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Teradata Corporation (TDC)

- NYSE
  • Fri, Mar. 27, 10:27 AM
    • Four days after Piper downgraded EMC (EMC -1.5%) and rival NetApp to Neutral due to competitive concerns, Pac Crest has downgraded EMC to Sector Perform, while citing "increasing seasonal, secular and competitive risks."
    • Pac Crest reports seeing "weak storage field checks in a seasonally slow first quarter," as well as "an increasing appetite" among customers to consolidate their storage resources. The firm also sees investments in new products limiting near-term earnings growth.
    • Pac Crest was more bullish on EMC in January. It originally upgraded the storage giant to Outperform in June 2013, when shares were at a dividend-adjusted $23.66.
    • Amidst the downgrades, EMC has launched its Federation Business Data Lake, a soup-to-nuts solution for companies launching big data/analytics projects that rely on data lakes - massive data repositories that holds data in its native formats. The solution combines servers from EMC's VCE unit and scale-out NAS storage from its Isilon unit, as well as VMware's virtualization software and Pivotal's big data software suite, which includes the Greenplum analytics database and a distribution of the popular Hadoop big data framework.
    • EMC is also giving customers the option of using the Hadoop distributions of market leaders Hortonworks (HDP +0.7%) and Cloudera. Its solution acts as an alternative to data warehousing offerings from the likes of Informatica (reportedly in buyout talks) and Teradata (TDC -0.6%), which involve more heavily refining and structuring data. Teradata admits lakes can be implemented faster, support more data types, and provide cheap storage, but also argues warehouses are better for querying cleansed, structured, data.
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  • Thu, Feb. 26, 1:55 PM
    • Bob Fair, formerly Teradata's (TDC +0.5%) chief marketing/information officer, and Hermann Wimmer, formerly the company's international chief, have been named co-presidents, reporting to CEO Mike Koehler.
    • Fair will head a new Marketing Applications division, and Wimmer a new Data and Analytics Division. The former will cover Teradata's Integrated Marketing Cloud software platform, and the latter its mainstay data warehousing/analytics hardware and software. Each division "will be an integrated global business, including R&D, sales, marketing, consulting, and services."
    • The shakeup comes less than a month after Teradata's shares tumbled due to a Q4 revenue miss and soft 2015 guidance.
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  • Thu, Feb. 12, 2:22 PM
    • A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
    • Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
    • Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
    • EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
    • Earlier: Telecom/networking stocks rally thanks to Cisco
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  • Thu, Feb. 5, 2:44 PM
    • In addition to \missing Q4 revenue estimates (while slightly beating on EPS), Teradata (NYSE:TDC) has guided for 2015 revenue to be flat to down 2% Y/Y, and for EPS to be in a $2.50-$2.70 range. That's below a consensus for 3% revenue growth and EPS of $2.98. Forex is expected to have a $0.22 EPS impact.
    • Product revenue (hardware and software, drives future services revenue) fell 3% Y/Y in Q4 to $360M. Consulting services revenue was flat at $225M, and maintenance services up 2% to $176M. Americas revenue fell 2% to $456M; international was flat at $305M.
    • $269M was spent on buybacks, boosting EPS. Gross margin fell 40 bps Y/Y to 56.9%. GAAP operating expenses rose 5% to $267M.
    • The numbers are likely to trigger fresh fears about the impact of big data projects relying on Hadoop and/or NoSQL on Teradata's traditional data warehousing offerings.  Teradata, which made a string of Hadoop-related acquisitions last year, says it's "increasing investments significantly in 2015 in Big Data Analytics, Marketing Applications, Teradata Cloud, and in demand creation to go broader in the market."
    • Q4 results, PR
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  • Thu, Feb. 5, 9:12 AM
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  • Thu, Feb. 5, 6:56 AM
    • Teradata (NYSE:TDC): Q4 EPS of $0.91 beats by $0.01.
    • Revenue of $761M (-1.0% Y/Y) misses by $17.91M.
    • Press Release
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  • Dec. 18, 2014, 4:29 PM
    • Following today's increase, Teradata (NYSE:TDC) has $450M available under its buyback authorization. That's good for repurchasing 7% of shares at current levels.
    • The data warehousing hardware/software vendor spent $98M on buybacks in Q3. It had $848M in cash to fund new repurchases with as of Sep. 30, and $255M in debt.
    • Shares haven't moved yet in response to the announcement. They rose 4.1% in regular trading, aided by a market rally and rival Oracle's FQ2 beat. Oracle noted sales of its Big Data Appliance (competes against Teradata's hardware) were strong.
    • Yesterday: Teradata makes another Hadoop acquisition
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  • Dec. 17, 2014, 2:56 PM
    • Teradata (TDC +0.4%) has bought RainStor, a provider of archiving database software that leverages the Hadoop big data framework. Terms are undisclosed.
    • Teradata touts the high compression rates (10x-40x) supported by RainStor's software, as well as the immutability of data copies made with it (important for compliance/security purposes).
    • Earlier this year, Teradata bought big data consulting/services firm Think Big Analytics, big data management software firm Revelytix, and database software firm Hadapt (offers a platform that merges Hadoop with traditional SQL databases). Plenty of analysts have voiced concerns about Hadoop's impact on Teradata's standard data warehousing solutions.
    • Teradata also has a 7% stake leading Hadoop distribution provider Hortonworks.
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  • Dec. 12, 2014, 10:54 AM
    • Hortonworks (NASDAQ:HDP) opened at $24 and is now at $24.13, up 50.8% from its $16 IPO price.
    • Hortonworks, one of the two most prominent developers (along with Intel-backed Cloudera) of software distributions for the Hadoop big data framework, is now worth just over $1B, or ~15x gross billings from the 12 months ending Sep. 30.
    • Yahoo's (YHOO +1.1%) 7.6M-share (16.8%) stake is worth $183M. Teradata's (TDC -1.4%) 2.9M-share (7%) stake is worth $70M.
    • Prospectus, IPO analysis
    • Prior Hortonworks coverage
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  • Nov. 10, 2014, 2:59 PM
    • Hortonworks, provider of one of the two most popular software distributions for the Hadoop big data/analytics framework, has filed for an IPO under the symbol HDP. Underwriters include Goldman, Credit Suisse, RBC, Pac Crest, and Wells Fargo. (prospectus)
    • For now, Hortonworks is only filing to raise up to $100M, but given the company was valued at over $1B in an early-2014 funding round, that figure might rise. Yahoo (YHOO +1.7%), which spun out Hortonworks in 2011 in tandem with VC firm Benchmark, has a 19.6% pre-IPO stake. Teradata (TDC +1.9%) owns 8.3%, and H-P 5.9%.
    • Both sales and losses have been growing rapidly as enterprises embrace Hadoop to analyze giants sets of unstructured data, and Hortonworks spends aggressively to go after the opportunity. Revenue for the nine months ending Sep. 30 totaled $33.4M (+110% Y/Y), and net loss $86.7M.
    • Gross billings for the 12 months ending Sep. 30 totaled $65.7M. Hortonworks had 233 support subscription customers at the end of the period.
    • Cloudera, Hortonworks' biggest rival, raised $900M in March ($740M from Intel) at a $4.1B valuation. Both Hortonworks and Cloudera have been working to add enterprise-class reliability and management features to their Hadoop distributions.
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  • Nov. 6, 2014, 3:57 PM
    • On a constant currency basis, Teradata (NYSE:TDC) still expects 2014 revenue growth to be at the low end of an original 3%-7% guidance range. However, forex is now expected to provide a 1% headwind; consensus is for 2.9% growth.
    • EPS, meanwhile, is still expected to be at the low end of a $2.85-$3.00 guidance range; consensus is at $2.85.
    • Cost controls helped Q3 EPS beat estimates: Opex rose less than 1% Y/Y to $227M. $98M worth of buybacks also didn't hurt.
    • The data warehousing tech provider's product revenue (drives future services revenue) remains under pressure amid a tough competitive backdrop: It fell 4% Y/Y in Q3 to $294M. Services revenue rose 4% to $373M.
    • Q3 results, PR
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  • Nov. 6, 2014, 6:58 AM
    • Teradata (NYSE:TDC): Q3 EPS of $0.71 beats by $0.05.
    • Revenue of $667M (+0.2% Y/Y) in-line.
    • Press Release
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  • Oct. 20, 2014, 2:28 PM
    • Cisco (CSCO -1.7%), VMware (VMW -1.5%),  F5 (FFIV -1.5%), NetApp (NTAP -1.5%), Teradata (TDC -3.3%), and SGI (SGI -3.5%) have joined several other enterprise tech names in declining after IBM and SAP each posted disappointing Q3 reports. The Nasdaq is up 1% on the day.
    • IBM provided a smorgasbord of bad news: A Q3 miss, soft full-year guidance, the pulling of a $20/share 2015 EPS target, a 15% Y/Y hardware revenue decline, and a 7% Y/Y services backlog drop. In addition, the IT giant said it "saw a marked slowdown in September in client buying behavior."
    • Citing the impact of a shift in customer spending towards subscription-based cloud apps from on-premise software (typically paid through an up-front license fee), SAP slashed its full-year op. profit forecast. Q3 revenue was slightly below consensus, and EPS in-line.
    • VMware reports tomorrow, F5 on Thursday, SGI on Oct. 29, and Teradata on Nov. 6.
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  • Sep. 29, 2014, 9:34 AM
    • Monness Crespi has launched coverage on Teradata (NYSE:TDC) with a Sell and $38 target. The firm is worried about weak data warehousing spend.
    • Barclays downgraded both Teradata and Informatica earlier this month on concerns about the impact of big data projects on traditional data warehousing solutions. Other analysts have also voiced big data-related fears (often specifically about the Hadoop big data framework), as well as about Amazon's cloud-based Redshift data warehousing service.
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  • Sep. 10, 2014, 2:49 PM
    • CEO Meg Whitman says Hewlett-Packard (HPQ +0.5%) is again in a position to consider takeover options, a near-record cash pile gives it the means to do a deal and the worst sales forecast among computer hardware peers provides the motivation, so Bloomberg begins speculating about possible targets.
    • One possible candidate is cybersecurity firm Imperva (IMPV +8.2%), particularly in the wake if the hacking of J.P. Morgan, Home Depot and celebrities’ phones; “H-P could definitely buy them and it would make some sense," Sterne Agee's Robert Breza says.
    • Teradata (TDC -1.7%) has more of an “old-school” approach to big-data management but H-P could use it as a platform to make other acquisitions and build out its own offerings, HighMark Capital's Todd Lowenstein says.
    • Tibco Software (TIBX -0.1%) is now reviewing its strategic options, and Morningstar's Peter Wahlstrom thinks it could draw H-P's interest.
    | 2 Comments
  • Sep. 4, 2014, 12:09 PM
    • Barclays has downgraded data warehousing tech providers Informatica (INFA -2.3%) and Teradata (TDC -1.7%) to Equal Weight. Its targets are respectively at $35 and $46.
    • For each company, Barclays cites the impact of big data projects, which tend to forgo traditional data warehousing software in favor of tools such as Hadoop big data software distributions (offered by the likes of Cloudera and Hortonworks) and unstructured NoSQL databases.
    • The downgrade comes a day after Teradata announced it's buying big data consulting/services firm Think Big Analytics, its third Hadoop-related acquisition in the last 2 months. Informatica, for its part, has launched tools that allow Hadoop data to be added to its warehousing projects.
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Company Description
Teradata Corp is engaged in analytic data solutions, including integrated data warehousing, big data analytics & active intelligence. Its data warehousing solutions are software, hardware and related business consulting & support services.