operating requirements
and ordinary capital spending needs for the foreseeable future. Furthermore,
the Company believes that it has the capacity to borrow funds and use equity to
finance additional capital needs.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS: None
ITEM 2. CHANGES IN SECURITIES: None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES: None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS: None
ITEM 5. OTHER INFORMATION: None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) Exhibits:
11.1 Statement re: calculation of net income per share
is included on page 5 of this report on Form 10-Q.
27.1 Financial data schedule.
(b) Reports on Form 8-K: None
9
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUNGARD DATA SYSTEMS INC.
Date: November 10, 1994 By: /s/Michael J. Ruane
------------------------------------------
Michael J. Ruane
Vice President-Finance and
Chief Financial Officer
(Principal Financial Officer)
10
<PAGE>
LIST OF EXHIBITS
NUMBER EXHIBIT
- - ------- -------
11.1 Calculation of net income per share (included on
page 5 of this report).
27.1 Financial Data Schedule for the nine months
ended September 30, 1994.
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
the unaudited consolidated balance sheet of SunGard Data Systems Inc. as of
September 30, 1994 and the unaudited consolidated statement of income for the
nine months ended September 30, 1994, both included in the Form 10-Q of SunGard
Data Systems Inc. for the quarterly period ended September 30, 1994, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 53,162
<SECURITIES> 35,797
<RECEIVABLES> 98,732
<ALLOWANCES> 8,760
<INVENTORY> 0
<CURRENT-ASSETS> 200,737
<PP&E> 185,983
<DEPRECIATION> 101,254
<TOTAL-ASSETS> 463,392
<CURRENT-LIABILITIES> 101,655
<BONDS> 3,184
<COMMON> 189
0
0
<OTHER-SE> 350,712
<TOTAL-LIABILITY-AND-EQUITY> 463,392
<SALES> 0
<TOTAL-REVENUES> 316,652
<CGS> 0
<TOTAL-COSTS> 266,426
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 610
<INCOME-PRETAX> 51,839
<INCOME-TAX> 21,254
<INCOME-CONTINUING> 30,585
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,585
<EPS-PRIMARY> 1.59
<EPS-DILUTED> 1.59
</TABLE>
