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$TDC 1Q15 10-Q: The effective tax rate for the three months ended March 31, 2015 and March 31, 2014 was 26.7% and 28.0%, respectively. The decrease was primarily driven by a higher percentage of forecasted foreign pre-tax earnings mix for the three months ended March 31, 2015 versus the three months ended March 31, 2014.
In 2017, $TDC expects to invest over $100MM in a number of key strategic areas, including R&D, new go to market approach and consulting and analytical solutions. Based on the exchange rates at the end of Jan., $TDC expects about 1% headwind on 2017 revenue comparison and 1% headwind for 1Q YoY revenue comparison.
$TDC reported that revenue in the Americas region slipped 9% in constant currency for 4Q16, as customers continued to evaluate less capital intensive alternatives and their new purchasing and deployment options. Revenue for international region declined 2% in constant currency. EMEA revenue grew 2%, while Asia-Pacific-Japan revenue declined 6%.
In 4Q16, $TDC had about $40MM of subscription-based revenue that was not included in reported results. This revenue will be recognized over time. Currency movement negatively impacted 4Q16 reported revenue by approx. $7MM since company provided the 4Q16 guidance.
$TDC expects 1Q17 revenue of about $500MM and GAAP EPS in the range of $0.01-0.06. The company predicts non-GAAP EPS, which excludes stock-based compensation expense and other special items, in the range of $0.25-0.30. $TDC said it will not provide full-year 2017 guidance at this time due to nature of significant uncertainties.
$TDC swung to a 4Q16 profit from a loss last year, driven by lower stock-based compensation expense and special items. Net income was $58MM or $0.44 per share compared to a loss of $49MM or $0.37 per share last year. Revenue dropped 13% to $626MM. Non-GAAP EPS decreased to $0.67 from $0.75.
$TDC's cash at the end of 3Q16 was $988MM, which was substantially all held outside the US. During the quarter, the company used $18MM of domestic cash to repurchase shares. Total debt as of the end of 3Q16 was about $578MM, and the company had no borrowings under its $400MM revolving credit facility as of the same period.
For 4Q16, $TDC expects revenue to be in the range of $620-640MM and GAAP EPS is expected in the range of $0.43-0.48. On a non-GAAP basis, which excludes stock-based compensation expense, and other special items, EPS is expected to be in the range of $0.57-0.62.
Analytic products and related services provider $TDC posted lower 3Q16 earnings, hurt by revenue and margin declines. Net income for the quarter fell 37.17% to $49MM or $0.37 per diluted share from $78MM or $0.55 per diluted share a year ago. Total revenue for the quarter fell 8.9% to $552MM. Excluding items, $TDC earned $0.69 per share.
$TDC said it expects 3Q16 revenue in the $550-560MM range and non-GAAP EPS to approximate $0.60. The company expects product gross margin to be approx. 60% and services margin in the mid-40s. $TDC expects as-reported total OpEx to decrease about $20MM YoverY in 3Q16, with reported R&D expense being up slightly YoverY and up sequentially from 2Q16.
$TDC continues to expect R&D expense for the full year 2016 to be down 10-15% as reported basis. Due to the investments associated with its strategic growth initiatives, the company expects R&D expense will increase on a comparative basis, excluding Marketing Applications, moving into 2H16, as well as into 2017.
$TDC said full-year 2016 GAAP EPS outlook is now $0.89-1.04. On a non-GAAP basis, which excludes stock-based compensation expense, other special items and the Marketing Applications business results, the company expects EPS in the $2.35-2.50 range for full-year 2016.
$TDC expects GAAP revenue for 2016 in the $2.32-2.39Bil range, which includes about $69MM of revenue generated from the Marketing Applications business before it was sold on July 1, 2016. Excluding the Marketing Applications business, revenue for 2016 continues to be expected in the $2.25-2.32Bil range.
$TDC ended 2Q16 with $909MM in cash, with over 98% of cash held outside the US. In 2Q16, the company purchased 600,000 shares of stock for approx. $15MM. As of June 30, 2016, $TDC had total debt of about $585MM, all of which was outstanding under a term loan. The company had no borrowings under its $400MM revolving credit facility as of that date.
$TDC posted improved earnings in 2Q16, helped by lower expenses compared to 2Q15. Net income was $64MM or $0.49 per diluted share compared to net loss of $265MM or $1.87 per diluted share in 2Q15. Total revenue was down 4% to $599MM from $623MM last year. Non-GAAP diluted EPS was $0.71 in the quarter.
$TDC's net cash provided by operating activities for 1Q16 increased to $251MM from $222MM in the previous year quarter. Net cash used in investing activities slid to $29MM from $32MM last year, while net cash used in financing activities rose to $146MM from $130MM in the prior year quarter.
$TDC's revenue for 1Q16 declined by 6% from last year, as foreign currency fluctuations had a 2% adverse impact. Product revenue decreased 20% primarily due to a drop in large capital expenditure transactions. Services revenue rose 3% on 4% increase in consulting revenue and 2% rise in maintenance revenue from the prior period.
$TDC said the important new features in IntelliFlex include up to three times more memory and the ability to double the size in just one hour with a simple database restart. That company added that early customer interest for IntelliFlex is strong and it will be available for shipping in 3Q16.