Sungard Data Systems 8-K Sungard Announces Third Quarter Resultsand Reaffirms 2003 Outlook

EXHIBIT 99.1

October 22, 2003
Madeline Hopkins	Michael J. Ruane
(484) 582-5506	(484) 582-5405	www.sungard.com

SUNGARD ANNOUNCES THIRD QUARTER RESULTSAND REAFFIRMS 2003 OUTLOOK

Net Income per Share Grew 15%; Revenue Grew 13%

Wayne, PA — SunGard (NYSE:SDS), a global leader in integrated IT solutions for financial services and the pioneer and leading provider of information availability services, reported today that net income for the three months ended September 30, 2003 was $92 million, an 18% increase over $78 million for the third quarter of 2002.

Diluted net income per share for the quarter grew 15% to $0.31, which included $0.01 per share of merger costs for the quarter, as compared to the $0.27 reported in 2002, which included $0.02 per share of merger costs. Details concerning merger costs are described in the Notes attached to this release. Earnings per share before merger costs for the quarter were $0.32, up 10% from $0.29 in the third quarter of 2002.

For the first nine months of 2003, net income and diluted net income per share were $258 million and $0.89, respectively, increases of 12% and 13% over comparable results reported in 2002.

Revenue for the third quarter of 2003 was $742 million, an increase of 13% over the $660 million reported in the year-ago quarter. Revenue from businesses owned for at least a year (internal revenue) was unchanged from the same period in 2002. Revenue for the first nine months of 2003 was $2.15 billion, an increase of 14% over the $1.89 billion reported for 2002.

Cristóbal Conde, president and chief executive officer, commented, “SunGard has performed solidly in 2003. Over the past three years, IT spending has been characterized by cost-cutting and an overriding focus on resilience. Today, we see our leading customers putting an equal emphasis on gaining market share. As a result, we see an improvement in the size and quality of leads coming into our pipeline, especially for offerings on an ASP or outsourced basis where we can leverage our economies of scale and resilient IT infrastructure. Our competitiveness is stronger than ever.”

“Our outlook for 2003 diluted net income per share is in the range of $1.23 to $1.28, which includes $0.01 per share of merger costs incurred through the end of September. Therefore, excluding merger costs, our original outlook of $1.24 to $1.29 per share remains unchanged. Because the timing of acquisitions and the amount of merger costs are unpredictable, this outlook assumes that we will have no further merger-related items in 2003. It also assumes neither a rebound nor a further deterioration in demand in 2003,” added Mr. Conde.

Investment Support Systems (ISS) revenue grew 18% to $404 million in the quarter due to acquisitions. ISS internal revenue declined approximately 1% for the quarter, due primarily to the slowdown in IT spending. Financial services firms are increasingly focusing on their competitiveness. With deep customer relationships, a broad product portfolio and a strong investment program, SunGard is well positioned to help customers achieve their goals.

Availability Services (AS) revenue grew 2% to $290 million in the quarter due primarily to currency fluctuation. IT capital spending, which has been flat, is a key driver in business continuity spending. The blackout in August and Hurricane Isabel in September provided fresh proof of the extent to which businesses depend on IT and require resilience.

Other Businesses revenue increased 46% to $48 million due to the acquisition in March of H.T.E., Inc., a leader in government information technologies.

SunGard has exceptional financial strength and flexibility, which allows it to consistently invest in its business. In the quarter, SunGard spent 11% of ISS revenue on product development. At September 30, 2003, cash balances were $306 million and long-term debt remained at $188 million. For the first nine months, cash flow from operations was approximately $438 million, and cash balances decreased $134 million after spending $421 million on eight acquisitions and $145 million on capital expenditures company-wide.

Webcast

SunGard will hold its regular quarterly earnings conference call on October 23, 2003, at 9:00 a.m. EDT. You may listen to the call live at www.vcall.com. An audio replay of the call will be available at noon that day through midnight on Thursday, October 30, 2003. To listen to the replay, go to www.vcall.com or dial 719.457.0820; code 650359. A copy of this press release and any additional financial and statistical data are posted at www.sungard.com/investors under SunGard Financial Reports. All statements made by SunGard officers on the earnings conference call and the information posted on the SunGard Web site are the copyrighted property of SunGard. Recording of the earnings conference call is prohibited without the express prior written consent of SunGard.

About SunGard

SunGard is a global leader in integrated IT solutions for financial services. SunGard is also the pioneer and leading provider of information availability services. SunGard serves more than 20,000 clients in over 50 countries, including 47 of the world’s 50 largest financial services institutions. SunGard (NYSE:SDS) is a member of the S&P 500 and has annual revenues of more than $2 billion. Visit SunGard at www.sungard.com.

Trademark Information: SunGard and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995

Statements about SunGard’s outlook and all other statements in this release other than historical facts are forward-looking statements. These statements are subject to risks and uncertainties that may change at any time, and, therefore, actual results may differ materially from expected results. Forward-looking statements include information about possible or assumed future financial results of the Company and usually contain words such as “believes,” “intends,” “expects,” “anticipates,” or similar expressions. The Company derives most of its forward-looking statements from its operating budgets and forecasts, which are based upon many detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting certain important factors, such as: general economic and market conditions, including their effect on information technology spending levels, trading volumes and services revenues, and including the fact that the economic slowdown has left many companies with excess data center capacity that provides them with internal alternatives primarily to high-availability services; the overall condition of the financial services industry, including the effect of any further consolidation among financial services firms, and including the market and credit risks associated with clearing broker operations; the effect of war, terrorism or catastrophic events; the timing and magnitude of software sales; the timing and scope of technological advances; the integration and performance of acquired businesses; the prospects for future acquisitions; the ability to retain and attract customers and key personnel; and the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents. The factors described in this paragraph and other factors that may affect SunGard, its business or future financial results, as and when applicable, are discussed in the Company’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2002, a copy of which may be obtained from SunGard without charge. The Company assumes no obligation to update this document as a result of new information or future events.

# # #

SunGard Data Systems Inc.

Consolidated Income Statements

(in thousands, except per-share amounts)

(unaudited)

	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2003			2002			2003			2002
Revenues:
Services	$	1,955,963		$	1,713,265		$	670,085		$	604,536
License and resale fees		136,324			134,591			49,976			39,695
Total products and services		2,092,287			1,847,856			720,061			644,231
Reimbursed expenses		58,664			43,610			22,366			15,684
		2,150,951			1,891,466			742,427			659,915
Costs and expenses:
Cost of sales and direct operating		946,544			815,936			321,357			294,107
Sales, marketing and administration		392,978			362,859			131,646			116,914
Product development		141,021			118,344			49,339			36,779
Depreciation and amortization		168,708			148,360			57,222			53,488
Amortization of acquisition-related intangible assets		63,721			47,782			23,722			16,044
Merger costs		2,018			12,336			722			10,659
		1,714,990			1,505,617			584,008			527,991
Income from operations		435,961			385,849			158,419			131,924
Interest income		4,289			6,253			1,377			1,536
Interest expense		(7,854	)		(10,596	)		(2,553	)		(3,617	)
Other income (expense)		(2,880	)		730			(2,880	)		140
Income before income taxes		429,516			382,236			154,363			129,983
Income taxes		171,232			152,453			61,998			51,905
Net income	$	258,284		$	229,783		$	92,365		$	78,078
Basic net income per common share	$	0.91		$	0.81		$	0.32		$	0.28
Shares used to compute basic net income per common share		284,974			282,108			286,244			282,805
Diluted net income per common share	$	0.89		$	0.79		$	0.31		$	0.27
Shares used to compute diluted net income per common share		291,024			289,991			293,911			288,404

See Notes to Consolidated Condensed Financial Information.

SunGard Data Systems Inc.

Supplemental Income Statement Information

(in thousands)

(unaudited)

	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2003			2002			2003			2002
Revenues: (See Note 2)
Investment support systems	$	1,150,594		$	1,028,660		$	404,386		$	341,718
Availability services		868,774			762,154			289,579			285,070
Other businesses		131,583			100,652			48,462			33,127
	$	2,150,951		$	1,891,466		$	742,427		$	659,915
Income from operations:
Investment support systems	$	213,381		$	233,341		$	70,085		$	73,477
Availability services		239,189			177,616			91,488			71,973
Other businesses		16,559			15,529			7,223			5,550
Corporate administration		(31,150	)		(28,301	)		(9,655	)		(8,417	)
Merger costs		(2,018	)		(12,336	)		(722	)		(10,659	)
	$	435,961		$	385,849		$	158,419		$	131,924
Operating margin: (See Note 2)
Investment support systems		18.5	%		22.7	%		17.3	%		21.5	%
Availability services		27.5	%		23.3	%		31.6	%		25.2	%
Other businesses		12.6	%		15.4	%		14.9	%		16.8	%
Total		20.3	%		20.4	%		21.3	%		20.0	%

See Notes to Consolidated Condensed Financial Information.

SunGard Data Systems Inc.

Consolidated Condensed Balance Sheets

(in thousands)

	(unaudited)
	September 30, 2003		December 31, 2002
Assets:
Current:
Cash and equivalents	$	305,930	$	439,735
Accounts receivable, net		574,240		566,548
Clearing broker assets		121,533		—
Prepaid expenses and other current assets		142,744		128,733
Total current assets		1,144,447		1,135,016
Property and equipment, net		575,785		566,199
Software products, net		226,118		132,083
Deferred income taxes and other assets, net		501,471		509,248
Goodwill		1,354,617		939,050
	$	3,802,438	$	3,281,596
Liabilities and Stockholders' Equity:
Current:
Short-term and current portion of long-term debt	$	24,971	$	18,128
Accounts payable and accrued expenses		432,450		426,294
Clearing broker liabilities		111,670		—
Deferred revenue		469,000		426,811
Total current liabilities		1,038,091		871,233
Long-term debt		188,000		187,964
Stockholders' equity		2,576,347		2,222,399
	$	3,802,438	$	3,281,596

See Notes to Consolidated Condensed Financial Information.

SunGard Data Systems Inc.

Notes to Consolidated Condensed Financial Information

Note 1. Reconciliation of Net Income to Net Income Excluding Merger-Related Items

The Company has an active acquisition program, but does not budget for acquisitions because it cannot predict when transactions will occur or how much merger costs and related items, if any, will be recorded as expenses. Most merger costs are not recorded as expenses because they are required to be capitalized as part of the purchase price. Expensed merger-related items may not occur in every reporting period, and when they do occur, may fluctuate significantly in amount. Accordingly, when assessing its financial results, the Company focuses on results before merger-related items. The following information concerning merger-related items is presented in order to show their impact on net income and diluted net income per common share.

	(unaudited)					(unaudited)
	Nine Months Ended					Three Months Ended					Year Ended
	September 30,					September 30,					December 31,
(in thousands, except per-share amounts)	2003		2002			2003		2002			2002
Net income	$	258,284	$	229,783		$	92,365	$	78,078		$	325,641
Merger costs:
Costs associated with the acquisition of Sherwood Int’l plc (Sherwood):
Facility shut-down and severance costs		265		—			265		—			—
Costs associated with the acquisition of Caminus, Inc.:
Purchased in-process research and development costs		910		—			—		—			—
Facility shut-down and severance costs		843		—			457		—			—
Costs associated with the acquisition of remaining interest in Brut, LLC		—		2,991			—		2,991			3,320
Costs associated with the acquisition of Guardian iT plc (Guardian):
Accounting, investment banking and other costs		—		903			—		903			903
Facility shut-down costs		—		9,644			—		9,644			9,503
Costs associated with the acquisition of Availability Solutions business of Comdisco, Inc.:
Reversal of previously expensed facility shut-down and severance costs		—		(1,202	)		—		(2,879	)		(1,203	)
		2,018		12,336			722		10,659			12,523
Other income (expense):
Items related to the acquisition of Sherwood:
Loss on foreign currency purchased in advance of closing of the acquisition		1,105		—			1,105		—			—
Equity in after-tax loss for the period between the acquisition of a 29.5% interest and the completion of the acquisition		1,775		—			1,775		—			—
Items related to the acquisition of Guardian:
Gain on foreign currency purchased in advance of closing of the acquisition		—		(2,993	)		—		(127	)		(2,993	)
Equity in after-tax loss for the period between the acquisition of a 24.9% interest and the completion of the acquisition		—		2,263			—		(13	)		2,263
		2,880		(730	)		2,880		(140	)		(730	)
Total merger-related items		4,898		11,606			3,602		10,519			11,793
Tax effect of merger-related items		1,231		3,115			716		3,593			3,223
After-tax effect of merger-related items		3,667		8,491			2,886		6,926			8,570
Net income, excluding merger-related items	$	261,951	$	238,274		$	95,251	$	85,004		$	334,211
Diluted net income per common share	$	0.89	$	0.79		$	0.31	$	0.27		$	1.12
Diluted net income per common share, excluding merger-related items	$	0.90	$	0.82		$	0.32	$	0.29		$	1.15

SunGard Data Systems Inc.

Notes to Consolidated Condensed Financial Information (continued)

Note 2. Supplemental Income Statement Data

Effective September 30, 2003, the Company’s presentation of supplemental income statement information in its earnings release has been revised to include revenue from reimbursed expenses in the revenue for each segment. The operating margin is now calculated on that basis, as presented below.

	(unaudited)
	2003
	Three Months Ended
(in thousands)	March 31			June 30
Revenues:
Investment support systems	$	352,185		$	394,023
Availability services		288,296			290,900
Other businesses		34,080			49,040
	$	674,561		$	733,963
Operating margin:
Investment support systems		19.1	%		19.3	%
Availability services		22.9	%		28.1	%
Other businesses		10.6	%		11.7	%
Total		18.7	%		20.6	%

	(unaudited)
	2002
	Three Months Ended												Year Ended
(in thousands)	March 31			June 30			Sept. 30			Dec. 31			Dec. 31, 2002
Revenues:
Investment support systems	$	337,843		$	349,105		$	341,718		$	379,477		$	1,408,143
Availability services		238,017			239,066			285,070			290,346			1,052,499
Other businesses		32,363			35,157			33,127			31,948			132,595
	$	608,223		$	623,328		$	659,915		$	701,771		$	2,593,237
Operating margin:
Investment support systems		22.9	%		23.7	%		21.5	%		23.1	%		22.8	%
Availability services		19.3	%		24.9	%		25.2	%		27.6	%		24.5	%
Other businesses		13.2	%		16.2	%		16.8	%		11.3	%		14.4	%
Total		19.2	%		22.0	%		20.0	%		23.0	%		21.1	%