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MasterCard Incorporated Reports Fourth-Quarter and Full-Year 2013 Financial Results

MasterCard Incorporated (NYSE:MA) today announced financial results for the fourth quarter of 2013. Excluding a special item, the company reported net income of $684 million, up 13%, and earnings per diluted share of $0.57 (adjusted for the company’s ten-for-one stock split), up 16%, versus the year-ago period. Including the special item, a $61 million after-tax charge related to the opt-outs in the U.S. merchant litigations, the company reported net income of $623 million, or $0.52 per diluted share. The net income and earnings per diluted share, excluding the special item, are reconciled to their comparable GAAP measures in the accompanying tables.

Net revenue for the fourth quarter of 2013 was $2.1 billion, a 12% increase versus the same period in 2012. Adjusted for currency, net revenue increased 11%. Net revenue growth was driven by the impact of the following:

  • A 14% increase in gross dollar volume, on a local currency basis, to $1.1 trillion;
  • An increase in cross-border volumes of 18%; and
  • An increase in processed transactions of 13%, to 10.4 billion.

These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes.

Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the fourth quarter of 2012, to $805 billion. As of December 31, 2013, the company’s customers had issued almost 2 billion MasterCard and Maestro-branded cards.

“We are very pleased with our performance this quarter and our full-year 2013 results reflect the overall strength of our global business,” said Ajay Banga, MasterCard president and CEO. “In addition to signing several significant deals last quarter, we made new investments in processing and person-to person payments while expanding our MasterPass digital platform - all supporting safe and seamless payment experiences.”

Excluding the special item, total operating expenses increased 11%, both before and after adjusting for currency, to $1.1 billion for the fourth quarter of 2013 compared to the same period in 2012. The increase was primarily driven by higher investments in people and marketing to support strategic initiatives. Including the special item, total operating expenses increased 21% from the year-ago period.

Operating income for the fourth quarter of 2013 increased 13% over the year-ago period, excluding the special item, and the company delivered an operating margin of 47.7%.

MasterCard reported total other expense of $9 million in the fourth quarter of 2013 versus $5 million in the fourth quarter of 2012. The increase was primarily driven by joint venture-related expenses.

MasterCard's effective tax rate was 32.0% in the fourth quarter of 2013, versus a rate of 32.4% in the comparable period of 2012, excluding the special item. The decrease in the effective tax rate for the period was primarily due to a more favorable geographic mix of earnings and a lower state effective tax rate, partially offset by higher discrete benefits in 2012.

During the fourth quarter of 2013, MasterCard repurchased 9.8 million shares of Class A common stock at a cost of approximately $751 million. Quarter-to-date through January 24th, the company repurchased an additional 4.2 million shares at a cost of approximately $351 million, with $3.3 billion remaining under the current repurchase program authorization.

Full-Year 2013 Results

For the year ended December 31, 2013, MasterCard reported net income of $3.2 billion, up 15%, and earnings per diluted share of $2.61, up 19%, in each case versus the year-ago period and excluding the special items representing charges related to the U.S. merchant litigations taken in both 2012 and 2013. Including the 2013 special item, full-year 2013 net income was $3.1 billion and earnings per diluted share was $2.56.

Net revenue for full-year 2013 was $8.3 billion, an increase of 13% versus 2012 both before and after adjusting for currency. Gross dollar volume growth of 14%, cross-border volume growth of 18% and processed transaction growth of 13%, contributed to the net revenue growth in the full-year period. These increases were partially offset by an increase in rebates and incentives.

Excluding special items in both years, total operating expenses increased 9%, compared to 2012, both before and after adjusting for currency, to $3.7 billion, primarily due to higher personnel costs related to strategic initiatives. Including special items, total operating expenses increased 11%, to $3.8 billion, versus 2012.

Excluding special items, operating income increased 16% for 2013 versus 2012, delivering an operating margin of 55.1% for full-year 2013.

Total other expense was $3 million for full-year 2013 versus $4 million in 2012.

MasterCard’s effective tax rate was 30.9% for full-year 2013, versus a rate of 29.9% for full-year 2012, excluding special items. The increase was primarily due to higher discrete benefits in 2012, partially offset by a more favorable geographic mix of earnings in 2013. Including special items, the effective tax rate was 30.8% for full-year 2013, versus a rate of 29.9% for full-year 2012.

For full-year 2013, MasterCard repurchased 41 million shares at a cost of approximately $2.4 billion.

Fourth-Quarter and Full-Year Financial Results Conference Call Details

At 9:00 a.m. ET today, the company will host a conference call to discuss its fourth-quarter and full-year financial results.

The dial-in information for this call is 800-708-4540 (within the U.S.) and 847-619-6397 (outside the U.S.), and the passcode is 36351326. A replay of the call will be available for one week and can be accessed by dialing 888-843-7419 (within the U.S.) and 630-652-3042 (outside the U.S.), and using passcode 36351326.

This call can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com.

Non-GAAP Financial Information

The company’s total operating expenses, operating income, effective tax rate, net income and earnings per diluted share, excluding special items, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying tables.

The presentation of growth rates adjusted for currency also represent a non-GAAP measure and are calculated by remeasuring the prior period’s results using the current period’s exchange rates.

About MasterCard Incorporated

MasterCard (NYSE:MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.

Forward-Looking Statements

Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation, statements related to the company’s continued ability to invest in processing and person-to-person payments, as well as expand its MasterPass digital platform.

Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2012, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that were filed with the SEC during 2013, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.

 

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

               

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2013       2012 2013       2012
(in millions, except per share data)
 
Net Revenue $ 2,126 $ 1,895 $ 8,346 $ 7,391
Operating Expenses
General and administrative 719 639 2,649 2,429
Advertising and marketing 321 295 841 775
Depreciation and amortization 71 62 258 230
Provision for litigation settlement   95     -     95     20  
Total operating expenses   1,206           996     3,843           3,454  
Operating income 920 899 4,503 3,937
Other Income (Expense)
Investment income 8 10 38 37
Interest expense (7 ) (7 ) (14 ) (20 )
Other income (expense), net   (10 )   (8 )   (27 )   (21 )
Total other income (expense)   (9 )   (5 )   (3 )   (4 )
Income before income taxes 911 894 4,500 3,933
Income tax expense   288     289     1,384     1,174  
Net Income $ 623   $ 605   $ 3,116   $ 2,759  
 
Basic Earnings per Share $ 0.52   $ 0.49   $ 2.57   $ 2.20  
Basic Weighted-Average Shares Outstanding   1,201     1,240     1,211     1,253  
Diluted Earnings per Share $ 0.52   $ 0.49   $ 2.56   $ 2.19  
Diluted Weighted-Average Shares Outstanding   1,205     1,246     1,215     1,258  
 
 

MASTERCARD INCORPORATED

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

     
December 31,
2013     2012
(in millions, except share data)
ASSETS
Cash and cash equivalents $ 3,599 $ 2,052
Restricted cash for litigation settlement 723 726
Investment securities available-for-sale, at fair value 2,696 2,951
Accounts receivable 966 925
Settlement due from customers 1,351 1,117
Restricted security deposits held for customers 911 777
Prepaid expenses and other current assets 471 681
Deferred income taxes 233   128  
Total Current Assets 10,950 9,357
Property, plant and equipment, net 526 472
Deferred income taxes 70 60
Goodwill 1,122 1,092
Other intangible assets, net 672 672
Other assets 902   809  
Total Assets $ 14,242   $ 12,462  
LIABILITIES AND EQUITY
Accounts payable $ 338 $ 357
Settlement due to customers 1,433 1,064
Restricted security deposits held for customers 911 777
Accrued litigation 886 726
Accrued expenses 2,101 1,748
Other current liabilities 363   234  
Total Current Liabilities 6,032 4,906
Deferred income taxes 117 104
Other liabilities 598   523  
Total Liabilities 6,747 5,533
Commitments and Contingencies
Stockholders’ Equity

Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares,

1,341,541,110 and 1,336,049,030 shares issued and 1,148,838,370 and

1,184,050,750 outstanding, respectively

Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares,

45,350,070 and 48,388,400 issued and outstanding, respectively
Additional paid-in-capital 3,762 3,641
Class A treasury stock, at cost, 192,702,740 and 151,998,280 shares, respectively (6,577 ) (4,139 )
Retained earnings 10,121 7,354
Accumulated other comprehensive income 178   61  
Total Stockholders’ Equity 7,484 6,917
Non-controlling interests 11   12  
Total Equity 7,495   6,929  
Total Liabilities and Equity $ 14,242   $ 12,462  
 
 

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

     
For the Years Ended December 31,
2013     2012     2011
(in millions)
Operating Activities
Net income $ 3,116 $ 2,759 $ 1,906
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 258 230 194
Share-based payments 63 35
Deferred income taxes (119 ) 241 (175 )
Other 67 52 17
Changes in operating assets and liabilities:
Accounts receivable (42 ) (121 ) (162 )
Income taxes receivable 153 (185 )
Settlement due from customers (194 ) (500 ) (114 )
Prepaid expenses (70 ) (81 ) 27
Accrued litigation and legal settlements 160 (44 ) 467
Accounts payable (20 ) (2 ) 67
Settlement due to customers 322 348 74
Accrued expenses 315 221 296
Net change in other assets and liabilities 126   30   52  
Net cash provided by operating activities 4,135   2,948   2,684  
Investing Activities
Purchases of investment securities available-for-sale (2,526 ) (2,981 ) (899 )
Proceeds from sales of investment securities available-for-sale 1,488 390 485
Proceeds from maturities of investment securities available-for-sale 1,321 891 63
Purchases of property, plant and equipment (155 ) (96 ) (77 )
Capitalized software (144 ) (122 ) (100 )
Proceeds from maturities of investment securities held-to-maturity 36 300
Investment in nonmarketable equity investments (20 ) (118 ) (74 )
Decrease (increase) in restricted cash for litigation settlement 3 (726 )
Acquisition of businesses, net of cash acquired (70 ) (460 )
Other investing activities (7 ) (7 ) 14  
Net cash used in investing activities (4 ) (2,839 ) (748 )
Financing Activities
Purchases of treasury stock (2,443 ) (1,748 ) (1,148 )
Dividends paid (255 ) (132 ) (77 )
Proceeds from debt 35
Cash proceeds from exercise of stock options 26 31 19
Tax benefit for share-based compensation 19 47 12
Other financing activities (11 ) 4   (21 )
Net cash used in financing activities (2,629 ) (1,798 ) (1,215 )
Effect of exchange rate changes on cash and cash equivalents 45   7   (54 )
Net increase (decrease) in cash and cash equivalents 1,547 (1,682 ) 667
Cash and cash equivalents - beginning of period 2,052   3,734   3,067  
Cash and cash equivalents - end of period $ 3,599   $ 2,052   $ 3,734  
 
 

MASTERCARD INCORPORATED OPERATING PERFORMANCE

               
For the 3 Months ended December 31, 2013

All MasterCard Credit,

GDV   Growth   Growth   Purchase

Volume

  Growth   Purchase

Trans.

  Cash

Volume

  Growth Cash

Trans.

Accounts Cards
Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)
APMEA $312 14.5% 20.4% $211 20.0% 2,235 $101 21.3% 858 393 422
Canada 35 0.6% 6.6% 32 7.1% 376 3 -0.3% 6 45 55
Europe 341 15.5% 14.3% 230 10.1% 3,379 111 24.0% 619 306 323
Latin America

93

10.2% 17.0%

56

23.4%

1,214

37

8.4%

203

125

145

Worldwide less United States 781 13.7% 16.6% 530 15.0% 7,204 251 20.1% 1,686 869 944
United States

324

7.4% 7.4%

275

7.6%

4,938

48

6.4%

311

300

337

Worldwide 1,104 11.8% 13.8% 805 12.4% 12,142 299 17.7% 1,997 1,168 1,281
 
MasterCard Credit and Charge Programs
Worldwide less United States 466 10.6% 13.8% 413 14.5% 4,839 53 9.2% 213 497 563
United States

155

5.7% 5.7%

148

5.7%

1,681

7

4.6%

7

146

178

Worldwide 621 9.4% 11.7% 561 12.0% 6,520 60 8.6% 220 643 741
 
MasterCard Debit Programs
Worldwide less United States 314 18.5% 21.0% 117 17.1% 2,365 198 23.4% 1,473 372 382
United States

169

9.1% 9.1%

127

9.8%

3,257

41

6.7%

304

154

158

Worldwide 483 15.1% 16.5% 244 13.2% 5,622 239 20.2% 1,777 525 540
 
 
For the 12 Months ended December 31, 2013
All MasterCard Credit, GDV Growth Growth Purchase

Volume

Growth Purchase

Trans.

Cash

Volume

Growth Cash

Trans.

Accounts Cards
Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)
APMEA $1,150 17.1% 21.3% $770 19.8% 8,179 $380 24.4% 3,101 393 422
Canada 131 3.4% 6.7% 121 7.2% 1,403 11 1.0% 24 45 55
Europe 1,239 15.6% 14.5% 846 11.4% 12,394 393 21.9% 2,272 306 323
Latin America

340

12.2% 16.4%

204

21.3%

4,466

136

9.7%

768

125

145

Worldwide less United States 2,860 15.2% 17.0% 1,940 15.3% 26,442 920 20.7% 6,165 869 944
United States

1,243

6.6% 6.6%

1,051

7.0%

18,861

192

4.3%

1,250

300

337

Worldwide 4,103 12.4% 13.6% 2,991 12.2% 45,304 1,112 17.5% 7,416 1,168 1,281
 
MasterCard Credit and Charge Programs
Worldwide less United States 1,724 11.5% 13.9% 1,521 14.3% 18,016 203 10.8% 827 497 563
United States

587

4.4% 4.4%

560

4.9%

6,357

27

-5.0%

26

146

178

Worldwide 2,311 9.6% 11.3% 2,081 11.6% 24,372 230 8.7% 853 643 741
 
MasterCard Debit Programs
Worldwide less United States 1,136 21.2% 22.0% 419 19.0% 8,427 716 23.8% 5,339 372 382
United States

656

8.6% 8.6%

491

9.5%

12,505

165

6.0%

1,224

154

158

Worldwide 1,792 16.3% 16.7% 910 13.7% 20,932 882 20.0% 6,563 525 540
 
 
For the 3 Months ended December 31, 2012
All MasterCard Credit, GDV Growth Growth Purchase

Volume

Growth Purchase

Trans.

Cash

Volume

Growth Cash

Trans.

Accounts Cards
Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)
APMEA $272 23.6% 23.1% $183 19.8% 1,882 $89 30.5% 676 339 367
Canada 34 11.2% 7.6% 32 7.8% 347 3 4.5% 6 40 48
Europe 295 14.9% 16.4% 206 13.2% 2,881 89 24.5% 514 257 273
Latin America

85

14.3% 16.8%

50

20.2%

1,062

34

12.3%

192

112

131

Worldwide less United States 687 17.9% 18.5% 471 16.0% 6,172 216 24.4% 1,388 748 820
United States

301

6.8% 6.8%

256

7.2%

4,569

45

4.8%

297

274

311

Worldwide 988 14.3% 14.7% 727 12.7% 10,741 261 20.5% 1,685 1,021 1,131
 
MasterCard Credit and Charge Programs
Worldwide less United States 421 14.6% 15.0% 372 15.1% 4,315 50 14.2% 199 470 534
United States

147

2.5% 2.5%

140

4.1%

1,632

7

-21.9%

7

141

175

Worldwide 568 11.2% 11.5% 512 11.9% 5,946 56 8.1% 205 611 709
 
MasterCard Debit Programs
Worldwide less United States 265 23.6% 24.6% 99 19.5% 1,858 166 27.9% 1,189 277 286
United States

155

11.3% 11.3%

116

11.2%

2,937

39

11.7%

291

133

136

Worldwide 420 18.8% 19.3% 215 14.9% 4,795 205 24.5% 1,479 410 422
 
 
For the 12 Months ended December 31, 2012
All MasterCard Credit, GDV Growth Growth Purchase

Volume

Growth Purchase

Trans.

Cash

Volume

Growth Cash

Trans.

Accounts Cards
Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)
APMEA $981 21.6% 22.9% $662 21.1% 6,862 $319 26.8% 2,396 339 367
Canada 127 6.7% 7.7% 116 8.5% 1,288 11 -0.3% 23 40 48
Europe 1,072 9.3% 16.5% 752 12.6% 10,503 320 26.5% 1,903 257 273
Latin America

303

9.8% 19.1%

181

23.2%

3,883

121

13.5%

723

112

131

Worldwide less United States 2,483 13.8% 18.7% 1,711 16.5% 22,535 772 23.9% 5,046 748 820
United States

1,166

9.1% 9.1%

982

9.0%

17,542

184

9.7%

1,208

274

311

Worldwide 3,650 12.2% 15.5% 2,693 13.7% 40,077 956 20.9% 6,254 1,021 1,131
 
MasterCard Credit and Charge Programs
Worldwide less United States 1,546 11.5% 15.4% 1,361 15.9% 15,992 185 11.5% 748 470 534
United States

562

3.5% 3.5%

534

5.1%

6,236

28

-19.1%

27

141

175

Worldwide 2,109 9.2% 12.0% 1,895 12.7% 22,228 213 6.2% 775 611 709
 
MasterCard Debit Programs
Worldwide less United States 937 17.8% 24.7% 350 18.9% 6,543 587 28.4% 4,298 277 286
United States

604

14.9% 14.9%

448

14.1%

11,306

156

17.2%

1,181

133

136

Worldwide 1,541 16.6% 20.7% 798 16.2% 17,849 743 25.9% 5,479 410 422
APMEA = Asia Pacific / Middle East / Africa
Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period
 

Footnote

The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts, cards on a regional and global basis for MasterCard®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.

Debit transactions on Maestro® and Cirrus®-branded cards, Mondex® transactions and transactions involving brands other than MasterCard are not included in the preceding tables.

For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts that do not generally have physical cards associated with them.

The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.

The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.

In 2012, certain MasterCard Debit and Credit Programs in the Europe region have changed due to a reclassification of programs. There is no impact at the All MasterCard Programs level. In addition, Purchase Transactions for certain Credit Programs in the Latin America region have been restated due to revisions from several customers. MasterCard revenue is not impacted from these changes. Data for the comparable periods in 2012, 2011 and 2010 have been restated to be consistent with these approaches.

In 2013Q4, a large Maestro customer revised their number of Maestro cards to exclude inactive cards. Data for the comparable periods in 2013, 2012, and 2011 have been revised to be consistent with this approach. MasterCard revenue is not impacted from these historical changes.

Performance information for prior periods can be found in the "Investor Relations" section of MasterCard's website at www.mastercard.com.

 

GAAP Reconciliations

($ in millions, except per share data)

                   

Three Months Ended

December 31, 2013

Three Months Ended

December 31, 2012

Actual

Special

Item (a)

Non-GAAP Actual
 
Provision for litigation settlement $ 95 $ (95) $ - $ -
 
Total operating expenses 1,206 (95) 1,111 996
 
Operating income 920 95 1,015 899
 
Operating Margin 43.3% 47.7% 47.4%
 
Income before income taxes 911 95 1,006 894
 
Income tax expense 288 34 322 289
 
Effective Tax Rate 31.6% 0.4% 32.0% 32.4%
 
Net Income 623 61 684 605
 
 
Basic Earnings per Share $ 0.52 $ 0.05 $ 0.57 $ 0.49
 
Diluted Earnings per Share $ 0.52 $ 0.05 $ 0.57 $ 0.49
 
(a) Represents effect of net incremental accrual for U.S. merchant litigations
                         

Twelve Months Ended

December 31, 2013

Twelve Months Ended

December 31, 2012

Actual

Special

Item (a)

Non-GAAP Actual

Special

Item (a)

Non-GAAP
 
Provision for litigation settlement $ 95 $ (95 ) $ - $ 20 $ (20 ) $ -
 
Total operating expenses 3,843 (95 ) 3,748 3,454 (20 ) 3,434
 
Operating income 4,503 95 4,598 3,937 20 3,957
 
Operating Margin 54.0 % 55.1 % 53.3 % 53.5 %
 
Income before income taxes 4,500 95 4,595 3,933 20 3,953
 
Income tax expense 1,384 34 1,418 1,174 7 1,181
 
Effective Tax Rate 30.8 % 0.1 % 30.9 % 29.9 % - 29.9 %
 
Net Income 3,116 61 3,177 2,759 13 2,772
 
 
Basic Earnings per Share $ 2.57 $ 0.05 $ 2.62 $ 2.20 $ 0.01 $ 2.21
 
Diluted Earnings per Share $ 2.56 $ 0.05 $ 2.61 $ 2.19 $ 0.01 $ 2.20
 
(a) Represents effect of net incremental accrual for U.S. merchant litigations

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For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.