SunGard Availability Services, second-largest division of the large Wayne, Pennsylvania-based software and technollgy services company SunGard, reported a 3% drop in revenue year over year for the first quarter of 213.

The business unit's revenue was $345m – down from the revenue it reported for the first three months of last year, despite several major contract wins during the quarter. The company's other two business units also reported drops in revenue.

SunGard president and CEO Russ Fradin attributed the revenue decline to poor economic conditions for the company's customers. “We are experiencing near-term revenue weakness reflecting the pressures that our clients are facing, particularly in the financial industry,” he said.

“Our fundamentals remain strong and we remain focused on sustainable long term revenue growth and improved performance.”

The company reported a total of US$1bn in revenue for the quarter, down 3% year over year. Its operating income was $56m, up 7%.

Notable deals Availability Services closed in the first quarter included a production hosting, managed services, recovery services and technology migration consulting contract with a major US health insurer. Another deal was with a regional bank in the Midwest region for cloud, colocation, consulting and managed recovery.

One of the leading advertising firms also selected SunGard for its managed private-cloud solution. The provider did not name any of the three clients.

SunGard's biggest division, Financial Systems, reported $600m in revenue – down 3% year over year. Public Sector and Education, its smallest unit, reported $50m in revenue for the first quarter – down 1%.