TERADATA CORPORATION (NYSE:TDC) Files An 8-K Costs Associated with Exit or Disposal Activities

TERADATA CORPORATION (NYSE:TDC) Files An 8-K Costs Associated with Exit or Disposal Activities
ITEM 2.05.Costs Associated with Exit or Disposal Activities

On June 4, 2018, Teradata Corporation ("Teradata" or the "Company") approved a plan to consolidate certain of its operations, including transitioning itscorporate headquartersto San Diego, California from its current location in Dayton, Ohio by the end of 2018. This plan, which is being executed in connection with Teradata’s ongoing comprehensive business transformation from a data warehouse company to a data analytics platform company, is intended to better align the Company’s skills and resources to effectively pursue opportunities in the marketplace. As the Company evaluated its footprint and identified ways to make its decision-making, systems and processes more efficient, it determined that closing its Dayton office and locating its headquarters in San Diego better positions Teradata for the long-term.

The Company expects that the costs relating to this consolidation plan will include one-time employee separation benefits, transition support, and other exit-related costs. As the specific actions in connection with the initiatives for this plan have not been finalized, the Company is currently unable to make a good faith estimate of the total amount or range of amounts to be incurred in connection with the plan, nor provide an estimate of the amount or range of amounts of any future cash expenditures related to these actions. However, given the anticipated timing of the expected cash expenditures, the Company does not expect that Teradata’s 2018 free cash flow guidance will be materially impacted.

The Company expects that it will be able to provide more information regarding these initiatives in the third quarter of 2018 and, when it is able to make a good faith estimate of the amount or range of amounts of each major type of cost and the estimated amount or range of amounts of costs that will result in future cash expenditures, it will file an amended report on Form 8-K and provide such estimates.

Safe Harbor Statement

This Current Report on Form 8-K contains “forward-looking statements”, including statements as to anticipated or expected results, beliefs, opinions and future financial performance, 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. 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 costs and charges in connection with the consolidation plan are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause Teradata’s actual results to differ materially. In addition to the factors discussed in this Form 8-K filing, other risks and uncertainties could affect our future results, and could cause actual results to differ materially from those expressed in such forward-looking statements, including the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business, including the increased pressure on price/performance for data analytics solutions and changes in customer's buying patterns; fluctuations in our operating results, including as a result of the pace and extent to which customers shift from perpetual to subscription-based licenses; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including the impact of economic, political, and legal conditions, and foreign currency fluctuations; risks associated with data privacy, cyber-attacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition and market acceptance of new and existing products and services; tax rates and the impact of recent tax reform legislation; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful exploitation of new acquisition and alliance opportunities ; recurring revenue may decline or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules, including Topic ASC 606; and other factors described from time to time in Teradata's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K and subsequent quarterly reports on Forms 10-Q, as well as the company's annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


About TERADATA CORPORATION (NYSE:TDC)

Teradata Corporation (Teradata) is a provider of analytic data platforms, marketing and analytic applications, and related services. The Company’s analytic data platforms consist of software, hardware and related business consulting and support services for data warehousing, and big data analytics. It operates in two segments: data and analytics, and marketing applications. Its services include a range of offerings, such as consulting to help organizations design, optimize and manage their analytic and big data environments, either on-premise or in the cloud. Its value-added consulting services provide expertise in data architecture services, cloud, private cloud, managed services and related installation services. In addition to its consulting services it offers a set of support services. Teradata operates from various locations within the United States with the primary locations being Dayton, Ohio; Johns Creek (Atlanta), Georgia, and Rancho Bernardo (San Diego), California.

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