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Press Release: Teradata Reports Fourth-Quarter -3-

· 02/04/2021 16:05
Schedule A TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in millions, except per share amounts - unaudited) For the Period Ended December 31 ---------------------------------------------------------------- Three Months Twelve Months ------------------------------- ------------------------------- 2020 2019 % Chg 2020 2019 % Chg ----- ----- ------- ----- ----- ------- Revenue Recurring $ 383 $ 350 9 % $1,451 $1,362 7 % Perpetual software licenses and hardware 25 30 (17%) 73 106 (31%) Consulting services 83 114 (27%) 312 431 (28%) ----- ----- ----- ----- Total revenue 491 494 (1 %) 1,836 1,899 (3 %) Gross profit Recurring 265 231 974 920 % of Revenue 69.2% 66.0% 67.1% 67.5% Perpetual software licenses and hardware 13 6 34 22 % of Revenue 52.0% 20.0% 46.6% 20.8% Consulting services 6 11 11 13 % of Revenue 7.2% 9.6% 3.5% 3.0% ----- ----- ----- ----- Total gross profit 284 248 1,019 955 % of Revenue 57.8% 50.2% 55.5% 50.3% Selling, general and administrative expenses 183 171 669 618 Research and development expenses 88 82 334 327 ----- ----- ----- ----- Income (loss) from operations 13 (5) 16 10 % of Revenue 2.6% (1.0%) 0.9% 0.5% Other expense, net (10) (7) (40) (23) ----- ----- ----- ----- Income (loss) before income taxes 3 (12) (24) (13) % of Revenue 0.6% (2.4%) (1.3%) (0.7%) Income tax (benefit) expense (2) 7 (153) 7 ----- ----- ----- ----- % Tax rate (66.7%) (58.3%) 637.5% (53.8%) Net income (loss) $ 5 $ (19) $ 129 $ (20) ===== ===== ===== ===== % of Revenue 1.0% (3.8%) 7.0% (1.1%) Net income (loss) per common share Basic $ 0.05 $(0.17) $ 1.18 $(0.18) Diluted $ 0.04 $(0.17) $ 1.16 $(0.18) Weighted average common shares outstanding Basic 109.1 111.3 109.3 114.2 Diluted 112.0 111.3 111.6 114.2 Schedule B TERADATA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions - unaudited) December 31, September 30, December 31, 2020 2020 2019 --------- -------- --------- Assets ------------------- Current assets Cash and cash equivalents $ 529 $ 533 $ 494 Accounts receivable, net 331 321 398 Inventories 29 14 31 Other current assets 155 97 91 --------- -------- --------- Total current assets 1,044 965 1,014 Property and equipment, net 339 336 350 Right of use assets - operating lease, net 38 42 51 Goodwill 401 397 396 Capitalized contract costs, net 98 89 91 Deferred income taxes 222 238 87 Other assets 51 50 68 --------- -------- --------- Total assets $ 2,193 $ 2,117 $ 2,057 ========= ======== ========= Liabilities and stockholders' equity ------------------- Current liabilities Current portion of long-termfor non-GAAP purposes, the $3 million of tax expense was recognized ratably each quarter instead of being included in the marginal effective rate. iii. The Company's GAAP effective tax rate for the three and twelve months ended December 31, 2020 includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss ("NOL") carryback for taxable losses incurred in the tax year 2020. Teradata intends to carry back its 2020 NOL to claim a refund for taxes it paid in 2015, which created a one-time income tax benefit for GAAP reporting purposes for the difference between the 35% 2015 carry back tax rate and the current 21% federal statutory rate. iv. 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. 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 three months ended December 31 was 26.3% for 2020 and 39.0% for 2019. For the twelve months ended December 31, the Company's non-GAAP effective tax rate was 23.2% for 2020 and 24.4% for 2019.

Note to Investors

This 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; 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 the ongoing and uncertain impact of the COVID-19 pandemic on our business, financial condition and operating results, including the impact of the COVID-19 pandemic on our customers and suppliers; 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, availability and/or market acceptance of new and existing products, product features 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; subscription arrangements may be cancelled 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 for the year ended December 31, 2019 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 is the cloud data analytics platform company, built for a multi-cloud reality, solving the world's most complex data challenges at scale. We help businesses unlock value by turning data into their greatest asset. See how at Teradata.com.

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February 04, 2021 16:05 ET (21:05 GMT)