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CORRECTION - Broadridge Reports Fourth Quarter and Fiscal Year 2014 Results

LAKE SUCCESS, NY -- (Marketwired) -- 08/07/14 -- In the press release, "Broadridge Reports Fourth Quarter and Fiscal Year 2014 Results," issued earlier today by Broadridge Financial Solutions, Inc. (NYSE: BR), a correction is issued to revise the fourth quarter fiscal year 2014 Non-GAAP diluted EPS amount to $1.16 from $1.17 due to a computational error. This correction does not change any other amounts reported. Complete corrected text follows.

Broadridge Reports Fourth Quarter and Fiscal Year 2014 Results

Announces Record Revenues, Earnings, and Closed Sales; Increases Annual Dividend 29% to $1.08 per Share

LAKE SUCCESS, NY -- August 7, 2014 -- Broadridge Financial Solutions, Inc. (NYSE: BR) today reported financial results for the fourth quarter and fiscal year ended June 30, 2014. Results for the fiscal year ended June 30, 2014 compared with the same period last year were as follows:

  • Recurring fee revenues increased 9% to $1,642 million from $1,511 million
  • Total revenues increased 5% to $2,558 million from $2,431 million
  • Non-GAAP Net earnings increased 18% to $279 million from $236 million
  • GAAP Net earnings increased 24% to $263 million from $212 million
  • Non-GAAP Diluted earnings per share increased 20% to $2.25 from $1.88
  • GAAP Diluted earnings per share increased 25% to $2.12 from $1.69
  • Recurring revenue closed sales increased 5% to $127 million

Richard J. Daly, President and Chief Executive Officer, commented, "The fourth quarter was successfully executed and enabled Broadridge to achieve another record year with 20% growth in Non-GAAP diluted EPS generated by Net New Business, favorable market conditions, and improved productivity. Client revenue retention remained at exceptional levels driven by the strength of our brand in our market. We continued to build our brand by executing on our growth strategy as we increased investments in the business, completed two tuck-in acquisitions, and introduced new solutions to address our clients' evolving business needs. The value of our solutions in the marketplace is reflected in our recurring revenue closed sales results which also reached a new high, headlined by an important closed sale with Fidelity Investments to provide investor communications outsourcing services. I am very pleased with our performance in fiscal year 2014 as we remain on our journey to consistently deliver top quartile stockholder returns."

Mr. Daly added, "Given our financial strength and confidence in the business, the Board has raised our annual dividend amount by approximately 29% to $1.08 per share, representing the seventh consecutive year of an increase in our dividend. Our strong Free cash flows allow us to continue to return capital to our stockholders while also investing in and growing our business."

Mr. Daly concluded, "Our record performance in fiscal year 2014 positions us for continued success and underscores our commitment to creating long term value for our stockholders. Our fiscal year 2015 guidance anticipates Non-GAAP diluted EPS to be in the range of $2.42 to $2.52 representing 8% to 12% growth over the prior year and recurring revenue growth of 5% to 7%, primarily driven by Net New Business. Our guidance range assumes a nominal contribution from the market-based activities which enhanced our growth in fiscal year 2014. Broadridge is now positioned to grow based on what we can control and not rely on the revenue from market-based activities to fuel our growth. Recurring revenue closed sales are expected to be in the range of $110 million to $150 million and we anticipate strong Free cash flows of approximately $350 million. Our guidance also reflects another year of increased investment in the business. Our position as an industry leader and our continued investments in value-added solutions increases our confidence in continuing to generate sustainable top quartile stockholder returns going forward."

Financial Results for Fourth Quarter Fiscal Year 2014

For the fourth quarter of fiscal year 2014, revenues increased 2% to $886 million, compared to $865 million for the prior year period. The increase was driven by higher recurring fee revenues of approximately $39 million, or 7%, as a result of Net New Business (defined as recurring revenue closed sales less client losses) and internal growth. GAAP Pre-tax margins were 23.3% compared to 23.4% for the previous fiscal year. Non-GAAP Pre-tax margins were 24.1%, compared to 25.6% for the same period last year.

For the fourth quarter of fiscal year 2014, GAAP Net earnings increased 4% to $140 million, compared to $135 million for the prior year period, primarily due to higher revenues and operating leverage coupled with the positive impact of improved productivity from strategic initiatives. Non-GAAP Net earnings increased to $145 million, compared to $142 million for the same period last year. GAAP Diluted earnings per share increased to $1.13 per share, compared to $1.09 per share in the same period last year. Non-GAAP Diluted earnings per share increased to $1.16 compared to $1.15 per share for the same period last year. Acquisition Amortization and Other Costs decreased GAAP Diluted earnings per share by $0.04 for both the three months ended June 30, 2014 and 2013, respectively.

In addition, during the fourth quarter, the Company repurchased approximately 1.9 million shares of Broadridge common stock at an average price of $40.29 per share under its stock repurchase program.

Analysis of Fourth Quarter Fiscal Year 2014

Investor Communication Solutions
Revenues for the Investor Communication Solutions segment increased $25 million, or 4%, to $715 million in the fourth quarter of fiscal year 2014 compared to $690 million in the fourth quarter of fiscal year 2013. Higher recurring fee revenues contributed $38 million and were partially offset by lower event-driven fee revenues of $9 million and lower distribution revenues of $4 million. The positive contribution from recurring fee revenues was driven primarily by higher internal growth from market-based activities and Net New Business. Pre-tax margins increased by 50 basis points to 30.6% as a result of higher recurring fee revenues.

Securities Processing Solutions
Revenues for the Securities Processing Solutions segment increased $1 million, or 1%, to $174 million in the fourth quarter of fiscal year 2014 compared to $173 million in the fourth quarter of fiscal year 2013. The increase was the result of higher Net New Business. Pre-tax margins decreased by 700 basis points to 8.6% as a result of investments.

Other
Pre-tax loss decreased by $7 million in the fourth quarter of fiscal year 2014, primarily due to a decline in Restructuring Charges compared to the same period last year.

Financial Results for Fiscal Year 2014
For the fiscal year ended June 30, 2014, revenues increased $127 million, or 5%, to $2,558 million, compared to $2,431 million for the comparable period last year. The $127 million increase was driven by higher recurring fee revenues of $131 million and higher distribution revenues of $10 million. The positive contribution from recurring fee revenues reflected higher Net New Business and internal growth. Fluctuations in foreign currency exchange rates unfavorably impacted revenues by $14 million. GAAP Pre-tax margins of 15.5% increased as compared to 13.3% for the previous fiscal year, primarily due to higher revenues and operating leverage coupled with the positive effect of improved productivity from strategic initiatives. Non-GAAP Pre-tax margins of 16.4% increased as compared to 15.1% for the same period last year.

For the fiscal year ended June 30, 2014, GAAP Net earnings of $263 million increased 24%, compared to $212 million in the comparable period last year. Non-GAAP Net earnings increased to $279 million, compared to $236 million in the prior year period. GAAP Diluted earnings per share increased to $2.12 per share compared to $1.69 per share for the comparable period last year. Non-GAAP Diluted earnings per share were $2.25 per share compared to $1.88 per share for the comparable period last year. Acquisition Amortization and Other Costs decreased GAAP Diluted earnings per share by $0.13 and $0.12 for the fiscal years ended June 30, 2014 and 2013, respectively.

During the fiscal year ended 2014, our recurring revenue closed sales increased 5% from last year's comparable period to $127 million. Our fiscal year 2014 Free cash flows were $334 million. During fiscal year 2014, the Company repurchased approximately 2.9 million shares of Broadridge common stock at an average price of $38.89 per share under its stock repurchase program.

Dividend Declaration and Increase
On August 7, 2014, the Company's Board of Directors approved a quarterly dividend of $0.27 per share payable on October 1, 2014 to stockholders of record on September 15, 2014. This declaration reflects the Board's approval of an increase in the annual dividend amount by approximately 29% from $0.84 per share to $1.08 per share, subject to the discretion of the Board of Directors to declare quarterly dividends. With this increase, the Company's annual dividend has increased for the seventh consecutive year since its first full year of dividend payment in fiscal year 2008.

Share Repurchase Authorization
In addition, on August 6, 2014, the Board authorized the repurchase of up to an additional 6.2 million shares of Broadridge common stock. The share repurchases will be made in the open market or privately negotiated transactions in compliance with applicable legal requirements and other factors. With this authorization, the Company currently has approximately 10 million shares available for repurchase under its stock repurchase program.

Fiscal Year 2015 Financial Guidance
The Company anticipates:

  • Recurring revenue growth in the range of 5% to 7%, and total revenue growth in the range of 4% to 6%
  • Non-GAAP Pre-tax margins in the range of 17.3% to 17.7%, and GAAP Pre-tax margins in the range of 16.4% to 16.8%
  • Non-GAAP Diluted earnings per share in the range of $2.42 to $2.52, and GAAP Diluted earnings per share in the range of $2.29 to $2.39, based on diluted weighted-average shares outstanding of approximately 124 million shares
  • Free cash flows in the range of approximately $320 million to $370 million
  • Recurring revenue closed sales in the range of $110 million to $150 million

The Non-GAAP Pre-tax margins and diluted earnings per share guidance ranges exclude the projected impact of Acquisition Amortization and Other Costs. Our guidance does not take into consideration the effect of any future acquisitions, additional debt or share repurchases.

Explanation of the Company's Use of Non-GAAP Financial Measures
In certain circumstances, results have been presented that are not generally accepted accounting principles measures ("Non-GAAP") and should be viewed in addition to, and not as a substitute for, the Company's reported results. These Non-GAAP measures are indicators that management uses to provide additional meaningful comparisons between current results and prior reported results, and as a basis for planning and forecasting for future periods. In addition, Broadridge believes this Non-GAAP information helps investors understand the effect of these items on reported results and provides a better representation of the Company's performance. Accompanying this release is a reconciliation of these Non-GAAP measures to the comparable GAAP measures.

Our Net earnings, Diluted earnings per share and Pre-tax margins results that are adjusted to exclude the impact of Acquisition Amortization and Other Costs and Restructuring Charges are Non-GAAP measures. Our fiscal year 2014 Non-GAAP results exclude the impact of Acquisition Amortization and Other Costs, and our fiscal year 2013 Non-GAAP results exclude the impact of Acquisition Amortization and Other Costs and Restructuring Charges. The Company incurred certain restructuring and reorganization costs during fiscal year 2014 as part of its normal business operations.

Free cash flows is a Non-GAAP measure and is defined by the Company as cash flows from operating activities, less capital expenditures and purchases of intangibles.

Acquisition Amortization and Other Costs
Acquisition Amortization and Other Costs represent amortization charges associated with intangible asset values as well as other transaction costs associated with the Company's acquisitions. Acquisition Amortization and Other Costs are recorded in our Cost of revenues in the Consolidated Statements of Earnings for the fiscal years ended June 30, 2014 and 2013.

Restructuring Charges
For the fiscal year ended June 30, 2013, there were $20 million in pre-tax charges primarily related to severance costs resulting from the termination of the outsourcing services agreement between the Company and Penson Worldwide, Inc. These charges were recorded in our Other segment and Cost of revenues in the Consolidated Statements of Earnings for the fiscal year ended June 30, 2013.

Earnings Conference Call
An analyst conference call will be held today, Thursday, August 7, 2014 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the webcast and view the slide presentation, go to www.broadridge-ir.com. The presentation will also be available to download and print approximately one hour before the webcast. Broadridge's news releases, current financial information, SEC filings and Investor Relations presentations are accessible on the same website.

About Broadridge
Broadridge Financial Solutions, Inc. (NYSE: BR) is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and corporate issuers globally. Broadridge's investor communications, securities processing and business process outsourcing solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge's infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America, and processes more than $5 trillion in fixed income and equity trades per day. Broadridge employs approximately 6,700 full-time associates in 14 countries. For more information about Broadridge, please visit www.broadridge.com.

Forward-Looking Statements
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be" and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2015 Financial Guidance" section are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (the "2014 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2014 Annual Report. These risks include: the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms; changes in laws and regulations affecting Broadridge's clients or the services provided by Broadridge; declines in participation and activity in the securities markets; any material breach of Broadridge security affecting its clients' customer information; the failure of Broadridge's outsourced data center services provider to provide the anticipated levels of service; a disaster or other significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services; overall market and economic conditions and their impact on the securities markets; Broadridge's failure to keep pace with changes in technology and demands of its clients; Broadridge's ability to attract and retain key personnel; the impact of new acquisitions and divestitures; and competitive conditions. Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.


                    Broadridge Financial Solutions, Inc.
                     Consolidated Statements of Earnings
                   (In millions, except per share amounts)
                                 (Unaudited)

                                      Three Months Ended  Fiscal Year Ended
                                           June 30,            June 30,
                                     ------------------- -------------------
                                        2014      2013      2014      2013
                                     --------- --------- --------- ---------
Revenues                             $   885.9 $   865.1 $ 2,558.0 $ 2,430.8
                                     --------- --------- --------- ---------
Cost of revenues                         551.2     564.0   1,761.4   1,767.8
Selling, general and administrative
 expenses                                120.9      94.5     376.0     323.6
Other expenses, net                        7.2       4.4      25.1      16.2
                                     --------- --------- --------- ---------
    Total expenses                       679.3     662.9   2,162.5   2,107.6
                                     --------- --------- --------- ---------
Earnings before income taxes             206.6     202.2     395.5     323.2
Provision for income taxes                66.4      67.6     132.5     111.1
                                     --------- --------- --------- ---------
Net earnings                         $   140.2 $   134.6 $   263.0 $   212.1
                                     ========= ========= ========= =========
Basic earnings per share             $    1.16 $    1.12 $    2.20 $    1.74
                                     ========= ========= ========= =========
Diluted earnings per share           $    1.13 $    1.09 $    2.12 $    1.69
                                     ========= ========= ========= =========
Weighted-average shares outstanding:
  Basic                                  120.5     120.6     119.6     121.9
  Diluted                                124.6     123.8     124.1     125.4


                    Broadridge Financial Solutions, Inc.
                        Consolidated Balance Sheets
                  (In millions, except per share amounts)
                                (Unaudited)

                                                        June 30,   June 30,
                                                          2014       2013
                                                       ---------  ---------
Assets
Current assets:
  Cash and cash equivalents                            $   347.6  $   266.0
  Accounts receivable, net of allowance for doubtful
   accounts of $3.3 and $3.7, respectively                 424.8      442.4
  Other current assets                                     108.2       98.6
                                                       ---------  ---------
    Total current assets                                   880.6      807.0
Property, plant and equipment, net                          88.3       80.9
Goodwill                                                   856.1      778.4
Intangible assets, net                                     130.0      120.6
Other non-current assets                                   237.1      231.3
                                                       ---------  ---------
      Total assets                                     $ 2,192.1  $ 2,018.2
                                                       =========  =========
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                                     $   116.3  $   143.1
  Accrued expenses and other current liabilities           306.6      277.2
  Deferred revenues                                         61.5       49.2
                                                       ---------  ---------
    Total current liabilities                              484.4      469.5
Long-term debt                                             524.1      524.5
Deferred taxes                                              62.4       71.2
Deferred revenues                                           59.0       40.2
Other non-current liabilities                              100.5       96.8
                                                       ---------  ---------
      Total liabilities                                  1,230.4    1,202.2
                                                       ---------  ---------
Commitments and contingencies
Stockholders' equity:
  Preferred stock: Authorized, 25.0 shares; issued and
   outstanding, none                                          --         --
  Common stock, $0.01 par value: Authorized, 650.0
   shares; issued, 154.5 and 154.5 shares,
   respectively; outstanding, 119.5 and 119.0 shares,
   respectively                                              1.6        1.6
  Additional paid-in capital                               810.7      783.0
  Retained earnings                                        973.9      811.3
  Treasury stock, at cost: 35.0 and 35.5 shares,
   respectively                                           (834.8)    (784.1)
  Accumulated other comprehensive income                    10.3        4.2
                                                       ---------  ---------
    Total stockholders' equity                             961.7      816.0
                                                       ---------  ---------
      Total liabilities and stockholders' equity       $ 2,192.1  $ 2,018.2
                                                       =========  =========


                    Broadridge Financial Solutions, Inc.
                              Segment Results
                               (In millions)
                                (Unaudited)

                                                    Revenues
                                     --------------------------------------
                                     Three Months Ended   Fiscal Year Ended
                                        June 30, 2014          June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
                                                 ($ in millions)
Investor Communication Solutions     $  714.5  $  689.7  $1,866.9  $1,760.2
Securities Processing Solutions         174.1     173.2     694.8     660.5
Other                                      --        --        --       0.1
Foreign currency exchange                (2.7)      2.2      (3.7)     10.0
                                     --------  --------  --------  --------
  Total                              $  885.9  $  865.1  $2,558.0  $2,430.8
                                     ========  ========  ========  ========


                                          Earnings (Loss) before Income
                                                      Taxes
                                     --------------------------------------
                                     Three Months Ended   Fiscal Year Ended
                                           June 30,            June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
                                                 ($ in millions)
Investor Communication Solutions     $  218.9  $  207.6  $  336.0  $  302.1
Securities Processing Solutions          15.0      27.1     119.1      85.2
Other                                   (30.0)    (37.4)    (75.3)    (80.3)
Foreign currency exchange                 2.7       4.9      15.7      16.2
                                     --------  --------  --------  --------
  Total                              $  206.6  $  202.2  $  395.5  $  323.2
                                     ========  ========  ========  ========


                    Broadridge Financial Solutions, Inc.
                Reconciliation of Non-GAAP to GAAP Measures
                  (In millions, except per share amounts)

                                     Three Months Ended   Fiscal Year Ended
                                           June 30,            June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
Adjusted net earnings before income
 taxes (Non-GAAP)                    $  213.5  $  221.1  $  420.2  $  367.2
Acquisition Amortization and Other
 Costs                                   (6.9)     (6.8)    (24.7)    (23.8)
Restructuring Charges                      --     (12.1)       --     (20.2)
                                     --------  --------  --------  --------
Earnings before income taxes (GAAP)  $  206.6  $  202.2  $  395.5  $  323.2
                                     ========  ========  ========  ========
  Adjusted Pre-tax margins (Non-
   GAAP)                                 24.1%     25.6%     16.4%     15.1%
  Pre-tax margins (GAAP)                 23.3%     23.4%     15.5%     13.3%


                                     Three Months Ended   Fiscal Year Ended
                                           June 30,            June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
                                                 ($ in millions)
Adjusted net earnings (Non-GAAP)     $  144.6  $  142.4  $  279.0  $  236.0
Acquisition Amortization and Other
 Costs, net of taxes                     (4.4)     (4.4)    (16.0)    (15.3)
Restructuring Charges, net of taxes        --      (7.8)       --     (13.0)
Discrete tax items                         --       4.4        --       4.4
                                     --------  --------  --------  --------
Net earnings (GAAP)                  $  140.2  $  134.6  $  263.0  $  212.1
                                     ========  ========  ========  ========


                                     Three Months Ended   Fiscal Year Ended
                                           June 30,            June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
Adjusted diluted earnings per share
 (Non-GAAP)                          $   1.16  $   1.15  $   2.25  $   1.88
Acquisition Amortization and Other
 Costs, net of taxes                    (0.04)    (0.04)    (0.13)    (0.12)
Restructuring Charges, net of taxes        --     (0.06)       --     (0.10)
Discrete tax items                         --      0.04        --      0.03
                                     --------  --------  --------  --------
Diluted earnings per share (GAAP)    $   1.13  $   1.09  $   2.12  $   1.69
                                     ========  ========  ========  ========

NOTE: Amounts in these tables may not sum to totals due to rounding.


                    Broadridge Financial Solutions, Inc.
                Reconciliation of Non-GAAP to GAAP Measures
                            EBIT Reconciliation
                               (In millions)

                                                                 FY15
                                                    FY14    Guidance Range
                                                  -------  ----------------
                                                  Actuals    Low      High
                                                  -------  -------  -------
Adjusted EBIT (Non-GAAP)                          $   420  $   464  $   483
  Acquisition Amortization and Other Costs             25       24       24
  Interest and Other                                  (25)     (26)     (26)
                                                  -------  -------  -------
Adjusted net earnings before income taxes (Non-
 GAAP)                                                420      462      480
  Acquisition Amortization and Other Costs            (25)     (24)     (24)
  Restructuring Charges                                --       --       --
                                                  -------  -------  -------
Earnings before income taxes (GAAP)               $   396  $   438  $   457
                                                  =======  =======  =======


    Adjusted EBIT margins (Non-GAAP)                 16.4%    17.4%    17.8%
    Adjusted Pre-tax margins (Non-GAAP)              16.4%    17.3%    17.7%
    Pre-tax margins (GAAP)                           15.5%    16.4%    16.8%

NOTE: Amounts in this table may not sum to totals due to rounding.


                    Broadridge Financial Solutions, Inc.
                Reconciliation of Non-GAAP to GAAP Measures
                         Fiscal Year 2015 Guidance
                  (In millions, except per share amounts)

                                                                FY15
                                                         Guidance Range (a)
                                                         ------------------
                                                            Low      High
                                                         --------  --------
Adjusted net earnings before income taxes (Non-GAAP)     $    462  $    480
  Acquisition Amortization and Other Costs                    (24)      (24)
                                                         --------  --------
  Earnings before income taxes (GAAP)                    $    438  $    457
                                                         ========  ========

Adjusted Pre-tax margins (Non-GAAP)                          17.3%     17.7%
Pre-tax margins (GAAP)                                       16.4%     16.8%


                                                                FY15
                                                         Guidance Range (a)
                                                         ------------------
                                                            Low      High
                                                         --------  --------
Adjusted Diluted earnings per share (Non-GAAP)           $   2.42  $   2.52
  Acquisition Amortization and Other Costs                  (0.13)    (0.13)
                                                         --------  --------
  Diluted earnings per share (GAAP)                      $   2.29  $   2.39
                                                         ========  ========

(a) Guidance does not take into consideration the effect of any future acquisitions, additional debt and/or share repurchases.


                    Broadridge Financial Solutions, Inc.
                Reconciliation of Non-GAAP to GAAP Measures
                              Free Cash Flows
                               (In millions)

                                                                 FY15
                                                    FY14    Guidance Range
                                                  -------  ----------------
                                                  Actuals    Low      High
                                                  -------  -------  -------
Net Earnings (GAAP)                               $   263  $   285  $   297
  Depreciation and amortization (includes other
   LT assets)                                          97      100      105
  Stock-based compensation expense                     35       35       40
  Other                                               (32)     (25)     (22)
                                                  -------  -------  -------
Subtotal                                              363      395      420

  Working capital changes                              33       25       35
  Long-term assets & liabilities changes               (8)     (25)     (15)
                                                  -------  -------  -------

Net cash flows provided by operating activities
 (GAAP)                                               388      395      440

Net Cash Flows From Investing Activities
  Capital expenditures and software purchases         (54)     (75)     (70)
                                                  -------  -------  -------

    Free cash flows (Non-GAAP)                    $   334  $   320  $   370
                                                  =======  =======  =======

(a) Guidance does not take into consideration the effect of any future acquisitions, additional debt and/or share repurchases.

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DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
Hybrid IT is an approach to delivering IT services that matches business requirements and application needs with different IT deployment modalities. In their session at 16th Cloud Expo, Jeff Katzen, Director of the Cloud Practice at CenturyLink, and Gary Sloper, Area Vice President, Sales Engineering and Operations, at CenturyLink, will go into more depth around those different modalities and how customers have made decisions to choose between them. They will talk to some of the challenges t...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...