Following the announcement of its preliminary results last week, Interactive Data Corporation has confirmed that its revenue for the third quarter of 2008 increased 7.7% to US$188.6 million from US$175.0 million in the same period last year. The vendor’s financial results for the third quarter ended 30 September 2008 also confirm that net income for the third quarter of 2008 was US$36.7 million, or US$0.38 per diluted share, a 6.7% decrease over net income of US$39.3 million, or US$0.40 per diluted share, in the third quarter of 2007.
Income from operations grew 12.2% to US$53.7 million in the third quarter of 2008 from US$47.9 million in the same period one year ago.
Stuart Clark, president and CEO of Interactive Data, says: “Our third quarter 2008 performance was in line with the preliminary results we announced last week. We produced organic revenue growth of 7.6% primarily as a result of sustained expansion at our Pricing and Reference Data business, as well as a good performance at our Real-Time Services business. Our success in driving revenue growth, while prudently managing our cost base, led to a 12.2% increase in income from operations.”
He continues: “Despite the increase in operating profitability, our net income for the quarter declined as a result of a significant increase in our effective quarterly tax rate. Despite challenging market conditions, we are encouraged by the fact that we produced positive net new business in all three months of the third quarter at levels that were generally in line with or better than our expectations entering the quarter.”
The vendor sustained renewal rates across its institutional business of approximately 95%, which Clark says reflects its client relationships. Andrew Hajducky, Interactive Data’s executive vice president and chief financial officer, adds: “As a result of our strong distribution channels, Interactive Data’s customer base remains extremely diversified with no single direct customer representing more than five percent of total revenue. After yet another quarter of outstanding cash generation, we move forward with the strong financial position required to fund internal development activities and pursue strategic acquisitions in ways that will further expand our business. At the same time, we intend to continue returning cash to shareholders through our stock buyback and dividend programmes.”
Clark concludes: “We will continue managing the business prudently as we carefully monitor our discretionary spending while making important investments in programmes that we believe will help drive future growth and bring tangible value to customers, business partners and shareholders. We believe we have the technical, intellectual and financial resources required to continue expanding our business through a combination of organic growth and strategic acquisitions.”