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SunGard Announces Fourth Quarter 2013 Results

SunGard, one of the world’s leading software and technology services companies, today reported results for the fourth quarter ended December 31, 2013. For the fourth quarter, revenue was $1.1 billion, flat year over year. Currency had no material impact on reported revenue for the quarter compared to the prior year. Operating income was $179 million, down 7% year over year. Operating margin was 16.1% in the quarter, down 1.1 points. Adjusted EBITDA was $372 million, down 6% year over year, and the adjusted EBITDA margin was 33.4%, down 2.1 points year over year. Adjusted EBITDA is defined in Note 1 attached to this release.

For the full year, revenue was $4.1 billion, down 2% year over year (down 2% adjusting for currency). Operating income was $461 million and the operating margin improved to 11.2%, compared to an operating income of $71 million last year, which included a goodwill impairment charge of $385 million. Excluding the goodwill impairment charge, operating income increased 1% year over year. Adjusted EBITDA was $1.2 billion, down 2% year over year, and the adjusted EBITDA margin was 29.1%, down 0.1 points year over year.

Russ Fradin, president and chief executive officer, commented, “SunGard’s fourth quarter results reflect the investments we’re making across the company to bring new products and services to market and to increase sales capacity, and I’m pleased with the progress we’ve made. In Financial Systems, we saw strong acceptance of our solutions, which resulted in improved revenue trends in the second half of the year. The Company’s performance in 2013 demonstrates the strength of our business, based on highly recurring revenue flows, focused investments, disciplined cost management and operational excellence, which allowed us to increase cash from continuing operations by over $100 million. I’m confident that our strategic direction and operational improvements will continue to drive greater value for both our clients and the company.”

On January 24, 2014, the Company announced its intent to split-off its Availability Services business from the Software and Processing businesses. These businesses are fundamentally different, serving vastly different customer needs and having very different business profiles. The Company expects this transaction to close as early as March 31, 2014, subject to satisfaction of various customary conditions.

Fradin commented, “The strategic separation into two financially strong, independent companies will bring greater clarity and alignment to each company’s mission.”

Andrew Stern, chief executive officer of SunGard Availability Services, commented, “We’ve made progress at SunGard Availability Services to strengthen and broaden our portfolio of products beyond traditional disaster recovery. As an independent company with $1.4 billion in revenue, we will have the scale, services, and focus to help ensure the availability of critical systems and data for our customers. Our fourth quarter results reflect the significant investments we’ve made in our Enterprise Managed Services, Cloud, and Recovery-as-a-Service (RaaS) solutions. Our infrastructure and services address today’s availability challenges, positioning us well for future growth.”

Financial Systems (“FS”) revenue was $717 million in the fourth quarter, up 1% year over year (flat year over year adjusting for currency). Growth in software license fees of 6%, to $97 million, and Professional Services of 7%, to $149 million, was partially offset by modest declines in other areas of the business. Adjusted EBITDA for the period was $253 million, down 2% from the prior year, and the adjusted EBITDA margin was 35.3%, down 0.8 points from last year. For the full year, FS revenue was $2.6 billion, down 2% year over year (also down 2% adjusting for currency). Adjusted EBITDA was $746 million, up 3% from the prior year, and the adjusted EBITDA margin was 29.2%, up 1.3 points from last year.

Notable deals in the quarter included the following:

  • SunGard’s Adaptiv Credit Risk was renewed by one of South Africa’s foremost banks to support its counterparty credit risk solution.
  • SunGard's Valdi Order Management System was selected by one of the largest U.S. banks to replace its internal trading infrastructure and help expand its current order and trade processing ability.
  • SunGard’s iWorks Compass was selected by a leading UK business process outsourcer to replace and consolidate a number of legacy pension administration systems.
  • SunGard’s Ambit Commercial Lending solution was chosen by a member bank of a U.S. government-sponsored lending network to help provide end-to-end automation of its commercial lending business.
  • SunGard’s AvantGard Quantum solution was selected by a leading international financial institution to help manage its global cash and risk with a consolidated view into global bank accounts, reconciliations and payments.
  • SunGard’s Global Plus was renewed by a global financial services firm based in Canada to support its wealth management practice to better serve the needs of high net worth individuals.
  • SunGard’s IntelliMatch was selected by a leading online broker to support its high-volume tax reconciliation process. The solution will be provided as a hosted managed service and integrated with the broker’s existing implementation of SunGard’s Wall Street Concepts.

At the end of January 2014, the Company completed the sale of two small businesses within the FS segment with combined annual revenues of $48 million. These businesses are included in our 2013 financial results as discontinued operations.

Availability Services (“AS”) revenue was $344 million in the fourth quarter, down 2% year over year (down 3% adjusting for currency), reflecting a reduction in traditional recovery services business. During 2013, we continued to enhance our portfolio of services by investing in Recovery-as-a-Service and Cloud-based offerings. As a result of these investments, adjusted EBITDA was $112 million, down 14% from the prior year, and the adjusted EBITDA margin was 32.5%, down 4.2 points from last year. For the full year, AS revenue was $1.4 billion, down 2% year over year (also down 2% adjusting for currency), and adjusted EBITDA was $436 million, down 9% from prior year, and the adjusted EBITDA margin was 31.8%, down 2.4 points from last year.

Notable deals in the quarter included the following:

  • SunGard Availability Services was selected by a large Canadian firm to deploy and maintain a fully managed, cloud-based SAP ERP environment. SunGard AS is certified by SAP on system administration and cloud hosting.
  • SunGard Availability Services’ Managed Services and Enterprise Cloud solutions were selected by a global mobile technology services provider to help respond to increased demand for management software services and help reduce its total cost of IT ownership and management.
  • SunGard Availability Services’ Recovery Services, Managed Services, Consulting Services and Channel Sales solutions were selected by a large privately-held food and beverage distributer to help support its product distribution and recovery time objectives.
  • SunGard Availability Services was selected by a leading international investment bank seeking a dedicated crisis management center for its back-office Eastern European operations in Poland, allowing the customer to do workgroup recovery operations away from flood-risk areas.
  • SunGard Availability Services’ Recover2Cloud solution and Managed Services were selected by a Canadian technology services provider to support the expansion of its business capabilities and services.

Public Sector and Education revenue was $55 million in the fourth quarter, up 4% year over year, reflecting strong demand for newly introduced software solutions. Adjusted EBITDA was $18 million, down 8% year over year, and the adjusted EBITDA margin was 32.8%, down 4.1 points from last year, reflecting an increased mix of professional services revenue in the quarter. For the full year, revenue was $210 million, an increase of 3% year over year, and adjusted EBITDA was $66 million, flat from the prior year, and the adjusted EBITDA margin was 31.6%, down 0.9 points from last year.

Notable deals in the quarter included the following:

  • SunGard Public Sector’s ONESolution was selected by a city in Florida to support county-wide sharing of public safety information across records management and mobile computing solutions.
  • SunGard Public Sector’s ONESolution was selected by a city in Georgia to provide public safety solutions for computer-aided emergency dispatch, records management, mobile computing and jails management.
  • SunGard K-12 Education’s eFinancePLUS was selected by a large Illinois public school district to help manage its financial and human resources functions.

Financial Position

For the twelve months ended December 31, 2013, the continuing operations of the Company generated $735 million in cash flow from operations, up $101 million year over year, driven by improved capital structure and working capital disciplines. Capital expenditures were $258 million, flat from the prior year. The Company used its cash flow and available cash to repay $277 million of debt during 2013. In addition, in January 2014, the Company repaid $250 million of senior secured notes that matured on January 15, 2014 as well as $60 million of its accounts receivable facility borrowings.

In January, the Company also launched an amendment to its senior secured credit agreement to allow for the separation of AS and to provide certain other financial flexibility. Under the credit agreement amendment, Availability Services will be permitted to raise up to $1.5 billion of debt. Upon split-off, SunGard expects to reduce its existing debt by the amount of debt raised by Availability Services less transaction costs.

At December 31, 2013, total debt was $6.4 billion and cash was $706 million. The Company’s leverage ratio, as defined in its senior secured credit agreement, was 4.56x, down from 4.75x at the end of 2012. The leverage ratio is calculated using adjusted EBITDA as defined in Note 2 attached to this release. Also see Note 3 attached to this release for supplemental information on debt and capital expenditures.

Conference Call & Webcast

SunGard will host a conference call and live web broadcast to discuss fourth quarter 2013 results today at 9:00 a.m. (Eastern Time). The dial-in number for the conference call is 706-902-1370, and the conference ID number is 41541942. You may also listen to the call at www.investorcalendar.com by clicking on the "audio" icon for SunGard. An audio replay will be available two hours after the call ends through midnight on February 18, 2014. To listen to the replay, please dial 1-855-859-2056 or 404-537-3406 and enter the conference ID number 41541942.

About SunGard

SunGard is one of the world’s leading software and technology services companies. SunGard serves approximately 25,000 customers in more than 70 countries and has approximately 17,000 employees. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of over $4.0 billion, SunGard is one of the largest privately held IT software and services company. For more information, please visit www.sungard.com.

Trademark Information: SunGard, the SunGard logo, Adaptiv Credit Risk, Ambit, AvantGard Quantum, eFinancePLUS, IntelliMatch, iWorks Compass, ONESolution, Recover2Cloud, and Valdi are trademarks or registered trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

SunGard’s "Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995

Statements in this release other than historical facts constitute forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions. All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates, financial results and pro forma estimates are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include: global economic and market conditions; the condition of the financial services industry, including the effect of any further consolidation among financial services firms; our high degree of debt-related leverage; the effect of war, terrorism, natural disasters or other catastrophic events; the effect of disruptions to our systems and infrastructure; the timing and magnitude of software sales; the timing and scope of technological advances; customers taking their information availability solutions in-house; the trend in information availability toward solutions utilizing more dedicated resources; the market and credit risks associated with broker/dealer operations; the ability to retain and attract customers and key personnel; risks relating to the foreign countries where we transact business; the integration and performance of acquired businesses; the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents; a material weakness in our internal controls; and unanticipated changes in our income tax provision or the enactment of new tax legislation, issuance of regulations or relevant judicial decisions. In addition, we may not be able to complete the proposed split-off of our Availability Services business due to a number of factors, including the failure to obtain (i) financing for SunGard Availability Services, (ii) opinions of counsel as to the tax-free nature of the split-off and related transactions and (iii) final approval of SunGard’s board of directors. The factors described in this paragraph and other factors that may affect our business or future financial results are discussed in our periodic filings with the U.S. Securities and Exchange Commission, copies of which may be obtained from us without charge. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.

SunGard Data Systems Inc.
Consolidated Statements of Operations
(in millions)
(Unaudited)
                 
Three Months Ended Dec. 31,
2012 2013
Revenue:
Services $   996 $   991
License and resale fees     106       110  
Total products and services 1,102 1,101
Reimbursed expenses     15       15  
Total revenue     1,117       1,116  
Costs and expenses:
Cost of sales and direct operating (excluding depreciation) 414 437
Sales, marketing and administration 252 250
Product development and maintenance 95 88
Depreciation 75 81
Amortization of acquisition-related intangible assets     89       81  
Total costs and expenses     925       937  
Operating income 192 179
Interest expense and amortization of deferred financing fees (103 ) (96 )
Loss on extinguishment of debt (31 ) -
Other expense     (2 )     -  
Income from continuing operations before income taxes 56 83
Provision for income taxes     (4 )     (18 )
Income from continuing operations 52 65
Income from discontinued operations, net of tax     17       7  
Net Income $   69   $   72  
                         
 
 
 
SunGard Data Systems Inc.
Consolidated Statements of Operations
(in millions)
(Unaudited)
 
Twelve Months Ended Dec. 31,
2012 2013
Revenue:
Services $ 3,878 $ 3,802
License and resale fees     274       276  
Total products and services 4,152 4,078
Reimbursed expenses     61      

56

 
Total revenue     4,213       4,134  
Costs and expenses:
Cost of sales and direct operating (excluding depreciation) 1,712 1,706
Sales, marketing and administration 996 964
Product development and maintenance 380 366
Depreciation 287 303
Amortization of acquisition-related intangible assets 382 334
Goodwill impairment charges     385       -  
Total costs and expenses     4,142       3,673  
Operating income 71 461
Interest income 1 1
Interest expense and amortization of deferred financing fees (428 ) (398 )
Loss on extinguishment of debt (82 ) (6 )
Other expense     -       (1 )
Income (loss) from continuing operations before income taxes (438 ) 57
Benefit from (provision for) income taxes     40       (6 )
Income (loss) from continuing operations (398 ) 51
Income from discontinued operations, net of tax     332       12  
Net income (loss) $   (66 ) $   63  
 

See Notes to Consolidated Condensed Financial Information.

 
SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(in millions)
(Unaudited)
                       
Dec. 31, Dec. 31,
2012 2013
Assets:    
Current:
Cash and cash equivalents

 

$   546

 

$   706
Accounts receivable, net 896 877
Prepaid expenses and other current assets 228 192
Assets held for sale     47     49
Total current assets 1,717 1,824
Property and equipment, net 873 821
Software products, net 408 309
Customer base, net 1,364 1,152
Other assets, net 1,151 1,142
Goodwill     4,508     4,531

Total Assets

 

$   10,021

 

$   9,779
 
Liabilities and Stockholder's Equity:
Current:
Short-term and current portion of long-term debt $ 63 $ 293
Accounts payable and accrued expenses 598 583
Deferred revenue 833 845
Liabilities related to assets held for sale     17     15
Total current liabilities 1,511 1,736
Long-term debt 6,599 6,099
Deferred and other income taxes 1,119 1,021
Other long-term liabilities     76     102
Total liabilities 9,305 8,958
Stockholder's equity     716     821
Total Liabilities and Stockholder's Equity

 

$   10,021

 

$   9,779
 
See Notes to Consolidated Condensed Financial Information.
 
                           
SunGard Data Systems Inc.
Consolidated Condensed Statements of Cash Flows
(in millions)
(Unaudited)
 
Twelve Months Ended Dec. 31,
          2012 2013
Cash flow from operations:
Cash flow from (used in) continuing operations $   634 $   735
Cash flow from (used in) discontinued operations     (390 )     11  
Cash flow from (used in) operations 244 746
 
Investment activities:
Cash paid for acquired businesses, net of cash acquired (40 ) (2 )
Cash paid for property, equipment and software (259 ) (258 )
Other investing activities     3       2  
Cash provided by (used in) continuing operations (296 ) (258 )
Cash provided by (used in) discontinued operations     1,757       -  
Cash provided by (used in) investment activities 1,461 (258 )
 
Financing activities:
Cash received from borrowings, net of fees 1,715 2,171
Cash used to repay debt (2,946 ) (2,477 )
Premium paid to retire debt (48 ) -
Dividends Paid (724 ) -
Other financing activities     (36 )     (21 )
Cash provided by (used in) continuing operations (2,039 ) (327 )
Cash provided by (used in) discontinued operations     -       -  
Cash provided by (used in) financing activities (2,039 ) (327 )
 
Effect of exchange rate changes on cash     7       (1 )
 
Increase (decrease) in cash and cash equivalents (327 ) 160

Beginning cash and cash equivalents includes cash of discontinued

operations (2012: $6, 2013: $-)

    873       546  

Ending cash and cash equivalents includes cash of discontinued

operations (2012: $-, 2013: $-)

$   546   $   706  
 

See Notes to Consolidated Condensed Financial Information.

 
 
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)
 
Note 1. Reconciliation of Adjusted EBITDA to Operating Income (Loss)
 
We evaluate the performance of our segments using non-GAAP measures. Our primary non-GAAP measure is Adjusted EBITDA, whose corresponding GAAP measure is operating income. Adjusted EBITDA is defined as operating income excluding depreciation, amortization of acquisition-related intangible assets, goodwill impairment, severance and facility closure charges, stock compensation, management fees, and certain other costs.
We believe Adjusted EBITDA is an effective tool to measure our operating performance since it excludes non-cash items and certain variable charges. We use Adjusted EBITDA extensively to measure both SunGard and its reportable segments within the Company and also to report our results to our board of directors.
While Adjusted EBITDA is useful for analysis purposes, it should not be considered as an alternative to our reported GAAP results. Also, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is similar, but not identical, to adjusted EBITDA per the Senior Secured Credit Agreement for purposes of our debt covenants (see Note 2).
The following is a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the corresponding reported GAAP measures that we believe to be most directly comparable. Percentage changes are computed based on unrounded amounts.
 
                                                           
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
(in millions) 2012 2013 change 2012 2013 change
 
Financial Systems segment
Revenue $   712   $   717   1 % $   2,604   $   2,551   (2 ) %
Adjusted EBITDA $   258 $   253 (2 ) % $   727 $   746 3 %
Adjusted EBITDA margin 36.1 % 35.3 % (0.8 ) pts 27.9 % 29.2 % 1.3 pts
 
Availability Services segment
Revenue $   353   $   344   (2 ) % $   1,405   $   1,373   (2 ) %
Adjusted EBITDA $ 129 $ 112 (14 ) % $ 480 $ 436 (9 ) %
Adjusted EBITDA margin 36.7 % 32.5 % (4.2 ) pts 34.2 % 31.8 % (2.4 ) pts
 
Public Sector & Education segment
Revenue $   52   $   55   4 % $   204   $   210   3 %
Adjusted EBITDA $ 19 $ 18 (8 ) % $ 66 $ 66 - %
Adjusted EBITDA margin 36.9 % 32.8 % (4.1 ) pts 32.5 % 31.6 % (0.9 ) pts
 
Corporate
Adjusted EBITDA $ (9 ) $ (11 ) $ (44 ) $ (46 )
 
Total
Revenue $   1,117   $   1,116   - % $   4,213   $   4,134   (2 ) %
Adjusted EBITDA $ 397 $ 372 (6 ) % $ 1,229 $ 1,202 (2 ) %
Adjusted EBITDA margin 35.5 % 33.4 % (2.1 ) pts 29.2 % 29.1 % (0.1 ) pts
 
pts = margin points
 
 
Reconciliation of Adjusted EBITDA to operating income:
 
Financial Systems segment $ 258 $ 253 $ 727 $ 746
Availability Services segment 129 112 480 436
Public Sector & Education segment 19 18 66 66
Corporate     (9 )     (11 )     (44 )     (46 )
Total Adjusted EBITDA 397 372 1,229 1,202
 
Depreciation (75 ) (81 ) (287 ) (303 )
Amortization of acquisition-related intangible assets (89 ) (81 ) (382 ) (334 )
Goodwill impairment - - (385 ) -
Restructuring and other costs (29 ) (16 ) (53 ) (46 )
Stock compensation expense (8 ) (11 ) (37 ) (46 )
Management fees     (4 )     (4 )     (14 )     (12 )
Total operating income $   192   $   179   (7 ) % $   71   $   461   554 %
Operating income margin 17.2 % 16.1 % (1.1 ) pts 1.7 % 11.2 % 9.5 pts
 
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)
 
Note 2. Reconciliation of Income (Loss) from Continuing Operations to EBITDA and Reconciliation of EBITDA to Adjusted EBITDA Per Senior Secured Credit Agreement
 
EBITDA represents income (loss) from continuing operations before interest expense, income taxes and depreciation and amortization. Adjusted EBITDA per our Senior Secured Credit Agreement is defined as EBITDA further adjusted to give effect to certain items that are required in calculating covenant compliance under our senior secured credit facilities, as amended, our senior notes and senior subordinated notes. Adjusted EBITDA per our Senior Secured Credit Agreement is calculated by subtracting from or adding to EBITDA items of income or expense described below. EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement are not recognized terms under generally accepted accounting principles (GAAP). EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement do not represent income (loss) from continuing operations, as that term is defined under GAAP, and should not be considered as an alternative to income (loss) from continuing operations as an indicator of our operating performance. Additionally, EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement are not intended to be measures of free cash flow available for management or discretionary use as such measures do not consider certain cash requirements such as capital expenditures (including capitalized software expense), tax payments and debt service requirements. SunGard considers EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement to be key indicators of our ability to pay our debt. EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement as presented herein are not necessarily comparable to similarly titled measures. The following is a reconciliation of EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement to income (loss) from continuing operations, the GAAP measure we believe to be most directly comparable to EBITDA and Adjusted EBITDA per our Senior Secured Credit Agreement. Further information regarding this reconciliation is included in our periodic filings with the U.S. Securities and Exchange Commission.
               
Three Months Ended Dec. 31,
(in millions) 2012 2013
 
Total revenue $   1,117   $   1,116  
Income (loss) from continuing operations $   52 $   65
Interest expense, net 103 96
Provision for income taxes 4 18
Depreciation and amortization     164       162  
EBITDA 323 341
Purchase accounting adjustments 2 1
Non-cash charges 9 11
Restructuring and other 33 15
Acquired EBITDA, net of disposed EBITDA 1 -
Loss on extinguishment of debt     31       -  
Adjusted EBITDA from Continuing Operations 399 368
Adjusted EBITDA from Operations Held for Sale     7       7  
Adjusted EBITDA - per Senior Secured Credit Agreement * $   406   $   375  
 
Adjusted EBITDA margin     36.4 %     33.6 %
Year to Year Margin change (2.8 points)
 
Twelve Months Ended Dec. 31,
(in millions)

2012

2013
 
Total revenue $   4,213   $   4,134  
Loss from continuing operations $ (398 ) $ 51
Interest expense, net 427 397
Provisions for (benefit from) income taxes (40 ) 6
Depreciation and amortization     669       637  
EBITDA 658 1,091
Goodwill impairment charges 385 -
Purchase accounting adjustments 9 7
Non-cash charges 38 47
Restructuring and other 58 47
Acquired EBITDA, net of disposed EBITDA 3 -
Loss on extinguishment of debt     82       6  
Adjusted EBITDA from Continuing Operations 1,233 1,198
Adjusted EBITDA from Operations Held for Sale     12       17  
Adjusted EBITDA - per Senior Secured Credit Agreement * $   1,245   $   1,215  
 
Adjusted EBITDA margin     29.6 %     29.4 %
Year to Year Margin change (0.2 points)
 
Adjusted EBITDA - Software & Processing (including Corporate) $ 751 $ 762
Adjusted EBITDA - Availability Services 482 436
Adjusted EBITDA - Operations Held for Sale     12       17  
Adjusted EBITDA - per Senior Secured Credit Agreement * $   1,245   $   1,215  
 
* Also applies to Senior Notes due 2018 and 2020 and Senior Subordinated Notes due 2019
 
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information (Unaudited)        
       
Note 3. Supplemental Information
 
Debt consisted of the following (in millions):
 
Dec. 31, 2012 Dec. 31, 2013
Senior Secured Credit Facilities:
Secured revolving credit facility $   - $   -
Tranche A, effective interest rate of 1.96% and 1.92% 207 7
Tranche B, effective interest rate of 4.35% 1,719 -
Tranche C, effective interest rate of 4.17% and 4.41% 908 427
Tranche D, effective interest rate of 4.50% and 4.50% 720 713
Tranche E, effective interest rate of 4.10%     -     2,183
Total Senior Secured Credit Facilities 3,554 3,330
 
Senior Secured Notes due 2014 at 4.875%, net of discount of $4 and $- 246 250
Senior Notes due 2018 at 7.375% 900 900
Senior Notes due 2020 at 7.625% 700 700
Senior Subordinated Notes due 2019 at 6.625% 1,000 1,000
Secured accounts receivable facility, at 3.71% and 3.67% 250 200
Other, primarily foreign bank debt and capital lease obligations     12     12
Total debt $   6,662 $   6,392
 
 
 
At December 31, 2013, the contractual future maturities of debt are as follows (in millions):
Contractual
 
2014 $ 293
2015 31
2016 31
2017 656
2018 929
Thereafter     4,452
Total debt $   6,392
 
 
 

Cash paid for property, equipment and software for the software and processing businesses (including Corporate)

and Availability Services follow (in millions):

 
Twelve Months Ended Dec. 31
2012 2013
 
Software & processing (including Corporate) $ 97 $ 112
Availability Services 162 146
Total cash paid for property, equipment and software $   259 $   258
 

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SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.