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Tecsys Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2024

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SaaS subscription bookings set new record in fourth quarter, SaaS RPO climbs 43%

MONTREAL, June 27, 2024 /CNW/ — Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the fourth quarter and full year of fiscal 2024, ended April 30, 2024. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).

“Fiscal 2024 has been a landmark year for Tecsys in which we have demonstrated our ability to drive continued growth and expand market opportunity,” said Peter Brereton, president and CEO at Tecsys. “Our SaaS revenue surged by 39% in fiscal 2024 and we achieved record-breaking SaaS bookings in our fourth quarter as well as for the full year. We head into fiscal 2025 with confidence that we are delivering exceptional value to our customers and are well-positioned to capitalize on our market momentum.”

Mark Bentler, chief financial officer of Tecsys Inc., added, “Our financial performance in fiscal 2024 underscores the strength of our business model. With a 43% increase in SaaS RPO in fiscal 2024 and positive evolution in our gross margin profiles, we continue to see the path for AEBITDA margin expansion to 8-9% in fiscal 2025 and 10-11% in fiscal 2026.”

Fourth Quarter Highlights:

SaaS revenue increased by 27% to $14.2 million, up from $11.1 million in Q4 2023.SaaS subscription bookingsi (measured on an ARRi basis) increased by 108% to a record $8.0 million, compared to $3.9 million in the fourth quarter of fiscal 2023.SaaS Remaining Performance Obligation (RPOi) increased by 43% to $196.9 million at April 30, 2024, up from $137.7 million at the same time last year.Annual Recurring Revenue (ARRi) at April 30, 2024 was up 21% to $94.7 million compared to $78.3 million at April 30, 2023.Total revenue increased 7% to a record $44.0 million compared to $41.2 million in Q4 2023. Professional services revenue decreased by 2% to $14.4 million compared to $14.6 million in Q4 2023.Gross margin was 47% for the fourth quarter of fiscal 2024 compared to 45% for the same period in fiscal 2023.Total gross profit increased to $20.6 million, up 12% from $18.4 million in Q4 2023.Operating expenses increased to $21.3 million, higher by $4.3 million or 25% compared to $17.0 million in Q4 last year. Q4 2024 operating expenses included $2.1 million of restructuring costs.Loss from operations (including the impact of restructuring costs) was $0.6 million in Q4 2024, compared to a profit from operations of $1.4 million in Q4 2023.Net profit was $0.3 million or $0.02 per share on a fully diluted basis in Q4 2024, compared to $0.4 million or $0.03 per share for the same period in fiscal 2023.Adjusted EBITDAii was $2.8 million, up 14% compared to $2.4 million reported in Q4 last year.In the fourth quarter of fiscal 2024, Tecsys acquired 128,300 of its outstanding common shares for approximately $5.0 million as part of its ongoing normal course issuer bid.

Fiscal 2024 Highlights:

SaaS revenue increased by 39% to $51.9 million, up from $37.5 million in fiscal 2023.SaaS subscription bookingsi (measured on an ARRi basis) increased to $18.6 million, up 13% from $16.4 million in fiscal 2023.Total revenue increased 12% to $171.2 million compared to $152.4 million in fiscal 2023.Professional services revenue was $55.2 million, down slightly compared to $55.4 million in fiscal 2023.Gross margin was 46% for fiscal 2024 compared to 44% for fiscal 2023.Total gross profit increased to $78.4 million, up 17% from $66.8 million in the same period of fiscal 2023.Operating expenses increased to $76.5 million, higher by $13.2 million or 21% compared to $63.2 million in fiscal 2023.Profit from operations (including the impact of restructuring) was $1.9 million, down from $3.6 million in fiscal 2023.Net profit was $1.8 million, or $0.13 per diluted share in fiscal 2024, compared to a net profit of $2.1 million, or $0.14 per diluted share, for fiscal 2023.Adjusted EBITDAii was $9.6 million, up slightly compared to $9.5 million in fiscal 2023.

Financial Guidance:

Tecsys is providing financial guidance as follows:

FY25 Guidance

FY26 Guidance

Total Revenue Growth

7-9%

n.a.

SaaS Revenue Growth

30-32%

n.a.

Adjusted EBITDAii Margin

8-9%

10-11%

 

On June 27, 2024, the Company declared a quarterly dividend of $0.08 per share to be paid on August 2, 2024 to shareholders of record on July 12, 2024.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.

Q4 and FY2024 Financial Results Conference Call
Date: June 28, 2024
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until July 5, 2024, by calling:
888-660-6345 or 646-517-4150 (access code: 46999#)

i See Key Performance Indicators in Management’s Discussion and Analysis of the 2024 Financial Statements.

ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the 2024 Financial Statements.

About Tecsys

Tecsys is a global provider of advanced supply chain solutions. With a commitment to innovation and customer success, the company equips organizations with the essential software, technology and expertise needed for operational excellence and competitive advantage. Its cloud solutions serve a diverse range of industries, including healthcare, distribution and converging commerce, across multiple complex, regulated and high-volume markets. Built on the Itopia® low-code application platform, Tecsys’ offerings include enterprise resource planning, warehouse management, consolidated service management, distribution and transportation management, supply management at the point of use and order management solutions. Tecsys provides critical data insights and control across the supply chain, ensuring that organizations are agile, responsive and scalable. Tecsys is publicly traded on the Toronto Stock Exchange under the ticker symbol TCS. For more about Tecsys and its solutions, please visit www.tecsys.com.

Forward Looking Statements
The statements in this news release relating to matters that are not historical fact are forward-looking statements that are based on management’s beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.’s business can be found in the MD&A section of the Company’s annual report and the most recently filed annual information form. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR+ (www.sedarplus.ca).

Copyright © Tecsys Inc. 2024. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

Non-IFRS Measures

Reconciliation of EBITDA and Adjusted EBITDA

EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before stock-based compensation, gain on remeasurement of lease liability, recognition of tax credits generated in prior periods and restructuring costs. The exclusion of interest expense, interest income, income taxes and restructuring costs eliminates the impact on earnings derived from non-operational activities and non-recurring items, and the exclusion of depreciation, amortization, stock-based compensation, gain on remeasurement of lease liability and recognition of tax credits generated in prior periods eliminates the non-cash impact of these items. 

The Company believes that these measures are useful measures of financial performance without the variation caused by the impacts of the items described above and that could potentially distort the analysis of trends in our operating performance. In addition, they are commonly used by investors and analysts to measure a company’s performance, its ability to service debt and to meet other payment obligations, or as a common valuation measurement. Excluding these items does not imply that they are necessarily non-recurring. Management believes these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and future prospects in a manner similar to management. Although EBITDA and Adjusted EBITDA are frequently used by securities analysts, lenders and others in their evaluation of companies, they have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under IFRS.

The reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable IFRS measure is provided below.

Year ended April 30,

(in thousands of CAD)

2024

2023

2022

Net profit for the period

$

1,849

$

2,089

$

4,478

Adjustments for:

Depreciation of property and equipment and right-of-use assets

1,477

1,775

2,162

Amortization of deferred development costs

583

496

290

Amortization of other intangible assets

1,493

1,603

1,612

Interest expense

163

406

622

Interest income

(1,015)

(686)

(474)

Income taxes

641

1,624

946

EBITDA

$

5,191

$

7,307

$

9,636

Adjustments for:

Stock based compensation

2,301

2,177

1,684

Gain on remeasurement of lease liability

–

–

(573)

Recognition of tax credits generated in prior periods

–

–

(617)

Restructuring costs

2,122

–

–

Adjusted EBITDAii

$

9,614

$

9,484

$

10,130

 

Consolidated Statements of Financial Position
(In thousands of Canadian dollars)

April 30, 2024

April 30, 2023

Assets

Current assets

Cash and cash equivalents

$

18,856

$

21,235

Short-term investments

16,713

15,835

Accounts receivable

22,090

22,900

Work in progress

4,248

1,734

Other receivables

134

523

Tax credits

6,422

5,338

Inventory

1,359

1,034

Prepaid expenses and other

9,143

8,193

Total current assets

78,965

76,792

 

Non-current assets

Other long-term receivables and assets

421

363

Tax credits

4,737

5,368

Property and equipment

1,372

1,802

Right-of-use assets

1,251

1,708

Contract acquisition costs

4,478

3,738

Deferred development costs

2,683

2,254

Other intangible assets

7,703

9,287

Goodwill

17,363

17,467

Deferred tax assets

9,073

8,137

Total non-current assets

49,081

50,124

Total assets

$

128,046

$

126,916

Liabilities

Current liabilities

Accounts payable and accrued liabilities

20,030

21,669

Deferred revenue

36,211

30,388

Lease obligations

812

793

Total current liabilities

57,053

52,850

 

Non-current liabilities

Other long-term accrued liabilities

496

253

Deferred tax liabilities

826

1,255

Lease obligations

1,302

2,120

Total non-current liabilities

2,624

3,628

Total liabilities

$

59,677

$

56,478

 

Equity

Share capital

$

52,256

$

44,338

Contributed surplus

9,417

15,285

Retained earnings

8,121

10,832

Accumulated other comprehensive loss

(1,425)

(17)

Total equity attributable to the owners of the Company

68,369

70,438

Total liabilities and equity

$

128,046

$

126,916

 

Consolidated Statements of Income and Comprehensive (loss) Income 
(In thousands of Canadian dollars, except per share data)

Three Months Ended

Twelve Months Ended

April 30,

April 30,

2024

2023

2024

2023

Revenue:

SaaS

$

14,191

$

11,133

$

51,918

$

37,476

Maintenance and Support

8,140

7,992

33,957

32,714

Professional Services

14,390

14,614

55,188

55,353

License

282

529

1,386

3,116

Hardware

6,952

6,924

28,793

23,765

Total revenue

43,955

41,192

171,242

152,424

Cost of revenue

23,341

22,828

92,853

85,615

Gross profit

20,614

18,364

78,389

66,809

Operating expenses:

Sales and marketing

8,437

7,778

32,976

28,080

General and administration

3,264

2,599

11,844

11,218

Research and development, net of tax credits

7,435

6,597

29,514

23,943

Restructuring costs

2,122

–

2,122

–

Total operating expenses

21,258

16,974

76,456

63,241

(Loss) profit from operations

(644)

1,390

1,933

3,568

Other income (costs)

122

(189)

557

145

(Loss) profit before income taxes

(522)

1,201

2,490

3,713

Income tax (benefit) expense

(781)

755

641

1,624

Net profit

$

259

$

446

$

1,849

$

2,089

Other comprehensive income (loss):

Effective portion of changes in fair value on designated revenue hedges

(2,187)

(521)

(1,086)

(6)

Exchange differences on translation of foreign operations

102

489

(322)

1,423

Comprehensive (loss) income

$

(1,826)

$

414

$

441

$

3,506

Basic and diluted earnings per common share

$

0.02

$

0.03

$

0.13

$

0.14

 

Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)

Three Months Ended

Twelve Months Ended

April 30,

April 30,

2024

2023

2024

2023

Cash flows from operating activities:

Net profit

$

259

$

446

$

1,849

$

2,089

Adjustments for:

Depreciation of property and equipment and right-of-use-assets

361

440

1,477

1,775

Amortization of deferred development costs

147

145

583

496

Amortization of other intangible assets

347

402

1,493

1,603

Interest (income) expense and foreign exchange (gain) loss

(122)

189

(557)

(145)

Unrealized foreign exchange and other

481

1,336

(569)

1,754

Non-refundable tax credits

(596)

(429)

(1,961)

(2,095)

Stock-based compensation

531

455

2,301

2,177

Income taxes

65

124

519

554

Net cash from operating activities excluding changes in non-cash
   working capital items related to operations

1,473

3,108

5,135

8,208

Accounts receivable

2,714

955

764

(5,915)

Work in progress

(856)

208

(2,518)

(151)

Other receivables and assets

(135)

163

1

(58)

Tax credits

(728)

3,239

113

(114)

Inventory

544

268

(327)

(226)

Prepaid expenses

299

21

(646)

(1,452)

Contract acquisition costs

(784)

(190)

(1,045)

(908)

Accounts payable and accrued liabilities

(3,052)

1,645

(2,455)

3,259

Deferred revenue

5,506

1,258

5,833

5,713

Changes in non-cash working capital items related to operations

3,508

7,567

(280)

148

Net cash provided by operating activities

4,981

10,675

4,855

8,356

Cash flows from financing activities:

Repayment of long-term debt

–

–

–

(8,400)

Proceeds from short-term investments

–

–

–

5,000

Payment of lease obligations

(193)

(119)

(786)

(689)

Payment of dividends

(1,175)

(1,094)

(4,560)

(4,225)

Interest paid

(27)

(17)

(163)

(406)

Issuance of common shares on exercise of stock options

3,897

185

6,964

297

Shares repurchased and cancelled

(5,010)

–

(7,215)

–

Net cash used in financing activities

(2,508)

(1,045)

(5,760)

(8,423)

Cash flows from investing activities:

Interest received

6

27

97

90

Transfers from short-term investments

–

–

40

–

Acquisitions of property and equipment

(144)

(340)

(599)

(850)

Acquisitions of other intangible assets

–

–

–

(62)

Deferred development costs

(203)

(283)

(1,012)

(880)

Net cash used in investing activities

(341)

(596)

(1,474)

(1,702)

Net Increase (decrease) in cash and cash equivalents during the period

2,132

9,034

(2,379)

(1,769)

Cash and cash equivalents – beginning of period

16,724

12,201

21,235

23,004

Cash and cash equivalents – end of period

$

18,856

$

21,235

$

18,856

$

21,235

 

Consolidated Statements of Changes in Equity
(In thousands of Canadian dollars, except number of shares)

Share capital

Number

Amount

Contributed
Surplus

Accumulated
other
comprehensive
income (loss)

Retained
earnings

Total

Balance, May 1, 2023

14,582,837

$

44,338

$

15,285

$

(17)

$

10,832

$

70,438

Net profit

–

–

–

–

1,849

1,849

Other comprehensive (loss) income:

Effective portion of changes in fair value on designated revenue hedges

–

–

–

(1,086)

–

(1,086)

Exchange difference on translation of foreign operations

–

–

–

(322)

–

(322)

Total comprehensive (loss) income

–

–

–

(1,408)

1,849

441

Shares repurchased and cancelled

(204,500)

(684)

(6,531)

–

–

(7,215)

Stock-based compensation

–

–

2,301

–

–

2,301

Dividends to equity owners

–

–

–

–

(4,560)

(4,560)

Share options exercised

461,813

8,602

(1,638)

–

–

6,964

Total transactions with owners of the Company

257,313

$

7,918

(5,868)

$

–

$

(4,560)

$

(2,510)

Balance, April 30, 2024

14,840,150

$

52,256

9,417

$

(1,425)

$

8,121

$

68,369

–

Balance, May 1, 2022

14,562,895

$

43,973

13,176

$

(1,434)

$

12,968

$

68,683

Net profit

–

–

–

–

2,089

2,089

Other comprehensive income:

Effective portion of changes in fair value on designated revenue hedges

–

–

–

(6)

–

(6)

Exchange difference on translation of foreign operations

–

–

–

1,423

–

1,423

Total comprehensive income

–

–

–

1,417

2,089

3,506

Stock-based compensation

–

–

2,177

–

–

2,177

Dividends to equity owners

–

–

–

–

(4,225)

(4,225)

Share options exercised

19,942

365

(68)

–

–

297

Total transactions with owners of the Company

19,942

$

365

2,109

$

–

$

(4,225)

$

(1,751)

Balance, April 30, 2023

14,582,837

$

44,338

15,285

$

(17)

$

10,832

$

70,438

 

 

SOURCE Tecsys Inc.

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Teradata Introduces New Privacy, Security, and Resiliency Capabilities as AI Forces Change in Enterprise Data Protection

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New capabilities protect the sensitive data and intelligence behind enterprise AI while keeping mission-critical operations available and recoverable

SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced new privacy, security, and resiliency capabilities designed to address one of the defining challenges of enterprise AI: how sensitive data is protected, who and what can access it, and whether it remains available and recoverable when something goes wrong. Teradata addresses all three through an integrated approach that reduces raw identity exposure, enforces protection closer to the data, and keeps the intelligence powering AI available and recoverable. In practice, that means protecting the intelligence behind AI without diminishing what makes it valuable.

Key Capabilities

Poly-Anonymization®: reduces raw identity exposure while preserving the relationships and utility AI and analytics requireFormat-preserving encryption: protects sensitive values without changing their format or breaking downstream systemsPost-quantum security and readiness: strengthens protection against emerging quantum-era threats through Anonomatic PII Vault® and TLS 1.3 hybrid-key exchange for data in transitImmutable backup protection: prevents recovery points from being modified or deleted, strengthening cyber-recovery readinessDatabase-level high availability: an additional availability layer for mission-critical workloads, distinct from disaster recovery

Why It Matters Now
As AI becomes mission-critical, it expands both the value and the vulnerability of enterprise data. Sensitive information now moves among users, applications, models, and agents, making it harder to secure at the boundary alone. AI is designed to combine disparate information to find patterns and make decisions, which means data that isn’t individually identifiable can become so when AI brings it together.

Executive Quote
“Privacy, security, and resiliency have historically been treated as separate problems with separate solutions. That approach doesn’t hold up when AI is moving sensitive data across users, applications, models, and agents simultaneously. This announcement reflects how we think those capabilities need to work together, and it’s the foundation for how we intend to extend that protection as AI environments grow more complex and the actors operating within them multiply.”
          -Sumeet Arora, Chief Product Officer, Teradata

Privacy Protection
Access control determines who can see sensitive data. Identity reduction changes how much identifying information needs to be present in the analytical environment in the first place. Teradata combines both, through an OEM partnership with Anonomatic, whose privacy capabilities are natively available to Teradata customers.

Poly-Anonymization replaces PII fields with a stable identifier while holding underlying identity separately within Anonomatic PII Vault, a post-quantum-secure environment built with multiple layers of overlapping security controls designed to protect sensitive identity information. Authorized users can restore identity when a legitimate use case requires it, but everyone else works with data that retains its analytical structure, its relationships, and its utility. The result is an analytical environment where sensitive data can be used for AI, analytics, testing, and approved collaboration without broadly exposing who the data is about.

Unlike approaches that rely solely on mathematically reversible encryption, PII Vault combines identity separation, Poly-Anonymization, access controls, and additional layered protections to reduce identity exposure while retaining the utility required for AI and analytics. Format-preserving encryption extends that protection to situations where a value’s structure matters to downstream systems, protecting sensitive data without breaking the applications and workflows built around it.

Testing at large scale demonstrated that Teradata’s Anonomatic-powered privacy-preserving controls can support enterprise analytical workloads without the performance tradeoffs organizations typically associate with data privacy. Multi-table join queries on protected data used fewer Teradata resources than equivalent queries on unprotected data, though results will vary by workload and configuration.

Partner Quote
“Enterprise AI creates a fundamentally different privacy challenge. Organizations need to use sensitive, individual-level data to build effective AI, but the traditional tools for protecting that data weren’t designed to preserve what AI needs to work. Our partnership with Teradata makes it possible to reduce identity exposure at enterprise scale without forcing organizations to choose between protection and utility.”
          -Matt Fleck, Founder and CEO at Anonomatic, a data security software company focused on making PII data privacy secure, simple and cost effective

Native Data Security
Protection that follows the data requires controls enforced at the data layer, not just at the systems surrounding it. Teradata applies classification, policy enforcement, and access controls closer to the data itself. Together, these capabilities provide a governance-led foundation for protecting data and intelligence across users, applications, and workloads.

For data in transit, Teradata introduces post-quantum protection via TLS 1.3 hybrid-key exchange, which combines classical and post-quantum cryptographic algorithms in a single handshake. As quantum computing advances make current encryption standards increasingly vulnerable, organizations that establish cryptographic readiness now will be better positioned for what’s ahead.

New native capabilities including dynamic data masking, data classification and tagging, column-level encryption, and global identity extend that protection across the data layer. Through a partnership with Immuta, a data authorization platform between identity and enterprise data, dynamic ABAC brings identity-aware, attribute-driven access control that enforces policy consistently across users and AI workloads without duplicating data or rewriting governance rules.

Teradata’s security architecture is designed to extend as AI environments evolve, with ongoing investment in controls that govern how AI agents access and act on enterprise data within policy boundaries.

Enterprise Data Protection
For enterprises running AI at scale, a cyberattack is a threat to the data, context, and operational knowledge that AI depends on to function. Teradata Enterprise Data Protection addresses that reality through a workload-aligned approach that lets organizations match protection levels to business criticality rather than applying the same resiliency architecture to every workload. The objective is not simply to restore data, but to restore the trusted context AI needs to resume mission-critical operations.

Database-level high availability via real-time replication introduces an additional availability layer designed for continuous synchronization and low recovery objectives.

Immutable backup protection strengthens cyber-recovery readiness by ensuring recovery points cannot be modified, encrypted, or deleted, even by privileged administrators. As ransomware increasingly targets backup data specifically, protected recovery points have become as critical as the protection strategies built around them. Teradata’s resiliency architecture is designed to extend as cyber threats and recovery requirements evolve.

Additional capabilities including backup and recovery, scheduled data synchronization, and disaster recovery round out a more consistent Enterprise Data Protection experience.

Availability

Privacy capabilities, powered by Anonomatic and delivered by Teradata, are available now for Teradata Cloud on AWS, Azure, and Google Cloud.Native data security capabilities including dynamic data masking, data classification and tagging, and column-level encryption are available on Teradata Cloud across AWS, Azure, and Google Cloud. Dynamic data masking, data classification and tagging are available for Teradata Factory and on-premises deployment options.Teradata Enterprise Data Protection including immutable backup protection is available now on Teradata Cloud across AWS, Azure, and Google Cloud with availability on Teradata Customer Cloud planned in the coming months. 

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.

Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s privacy, security, and resiliency capabilities. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

Poly-Anonymization and PII Vault are registered trademarks of Anonomatic, Inc.

MEDIA CONTACT
Jennifer Donahue
Jennifer.Donahue@Teradata.com

View original content:https://www.prnewswire.com/news-releases/teradata-introduces-new-privacy-security-and-resiliency-capabilities-as-ai-forces-change-in-enterprise-data-protection-302913579.html

SOURCE Teradata

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Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments

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New Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud capabilities give enterprises greater control over where their most sensitive data and AI operate

SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced a portfolio of deployment and platform capabilities designed to give governments and enterprises greater control over the data, AI, and technology that power their most critical operations. This includes expanded capabilities for Teradata Factory with AI Studio and the availability of Teradata Sovereign Cloud on Google Distributed Cloud air-gapped environment.

What’s New
Teradata’s portfolio spans two complementary deployment models designed to address different sovereignty requirements.

The expanded capabilities for Teradata Factory with AI Studio bring a unified AI environment to operate on data, vectors, models, and agents directly into customer-controlled on-premises infrastructure. These capabilities include:

Tera, the agentic coworker for enterprise data work, including Tera Harness and Tera Context EngineAgentStack, the complete AI agent development capabilities to build, manage, observe and operate agents through natural language, pro-code, low-code, and Model Context Protocol (MCP) interfacesModel services, which provide machine learning operations and AI model management with pre-integrated model and bring-your-own-model supportData pipelines for ingesting multimodal unstructured data, vector embeddings, vector storage and hybrid search for RAGAnalytics, native notebooks backed by in-database analytics and Teradata’s Elastic Python Compute, built on Ray and Arrow, bring AI to where data lives

Teradata Sovereign Cloud on Google Distributed Cloud air-gapped brings Teradata’s high-performance enterprise-scale analytics into fully isolated environments. Key benefits of running Teradata Sovereign Cloud on Google Distributed Cloud air-gapped include:

Full isolation: Deploy Teradata in an air-gapped environment with no external connectivity— keeping classified and regulated data fully containedSecurity and compliance: Meet stringent regulatory requirements while maintaining complete audit trails and governanceHigh-performance analytics and AI at scale: Run complex queries across billions of rows and petabytes of data with predictable performance

Why it Matters
Research points to growing urgency. According to a 2026 BARC global study of 320 business and IT decision-makers, 62 percent of organizations cite data and AI in core business processes as a key driver of sovereignty requirements. A separate IBM study found that 91 percent of executives say they do not fully understand their organization’s dependencies across AI vendors, models and infrastructure. And Gartner predicts that by 2030, more than 75 percent of enterprises outside the United States will have a digital sovereignty strategy, supported by a sovereign cloud strategy.

As AI moves into mission-critical operations, sovereignty is no longer only about where data resides. Organizations must also consider where AI runs, which models are used, how enterprise information is accessed, who operates the environment, and which external technologies their AI depends on.

This is particularly relevant for governments, defense organizations, regulated industries and critical infrastructure, where data residency, privacy, jurisdiction, operational continuity or national-security requirements can limit the use of traditional public-cloud AI services.

Teradata frames sovereignty across three dimensions: data sovereignty (where data lives and who can access it), operational sovereignty (who controls the environment and whether it can operate independently), and digital sovereignty (which technologies and AI models the organization depends on). An organization can satisfy data residency requirements and still lack full sovereignty if AI processing occurs externally, external administrators can access the environment, or operations stop when public connectivity is unavailable.

Teradata’s sovereign portfolio is designed to address these requirements, bringing enterprise analytics and AI inside the boundaries that organizations control.

The Deployment Portfolio
Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped address different sovereignty requirements.

Teradata Factory is an integrated hardware and software rack that brings a private enterprise data and AI environment into customer-controlled on-premises infrastructure. It is designed for organizations that require direct physical control over their infrastructure and AI execution.

Teradata Sovereign Cloud on Google Distributed Cloud air-gapped provides a cloud operating model inside a sovereign boundary. The environment has no connection to the public internet and is operated by the customer. It is designed for organizations that need the operational model of cloud within a fully isolated, sovereign environment. Teradata provides the enterprise analytics layer within the air-gapped boundary, enabling organizations to support use cases such as operational reporting, mission analysis, intelligence fusion, training and simulation analytics, and defense logistics and sustainment inside the sovereign boundary.

Together, Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped support a hybrid approach to sovereign deployment, giving organizations the flexibility to run enterprise analytics and AI inside whichever boundary their requirements demand.

Executive Perspectives
“As AI becomes embedded in mission-critical decisions, organizations can no longer treat sovereignty as a data-location requirement. They need control over where AI runs, which models are used, who can operate the environment, and whether critical workloads can continue if external connectivity disappears. And increasingly, sovereignty is not a single location. It is an architecture that spans public cloud, sovereign cloud, and on-premises infrastructure. Teradata is uniquely built for that reality. We can run in all of those environments, connect them through Teradata Fabric without requiring data to move, and give organizations the freedom to choose the AI models and infrastructure that work for them.”

— Sumeet Arora, Chief Product Officer, Teradata

“Google Distributed Cloud is purpose-built, air-gapped infrastructure that delivers complete technical, operational and software sovereignty. By combining Google Distributed Cloud’s sovereign infrastructure with Teradata’s AI and knowledge capabilities, we are giving enterprise customers in regulated industries the ability to innovate without sacrificing control over their data.”

— Muninder Singh Sambi, VP of Product Management, Google Distributed Cloud

Availability
The expanded Teradata sovereign capabilities for Teradata Factory with AI Studio will be available in Q1 2027. Teradata Sovereign Cloud on Google Distributed Cloud air-gapped is available in Private Preview.

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.

Teradata Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s sovereign portfolio. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

MEDIA CONTACT
January Machold
January.Machold@Teradata.com

 

View original content:https://www.prnewswire.com/news-releases/teradata-expands-sovereign-ai-across-on-premises-and-air-gapped-cloud-environments-302913587.html

SOURCE Teradata Corporation

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State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel

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Drivefulness™ research explores the human side of a nearly $100 billion roadway risk

BLOOMINGTON, Ill., Oct. 20, 2026 /PRNewswire/ — As vehicles become more connected and technology-enabled, the challenge of distracted driving is becoming more complex across the country. The question is no longer simply what distracts drivers, but understanding why people make certain choices behind the wheel and how technology may influence those decisions.

State Farm® and the MIT AgeLab are exploring those questions through a research initiative examining driver attention, distraction, and the behaviors that influence decision-making behind the wheel. Researchers have coined the term “drivefulness” to describe a state in which a driver is safe, aware, appropriately engaged, and ready to respond to the road, while being supported in having the best possible driving experience for them.

The study brings together State Farm’s decades of experience understanding crash risk, driver behavior, and the real-world consequences of distraction with MIT AWARE initiative’s multidisciplinary research expertise in transportation safety, human factors, behavioral science, and how people interact with technology.

Distracted driving carries significant human and economic consequences. According to U.S. Department of Transportation research, distraction was involved in 29% of motor vehicle crashes studied, contributing to more than 10,000 deaths, 1.3 million injuries, and an estimated $98.2 billion in economic costs.

Understanding the relationship among driver attention, distraction, and behaviors could help inform how automakers, organizations, regulators, and insurers approach roadway safety, risk prevention, and the design of future driving experiences.

“Distracted driving is not simply about whether a driver knows what is safe or unsafe. It reflects a much more complex interaction between the driver’s state, the demands of the driving environment, and the technologies that compete for or support their attention,” said Dr. Pnina Gershon of the MIT AgeLab. “With this research, we are looking beyond individual moments of distraction to understand what drivers need to be prepared, attentive, and appropriately engaged during the driving task. That allows us to think differently about safety and about how technology, information, and interventions can support drivers before, during, and after the drive.”

Dr. Gershon is the director of the MIT AWARE initiative and a co-director of the MIT Advanced Vehicle Technology Consortium. With more than two decades of research experience, she leads work at the intersection of driving safety, human behavior, health, and human-centered AI. Her research uses sensing, real-world data, and behavioral analytics to understand human states and to develop technologies and interventions that support safer, more effective interactions between people and increasingly automated systems.

Understanding the behavior behind the risk

Drivers may know distraction is dangerous, but State Farm research shows that knowledge doesn’t always change what happens behind the wheel. Sixty-eight percent of drivers admit to engaging in distracting behaviors while driving, and 44% say they have crashed or experienced a near-crash while doing so.

Perception may be part of the challenge. Sixty-two percent of drivers believe taking their eyes off the road for two or more seconds is safe, even though a two-second glance away doubles crash risk.

“Technology is changing the driving experience, creating new opportunities to better understand and support drivers,” said Jeff Legner, technology executive at State Farm. “The more we learn about how people interact with technology behind the wheel, the better positioned we are to anticipate evolving risks, improve driver experiences and explore new approaches to accident prevention. This research can help turn those insights into meaningful ways to support drivers before, during and after every drive.”

Combining real-world risk with behavioral science

State Farm has worked to address distracted driving from multiple angles, including advocating for stronger hands-free laws, supporting cross-industry safety research and advancing technology that can help drivers better understand their behavior. That work includes telematics-based tools for customers and collaboration with companies such as Cambridge Mobile Telematics to explore how technology and data can help reduce roadway risk. The MIT AgeLab brings deep expertise in understanding the human side of a rapidly changing driving environment.

The collaboration builds on an established research relationship between State Farm and MIT, including State Farm’s participation in the MIT Advanced Vehicle Technology Consortium, which studies how drivers interact with increasingly automated and technology-enabled vehicles.

First findings expected in October
The first phase of the research is focused on establishing a deeper understanding of how people perceive and manage attention behind the wheel.

Findings from the first phase of the drivefulness study are expected later in October 2026, providing an early look at what the research is uncovering about driver attention, distraction and behavior through consumer survey findings.

The findings will help inform the next phase of drivefulness research, beginning in January 2027, on how people, technology and the driving environment can work together to support safer driving.

About State Farm®
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm Mutual Automobile Insurance Company and its affiliates are the largest providers of auto and home insurance combined in the United States. Its more than 19,200 agent offices and over 62,000 employees serve over 96 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the 2025 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.

About the AWARE initiative at the MIT AgeLab
AWARE is an MIT research initiative focused on developing intelligent vehicle systems that can better understand drivers and support them in real-world conditions. Based at the MIT AgeLab and Center for Transportation & Logistics, AWARE brings together naturalistic driving research, advanced simulation, behavioral science, and artificial intelligence to study how driver state, behavior, and context interact across the driving journey. Its research examines areas such as distraction, fatigue, impairment, workload, automation use, driver monitoring, and human-machine interaction, with the goal of moving beyond simply detecting driver behavior toward systems that can sense, interpret, respond, and promote safer and more appropriate driver engagement. Through this work, AWARE is building the evidence and methods needed to support the next generation of adaptive, human-centered mobility technologies. For more information about AWARE, visit https://ctl.mit.edu/aware-initiative, and about the AgeLab, visit https://agelab.mit.edu/.

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SOURCE State Farm

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