Teradata gives weak outlook, shares fall 12 percent

Thu May 2, 2013 5:35pm EDT

(Reuters) - Big data analytics company Teradata Corp (TDC.N) gave a weak outlook for adjusted earnings and revenue growth this year after reporting first-quarter results way below analysts' estimates as customers held back large purchases.

Shares of the company, whose products help store and analyze large amounts of data, fell 12 percent in extended trading.

"The challenge in the Americas continues to be the belt tightening in our customer base ... Customers continue to add capacity to their data warehouses in smaller increments, or delay purchases," Chief Executive Mike Koehler said on a conference call with analysts.

Teradata now expects full-year adjusted earnings at the lower end of its forecast of $3.05-$3.20 per share.

It also expects revenue growth at the lower end of the 6-10 percent it forecast in constant currency terms. This translates to full-year revenue of $2.83-$2.93 billion.

Analysts on average were looking for earnings of $3.07 per share on revenue of $2.88 billion.

The Americas accounted for 60 percent of the company's revenue in the latest quarter.

Teradata's weak outlook is in contrast to peers Informatica Corp (INFA.O) and Qlik Technologies Inc (QLIK.O), which raised their full-year revenue forecasts.

Teradata's net income fell to $59 million, or 35 cents per share, for the first quarter, from $91 million, or 53 cents per share, a year earlier.

Excluding items, the company earned 43 cents per share.

Revenue fell 4 percent to $587 million.

Analysts on average had expected earnings of 53 cents per share on revenue of $611.2 million, according to Thomson Reuters I/B/E/S.

Sales of its software and hardware products fell 19 percent to $249 million.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Sriraj Kalluvila)

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