EX-99.1 2 d818199dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   NEWS RELEASE

Teradata Reports 2014 Third Quarter Results

 

    Revenue of $667 million, up 1 percent in constant currency(1)

 

    GAAP EPS $0.60, non-GAAP EPS $0.71(2)

 

    Year-to-date Cash from Operations increased 30 percent versus prior year period

ATLANTA, Georgia (November 6, 2014) – Teradata Corp. (NYSE: TDC) reported revenue of $667 million for the quarter ended September 30, 2014, versus $666 million reported in the third quarter of 2013. Revenue in the third quarter increased 1 percent when compared in constant currency.(1)

Gross margin in the third quarter was 52.5 percent, as reported under U.S. Generally Accepted Accounting Principles (GAAP), versus 53.8 percent in the third quarter of 2013. On a non-GAAP basis, excluding stock-based compensation expense and the other special items described in footnote #2, gross margin was 53.8 percent, versus 55.0 percent in the third quarter of 2013.(2)

Teradata reported third quarter net income of $94 million, or $0.60 per diluted share, which compared to net income of $98 million, or $0.59 per diluted share, in the third quarter of 2013. Stock-based compensation expense and other special items reduced Teradata’s third quarter net income by $17 million (or 11 cents of EPS) as reported under GAAP.(2) Excluding stock-based compensation expense and the other special items detailed in footnote #2, non-GAAP net income in the third quarter of 2014 was $111 million, or $0.71 per diluted share, versus $116 million, or $0.70 per diluted share, in the third quarter of 2013.(2)

“We continue to experience excellent revenue growth with our Big Data analytics solutions which include Aster, Big Data appliances, Hadoop and related software tools and services,” said Mike Koehler, president and chief executive officer, Teradata Corporation. “Data Warehouse new customer wins in the quarter and year-to-date are at near record levels, and we are seeing strong market adoption of our Unified Data Architecture. Our increased investments in Big Data analytics and Integrated Marketing Cloud solutions will help drive further revenue growth longer term.”

 

1


Segment Revenue Performance

(in millions)

 

     For the Three Months Ended September 30  
     2014      2013      % Change
as Reported
    % Change
in Constant
Currency(1)
 

Americas

   $ 405       $ 409         -1     -1

International

     262         257         2     2
  

 

 

    

 

 

      

Total Revenue

   $ 667       $ 666         0     1
  

 

 

    

 

 

      

 

     For the Nine Months Ended September 30  
     2014      2013      % Change
as Reported
    % Change
in Constant
Currency(1)
 

Americas

   $ 1,163       $ 1,169         -1     0

International

     808         754         7     7
  

 

 

    

 

 

      

Total Revenue

   $ 1,971       $ 1,923         2     3
  

 

 

    

 

 

      

Operating Income

Third quarter operating income of $123 million decreased from $132 million reported in the third quarter of 2013. On a non-GAAP basis, operating income was $150 million versus $158 million in the third quarter of 2013.(2) The difference was primarily due to lower product margins due to increased amortization of previously capitalized software development costs, product and deal mix and increased research and development expense.

Cash Flow

During the third quarter of 2014, Teradata generated $102 million of cash from operating activities, a 59 percent increase compared to $64 million in the prior-year period. Teradata generated $66 million of free cash flow (cash from operating activities less capital expenditures and additions to capitalized software)(3) in the third quarter of 2014, compared to $29 million in the same period in 2013.

Year to date, Teradata generated $583 million of cash from operating activities, a 30 percent increase compared to $447 million in the prior-year period. Teradata generated $489 million of free cash flow(3) in the first nine months of 2014, a 41 percent increase from $347 million generated in the same period in 2013.

Balance Sheet

Teradata ended the quarter with $848 million in cash, down $86 million from the cash balance at June 30, 2014. During the quarter Teradata purchased approximately 2.4 million shares of its stock worth approximately $102 million. Year to date, through September 30, Teradata purchased 6.9 million shares, worth approximately $293 million.

 

2


As of September 30, 2014, Teradata had total debt of $255 million outstanding under a term loan. Additionally, Teradata has $300 million available through a pre-arranged credit facility; however, no funds were drawn from the credit facility.

2014 Outlook

Teradata continues to expect full-year 2014 constant currency revenue growth to be at the low end of its original 3-7 percent guidance range. However, based on currency rates at the end of October 2014, currency translation is now expected to have a 1 percentage point headwind on Teradata’s full-year revenue comparison.(1)

Teradata continues to expect 2014 non-GAAP earnings per share (which excludes stock-based compensation expense and other special items) to be at the low end of the $2.85-$3.00 range.(2)

2014 Third Quarter Earnings Conference Call

A conference call is scheduled today at 8:30 a.m. (ET) to discuss the company’s third quarter 2014 results. Access to the conference call, as well as a replay of the call, is available on Teradata’s website at investor.teradata.com.

Supplemental financial information regarding Teradata’s operating results is also available on the Investor Relations page of Teradata’s website.

 

3


1. The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the company’s website at investor.teradata.com, which is used to determine revenue on a constant currency (CC) basis.

(in millions)

 

     For the Three Months
Ended September 30
                 For the Nine Months
Ended September 30
              
     2014      2013      Chg
As
Rpt’d
    Chg
In
CC
    2014      2013      Chg
As
Rpt’d
    Chg
In
CC
 

Revenue

                    

Products (software/hardware)

   $ 294       $ 306         -4     -3   $ 867       $ 858         1     1
  

 

 

    

 

 

        

 

 

    

 

 

      

Consulting services

     200         200         0     1     592         593         0     0

Maintenance services

     173         160         8     8     512         472         8     9
  

 

 

    

 

 

        

 

 

    

 

 

      

Total Services

   $ 373       $ 360         4     4   $ 1,104       $ 1,065         4     4
  

 

 

    

 

 

        

 

 

    

 

 

      

Total Revenue

   $ 667       $ 666         0     1   $ 1,971       $ 1,923         2     3
  

 

 

    

 

 

        

 

 

    

 

 

      

By segment

                    

Americas

   $ 405       $ 409         -1     -1   $ 1,163       $ 1,169         -1     0

International

     262         257         2     2     808         754         7     7
  

 

 

    

 

 

        

 

 

    

 

 

      

Total Revenue

   $ 667       $ 666         0     1   $ 1,971       $ 1,923         2     3
  

 

 

    

 

 

        

 

 

    

 

 

      

 

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 margin, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, 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.

Special items included in Teradata’s 2014 third quarter GAAP operating income results as reported in this release included $11 million of stock-based compensation expense; $12 million of amortization of acquisition-related intangible assets; and $4 million of acquisition, integration and reorganization expenses.

Teradata’s year-to-date 2013 GAAP net income included a $4 million income tax benefit related to the 2012 U.S. Research & Development tax credit. This benefit was included in Teradata’s non-GAAP results in the fourth quarter of 2012, since the benefit related to the 2012 tax reporting period. However, Teradata could not include the tax benefit in its GAAP results in the fourth quarter of 2012 due to the American Taxpayer Relief Act of 2012 not being enacted until January 2013. As a result, the

$4 million tax benefit was included in Teradata’s 2013 GAAP net income, but was excluded from the company’s non-GAAP net income. In addition to the tax item above, Teradata’s year-to-date 2014 GAAP net income also included $6 million impairment of an equity investment.

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 items. Our management regularly uses supplemental non-GAAP financial measures, such as gross margin, operating income, net income and EPS, excluding certain items internally, to understand, manage and evaluate our business and support operating decisions. 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 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.

 

4


Teradata’s reconciliation of GAAP to non-GAAP results included in this release:

(in millions, except per share data)

 

    For the Three Months Ended
September 30
          For the Nine Months Ended
September 30
       
    2014     2013     Chg
as
Rpt’d
    2014     2013     Chg
As
Rpt’d
 

Gross Margin:

           

GAAP Gross Margin

  $ 350      $ 358        -2   $ 1,054      $ 1,042        1

% of Revenue

    52.5     53.8       53.5     54.2  

Excluding:

           

Stock-based compensation expense

    2        2          8        5     

Amortization of acquisition-related intangible assets

    6        6          16        19     

Acquisition, integration and reorganization-related costs

    1        —            5        1     
 

 

 

   

 

 

     

 

 

   

 

 

   

Non-GAAP Gross Margin

  $ 359      $ 366        -2   $ 1,083      $ 1,067        1
 

 

 

   

 

 

     

 

 

   

 

 

   

% of Revenue

    53.8     55.0       54.9     55.5  

Operating Income:

           

GAAP Operating Income

  $ 123      $ 132        -7   $ 345      $ 355        -3

% of Revenue

    18.4     19.8       17.5     18.5  

Excluding:

           

Stock-based compensation expense

    11        12          36        39     

Amortization of acquisition-related intangible assets

    12        11          35        33     

Acquisition, integration and reorganization-related costs

    4        3          18        9     
 

 

 

   

 

 

     

 

 

   

 

 

   

Non-GAAP Operating Income

  $ 150      $ 158        -5   $ 434      $ 436        0
 

 

 

   

 

 

     

 

 

   

 

 

   

% of Revenue

    22.5     23.7       22.0     22.7  

Net Income:

           

GAAP Net Income

  $ 94      $ 98        -4   $ 249      $ 265        -6

% of Revenue

    14.1     14.7       12.6     13.8  

Excluding:

           

Stock-based compensation expense

    7        8          24        26     

Amortization of acquisition-related intangible assets

    8        8          23        22     

Acquisition, integration and reorganization-related costs

    2        2          10        6     

Net loss on equity investments

    —          —            6        —       

2012 R&D Tax Credit, enacted in 2013

    —          —            —          (4  
 

 

 

   

 

 

     

 

 

   

 

 

   

Non-GAAP Net Income

  $ 111      $ 116        -4   $ 312      $ 315        -1
 

 

 

   

 

 

     

 

 

   

 

 

   

% of Revenue

    16.6     17.4       15.8     16.4  

 

5


     For the Three Months
Ended September 30
     For the Nine Months
Ended September 30
       
Diluted Earnings Per Share:    2014      2013      2014      2013     2014 Full
Year
Guidance
 

GAAP Diluted Earnings Per Share

   $ 0.60       $ 0.59       $ 1.57       $ 1.59      $ 2.33 - $2.48   

Excluding:

             

Stock-based compensation expense

     0.05         0.05         0.15         0.16        0.21   

Amortization of acquisition-related intangible assets

     0.05         0.05         0.14         0.13        0.19   

Acquisition, integration and reorganization-related costs

     0.01         0.01         0.06         0.03        0.08   

Net loss on equity investments

     —           —           0.04         —          0.04   

2012 R&D Tax Credit, enacted in 2013

     —           —           —          (0.02     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP Diluted Earnings Per Share

   $ 0.71       $ 0.70       $ 1.96       $ 1.89      $ 2.85 - $3.00   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

3. As described above, 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 September 30
    For the Nine Months
Ended September 30
 
     2014     2013     2014     2013  

Cash provided by operating activities (GAAP)

   $ 102      $ 64      $ 583      $ 447   

Less capital expenditures for:

        

Expenditures for property and equipment

     (16     (13     (37     (44

Additions to capitalized software

     (20     (22     (57     (56
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

     (36     (35     (94     (100
  

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow (non-GAAP measure)

   $ 66      $ 29      $ 489      $ 347   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

6


Note to Investors

This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance, within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements include projections of revenue, profit growth and other financial items, future economic performance and statements concerning analysts’ earnings estimates, among other things. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause Teradata’s actual results to differ materially. In addition to the factors discussed in this release, other risks and uncertainties could affect our future results, and could cause actual results to differ materially from those expressed in such forward-looking statements. Such factors include those relating to: the global economic environment 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, and other general economic and business conditions; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business, including the increased pressure on price/performance for data analytics solutions; fluctuations in our operating results, unanticipated delays or accelerations in our sales cycles and the difficulty of accurately estimating revenues; risks inherent in operating in foreign countries, including the impact of economic, political, legal, regulatory, compliance, cultural, foreign currency fluctuations and other conditions abroad; the timely and successful development, production or acquisition and market acceptance of new and existing products and services, including our ability to accelerate market acceptance of new products and services as well as the reliability, quality, security and operability of new products because of the difficulty and complexity associated with their testing and production; tax rates; turnover of workforce and the ability to attract and retain skilled employees; availability and successful exploitation of new acquisition and alliance opportunities; our ability to execute integration plans for newly acquired entities, including the possibility that expected synergies and operating efficiencies may not be achieved, that such integration efforts may be more difficult, time-consuming or costly than expected, and that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; recurring revenue may decline or fail to be renewed; changes in Generally Accepted Accounting Principles (GAAP) and the resulting impact, if any, on the company’s accounting policies; continued efforts to establish and maintain best-in-class and secure internal information technology and control systems; and other factors described from time-to-time in the company’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 reports to stockholders. The company 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.

About Teradata

Teradata (NYSE: TDC) helps companies get more value from data than any other company. Teradata’s leading portfolio of big data analytic solutions, integrated marketing applications, and services can help organizations gain a sustainable competitive advantage with data. Visit teradata.com.

Get to know Teradata:

 

LOGO

Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries.

 

INVESTOR CONTACT:

Gregg Swearingen

Teradata

(937) 242-4600

gregg.swearingen@teradata.com

 

MEDIA CONTACT:

Mike O’Sullivan

Teradata

(937) 242-4786

mike.osullivan@teradata.com

# # #

 

7


Schedule A

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts - unaudited)

 

     For the Period Ended September 30  
     Three Months     Nine Months  
         2014             2013             % Chg             2014             2013             % Chg      

Revenue

            

Products

   $ 294      $ 306        -4   $ 867      $ 858        1

Services

     373        360        4     1,104        1,065        4
  

 

 

   

 

 

     

 

 

   

 

 

   

Total revenue

     667        666        0     1,971        1,923        2

Product gross margin

     175        188          551        546     

% of Revenue

     59.5     61.4       63.6     63.6  

Services gross margin

     175        170          503        496     

% of Revenue

     46.9     47.2       45.6     46.6  
  

 

 

   

 

 

     

 

 

   

 

 

   

Total gross margin

     350        358          1,054        1,042     

% of Revenue

     52.5     53.8       53.5     54.2  

Selling, general and administrative expenses

     181        183          557        547     

Research and development expenses

     46        43          152        140     
  

 

 

   

 

 

     

 

 

   

 

 

   

Income from operations

     123        132          345        355     

% of Revenue

     18.4     19.8       17.5     18.5  

Other expense, net

     —          —            (8     (1  
  

 

 

   

 

 

     

 

 

   

 

 

   

Income before income taxes

     123        132          337        354     

% of Revenue

     18.4     19.8       17.1     18.4  

Income tax expense

     29        34          88        89     
  

 

 

   

 

 

     

 

 

   

 

 

   

% Tax rate

     23.6     25.8       26.1     25.1  

Net income

   $ 94      $ 98        $ 249      $ 265     
  

 

 

   

 

 

     

 

 

   

 

 

   

% of Revenue

     14.1     14.7       12.6     13.8  

Net income per common share

            

Basic

   $ 0.61      $ 0.60        $ 1.59      $ 1.62     

Diluted

   $ 0.60      $ 0.59        $ 1.57      $ 1.59     

Weighted average common shares outstanding

            

Basic

     154.5        163.2          156.6        164.0     

Diluted

     157.1        166.4          159.1        167.1     


Schedule B

TERADATA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions - unaudited)

 

     September 30,     June 30,     December 31,  
     2014     2014     2013  

Assets

      

Current assets

      

Cash and cash equivalents

   $ 848      $ 934      $ 695   

Accounts receivable, net

     522        550        717   

Inventories

     44        50        56   

Other current assets

     92        103        95   
  

 

 

   

 

 

   

 

 

 

Total current assets

     1,506        1,637        1,563   

Property and equipment, net

     157        156        161   

Capitalized software, net

     198        196        195   

Goodwill

     958        950        946   

Acquired intangible assets

     130        126        149   

Deferred income taxes

     23        24        24   

Other assets

     46        47        58   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 3,018      $ 3,136      $ 3,096   
  

 

 

   

 

 

   

 

 

 

Liabilities and stockholders’ equity

      

Current liabilities

      

Current portion of long-term debt

   $ 45      $ 38      $ 26   

Accounts payable

     118        112        114   

Payroll and benefits liabilities

     127        125        136   

Deferred revenue

     380        442        390   

Other current liabilities

     101        129        110   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     771        846        776   

Long-term debt

     210        225        248   

Pension and other postemployment plan liabilities

     73        72        76   

Long-term deferred revenue

     22        26        25   

Deferred tax liabilities

     68        73        87   

Other liabilities

     32        32        27   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     1,176        1,274        1,239   
  

 

 

   

 

 

   

 

 

 

Stockholders’ equity

      

Preferred stock

     —          —          —     

Common stock

     2        2        2   

Paid-in capital

     1,031        1,012        973   

Treasury Stock

     (1,477     (1,374     (1,184

Retained earnings

     2,282        2,188        2,033   

Accumulated other comprehensive income

     4        34        33   
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     1,842        1,862        1,857   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 3,018      $ 3,136      $ 3,096   
  

 

 

   

 

 

   

 

 

 


Schedule C

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions - unaudited)

 

     For the Period Ended September 30  
     Three Months     Nine Months  
     2014     2013     2014     2013  

Operating activities

        

Net income

   $ 94      $ 98      $ 249      $ 265   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     44        39        128        109   

Stock-based compensation expense

     11        12        36        39   

Excess tax benefit from stock-based compensation

     (1     (3     (2     (7

Deferred income taxes

     (5     1        (17     7   

Loss on investments

     —          —          9        —     

Changes in assets and liabilities:

        

Receivables

     31        (31     199        126   

Inventories

     6        4        12        (19

Current payables and accrued expenses

     (12     (14     (10     (86

Deferred revenue

     (66     (51     (13     (5

Other assets and liabilities

     —          9        (8     18   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     102        64        583        447   

Investing activities

        

Expenditures for property and equipment

     (16     (13     (37     (44

Additions to capitalized software

     (20     (22     (57     (56

Business acquisitions and other investing activities

     (42     —          (49     (39
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (78     (35     (143     (139

Financing activities

        

Repurchases of common stock

     (98     (3     (282     (187

Repayments of long-term borrowings

     (8     (3     (19     (11

Excess tax benefit from stock-based compensation

     1        3        2        7   

Other financing activities, net

     6        8        20        23   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (99     5        (279     (168

Effect of exchange rate changes on cash and cash equivalents

     (11     2        (8     (7
  

 

 

   

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (86     36        153        133   

Cash and cash equivalents at beginning of period

     934        826        695        729   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 848      $ 862      $ 848      $ 862   
  

 

 

   

 

 

   

 

 

   

 

 

 


Schedule D

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions - unaudited)

 

     For the Three Months Ended September 30  
     2014     2013     % Change
As Reported
    % Change
Constant
Currency
 

Segment Revenue

        

Americas

   $ 405      $ 409        -1     -1

International

     262        257        2     2
  

 

 

   

 

 

     

Total revenue

     667        666        0     1

Segment gross margin

        

Americas

     231        233       

% of Revenue

     57.0     57.0    

International

     119        125       

% of Revenue

     45.4     48.6    
  

 

 

   

 

 

     

Total gross margin

     350        358       

% of Revenue

     52.5     53.8    

Selling, general and administrative expenses

     181        183       

Research and development expenses

     46        43       
  

 

 

   

 

 

     

Income from operations

   $ 123      $ 132       
  

 

 

   

 

 

     

% of Revenue

     18.4     19.8    
     For the Nine Months Ended September 30  
     2014     2013     % Change
As Reported
    % Change
Constant
Currency
 

Segment Revenue

        

Americas

   $ 1,163      $ 1,169        -1     0

International

     808        754        7     7
  

 

 

   

 

 

     

Total revenue

     1,971        1,923        2     3

Segment gross margin

        

Americas

     671        668       

% of Revenue

     57.7     57.1    

International

     383        374       

% of Revenue

     47.4     49.6    
  

 

 

   

 

 

     

Total gross margin

     1,054        1,042       

% of Revenue

     53.5     54.2    

Selling, general and administrative expenses

     557        547       

Research and development expenses

     152        140       
  

 

 

   

 

 

     

Income from operations

   $ 345      $ 355       
  

 

 

   

 

 

     

% of Revenue

     17.5     18.5