Teradata Corp. reported a 9 percent drop in earnings Thursday and announced plans to sell its marketing applications business as part of a series of initiatives to improve the company’s performance.
The Miami Twp.-based company hopes to save about $120 million in operating income in 2016 by selling its marketing software unit and focusing exclusively on its core data and analytics business, officials said in a conference call with investment analysts.
“Our overall goal with Teradata going forward is to transform the business to better align ourselves with the evolving marketplace and customer needs,” said Mike Koehler, the company’s chief executive.
Teradata’s stock plummeted to a six-year low on the news. The company’s shares closed Thursday at $25.58, down 14 percent from the previous day’s close.
Teradata reported revenue of $606 million for the third quarter of 2015, a 9 percent decline from $667 million in the same period last year.
Teradata reported a third quarter profit of $78 million, or 55 cents per share, compared to $94 million, or 60 cents per share, in the third quarter of 2014.
The company’s full-year revenue is now expected to be flat or down 2 percent, officials said.
Koehler said the company is starting the process to find a buyer for its marketing software unit. “We believe our marketing analytics business can thrive under the right ownership,” he said.
Currently, Teradata is evaluating how many layoffs will result from the restructuring.
Teradata’s marketing software unit has offices and employees distributed all over the world, said Mike O’Sullivan, a company spokesman. He declined to disclose employee numbers by location or business unit. A timetable for the sale has not been announced.
Teradata is an analytics, data warehousing and marketing applications and services company. The company has about 10,000 workers worldwide, including more than 400 in the Dayton region.