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UPDATE 2-Teradata profit beats forecast, shares rise

Thu Aug 7, 2008 10:38am EDT
 
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(Recasts, adds Reuters Estimates, CEO comment, stock move)

BOSTON, Aug 7 (Reuters) - Teradata Corp (TDC.N), a maker of computers that help companies analyze data on business trends, reported higher-than-expected quarterly results on Thursday as growth in Europe, the Middle East and Africa offset U.S. weakness.

Shares of the U.S. company jumped more than 8 percent after the results, with overseas sales also helped by the weak dollar.

Chief Executive Mike Koehler said in a statement that strength in international markets enabled the company to stand by its forecast for full-year revenue growth of 5 percent to 8 percent and earnings of $1.35 to $1.45 per share.

Teradata said its second-quarter net income rose to $69 million, or 38 cents a share, from $49 million, or 27 cents per share, a year earlier.

Profit beat the average analyst forecast of 33 cents per share, according to Reuters Estimates.

Revenue rose 6 percent to $455 million, compared to the average analyst forecast of $447 million. Currency fluctuations were responsible for 5 percentage points of the rise, Teradata said.

Gross margin in the quarter widened to 54.7 percent from 53.5 percent a year earlier.

Teradata is the world's biggest company specializing in selling data warehousing systems. Companies use its products as part of business intelligence systems that analyze data about their operations, finances and customers.

"The strength of our international and services business is helping to offset softness in the U.S. market," Koehler said in the statement.

Revenue climbed 33 percent in Europe, the Middle East and Africa to $128 million, while it fell 6 percent in the Americas to $236 million, and rose 10 percent to $91 million in Asia, said the Miamisburg, Ohio-based company.

Shares rose $1.95 to $24.84 in morning trade on the New York Stock Exchange.

NCR Corp (NCR.N), a maker of electronic banking equipment, spun off Teradata as an independent publicly held company last September. (Reporting by Jim Finkle; editing by John Wallace, Dave Zimmerman)

 

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