<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): September 30, 1995
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SunGard/(R)/ Data Systems Inc.
(Exact name of registrant as specified in its charter)
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<CAPTION>
Delaware 7379 51-0267091
<S> <C> <C>
(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification No.)
</TABLE>
1285 Drummers Lane, Wayne, Pennsylvania 19087
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 341-8700
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(Former name and former address, if changed since last report)
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Item 5. Other Events
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See press release attached hereto as Exhibit 99.1.
Item 7. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
99.1 Press Release dated October 19, 1995.
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SIGNATURE
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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 hereunto duly authorized.
Date: October 20, 1995
SUNGARD DATA SYSTEMS INC.
By: /s/ Michael J. Ruane
------------------------
Michael J. Ruane
Vice President-Finance and
Chief Financial Officer
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Exhibit Index
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Exhibit Page
- ------- ----
99.1 Press Release dated October 19, 1995.
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EXHIBIT 99.1
[LETTERHEAD OF SUNGARD APPEARS HERE]
October 19, 1995
Michael J. Ruane Nancy R. Kyle Internet
(610) 341-8709 (610) 341-8171 www.sungard.com
SunGard Data Systems Inc.
Announces Third Quarter 1995 Results,
Acquisitions and Management Changes
Wayne, PA -- SunGard Data Systems Inc. reported today that net income for
the quarter ended September 30, 1995 was $12,008,000, compared to net
income of $10,744,000 for the third quarter of 1994. Fully diluted
earnings per share were $0.31 for the quarter, compared to $0.28 for the
quarter ended September 30, 1994. Results for 1995's third quarter include
one-time, after-tax merger costs of $1,351,000 associated with the
previously announced acquisition of Intelus Corporation. Excluding the
one-time costs, net income for the quarter was $13,359,000, an increase of
24.3% over net income for the third quarter of 1994, and fully diluted
earnings per share were $0.34, an increase of 21.4%.
For the first nine months of 1995, net income was $35,347,000, compared to
the prior year's nine-month results of $30,585,000. Fully diluted earnings
per share were $0.91, compared to $0.79 for the first nine months of 1994.
Excluding the one-time, after-tax merger costs, net income for the quarter
ended September 30, 1995 was $36,698,000, an increase of 20.0%, and fully
diluted earnings per share were $0.95, an increase of 20.3%.
Revenues for the third quarter of 1995 were $132,114,000, up 20.2% over
third-quarter 1994 revenues of $109,908,000. For the nine months ended
September 30, 1995, revenues of $378,723,000 increased 19.6% over revenues
of $316,652,000 for the comparable period last year.
James L. Mann, Chairman and Chief Executive Officer, stated, "Results for
the third quarter met
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expectations. As previously announced, our outlook for fully diluted
earnings per share for the year ended December 31, 1995 remains in the
range of $1.26 to $1.31, prior to merger costs." This outlook, which may
change, is based upon management's current assessment of both internal and
external factors.
Mann continued, "Our acquisition activity level in the third quarter of
1995 was particularly high. In addition to the acquisitions of Bi-Tech
Software, Inc. on July 14 and Intelus Corporation on August 31, we
announced definitive agreements to acquire MACESS Corporation and
Renaissance Software Inc. Also during the third quarter, we acquired All
Solutions Financial Systems of Perth, Western Australia, and Market
Investment Solutions Inc. (MIS) of Aurora, Colorado." All Solutions, a
provider of fund and asset administration systems in Australia and New
Zealand, joins SunGard's Trust and Shareholder Systems Group. MIS, a
provider of PC-based investment management, accounting and reporting
systems for the insurance industry, is part of SunGard's Financial Systems
Group.
SunGard also announced the naming of two new group chief executives.
Michael K. Muratore has been appointed as Chief Executive Officer of
SunGard's Financial Systems Group. Mr. Muratore's former position, Chief
Executive Officer of SunGard's Computer Services Group, has been filled by
Bruce H. Battjer. Since joining the company in 1990, Mr. Battjer, age 44,
has served in various executive positions in SunGard's Recovery Services
Group, most recently as President of SunGard Planning Solutions.
SunGard's business is computer service and application software. The
Company is the only large specialized provider of proprietary investment
support systems, is the pioneer and a leading provider of comprehensive
computer disaster recovery services, and also provides proprietary
healthcare information systems. Its common stock is reported on The Nasdaq
Stock Market and the London Stock Exchange under the symbol SNDT.
# # #
This statement is available in the
United Kingdom from SunGard Capital
Markets Inc., 10 Devonshire Square,
London, EC2M 4YP
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SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
September 30,
1995 December 31,
(Unaudited) 1994
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<S> <C> <C>
Assets:
Current:
Cash, equivalents and short-term investments............... $ 84,460 $ 102,598
Accounts receivable, net................................... 115,588 98,827
Prepaid expenses and other current assets.................. 16,910 14,380
Deferred income taxes...................................... 6,493 6,490
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Total current assets................................... 223,451 222,295
Property and equipment, net................................... 91,131 90,436
Software products, net........................................ 35,457 23,964
Goodwill and other intangible assets, net..................... 169,786 149,045
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$ 519,825 $ 485,740
============= ===========
Liabilities and Stockholders' Equity:
Current:
Short-term and current portion of long-term debt........... $ 3,880 $ 5,673
Accounts payable and accrued expenses...................... 44,480 44,196
Accrued income taxes....................................... 3,874 6,049
Deferred revenues.......................................... 58,596 57,492
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Total current liabilities.............................. 110,830 113,410
Long-term debt................................................ 5,380 4,894
Deferred income taxes......................................... 5,823 8,144
Stockholders' equity.......................................... 397,792 359,292
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$ 519,825 $ 485,740
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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,
---------------------- ----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues..................................................................... $ 378,723 $ 316,652 $ 132,114 $ 109,908
---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales and direct operating......................................... 166,348 143,240 54,576 49,504
Sales, marketing and administration........................................ 80,214 63,514 28,860 21,836
Product development........................................................ 34,575 26,562 13,138 9,119
Depreciation of property and equipment..................................... 22,413 17,484 7,932 6,126
Amortization of intangible assets.......................................... 16,745 15,626 6,144 5,798
Merger costs............................................................... 1,351 -- 1,351 --
---------- ---------- ---------- ----------
321,646 266,426 112,001 92,383
---------- ---------- ---------- ----------
Income from operations....................................................... 57,077 50,226 20,113 17,525
Investment income, net..................................................... 3,772 1,613 1,179 685
---------- ---------- ---------- ----------
Income before income taxes................................................... 60,849 51,839 21,292 18,210
Income taxes............................................................... 25,502 21,254 9,284 7,466
---------- ---------- ---------- ----------
Net income................................................................... $ 35,347 $ 30,585 $ 12,008 $ 10,744
========== ========== ========== ==========
Fully diluted net income per common share (1)................................ $ 0.91 $ 0.79 $ 0.31 $ 0.28
========== ========== ========== ==========
Shares used to compute fully diluted net income per common share (1)......... 38,649 38,512 39,254 38,502
========== ========== ========== ==========
Fully diluted net income per common share excluding merger costs............. $ 0.95 $ 0.79 $ 0.34 $ 0.28
========== ========== ========== ==========
</TABLE>
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SunGard Data Systems Inc.
Supplemental Income Statement Information
(In thousands)
Unaudited
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues
Investment support systems................................................. $ 233,819 $ 195,872 $ 79,303 $ 66,700
Disaster recovery services................................................. 118,911 100,683 41,559 36,213
Computer services and other ............................................... 25,993 20,097 11,252 6,995
---------- ---------- ---------- ----------
$ 378,723 $ 316,652 $ 132,114 $ 109,908
========== ========== ========== ==========
Income from operations
Investment support systems................................................. $ 36,515 $ 31,896 $ 11,163 $ 10,447
Disaster recovery services................................................. 23,150 20,747 10,209 7,873
Computer services and other ............................................... 4,173 3,411 1,828 1,294
Corporate administration................................................... (5,410) (5,828) (1,736) (2,089)
Merger costs............................................................... (1,351) -- (1,351) --
---------- ---------- ---------- ----------
$ 57,077 $ 50,226 $ 20,113 $ 17,525
========== ========== ========== ==========
Operating margin
Investment support systems................................................. 15.6% 16.3% 14.1% 15.7%
========== ========== ========== ==========
Disaster recovery services................................................. 19.5% 20.6% 24.6% 21.7%
========== ========== ========== ==========
Computer services and other ............................................... 16.1% 17.0% 16.2% 18.5%
========== ========== ========== ==========
Total...................................................................... 15.1% 15.9% 15.2% 15.9%
========== ========== ========== ==========
Total, excluding merger costs.............................................. 15.4% 15.9% 16.2% 15.9%
========== ========== ========== ==========
</TABLE>
(1) Adjusted to reflect two-for-one stock split which occurred in July 1995.
