Interactive Data Corporation (NYSE: IDC) today reported its financial results for the third quarter ended September 30, 2009. Interactive Data’s third-quarter 2009 revenue was $192.1 million, an increase of 1.9% from $188.6 million in the third quarter of 2008. Income from operations in the third quarter of 2009 was $58.4 million, an 8.8% increase over $53.7 million in the same period one year ago. Net income attributable to Interactive Data for the third quarter of 2009 was a record $43.1 million, or $0.45 per diluted share, an increase of 17.5% over net income of $36.7 million, or $0.38 per diluted share, in the third quarter of 2008.
Ray D’Arcy, Interactive Data’s president and chief executive officer, stated, “Our third-quarter 2009 financial performance was highlighted by higher income from operations primarily driven by the combination of actions we took earlier this year to adjust spending and higher revenue. Our third-quarter 2009 net income growth of 17.5% reflects higher income from operations and a lower effective tax rate of 26.6%, which more than offset a significant decrease in interest income. By comparison with the effective annual tax rate of 34.8% in the first-half 2009, the reduction in our third-quarter 2009 effective tax rate contributed over $4.8 million, or approximately $0.05 per diluted share, to our third-quarter 2009 net income.”
Commenting on the Company’s revenue performance, D’Arcy said, “Organic revenue grew 3.6% in the third quarter of 2009 over the same period last year due to the resiliency in our fixed income evaluations and reference data product areas, and a solid performance in Europe. We were also pleased to see lower cancellation levels across our institutional business compared with first-half 2009 levels. Although this is encouraging, customers continue to focus on controlling costs, which we expect will continue to influence near-term usage-related revenue growth and progress with new sales.”
D’Arcy concluded, “With a successful third quarter behind us, we have raised our guidance for net income to primarily reflect a lower effective annual tax rate and, to a lesser extent, incremental improvement in the underlying performance of our business. In addition, we lowered our 2009 capital expenditure plans due to changes in the timing for various initiatives, including the upgrading and expansion of our London office and data center. In the context of our full-year 2009 guidance, it is also important to keep in mind that we enjoyed an exceptionally strong fourth quarter of 2008 that was aided by certain one-time sales, strong usage-related revenue and other items. Looking ahead, we plan to remain disciplined with our spending while continuing to direct investment into high priority areas that we believe are fundamental to driving long-term success