SunGard Announces Second Quarter 2007 Results

SunGard (http://www.sungard.com), a global leader in integrated software and processing solutions and the pioneer and leading provider of information availability services, reported today that revenue for the three months ended June 30, 2007 was $1.18 billion, an increase of 10% over revenue for the three months ended June 30, 2006. Organic revenue (revenue from businesses owned for at least one year and further adjusted for the effects of businesses sold in the previous twelve months) grew 9% for the quarter compared to the same period in 2006, including the approximate 2% impact of changes in currency exchange rates overall and in each of our segments.

Adjusted income from operations (defined in Note 1 to the Notes to the Consolidated Condensed Financial Information) for the three months ended June 30, 2007 was $265 million, a 10% increase over $240 million for the same period in 2006.

Reported income from operations for the three months ended June 30, 2007 was $134 million compared to $123 million for the same period in 2006, an increase of 9%. Reported income from operations in the three months ended June 30, 2007 and 2006 includes amortization of acquired intangible assets of $105 million and $102 million, respectively; stock-based compensation and purchase accounting adjustments and other expenses of $26 million and $14 million, respectively; and merger costs of $1 million in the three months ended June 30, 2006.

For the three months ended June 30, 2007, adjusted EBITDA (defined in Note 2 to the Notes to the Consolidated Condensed Financial Information) was $342 million compared to $304 million in 2006, an increase of 13%.

Cristóbal Conde, president and chief executive officer, commented, “SunGard’s performance for the quarter was strong. Our Financial Systems business once again reported strong organic growth. The realignment of our Financial Systems business earlier this year has improved our competitiveness and positioned us better to bundle multiple products. Our Availability Services business recently announced a definitive agreement to acquire VeriCenter which will help broaden our service offerings and improve our economies of scale. Overall the pipeline is solid and our competitiveness remains strong.”

Revenue for the first six months of 2007 increased 11% over the same period in 2006 to $2.29 billion. Adjusted income from operations for the six months ended June 30, 2007 was $492 million compared to $442 million last year. Reported income from operations for the six months ended June 30, 2007 was $248 million and includes amortization of acquired intangible assets of $209 million and stock-based compensation, purchase accounting adjustments and other expenses of $35 million. In the first six months of 2006, reported income from operations was $212 million and includes amortization of acquired intangible assets of $198 million, stock-based compensation, purchase accounting adjustments and other expenses of $29 million and merger costs of $3 million.

Financial Systems revenue increased 19% to $590 million for the quarter. Organic revenue grew approximately 15%. License fees were $56 million for the quarter compared to $40 million for the same period in 2006, an increase of 41%.

Notable deals in the quarter included the following:

* A leading international investment firm selected SunGard for its Rule 22c2 compliance solution for market timing for mutual funds.
* A leading global provider of financial business solutions selected SunGard’s BRASS EnGard as its equities trading compliance solution.
* A global broker-dealer signed a ten-year renewal to use SunGard’s GMI system for global derivatives, futures and options.


Higher Education & Public Sector Systems revenue was $233 million for the quarter, unchanged from the same period in 2006. License fees were $20 million for the quarter, a decrease of $2 million from the same quarter of 2006.

Notable deals in the quarter included the following:

* A community college district in California renewed a contract with SunGard Higher Education to manage its information technology.
* A research university selected a full range of SunGard Higher Education’s Banner Unified Digital Campus solutions.
* A policy development company based in London renewed a contract with SunGard Vivista to manage its business services and information and communications technology.


Availability Services revenue increased 4%, all of which was organic, to $352 million for the quarter.

Notable deals in the quarter included the following:

* A large commercial bank selected SunGard for vaulting and disaster recovery services.
* A computer programming vendor that provides automated data management solutions selected SunGard for managed services.
* An industrial construction services company specializing in scaffolding and concrete construction forming selected SunGard for managed services.


At June 30, 2007, total debt was $7.5 billion, cash balances were $294 million and off-balance sheet debt was $417 million. During the six months ended June 30, 2007, the Company invested $152 million in capital expenditures and $62 million (net of cash acquired) in seven acquisitions.

Conference Call & Webcast
A conference call to review the results is scheduled for Friday, August 10, 2007 at 9:00 a.m. (Eastern Time). The dial-in number is 706-902-1370, conference ID 10283243. A replay will be available shortly after the end of the call through midnight on August 17, 2007. To listen to the replay, please dial 706-645-9291, conference ID 10283243. You may also listen to the call at www.vcall.com, by clicking on the “Investor Events Calendar” and then on the “listen” icon for SunGard. A replay will be available shortly after the end of the Web cast, through midnight on August 17, 2007 at www.vcall.com.