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TSYS Reports 2012 Earnings Per Share Up 13.1%

TSYS (NYSE: TSS) today reported results for the fourth quarter and full year with basic earnings per share (EPS) at $0.33 for the quarter, an increase of 3.7%, and $1.30 for the full year, an increase of 13.1% over 2011. Revenues before reimbursable items for the quarter were $418.6 million, an increase of 2.7%, and $1,618.5 million for the year, an increase of 5.0% over 2011. Total revenues were $479.1 million for the quarter and $1,871.0 million for the full year, increases of 1.5% and 3.4%, respectively, as compared to 2011. Total revenues were impacted by decreases of $4.0 million for the quarter and $15.8 million for the year in reimbursable items.

Operating margin excluding reimbursable items for the year was 22.1%, an increase of 117 basis points over last year. The increase is attributable to a 5.0% increase in revenues before reimbursable items, while expenses before reimbursable items were up only 3.5%.

“We are pleased to report that we exceeded the high end of our net income and EPS guidance for 2012. These results reflect continued strong same client transaction growth of 12.0% in our card issuer processing business. Point-Of-Sale transactions, excluding deconverted clients in the indirect merchant business, were up 9.9% and sales volume in the direct merchant business was up 12.9%. Excluding the impact of acquisitions, sales volume was up 3.2%. Also contributing to our strong results was our consolidated internal revenue growth of 5.1% for the year, combined with acquisitions in the acquiring space, which added 1.8% to our growth in revenues before reimbursable items,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

“Our guidance for 2013 is included in the table below and we expect 6% to 8 % growth in revenues before reimbursable items and 10% to 12% EPS growth. This is the second year in a row that we have projected double digit EPS growth. We remain focused on executing our strategy of growing our existing businesses, adding strategic acquisitions and deploying capital to enhance shareholder return. In support of this strategy during 2012, we purchased 3.2 million shares of our stock for $75 million, used $190 million to invest in acquisitions, and returned $94 million in dividends to our shareholders, for a total spend of $359 million,” said Tomlinson.

2013 Guidance
Range        

(in millions, except per
share amounts)

Percent

Change

Total revenues $1,955     to     $1,995 5%     to     7%
Revenues before reimbursable items $1,711 to $1,746 6% to 8%
Net Income attributable to TSYS common shareholders

$266

to

$272

9%

to

11%

EPS attributable to TSYS common shareholders

$1.43

to

$1.45

10%

to

12%

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, January 22. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under "Webcasts" on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under "Webcasts" on the main homepage of tsys.com.

Non-GAAP Measures

The financial highlights section of this release and this release contain the non-GAAP financial measures of revenues and operating results on a constant currency basis, and revenues and operating margin excluding reimbursable items, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 11 and 12 of this release.

About TSYS

At TSYS, (NYSE: TSS), we believe payments should revolve around people — not the other way around. We call this belief "People-Centered PaymentsSM." By putting people at the center of every decision we make, with unmatched customer service and industry insight, TSYS is able to support financial institutions, businesses and governments in more than 80 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare and more, we make it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks, is a Fortune 1000 company and was named one of the 2012 World's Most Ethical Companies by Ethisphere magazine. For more information, please visit us at www.tsys.com.

Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2013 total revenues, revenues before reimbursable items, net income attributable to TSYS common shareholders and EPS attributable to TSYS common shareholders, and the assumptions underlying such statements. These statements are based on the current beliefs and expectations of TSYS' management, are based on management’s assumptions and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS' ability to control or predict. These factors include, but are not limited to, the effect of current domestic and worldwide economic conditions; the material breach of security of any of TSYS' systems; the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated; adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; the deconversion of a significant client; changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and growth rates of TSYS’ existing clients are lower than anticipated or attrition rates of existing clients are higher than anticipated. Additional risks and other factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS' filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

TSYS Announces Fourth Quarter 2012 Earnings                  
Page 4 of 12
 
 
                                 
TSYS
Financial Highlights
(unaudited)
(in thousands, except per share data)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
Percent Percent
2012 2011 Change 2012 2011 Change
 
Total revenues $ 479,100 472,234 1.5 % $ 1,870,972 1,808,966 3.4 %
 
Cost of services 315,698 322,946 (2.2 ) 1,262,310 1,257,970 0.3
Selling, general and administrative expenses 73,571   59,570   23.5 251,010   228,540   9.8
 
Operating income 89,831 89,718 0.1 357,652 322,456 10.9
 
Nonoperating income (expenses) 5   (541 ) nm (2,798 ) (5,905 ) 52.6
 
Income before income taxes, noncontrolling interests
and equity in income of equity investments 89,836 89,177 0.7 354,854 316,551 12.1
Income taxes 30,767   29,497   4.3 115,102   102,597   12.2
Income before noncontrolling interests and
equity in income of equity investments 59,069 59,680 (1.0 ) 239,752 213,954 12.1
Equity in income of equity investments 3,188   1,234   nm 10,171   8,708   16.8
Net income 62,257 60,914 2.2 249,923 222,662 12.2
Net income attributable to noncontrolling interests (1,395 ) (1,040 ) (34.1 ) (5,643 ) (2,103 ) nm
 
Net income attributable to TSYS common shareholders $ 60,862   59,874   1.7 % $ 244,280   220,559   10.8 %
 
Basic earnings per share $ 0.33   0.31   3.7 % $ 1.30   1.15   13.1 %
 
Diluted earnings per share $ 0.32   0.31   3.4 % $ 1.29   1.15   12.5 %
 
 
Dividends declared per share $ 0.10   0.10   $ 0.40   0.31  
 
nm = not meaningful
TSYS Announces Fourth Quarter 2012 Earnings            
Page 5 of 12    
   
 
                             
TSYS
Consolidated Statements of Comprehensive Income
(unaudited)
(in thousands)
 
 
Three Months Ended Twelve Months Ended
December 31, December 31,
 
2012 2011 2012 2011
 
Net income $ 62,257 60,914 249,923 222,662
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments (2,257 ) (2,944 ) 678 1,133
Postretirement healthcare plan adjustments (415 ) 263   (1,665 ) 1,056
Other comprehensive income (loss) (2,672 ) (2,681 ) (987 ) 2,189
Comprehensive income 59,585 58,233 248,936 224,851
Comprehensive income attributable to
noncontrolling interests (1,041 ) (1,146 ) 2,803   2,152
Comprehensive income attributable to
TSYS common shareholders $ 60,626   59,379   246,133   222,699
 
TSYS Announces Fourth Quarter 2012 Earnings                          
Page 6 of 12
 
 
                                               
TSYS
Earnings Per Share
(unaudited)
(in thousands, except per share data)
 
 
Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended
December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Common Participating Common Participating Common Participating Common Participating
Stock Securities Stock Securities Stock Securities Stock Securities
 
Basic Earnings per share:
Net income $ 60,862 59,874 $ 244,280 220,559
Less income allocated to nonvested awards (186 ) 186 (213 ) 213 (800 ) 800 (805 ) 805
Net income allocated to common stock for
EPS calculation ( a ) $ 60,676   186 59,661   213 $ 243,480   800 219,754   805
 
Average common shares outstanding ( b ) 185,888   583 189,506   684 187,403   627 191,239   707
 
Average common shares and participating securities 186,471   190,190   188,030   191,946  
 
Basic Earnings per share ( a )/( b ) $ 0.33   0.32 0.31   0.31 $ 1.30   1.29 1.15   1.14
 
Diluted Earnings per share:
Net income $ 60,862 59,874 $ 244,280 220,559
Less income allocated to nonvested awards (186 ) 186 (212 ) 212 (796 ) 796 (804 ) 804
Net income allocated to common stock for
EPS calculation ( c ) $ 60,676   186 59,662   212 $ 243,484   796 219,755   804
 
Average common shares outstanding 185,888 583 189,506 684 187,403 627 191,239 707
Increase due to assumed issuance of shares related
to common equivalent shares outstanding 983     517     1,262     345    
 
Average common and common
equivalent shares outstanding ( d ) 186,871   583 190,023   684 188,665   627 191,584   707
 
Average common and common
equivalent shares and participating securities 187,454   190,707   189,292   192,291  
 
Diluted Earnings per share ( c )/( d ) $ 0.32   0.32 0.31   0.31 $ 1.29   1.27 1.15   1.14
 
TSYS Announces Fourth Quarter 2012 Earnings                        
Page 7 of 12
                                                 
TSYS
Segment Breakdown
(unaudited)
(in thousands)
 
Three Months Ended December 31,  

Twelve Months Ended December 31,

 
Change Change
2012   2011   $   % 2012   2011   $   %
Revenues before reimbursable items
North America Services $ 213,639 209,618 4,021 1.9 % $ 826,750 809,069 17,681 2.2 %
International Services 102,427 102,792 (365 ) (0.4 ) % 396,149 380,129 16,020 4.2 %
Merchant Services 105,855 100,379 5,476 5.5 % 409,698 373,159 36,539 9.8 %
Intersegment revenues (3,352 )   (5,106 )   1,754   34.4 % (14,106 )   (21,659 )   7,553   34.9 %
Revenues before reimbursable items
from external customers $ 418,569     407,683     10,886   2.7 % $ 1,618,491     1,540,698     77,793   5.0 %
 
Total revenues
North America Services $ 247,612 246,190 1,422 0.6 % $ 965,393 954,550 10,843 1.1 %
International Services 107,000 106,560 440 0.4 % 413,467 394,831 18,636 4.7 %
Merchant Services 129,413 126,224 3,189 2.5 % 512,580 487,997 24,583 5.0 %
Intersegment revenues (4,925 )   (6,740 )   1,815   26.9 % (20,468 )   (28,412 )   7,944   28.0 %
Revenues from external customers $ 479,100     472,234     6,866   1.5 % $ 1,870,972     1,808,966     62,006   3.4 %
 
Depreciation and amortization
North America Services $ 18,817 18,767 50 0.3 % $ 74,674 78,155 (3,481 ) (4.5 ) %
International Services 14,510 15,373 (863 ) (5.6 ) % 57,127 51,888 5,239 10.1 %
Merchant Services 9,509 8,893 616 6.9 % 36,252 36,124 128 0.4 %
Corporate Admin 446     729     (283 ) (38.8 ) % 2,557     2,998     (441 ) (14.7 ) %
Total depreciation and amortization $ 43,282     43,762     (480 ) (1.1 ) % $ 170,610     169,165     1,445   0.9 %
 
Segment operating income
North America Services $ 77,801 66,560 11,241 16.9 % $ 287,595 253,844 33,751 13.3 %
International Services 6,058 11,983 (5,925 ) (49.4 ) % 27,335 41,408 (14,073 ) (34.0 ) %
Merchant Services 30,438 32,958 (2,520 ) (7.6 ) % 132,115 112,986 19,129 16.9 %
Corporate Admin (24,466 )   (21,783 )   (2,683 ) (12.3 ) % (89,393 )   (85,782 )   (3,611 ) (4.2 ) %
Operating income $ 89,831     89,718     113   0.1 % $ 357,652     322,456     35,196   10.9 %
 
Other:
Reimbursable items:
North America Services $ 33,973 36,572 (2,599 ) (7.1 ) % $ 138,643 145,481 (6,838 ) (4.7 ) %
International Services 4,573 3,768 805 21.4 % 17,318 14,702 2,616 17.8 %
Merchant Services 23,558 25,845 (2,287 ) (8.8 ) % 102,882 114,838 (11,956 ) (10.4 ) %
Intersegment revenues (1,573 )   (1,634 )   61   3.7 % (6,362 )   (6,753 )   391   5.8 %
Reimbursable items $ 60,531     64,551     (4,020 ) (6.2 ) % $ 252,481     268,268     (15,787 ) (5.9 ) %
 
Volumes:
FTEs (full-time equivalents)
North America Services 4,096 4,318 (222 ) (5.1 ) %
International Services 2,404 2,376 28 1.2 %
Merchant Services 1,481 1,158 323 27.9 %
Corporate Admin 425     397     28   7.1 %
FTEs 8,406     8,249     157   1.9 %
 
At Change
Total assets (in thousands) 12/31/2012   12/31/2011   $   %
North America Services $ 1,747,096 1,621,664 125,432 7.7 %
International Services 445,642 433,203 12,439 2.9 %
Merchant Services 696,426 487,858 208,568 42.8 %
Intersegment assets (870,406 )   (684,333 )   (186,073 ) (27.2 ) %
Total assets $ 2,018,758     1,858,392     160,366   8.6 %
 
 
Three Months Ended December 31, Twelve Months Ended December 31,
 
Change Change
2012   2011  

Inc(Dec)

  % 2012     2011     Inc(Dec)     %
North America Segment:
Accounts on File (AOF) (in millions) 424.8 351.4 73.4 20.9 %
Transactions (in millions) 2,194.7 1,947.8 246.9 12.7 % 8,102.3 7,218.4 884.0 12.2 %
 
International Segment:
AOF (in millions) 54.6 52.8 1.8 3.5 %
Transactions (in millions) 474.0 399.5 74.5 18.6 % 1,674.5 1,426.7 247.8 17.4 %
 
Merchant Segment:
Point-of-sale Transactions (in millions) 1,153.2 1,216.4 (63.2 ) (5.2 ) % 4,877.6 4,955.5 (77.9 ) (1.6 ) %
 
TSYS Announces Fourth Quarter 2012 Earnings      
Page 8 of 12
 
 
             
TSYS
Balance Sheet
(unaudited)
(in thousands)
Dec 31, 2012       Dec 31, 2011
Assets
Current assets:
Cash and cash equivalents $ 247,612 316,337
Accounts receivable, net 247,075 248,541
Deferred income tax assets 9,825 12,872
Prepaid expenses and other current assets 70,206 72,431
         
Total current assets 574,718 650,181
Goodwill 513,273 355,498
Property and equipment, net 260,389 266,608
Computer software, net 226,017 215,244
Contract acquisition costs, net 161,267 162,987
Equity investments, net 87,764 82,924
Other intangible assets, net 130,054 81,250
Deferred income tax assets, net 5,334 4,069
Other assets 59,942 39,631
         
Total assets $ 2,018,758         1,858,392  
 
Liabilities
Current liabilities:
Accounts payable $ 63,370 26,095
Current portion of notes payable 27,687 181,251
Accrued salaries and employee benefits 26,243 33,004
Current portion of obligations under capital leases 13,263 14,363
Other current liabilities 94,505 125,863
         
Total current liabilities 225,068 380,576
Long-term debt, excluding current portion 174,533 39,104
Deferred income tax liabilities 48,771 32,889
Obligations under capital leases, excluding current portion 17,155 24,489
Other long-term liabilities 68,791 60,325
         
Total liabilities 534,318         537,383  
Redeemable noncontrolling interest 39,505         -  
Equity
Shareholders' equity:
Common stock 20,247 20,186
Additional paid-in capital 141,793 125,948
Accumulated other comprehensive income (loss), net 1,408 (445 )
Treasury stock (287,301 ) (225,034 )
Retained earnings 1,549,063         1,380,634  
Total shareholders' equity 1,425,210         1,301,289  
Noncontrolling interests in consolidated subsidiaries 19,725         19,720  
Total equity 1,444,935         1,321,009  
Total liabilities and equity $ 2,018,758         1,858,392  
 
TSYS Announces Fourth Quarter 2012 Earnings      
Page 9 of 12
 
 
             
TSYS
Cash Flow
(unaudited)
(in thousands)

Twelve Months Ended December 31,

2012      

2011

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 249,923 222,662
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in income of equity investments (10,171 ) (8,708 )
Dividends received from equity investments 7,524 6,835
Net loss on foreign currency translation 2,012 3,091
Depreciation and amortization 170,610 169,165
Amortization of debt issuance costs 298 160
Changes in fair value of private equity investments (898 ) -
Share-based compensation 18,621 16,477
Excess tax benefit from share-based payment arrangements (1,259 ) 523
Asset impairments - 799
Provisions for bad debt expense and billing
adjustments 1,054 1,552
Charges for transaction processing provisions 2,803 4,750
Deferred income tax expense (benefit) 285 1,491
(Gain) loss on disposal of equipment, net 324 (1,159 )
Changes in operating assets and liabilities:
Accounts receivable 2,855 (7,044 )
Prepaid expenses, other current assets and other long-term assets (2,945 ) 23,099
Accounts payable 37,206 (15,512 )
Accrued salaries and employee benefits (7,083 ) 4,492
Other current liabilities and other long-term liabilities (15,406 )       13,646  
Net cash provided by operating activities 455,753         436,319  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net (31,434 ) (26,938 )
Additions to licensed computer software from vendors (33,001 ) (19,502 )
Additions to internally developed computer software (19,285 ) (17,882 )
Proceeds from sale of trade name - 4,500
Proceeds from disposition, net of expenses paid and cash disposed 39 -
Cash used in acquisitions, net of cash acquired (188,698 ) (47,909 )
Purchase of private equity investments (3,031 ) (1,573 )
Subsidiary repurchase of noncontrolling interest - (493 )
Additions to contract acquisition costs (34,384 )       (31,623 )
Net cash used in investing activities (309,794 )       (141,420 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt borrowings and
capital lease obligations (200,052 ) (28,892 )
Proceeds from borrowings of long-term debt 150,000 -
Proceeds from exercise of stock options 9,672 8,065
Excess tax benefit from share-based payment arrangements 1,259 (523 )
Repurchase of common stock (74,939 ) (121,271 )
Debt issuance costs (2,073 ) -
Purchase of noncontrolling interests - (174,050 )
Subsidiary dividends paid to noncontrolling shareholders (2,797 ) (433 )
Dividends paid on common stock (94,035 )       (53,949 )
Net cash used in financing activities (212,965 )       (371,053 )
 
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents (1,719 )       (2,304 )
Net increase (decrease) in cash and cash equivalents (68,725 ) (78,458 )
Cash and cash equivalents at beginning of period 316,337         394,795  
Cash and cash equivalents at end of period $ 247,612         316,337  
 

 

TSYS Announces Fourth Quarter 2012 Earnings                  
Page 10 of 12
 
 
 
Supplemental Information:
Accounts on File
Total
(in millions) December

2012

  December

2011

  %

Change

Consumer Credit 200.5 195.0 2.8
Retail 25.0   24.6 2.0
Total Consumer 225.5 219.6 2.7
Commercial 37.1 35.2 5.3
Other 12.8   7.9 61.4
Subtotal 275.4 262.7 4.8
Prepaid/Stored Value 115.9 85.2 36.1
Government Services 57.0 29.7 92.0
Commercial Card Single Use 31.1   26.6 17.1
Total AOF 479.4   404.2 18.6
 
 
 
Growth in Accounts on File (in millions):

December 2011 to

December 2012

December 2010 to

December 2011

Beginning balance 404.2 342.9
Change in accounts on file due to:
Internal growth of existing clients 31.5 33.9
New clients 80.1 43.4
Purges/Sales (33.6 ) (15.3 )
Deconversions (2.8 )   (0.7 )  
Ending balance 479.4     404.2    
 
TSYS Announces Fourth Quarter 2012 Earnings
Page 11 of 12
 
 
Reconciliation of GAAP to Non-GAAP
 
Non-GAAP Measures
 
The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents year-to-date 2012 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 3.8% as compared to a reported GAAP increase of 3.4%.
 

The schedule below also provides a reconciliation of revenues and operating margin excluding reimbursable items to reported revenues and operating margin. On a year-to-date basis, TSYS’ total revenues excluding reimbursable items grew 5.0% as compared to a reported GAAP increase of 3.4%. On a year-to-date basis, TSYS’ operating margin excluding reimbursable items was 22.1% as compared to a reported GAAP margin of 19.1%.

 
TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.
 
Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.
 
TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.
 
TSYS Announces Fourth Quarter 2012 Earnings  
Page 12 of 12
 
 
Reconciliation of GAAP to Non-GAAP
                           
Constant Currency Comparison
(unaudited)
(in thousands)
 
Three Months Ended December 31, Twelve Months Ended December 31,
Percent Percent
2012 2011 Change 2012 2011 Change
Consolidated
Constant currency (1) $ 479,027 472,234 1.4 % $ 1,876,979 1,808,966 3.8 %
Foreign currency (2) 73   -   (6,007 ) -  
Total revenues $ 479,100   472,234   1.5 % $ 1,870,972   1,808,966   3.4 %
 
Constant currency (1) $ 88,830 89,718 (1.0 ) % $ 352,955 322,456 9.5 %
Foreign currency (2) 1,001   -   4,697   -  
Operating income $ 89,831   89,718   0.1 % $ 357,652   322,456   10.9 %
 
International Services
Constant currency (1) $ 106,985 106,560 0.4 % $ 419,993 394,831 6.4 %
Foreign currency (2) 15   -   (6,526 ) -  
Total revenues $ 107,000   106,560   0.4 % $ 413,467   394,831   4.7 %
 
 
(1) Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.
(2) Reflects the impact of calculated changes in foreign currency rates from the comparable period.
 
 
                           
Operating Margin Excluding Reimbursable Items
(unaudited)
(in thousands)
 
Three Months Ended December 31, Twelve Months Ended December 31,
Percent Percent
2012 2011 Change 2012 2011 Change
Operating income (a) $ 89,831   89,718   0.1 $ 357,652   322,456   10.9
 
Total Revenues (b) $ 479,100 472,234 1.5 $ 1,870,972 1,808,966 3.4
Less reimbursable items 60,531   64,551   (6.2 ) 252,481   268,268   (5.9 )
Revenues before reimbursable items ( c ) $ 418,569   407,683   2.7 $ 1,618,491   1,540,698   5.0
 
Operating margin (GAAP) (a) / (b) 18.75 % 19.00 % -25 bps 19.12 % 17.83 % 129 bps
Operating margin excluding reimbursable items (a) / (c) 21.46 % 22.01 % -55 bps 22.10 % 20.93 % 117 bps
 

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@ThingsExpo Stories

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.