<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): July 13, 1999
----------------------
SunGard(R) Data Systems Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-12989 51-0267091
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
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)
<PAGE>
Item 5. Other Events
------------
SunGard Data Systems Inc. (the "Company") completed the acquisition of
Oshap Technologies Ltd. ("Oshap") on July 13, 1999 and the acquisition of
Pentamation Enterprises, Inc. ("Pentamation") on August 17, 1999. These
acquisitions have been accounted for as poolings of interests. Such accounting
treatment requires that the historical financial information of the Company be
restated to include the historical financial information of Oshap and
Pentamation. The Company has previously provided restated 1998 and 1999
supplemental unaudited quarterly historical financial information to include the
historical financial information of the following other 1999 pooling-of-
interests transactions: Automated Securities Clearance, Ltd. ("ASC"), FDP Corp.
("FDP"), and Sterling Wentworth Corporation ("SWC"). Accordingly, the Company is
now providing the following unaudited supplemental 1998 and 1999 quarterly
financial information that has been restated for the 1999 poolings of interests
with ASC, FDP, Oshap, Pentamation and SWC. The 1998 supplemental unaudited
quarterly historical financial information should be read in conjunction with
the Company's 1998 Form 10-K.
SunGard Data Systems Inc.
Supplemental Unaudited 1998 and 1999 Quarterly Consolidated Financial
Information
Restated for Poolings of Interests
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Year
Three Months Ended Ended
-------------------------------------------- ----------
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1998 (1) 1998 (1) 1998 (1) 1998 (1) 1998 (1)
--------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Revenues $298,433 $317,540 $329,892 $366,383 $1,312,248
========= ========= ========= ========= ==========
Costs and expenses:
Cost of sales and direct operating 127,291 133,981 137,255 146,336 544,863
Sales, marketing and administration 65,540 70,447 73,394 83,269 292,650
Product development 28,490 30,694 30,749 39,420 129,353
Depreciation of property and
equipment 14,313 14,817 15,352 15,374 59,856
Amortization of intangible assets 13,053 12,658 13,893 16,434 56,038
Merger costs 8,147 2,403 3,100 934 14,584
--------- --------- --------- --------- ----------
256,834 265,000 273,743 301,767 1,097,344
--------- --------- --------- --------- ----------
Income (loss) from operations 41,599 52,540 56,149 64,616 214,904
Interest income 1,926 2,230 2,288 3,298 9,742
Interest expense (537) (470) (545) (846) (2,398)
--------- --------- --------- --------- ----------
Income (loss) before income taxes and
extraordinary gain 42,988 54,300 57,892 67,068 222,248
Income taxes 18,476 22,120 23,892 29,058 93,546
--------- --------- --------- --------- ----------
Net income (loss) before extraordinary items 24,512 32,180 34,000 38,010 128,702
Extraordinary gain on sale of subsidiaries,
net of income taxes of $6,096 - - - - -
Extraordinary gain on repurchase of convertible
debt by unconsolidated subsidiary acquired
in a pooling-of-interests transaction - - 2,307 767 3,074
--------- --------- --------- --------- ----------
Net income (loss) 24,512 32,180 36,307 38,777 131,776
Pro forma income tax expense (benefit) resulting
from acquired Sub S corporation 792 527 608 (533) 1,394
--------- --------- --------- --------- ----------
Pro forma net income (loss) (5) $ 23,720 $ 31,653 $ 35,699 $ 39,310 $ 130,382
========= ========= ========= ========= ==========
Pro forma basic net income (loss)
per common share (5):
Before extraordinary items $ 0.20 $ 0.26 $ 0.28 $ 0.32 $ 1.06
========= ========= ========= ========= ==========
After extraordinary items $ 0.20 $ 0.26 $ 0.29 $ 0.32 $ 1.08
========= ========= ========= ========= ==========
Pro forma diluted net income (loss)
per common share (5):
Before extraordinary items $ 0.19 $ 0.25 $ 0.26 $ 0.30 $ 1.01
========= ========= ========= ========= ==========
After extraordinary items $ 0.19 $ 0.25 $ 0.28 $ 0.31 $ 1.04
========= ========= ========= ========= ==========
Shares used to compute pro forma net
income (loss) per common share:
Basic 118,621 119,856 121,145 121,777 120,350
========= ========= ========= ========= ==========
Diluted 124,057 125,013 126,303 126,446 125,455
========= ========= ========= ========= ==========
<CAPTION>
Six
Three Months Ended Months Ended
March 31, June 30, June 30,
1999 (2) 1999 (3) 1999 (2,3)
-------- ---------- -----------
Revenues $351,647 $352,873 $704,520
======== ========== ==========
Costs and expenses:
Cost of sales and direct operating 152,395 150,703 303,098
Sales, marketing and administration 76,797 73,894 150,691
Product development 31,694 31,544 63,238
Depreciation of property and
equipment 15,574 15,880 31,454
Amortization of intangible assets 13,158 13,370 26,528
Merger costs 85,224 5,222 90,446
-------- ---------- ----------
374,842 290,613 665,455
-------- ---------- ----------
Income (loss) from operations (23,195) 62,260 39,065
Interest income 3,680 3,990 7,670
Interest expense (526) (608) (1,134)
-------- ---------- ----------
Income (loss) before income taxes and
extraordinary gain (20,041) 65,642 45,601
Income taxes 26,340 28,843 55,183
-------- ---------- ----------
Net income (loss) before extraordinary items (46,381) 36,799 (9,582)
Extraordinary gain on sale of subsidiaries,
net of income taxes of $6,096 10,371 - 10,371
Extraordinary gain on repurchase of convertible
debt by unconsolidated subsidiary acquired
in a pooling-of-interests transaction 299 - 299
-------- ---------- ----------
Net income (loss) (35,711) 36,799 1,088
Pro forma income tax expense (benefit) resulting
from acquired Sub S corporation (26,934) (447) (27,381)
-------- ---------- ----------
Pro forma net income (loss) (5) ($8,777) $ 37,246 $ 28,469
======== ========== ==========
Pro forma basic net income (loss)
per common share (5):
Before extraordinary items ($0.16) $ 0.30 $ 0.14
======== ========== ==========
After extraordinary items ($0.07) $ 0.30 $ 0.23
======== ========== ==========
Pro forma diluted net income (loss)
per common share (5):
Before extraordinary items ($0.16) $ 0.29 $ 0.14
======== ========== ==========
After extraordinary items ($0.07) $ 0.29 $ 0.22
======== ========== ==========
Shares used to compute pro forma net
income (loss) per common share:
Basic 123,420 125,223 124,322
======== ========== ==========
Diluted 123,420(4) 128,720 128,374
======== ========== ==========
</TABLE>
(1) All 1998 information is restated for 1999 poolings of interests with ASC,
FDP, Oshap, Pentamation and SWC.
(2) All first quarter 1999 information is restated for 1999 poolings of
interests with FDP, Oshap and Pentamation.
(3) All second quarter 1999 information is restated for 1999 poolings of
interests with Oshap and Pentamation.
(4) Excludes 4,607 shares which are anti-dilutive because of a net loss during
the quarter.
(5) Includes pro forma after-tax merger costs and extraordinary items of
$7,048, $2,403, $203, ($359), $9,295, $48,114, $3,787 and $51,901 for each
of the three month periods ended March 31, 1998, June 30, 1998, September
30, 1998, December 31, 1998, the year ended December 31, 1998; and for each
of the three month periods ended March 31, 1999 and June 30, 1999, and for
the six months ended June 30, 1999.
<PAGE>
<TABLE>
<CAPTION>
SunGard Data Systems Inc.
Supplemental Income Statement Information
(In thousands)
(Unaudited) Six Months
Three Months Ended Year Ended Three Months Ended Ended
------------------------------------------ ---------- ---------------------------------
March 31, June 30, Sept. 30, Dec. 31, Dec. 31, March 31, June 30, June 30,
1998 (1) 1998 (1) 1998 (1) 1998 (1) 1998 (1) 1999 (2) 1999 (3) 1999 (2,3)
--------- --------- --------- --------- ----------- --------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Investment support systems.......... $ 214,115 $ 231,576 $ 240,177 $ 271,507 $ 957,375 $ 258,758 $255,004 $ 513,762
Disaster recovery services.......... 62,576 67,183 70,352 75,171 275,282 74,719 81,120 155,839
Computer services and other......... 21,742 18,781 19,363 19,705 79,591 18,170 16,749 34,919
--------- --------- --------- --------- ---------- --------- -------- -----------
$ 298,433 $ 317,540 $ 329,892 $ 366,383 $1,312,248 $ 351,647 $352,873 $ 704,520
========= ========= ========= ========= ========== ========= ======== ===========
Income from operations:
Investment support systems.......... $ 39,600 $ 42,642 $ 41,535 $ 42,209 $ 165,986 $ 51,183 $ 44,710 $ 95,893
Disaster recovery services.......... 10,213 13,028 18,256 23,357 64,854 13,202 22,854 36,056
Computer services and other......... 2,971 2,418 3,314 3,803 12,506 1,741 3,974 5,715
Corporate administration............ (3,038) (3,145) (3,856) (3,819) (13,858) (4,097) (4,056) (8,153)
Merger and restructuring costs...... (8,147) (2,403) (3,100) (934) (14,584) (85,224) (5,222) (90,446)
--------- --------- --------- --------- ---------- --------- -------- -----------
$ 41,599 $ 52,540 $ 56,149 $ 64,616 $ 214,904 $ (23,195) $ 62,260 $ 39,065
========= ========= ========= ========= ========== ========= ======== ===========
Operating margin:
Investment support systems.......... 18.5% 18.4% 17.3% 15.5% 17.3% 19.8% 17.5% 18.7%
Disaster recovery services.......... 16.3% 19.4% 25.9% 31.1% 23.6% 17.7% 28.2% 23.1%
Computer services and other......... 13.7% 12.9% 17.1% 19.3% 15.7% 9.6% 23.7% 16.4%
Total............................... 13.9% 16.5% 17.0% 17.6% 16.4% -6.6% 17.6% 5.5%
Total, excluding merger
and restructuring costs............ 16.7% 17.3% 18.0% 17.9% 17.5% 17.6% 19.1% 18.4%
</TABLE>
(1) All 1998 information is restated for 1999 poolings of interests with ASC,
FDP, Oshap, Pentamation and SWC.
(2) All first quarter 1999 information is restated for 1999 poolings of
interests with FDP, Oshap and Pentamation.
(3) All second quarter 1999 information is restated for 1999 poolings of
interests with Oshap and Pentamation.
<TABLE>
<CAPTION>
SunGard Data Systems Inc.
Supplemental Income Statement Information
(In thousands)
(Unaudited) Six Months
Three Months Ended Year Ended Three Months Ended Ended
------------------------------------------ ---------- --------------------------------
March 31, June 30, Sept. 30, Dec. 31, Dec. 31, March 31, June 30, June 30,
1998 (1) 1998 (1) 1998 (1) 1998 (1) 1998 (1) 1999 (2) 1999 (3) 1999 (2,3)
--------- --------- --------- --------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Pro forma net income (loss) as restated.... $ 23,720 $ 31,653 $ 35,699 $ 39,310 $ 130,382 $ (8,777) $ 37,246 $ 28,469
Add pro forma income tax expense (benefit). 792 527 608 (533) 1,394 (26,934) (447) (27,381)
Add merger costs, net of tax............... 7,048 2,403 2,510 408 12,369 85,224 5,222 90,446
Deduct extraordinary gains, net of tax..... - - (2,307) (767) (3,074) (10,670) - (10,670)
-------- -------- -------- -------- --------- -------- -------- ----------
Restated net income before merger costs,
extraordinary items and pro forma income
tax expense............................... $ 31,560 $ 34,583 $ 36,510 $ 38,418 $ 141,071 $ 38,843 $ 42,021 $ 80,864
======== ======== ======== ======== ========= ======== ======== ==========
Restated diluted earnings per share,
excluding merger costs, extraordinary
items and pro forma income tax expense.... $ 0.25 $ 0.28 $ 0.29 $ 0.30 $ 1.12 $ 0.30 $ 0.33 $ 0.63
Shares used to compute restated diluted
earnings per share, excluding merger
costs, extraordinary items and pro forma
income tax expense......................... 124,057 125,013 126,303 126,446 125,455 128,027 128,720 128,374
</TABLE>
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(a) Financial Statements.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
None.
<PAGE>
SIGNATURE
---------
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 7, 1999
SUNGARD DATA SYSTEMS INC.
By: /s/ Michael J. Ruane
----------------------------
Michael J. Ruane
Vice President-Finance and
Chief Financial Officer
