Interactive Data Corporation reports its financial results for the third quarter ended 30 September 2008. Interactive Datas third-quarter 2008 revenue increased 7.7% to $188.6 million from $175.0 million in the third quarter of 2007. Income from operations grew 12.2% to $53.7 million in the third quarter of 2008 from $47.9 million in the same period one year ago. Net income for the third quarter of 2008 was $36.7 million, or $0.38 per diluted share, a 6.7% decrease over net income of $39.3 million, or $0.40 per diluted share, in the third quarter of 2007.
“Our third-quarter 2008 performance was in line with the preliminary results we announced last week,” says Stuart Clark, president and chief executive officer. “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. 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. Our third-quarter 2008 effective tax rate of 33.9% compares with 21.7% in last years third quarter, which was extraordinarily low due to the impact of a number of discrete, one-time items. The difference between the effective quarterly tax rates impacted our net income by more than $6 million.”
“As a result of our strong distribution channels, Interactive Datas customer base remains extremely diversified with no single direct customer representing more than five percent of total revenue.” Says Andrew Hajducky, Interactive Datas executive vice president and chief financial officer. “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 programs.”
To view the results, please visit http://www.interactivedata.com/
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