Teradata cuts outlook, struggles in Asia
Teradata cut its earnings and revenue outlook for the third quarter due to weakness in Asia Pacific, Japan, Middle East and Africa.
The data warehousing vendor said it will report third quarter earnings of 58 cents a share to 59 cents a share and 69 cents a share to 70 cents a share on a non-GAAP basis. Revenue will be $665 million, up 3 percent from a year ago.
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Wall Street was looking for earnings 81 cents a share on revenue of $698.9 million.
For 2013, Teradata said it was expecting flat sales from a year ago. Non-GAAP earnings for 2013 will be $2.70 a share to $2.80 a share. Wall Street was looking for $3.05 a share.
Here's the scorecard for Teradata's regions:
- Americas revenue was up 7 percent
- U.S. sales were up 8 percent
- EMEA revenue was up 10 percent with Europe up 13 percent
- Asia Pacific Japan revenue fell 21 percent.
Teradata CEO Mike Koehler said he was pleased with performance in Europe and the U.S., but the overall results were disappointing. Teradata added that it would buy back another $300 million of its stock.
The Teradata profit warning is likely to spur worries that the company is under pressure by various big data technologies such as Hadoop and NoSQL. For instance, Cowen & Co. analyst Peter Goldmacher recently found that Hadoop and NoSQL can save customers 70 percent to 80 percent relative to data warehousing tools from Teradata and Oracle.