SunGard, a global leader in integrated software and processing solutions and the pioneer and leading provider of information availability services, reported today that adjusted income from operations (defined in Note 1 to the Notes to Consolidated Condensed Financial Information) for the year 2007 was $1.15 billion, a 15% increase over $994 million in 2006.
Reported income from operations for the year 2007 was $631 million compared to $532 million for the year 2006, an increase of 19%. Reported income from operations in 2007 and 2006 includes: amortization of acquired intangible assets of $438 million and $399 million, respectively; stock-based compensation, purchase accounting adjustments and other expenses of $76 million and $59 million, respectively; and merger costs of $4 million in 2006.
Adjusted income from operations for the three months ended December 31, 2007 was $364 million, a 22% increase over $299 million for the same period in 2006. Reported income from operations for the three months ended December 31, 2007 was $219 million compared to $184 million for the year 2006, an increase of 19%.
For the year 2007, adjusted EBITDA (defined in Note 2 to the Notes to Consolidated Condensed Financial Information) was $1.43 billion compared to $1.25 billion in 2006, an increase of 14%. For the three months ended December 31, 2007, adjusted EBITDA was $437 million compared to $373 million in 2006, an increase of 17%.
Revenue for the year 2007 was $4.90 billion, an increase of 13% over revenue for the year 2006. Revenue for the three months ended December 31, 2007 was $1.39 billion, an increase of 17% over revenue for same period in 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 11% for the year and 14% for the quarter compared to the same periods in 2006. The increase in the year and the quarter includes an increase of approximately 3% and 4%, respectively, attributable to one of our broker/dealer businesses, and both periods include a 2% positive impact of foreign exchange movements overall and within each of our segments. Adjusting for these items, organic revenue growth in the year and the quarter was 6% and 8%, respectively. The broker/dealer revenue is uncharacteristically high and is expected to return to former levels over time.
Cristóbal Conde, president and chief executive officer, commented, “SunGard’s performance for the quarter was strong despite uncertainty about the broader economy. In our Financial Systems business, fourth quarter results were very strong and were not impacted by the sub-prime crisis. In our Higher Education and Public Sector businesses, we continued to sign new business and renew existing relationships. We saw continued strong performance from our Higher Education business for the quarter and the year. We will begin reporting these businesses separately going forward. In our Availability Services business, we saw a continuation of the trend towards advanced recovery and managed services. Our Availability Services business in the UK produced strong results. Overall, our competitive position is stronger than ever and our pipelines remain healthy.”