Teradata Corp Files 8-K on Operations and Financials

TL;DR

Teradata dropped an 8-K: financial updates, exit costs, and exhibits are in.

AI Summary

On August 5, 2024, Teradata Corporation filed an 8-K report detailing significant events. The filing includes information regarding the company's results of operations and financial condition, as well as costs associated with exit or disposal activities. It also contains financial statements and exhibits.

Why It Matters

This filing provides investors with crucial updates on Teradata's financial performance and strategic decisions, including any restructuring or disposal costs, which can impact future profitability and stock valuation.

Risk Assessment

Risk Level: medium — The filing concerns financial results and potential restructuring costs, which can introduce volatility and uncertainty for investors.

Key Players & Entities

• Teradata Corporation (company) — Registrant
• August 5, 2024 (date) — Date of Report
• Delaware (jurisdiction) — State of incorporation
• 17095 Via Del Campo (address) — Principal executive offices
• San Diego, California 92127 (address) — Principal executive offices

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value TDC New York Stock Exchange
• $75 — oing annualized cost savings of between $75 to $80 million, the majority of which a
• $80 m — nualized cost savings of between $75 to $80 million, the majority of which are expect
• $25 million — ng in the range of approximately$ 20 to $25 million. The Company expects to recognize these
• $45 — actions are estimated at approximately $45 to $50 million, of which, approximately
• $50 m — s are estimated at approximately $45 to $50 million, of which, approximately $30 to $
• $30 — to $50 million, of which, approximately $30 to $35 million are expected to occur du
• $35 million — million, of which, approximately $30 to $35 million are expected to occur during 2024. Th

Filing Documents

• tdc-20240805.htm (8-K) — 38KB
• tdc06302024exhibit991.htm (EX-99.1) — 494KB
• image1.jpg (GRAPHIC) — 8KB
• 0000816761-24-000143.txt ( ) — 696KB
• tdc-20240805.xsd (EX-101.SCH) — 2KB
• tdc-20240805_lab.xml (EX-101.LAB) — 21KB
• tdc-20240805_pre.xml (EX-101.PRE) — 12KB
• tdc-20240805_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 "Results of Operations and Financial Condition" of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. On August 5, 2024, the Company issued a press release setting forth its second quarter of fiscal year 2024 operating results as well as current outlook estimates for the third quarter of 2024 and for the full-year 2024 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference. The Company also posted supplemental material dated August 5, 2024, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company's website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

05. Costs Associated with Exit or Disposal Activities

Item 2.05. Costs Associated with Exit or Disposal Activities. On August 5, 2024, the Company announced that it has realigned its sales function and has initiated global restructuring and cost reduction actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability (the "Restructuring"). The Restructuring is expected to result in a reduction of the Company's workforce affecting approximately 9% to 10% of the Company's global workforce. The majority of the actions related to the Restructuring are expected to be completed by the end of 2024, with remaining actions to be completed by the end of 2025. The Restructuring is expected to result in ongoing annualized cost savings of between $75 to $80 million, the majority of which are expected to be the result of reductions in operating expenses (the "Savings"). The Savings will primarily be initially realized throughout 2024 and 2025. The Company expects to invest a portion of the Savings back into revenue generating growth areas of the Company starting in 2025. The Company expects that the majority of the costs relating to the Restructuring will include one-time employee separation benefits, transition support, and other employee-related costs. The Company expects that it will incur total charges related to the Restructuring in the range of approximately$ 20 to $25 million. The Company expects to recognize these charges in 2024 and 2025, with the majority recorded in 2024. Cash expenditures related to these actions are estimated at approximately $45 to $50 million, of which, approximately $30 to $35 million are expected to occur during 2024. The estimates of the Savings (and any reinvestment thereof), costs, charges, and cash expenditures that the Company expects to incur in connection with the Restructuring, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amou

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: The following exhibits are attached with this current report on Form 8-K: Exhibit No. Description 99.1 Press Release, dated Augus t 5 , 2024, issued by the Company (Earnings Press Release). 104 Cover Page Interactive Data (embedded within the Inline XBRL document). Safe Harbor Statement This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as "expect," "strive," "looking ahead," "outlook," "guidance," "forecast," "anticipate," "continue," "plan," "estimate," "believe," "will," "would," "likely," "intend," "potential," or similar expressions. All statements, other than statements of historical facts, included in this Current Report on Form 8-K which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including all statements about the anticipated Savings, costs, charges, reinvestment of a portion of the Savings, and cash expenditures of the Restructuring, and the Company's financial guidance described herein and in the accompanying press release are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company's actual results to differ materially. In addition to the factors discussed in this Form 8-K filing, other risks and uncertainties could affect the Company's future results, and could cause actual results to differ materially

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TERADATA CORPORATION Date: August 5, 2024 By: /s/ Claire Bramley Claire Bramley Chief Financial Officer

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View this 8-K filing on SEC EDGAR