UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
__________________
 
FORM 8-K
 
__________________
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported): May 2, 2019
 

 
TERADATA CORPORATION
(Exact name of registrant as specified in its charter)
  
Commission File Number 001-33458  
 
 
 
Delaware
 
75-3236470
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
17095 Via Del Campo
San Diego, California 92127

(Address of principal executive offices and zip code)
 
Registrant’s telephone number, including area code: (866) 548-8348
 
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [ ]






Item 2.02    Results of Operations and Financial Condition.
Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K and Item 7.01 “Regulation FD Disclosure.” Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
On May 2, 2019, the Company issued a press release setting forth its first quarter 2019 operating results as well as current revenue and earnings per share outlook estimates for the second quarter and full-year 2019 (the "Press Release"). A copy of the Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.
Item 7.01    Regulation FD Disclosure.
The information set forth above under Item 2.02 “Results of Operations and Financial Condition” is furnished pursuant to this Item 7.01 and Exhibit 99.1 is hereby incorporated by reference into this Item 7.01.
Item 9.01        Financial Statements and Exhibits.
(d)    Exhibits:
The following exhibits are attached with this current report on Form 8-K:
 
 
 
Exhibit No.
 
Description
 





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.
 
 
 
 
 
 
 
 
TERADATA CORPORATION
 
 
 
Date: May 2, 2019
 
By:
 
/s/ Mark A. Culhane
 
 
 
 
Mark A. Culhane
 
 
 
 
Chief Financial Officer



    
Index to Exhibits
 
 
 
 
Exhibit No.
 
Description

 








IMAGE0A16.JPG
INVESTOR CONTACT
Gregg Swearingen
937-242-4600 office
gregg.swearingen@teradata.com

MEDIA CONTACT
Jennifer Donahue
858-485-3029 office j
jennifer.donahue@teradata.com

                    

Teradata Reports First Quarter 2019 Financial Results

•
Recurring revenue increased 10 percent, up 13 percent in constant currency (1) , from the first quarter of 2018
•
Annual Recurring Revenue (ARR) increased 9 percent, 12 percent in constant currency (1) , year-over-year
•
First-quarter earnings per share (EPS) exceeded company guidance
•
Teradata maintains its full-year guidance for 2019

SAN DIEGO - May 2, 2019 -- Teradata Corp. (NYSE: TDC ) continues its successful transformation to a subscription-based business with subscription-based transactions comprising 72 percent of the company’s bookings mix in the first quarter. Recurring revenue increased 10 percent, 13 percent in constant currency (1) , from the first quarter of 2018. ARR increased 9 percent, 12 percent in constant currency (1) , from the first quarter of 2018. As the company shifts to a recurring revenue model and focuses its consulting business on higher-margin engagements within its targeted “megadata” customer base, perpetual revenue and consulting revenue declined versus prior year as expected. Total first-quarter revenue was $468 million, compared to 2018 first-quarter total revenue of $506 million. Currency translation had a 4 percent negative impact on the first-quarter total revenue comparison.
 
Teradata reported 2019 first-quarter net loss of $(10) million under U.S. Generally Accepted Accounting Principles (GAAP), or $(0.09) per share, which compared to a net loss of $(7) million, or $(0.06) per share, in the first quarter of 2018. Non-GAAP 2019 first-quarter net income, which excludes stock-based compensation expense and other special items, was $26 million, or $0.22 per diluted share, as compared to $23 million, or $0.19 per diluted share in the first quarter of 2018 (2) .  

“In the first quarter, Teradata continued its strong momentum, backed by increasing demand for Teradata Vantage™, our game-changing platform that is helping the world’s leading enterprises get the answers they need for their toughest analytic challenges,” said Oliver Ratzesberger, President and CEO, Teradata. “I am extremely proud of our people as they accelerate the pace of transformation at Teradata and remain committed to delivering long-term value to our customers and shareholders.”

Gross Margin
2019 first-quarter gross margin reported under GAAP was 47.9 percent versus 44.1 percent for the first quarter of 2018. On a non-GAAP basis, excluding stock-based compensation expense and other special items, 2019 first-quarter gross margin was 51.5 percent, versus 48.4 percent in the prior-year period (2) . Gross margin was higher year over year due to a higher mix of recurring revenue as part of total revenue.





Operating Income
2019 first-quarter oper ating loss reported under GAAP was $(5) million which compares to $(4) million in the first quarter of 2018. On a non-GAAP basis, excluding stock-based compensation expense and other special items, 2019 first- quarter operating income was $41 million versus $35 million in the first quarter of 2018 (2) . The increase in non-GAAP operating income was due to higher gross margins and lower operating expenses compared to the prior-year period.

Income Taxes
Teradata’s 2019 first-quarter tax rate under GAAP was 0.0 percent compared to 12.5 percent in the first quarter of 2018. Excluding special items, Teradata’s non-GAAP 2019 first-quarter tax rate was 27.8 percent versus 25.8 percent in the first quarter of 2018 (2) .

Cash Flow
During the first quarter of 2019, Teradata generated $49 million of cash from operating activities compared to $184 million in the same period of 2018. During the quarter, Teradata used $16 million for capital expenditures and additions to capitalized software development costs, versus using $28 million in the first quarter of 2018. Teradata’s 2019 first-quarter free cash flow was $33 million, compared to $156 million in the first quarter of 2018 (3) . The company used approximately $29 million of cash in the first quarter of 2019 related to reorganizing and restructuring its operations and go-to-market functions to align to its strategy, reducing free cash flow.

Balance Sheet
Teradata ended the first quarter 2019 with $723 million in cash. During the first quarter of 2019, Teradata repurchased 1.2 million shares of the Company’s common stock for approximately $58 million. At the end of the first quarter, Teradata had approximately $230 million of Board authorization remaining for share repurchases.

As of March 31, 2019, the Company had total debt of $559 million, including $59 million of outstanding finance lease obligations. There were no funds drawn on the company’s $400 million revolving credit facility as of March 31, 2019.

Guidance
For the full-year 2019, Teradata continues to expect 70 percent or more of its bookings mix to be subscription-based, ARR to increase in the range of 11 percent to 12 percent, and recurring revenue to increase approximately 10 percent to 11 percent.

2019 perpetual revenue is expected to decline at the high end of its prior guidance range of $150 million to $200 million versus 2018 due to the faster than anticipated transition to subscription-based transactions.

The realignment of the company’s consulting business to focus on higher-margin consulting services within its target market of “megadata” customers is progressing. Teradata now expects 2019 consulting revenue to decline at the high end of its prior guidance range of 15 percent to 20 percent versus 2018.







Teradata expects 2019 full-year GAAP earnings per share to be in the $0.43 to $0.53 range. On a non-GAAP basis, which excludes stock-based compensation expense and other special items, earnings per share is still expected to be in the $1.45 to $1.55 range (2) .

Recurring revenue in the second quarter of 2019 is expected to be in the $336 million to $340 million range.

GAAP earnings per share in the second quarter of 2019 is expected to be in the $0.01 to $0.03 range. Non-GAAP earnings per share, excluding stock-based compensation expense and other special items, in the second quarter is expected to be in the $0.28 to $0.30 range (2) .

Earnings Conference Call
A conference call is scheduled today at 2:00 p.m. PT to discuss the Company’s 2019 first-quarter results. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com .

Supplemental Financial Information
Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.
The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates (except for currency impact on ARR which is calculated using month-end rates). See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s web site at investor.teradata.com , which is used to determine revenue on a constant currency (“CC”) basis.

Revenue
 
(in millions)
 
 
For the Three Months ended March 31
 
2019
 
2018
 
% Change as Reported
 
% Change in Constant Currency
Recurring revenue
$
331

 
$
302

 
10%
 
13%
Perpetual software licenses and hardware
31

 
69

 
(55)%
 
(54)%
Consulting services
106

 
135

 
(21)%
 
(17)%
  Total revenue
$
468

 
$
506

 
(8)%
 
(4)%
 
 
 
 
 
 
 
 
Americas
$
269

 
$
264

 
2%
 
3%
EMEA
113

 
149

 
(24)%
 
(19)%
APAC
$
86

 
$
93

 
(8)%
 
(3)%
   Total revenue
$
468

 
$
506

 
(8)%
 
(4)%
 
 
 
 
 
 
 
 

 
As of March 31
 
2019
 
2018
 
% Change as Reported
 
% Change in Constant Currency
Annual recurring revenue (ARR)*
$
1,319

 
$
1,206

 
9%
 
12%
* Annual recurring revenue is defined as the annual value at a point in time of all recurring contracts, including subscription, software upgrade rights, maintenance and managed services.







2.
Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow) are useful for investors. Our non-GAAP measures are not meant to be considered in isolation or as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.


Teradata’s reconciliation of GAAP to non-GAAP results included in this release.
 
 
For the
Three Months
 
 
(in millions, except per share data)
 
ended March 31
 
 
Gross Profit:
 
2019
 
2018
 
% Chg.
 GAAP Gross Profit
 
$
224

 
$
223

 
—%
   % of Revenue
 
47.9
 %
 
44.1
 %
 
 
 
 
 
 
 
 
 
  Excluding:
 
 
 
 
 
 
   Stock-based compensation expense
 
3

 
4

 
 
   Acquisition, integration, reorganization related, and other costs
 
3

 
3

 
 
   Amortization of capitalized software
 
11

 
15

 
 
 Non-GAAP Gross Profit
 
$
241

 
$
245

 
(2)%
   % of Revenue
 
51.5
 %
 
48.4
 %
 
 
Operating (Loss)/ Income
 
 
 
 
 
 
 GAAP Operating Loss
 
$
(5
)
 
$
(4
)
 
(25)%
   % of Revenue
 
(1.1
)%
 
(0.8
)%
 
 
 
 
 
 
 
 
 
 Excluding:
 
 
 
 
 
 
   Stock-based compensation expense
 
15

 
19

 
 
   Amortization of acquisition-related intangible assets
 
2

 
2

 
 
   Acquisition, integration, reorganization related, and other costs
 
18

 
3

 
 
   Amortization of capitalized software
 
11

 
15

 
 
 Non-GAAP Operating Income
 
$
41

 
$
35

 
17%
   % of Revenue
 
8.8
 %
 
6.9
 %
 
 
 
 
 
 
 
 
 
Net (Loss)/Income
 
 
 
 
 
 
 GAAP Net Loss
 
$
(10
)
 
$
(7
)
 
(43)%
   % of Revenue
 
(2.1
)%
 
(1.4
)%
 
 
 
 
 
 
 
 
 
  Excluding:
 
 
 
 
 
 
   Stock-based compensation expense
 
15

 
19

 
 
   Amortization of acquisition-related intangible assets
 
2

 
2

 
 
   Acquisition, integration, reorganization related, and other costs
 
18

 
3

 
 
   Amortization of capitalized software
 
11

 
15

 
 
   Income tax adjustments*
 
(10
)
 
(9
)
 
 
 Non-GAAP Net Income
 
$
26

 
$
23

 
13%
   % of Revenue
 
5.6
 %
 
4.5
 %
 
 





 
For the Three Months
 
 
 
 
 
ended March 31
 
 
 
 
 
Earnings Per Share:
2019
 
2018
 
2019 Q2
Guidance
 
2019 FY
Guidance
 
GAAP (Loss) Per Share
$
(0.09
)
 
$
(0.06
)
 
$ 0.01 - $ 0.03

 
$ 0.43 - $ 0.53
 
 Excluding:
 
 
 
 
 
 
 
   Stock-based compensation expense
0.13

 
0.16

 
0.18

 
0.68
 
   Amortization of acquisition-related intangible assets
0.02

 
0.02

 
0.01

 
0.04
 
   Acquisition, integration and reorganization related costs
0.15

 
0.02

 
0.08

 
0.28
 
   Amortization of capitalized software
0.09

 
0.12

 
0.08

 
0.28
 
   Income tax adjustments*
(0.09
)
 
(0.07
)
 
(0.08
)
 
(0.26
)
Impact of dilution**
0.01

 
—

 
—

 
—
 
 Non-GAAP Diluted Earnings Per Share
$
0.22

 
$
0.19

 
$ 0.28 - $ 0.30

 
$1.45 - $1.55
 

* Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item in addition to the tax impact for U.S. tax reform. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the first quarter of 2019 was 27.8% and 25.8% in the first quarter of 2018

** Represents the impact to earnings per share as a result of moving from basic to diluted shares.

3.
As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Teradata defines free cash flow as cash provided/used by operating activities less capital expenditures for property and equipment, and additions to capitalized software. Free cash flow does not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of this measure. Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of the Company’s stock and repayment of the Company’s debt obligations, if any. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure is not meant to be considered in isolation, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

(in millions)
For the Three Months
 
ended March 31
 
2019
 
2018
 
 
 
 
Cash (used) / provided by operating activities (GAAP)
$
49

 
$
184

    Less  capital expenditures for:
 
 
 
      Expenditures for property and equipment
(15
)
 
(26
)
      Additions to capitalized software
(1
)
 
(2
)
           Total capital expenditures
(16
)
 
(28
)
Free Cash Flow (non-GAAP measure)
$
33

 
$
156


Teradata used $29 million of cash in the first quarter of 2019 related to reorganizing and restructuring its operations and its go-to-market functions to align to its strategy.













Note to Investors
This news release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs and projections of expected future financial and operating performance, business trends, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this release and those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results, including as a result of the pace and extent to which customers shift from perpetual to subscription-based licenses; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including foreign currency fluctuations; risks associated with data privacy, cyberattacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition and market acceptance of new and existing products and services; tax rates; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful exploitation of new alliance and acquisition opportunities; recurring revenue may decline or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K and subsequent quarterly reports on Forms 10-Q, as well as the Company’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.



About Teradata     
Teradata transforms how businesses work and people live through the power of data. Teradata leverages all of the data, all of the time, so you can analyze anything, deploy anywhere, and deliver analytics that matter. We call this pervasive data intelligence. And it’s the answer to the complexity, cost, and inadequacy of today’s approach to analytics. Get the answer at teradata.com.

Teradata and the Teradata logo are trademarks or registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide.



# # #






SCHEDULE A

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in millions, except per share amounts - unaudited)
 
 
For the Period Ended March 31
 
 
Three Months
 
 
2019
 
2018
 
% Chg
Revenue
 
 
 
 
 
 
Recurring
 
$
331

 
$
302

 
10
 %
Perpetual software licenses and hardware
 
31

 
69

 
(55
)%
Consulting services
 
106

 
135

 
(21
)%
Total revenue
 
468

 
506

 
(8
)%
Gross profit
 
 
 
 
 
 
Recurring
 
225

 
212

 
 
% of Revenue
 
68.0
 %
 
70.2
 %
 
 
Perpetual software licenses and hardware
 
6

 
21

 
 
% of Revenue
 
19.4
 %
 
30.4
 %
 
 
Consulting services
 
(7
)
 
(10
)
 
 
% of Revenue
 
(6.6
)%
 
(7.4
)%
 
 
Total gross profit
 
224

 
223

 
 
% of Revenue
 
47.9
 %
 
44.1
 %
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
151

 
152

 
 
Research and development expenses
 
78

 
75

 
 
Loss from operations
 
(5
)
 
(4
)
 
 
% of Revenue
 
(1.1
)%
 
(0.8
)%
 
 
 
 
 
 
 
 
 
Other expense, net
 
(5
)
 
(4
)
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
(10
)
 
(8
)
 
 
% of Revenue
 
(2.1
)%
 
(1.6
)%
 
 
 
 
 
 
 
 
 
Income tax benefit
 
—

 
(1
)
 
 
% Tax rate
 
—
 %
 
12.5
 %
 
 
 
 
 
 
 
 
 
Net loss
 
$
(10
)
 
$
(7
)
 
 
% of Revenue
 
(2.1
)%
 
(1.4
)%
 
 
 
 
 
 
 
 
 
Net loss per common share
 
 
 
 
 
 
Basic
 
$
(0.09
)
 
$
(0.06
)
 
 
Diluted
 
$
(0.09
)
 
$
(0.06
)
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
 
 
 
 
 
Basic
 
117.1

 
121.4

 
 
Diluted
 
117.1

 
121.4

 
 
 
 
 
 
 
 
 





SCHEDULE B

TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions - unaudited)
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
Assets
 
 
 
 
 
Current assets
 
 
 
 
 
Cash and cash equivalents
$
723

 
$
715

 
$
939

Accounts receivable, net
445

 
588

 
451

Inventories
52

 
28

 
43

Other current assets
82

 
97

 
97

Total current assets
1,302

 
1,428

 
1,530

Property and equipment, net
303

 
295

 
172

Capitalized software, net
60

 
72

 
107

Right of use assets- operating lease, net
60

 
—

 
—

Goodwill
396

 
395

 
401

Acquired intangible assets, net
14

 
16

 
21

Deferred income taxes
66

 
67

 
58

Other assets
85

 
87

 
66

Total assets
$
2,286

 
$
2,360

 
$
2,355

 
 
 
 
 
 
Liabilities and stockholders' equity
 
 
 
 
 
Current liabilities
 
 
 
 
 
Current portion of long-term debt
$
25

 
$
19

 
$
68

Current portion of finance lease liability
21

 
17

 
—

Current portion of operating lease liability
17

 
—

 
—

Accounts payable
99

 
141

 
110

Payroll and benefits liabilities
103

 
224

 
110

Deferred revenue
569

 
490

 
532

Other current liabilities
80

 
118

 
93

Total current liabilities
914

 
1,009

 
913

Long-term debt
472

 
478

 
456

Finance lease liability
38

 
30

 
—

Operating lease liability
48

 
—

 
—

Pension and other postemployment plan liabilities
104

 
113

 
111

Long-term deferred revenue
100

 
105

 
72

Deferred tax liabilities
4

 
3

 
9

Other liabilities
139

 
127

 
150

Total liabilities
1,819

 
1,865

 
1,711

Stockholders' equity


 
 
 
 
Common stock
1

 
1

 
1

Paid-in capital
1,466

 
1,418

 
1,350

Accumulated deficit
(891
)
 
(823
)
 
(637
)
Accumulated other comprehensive loss
(109
)
 
(101
)
 
(70
)
Total stockholders' equity
467

 
495

 
644

Total liabilities and stockholders' equity
$
2,286

 
$
2,360

 
$
2,355





SCHEDULE C

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)

 
 
For the Period Ended March 31
 
 
Three Months
 
 
2019
 
2018
Operating activities
 
 
 
 
Net loss
 
$
(10
)
 
$
(7
)
Adjustments to reconcile net loss to net cash
 
 
 
 
provided by operating activities:
 
 
 
 
Depreciation and amortization
 
37

 
34

Stock-based compensation expense
 
15

 
19

Deferred income taxes
 
2

 
(5
)
Changes in assets and liabilities:
 
 
 
 
Receivables
 
143

 
83

Inventories
 
(24
)
 
(13
)
Current payables and accrued expenses
 
(171
)
 
(27
)
Deferred revenue
 
74

 
124

Other assets and liabilities
 
(17
)
 
(24
)
Net cash provided by operating activities
 
49

 
184

Investing activities
 
 
 
 
Expenditures for property and equipment
 
(15
)
 
(26
)
Additions to capitalized software
 
(1
)
 
(2
)
Net cash used in investing activities
 
(16
)
 
(28
)
Financing activities
 
 
 
 
Repurchases of common stock
 
(56
)
 
(60
)
Repayments of long-term borrowings
 
—

 
(15
)
Repayment of credit facility borrowings
 
—

 
(240
)
Payment of finance leases
 
(3
)
 
—

Other financing activities, net
 
33

 
10

Net cash used in financing activities
 
(26
)
 
(305
)
Effect of exchange rate changes on cash and cash equivalents
 
1

 
—

Increase (decrease) in cash, cash equivalents and restricted cash
 
8

 
(149
)
Cash, cash equivalents and restricted cash at beginning of period
 
716

 
1,089

Cash, cash equivalents and restricted cash at end of period
 
$
724

 
$
940


Supplemental cash flow disclosure:
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
Assets acquired by finance leases
 
$
15

 
$
—

Assets acquired by operating leases
 
$
3

 
$
—






SCHEDULE D

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
 
 
For the Three Months Ended March 31
 
 
2019
 
2018
 
% Change As Reported
 
%
 Change Constant Currency (2)
Segment Revenue
 
 
 
 
 
 
 
 
Americas
 
$
269

 
$
264

 
2%
 
3%
EMEA
 
113

 
149

 
(24)%
 
(19)%
APAC
 
86

 
93

 
(8)%
 
(3)%
Total segment revenue
 
468

 
506

 
(8)%
 
(4)%
 
 
 
 
 
 
 
 
 
Segment gross profit
 
 
 
 
 
 
 
 
Americas
 
157

 
147

 
 
 
 
% of Revenue
 
58.4
%
 
55.7
%
 
 
 
 
EMEA
 
50

 
63

 
 
 
 
% of Revenue
 
44.2
%
 
42.3
%
 
 
 
 
APAC
 
34

 
35

 
 
 
 
% of Revenue
 
39.5
%
 
37.6
%
 
 
 
 
Total segment gross profit
 
241

 
245

 
 
 
 
% of Revenue
 
51.5
%
 
48.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciling items (1)
 
(17
)
 
(22
)
 
 
 
 
Total gross profit
 
$
224

 
$
223

 
 
 
 
% of Revenue
 
47.9
%
 
44.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
(2) The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.