Teradata looks to “the cloud” for growth

Article Excerpt

TERADATA CORP. $44 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.5 million; Market cap: $7.4 billion; Price-to-sales ratio: 4.1; No dividends paid; TSINetwork Rating: Average; www.teradata.com) is buying privately held Aprimo, which sells marketing analysis software and services to over 150,000 clients. These products help its clients make better marketing decisions. Teradata is paying $525 million for Aprimo. To put that in context, Teradata earned $75 million, or $0.44 a share, in the three months ended September 30, 2010. The deal should close in the first quarter of 2011. Aprimo uses a cloud-computing model to sell its software. (Cloud computing involves storing data and software on one or more centralized computer networks. Users access these programs or files over the Internet, or through some other computer network.) Aprimo’s expertise will help Teradata as more businesses turn to cloud computing as it cuts their costs. Teradata is a buy. buy…