First-Quarter 2007 Revenue Grew 13.3% and Net Income Increased 29.2%
Interactive Data Corporation (NYSE: IDC) today reported its financial results for the first quarter ended March 31, 2007. Interactive Data’s first-quarter 2007 revenue grew 13.3% to $162.5 million from $143.4 million in the first quarter of 2006. Net income for the first quarter of 2007 was $25.6 million, or $0.27 per diluted share, a 29.2% increase over net income of $19.8 million, or $0.21 per diluted share, in the first quarter of 2006.
“Our first-quarter 2007 results represent a good start to the year,” stated Stuart Clark, Interactive Data’s president and chief executive officer. “Our revenue growth in the first quarter of 2007 primarily reflects expansion within our Pricing and Reference Data, Real-Time Services and eSignal businesses. Our first-quarter 2007 net income increased mainly as a result of our revenue growth and prudent spending. Other factors contributing to the net income increase in the first quarter were higher interest income and a lower effective tax rate. In addition, our revenue and profit growth in the first quarter was impacted by the deferral of $1.6 million in Managed Solutions revenue during the first quarter of 2006 that we recognized in subsequent quarters last year.”
Clark continued, “We were pleased that our overall organic revenue growth for the first quarter of 2007 was 8.9%, which primarily reflects strong performances at both our Pricing and Reference Data, and Real-Time Services businesses. In our Real-Time Services business, we are seeing that the investments that we have made to strengthen our offerings and enhance the sales organization are translating into improved results. Renewal rates at our institutionally oriented businesses remained at approximately 95%.”
Andrew Hajducky, Interactive Data’s executive vice president and chief financial officer, commented, “Interactive Data generated $38.1 million in net cash provided by operating activities in the first quarter of 2007, a 30.8% increase over the same period in 2006 primarily as a result of our strong quarterly operating performance. After spending $5.9 million to repurchase our common stock and paying $11.7 million to stockholders in connection with our first-ever quarterly dividend, we ended the first quarter of 2007 with cash, cash equivalents and short-term marketable securities of $220.3 million and no outstanding debt. We move forward with the requisite financial strength to implement the key elements of our growth strategy.”
Clark concluded, “Customers are responding favorably to the sales, marketing and product development activities now underway across our organization. We believe that acquiring the assets comprising Xcitek’s market data business, which we announced on April 4, will bring valuable new corporate actions-related services and domain expertise to our Pricing and Reference Data business. In addition to pursuing strategic acquisitions, we plan to continue enhancing our capabilities and offerings through internal investment aligned with key industry trends impacting customers such as the proliferation of highly complex securities, regulation and the desire to continue automating key workflow processes. A number of the development programs we have planned will be phased in throughout the remainder of this year and into 2008. We remain enthusiastic about Interactive Data’s ability to assist its customers in addressing a number of the time-sensitive and mission-critical financial information challenges they now face.”