Teradata dives on guidance cut; buyback plan expanded

Though it beat Q1 estimates, Teradata (TDC -10%) now expects full-year revenue growth and EPS to be "at the lower end" of prior guidance ranges of 3%-7% and $2.85-$3.00. The consensus is for 5.1% rev. growth and EPS of $2.93.

Teradata has added $300M to its buyback authorization, raising its size to $550M (good for buying 9% of shares at current levels). $86M was spent on buybacks in Q1.

Americas revenue +8% Y/Y in Q1 to $384M, international revenue +5% to $244M. Product revenue (drives future services revenue) +10% Y/Y to $273M, services revenue +5% to $355M.

Gross margin rose 160 bps Y/Y to 54.9%. SG&A spend rose 5% Y/Y to $188M. R&D spend rose 12%, but still only totaled $56M.

Worries about the impact of Hadoop big data projects on Teradata's data warehousing hardware/software sales have been around for a while. Teradata, which has launched a Hadoop appliance, insists the technology's adoption will be a positive for the company.

Q1 results, PR

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