Interactive Data Corporation today reported its financial results for the second quarter ended June 30, 2007. Second-quarter 2007 revenue grew 12.4% to $170.0 million from $151.2 million in the second quarter of 2006. Net income for the second quarter of 2007 was $29.1 million, or $0.30 per diluted share, a 32.8% increase from $21.9 million, or $0.23 per diluted share, in the same quarter last year.
"We enjoyed a strong second quarter," stated Stuart Clark, president and chief executive officer. "Our revenue growth this quarter primarily reflects continued progress in our Pricing and Reference Data business, a steady acceleration in the growth of our Real-Time Services business, improved results at eSignal and the initial contribution from the Xcitek market data business we acquired at the beginning of May. We also enjoyed outstanding net income growth in the second quarter of 2007 due mainly to a combination of our revenue growth, prudent spending and a lower effective tax rate."
Clark continued, "We are seeing that many institutional customers are turning to Interactive Data to help them address an array of mission-critical challenges across their enterprises. Our organic revenue growth in the second quarter of 2007 was 9.2% due mainly to sustained demand for our evaluated pricing services, reference data, real-time datafeed services and managed solutions. Renewal rates at our institutionally oriented businesses remained at approximately 95%. It is also exciting to see the collaboration taking place across our core businesses in areas such as sales, marketing and product development."
"Our performance this quarter highlights the power of our business model as we converted strong revenue growth into improved margin performance, higher profit growth and significant cash flow from operations," commented Andrew Hajducky, Interactive Data's executive vice president and chief financial officer. "We returned $11.8 million to stockholders through our regular quarterly dividend and repurchased $6.1 million of our common stock during the second quarter. We also paid $25.1 million in cash to acquire the Xcitek assets. Our solid financial foundation is enabling us to invest wisely in initiatives that we expect will strengthen and expand our core businesses, and further enhance our compelling value proposition to customers."
"We have made good, steady progress against our plans during the first half of 2007," Clark concluded. "Just as important, our offerings and capabilities correlate well to a number of powerful trends impacting our customers such as new regulatory mandates, increasing complexity of alternative financial instruments, and the drive to automate key processes, including trading operations. As a result, we are updating our outlook for 2007 as we expect to exceed our original revenue and profit targets. We believe that 2007 will be a year of excellent growth for Interactive Data."