Interactive Data Reports First-Quarter 2010 Results
Interactive Data Corporation (NYSE: IDC) today reported its financial results for the first quarter ended March 31, 2010. Interactive Data’s first-quarter 2010 revenue increased 5.8% to $196.9 million from $186.0 million in the first quarter of 2009. Income from operations in the first quarter of 2010 was $44.5 million, an 8.0% decrease from $48.3 million in the same period one year ago. Net income attributable to Interactive Data for the first quarter of 2010 was $29.5 million, or $0.30 per diluted share, a decrease of 7.6% over net income of $31.9 million, or $0.33 per diluted share, in the first quarter of 2009.
“Interactive Data’s revenue grew by 5.8% in the first quarter of 2010 thanks to the contributions from our recent acquisitions, the positive impact from foreign exchange and another good quarter of new sales and revenue growth for our fixed income evaluations, reference data, and web-based solutions,” stated Ray D’Arcy, Interactive Data’s president and chief executive officer. “Our income from operations for the first quarter was affected by several factors. First, we incurred approximately $3.4 million in costs associated with the review of strategic alternatives, which reduced net income by approximately $2.2 million. Second, higher capital spending in prior periods and our recent acquisitions increased depreciation and amortization expenses by $3.6 million. Third, personnel costs increased as a result of expanding our fixed income evaluations organization in 2009 to address continued demand, and implementing our annual merit-based salary increase in January 2010 after deferring this action last year. In addition, our expense base reflected the addition of our newly acquired businesses.”
D’Arcy continued, “We were pleased to see that our overall organic revenue growth rate for the first quarter of 2010 improved over fourth-quarter 2009 levels as our core markets continued to stabilize. Our Pricing and Reference Data business continued to experience solid demand for its fixed income evaluations and reference data services. In addition, we produced another strong quarter of revenue growth for our web-based solutions in the U.S. and experienced an improved revenue performance with our fixed income analytics offerings. These dynamics offset expected revenue softness from our real-time market data services and eSignal product areas. Our recent acquisitions of the Online Financial Solutions (OFS) and 7ticks assets are important elements in our plan to help drive top-line growth and improved long-term profitability in our real-time business by expanding our penetration within the electronic trading and wealth management sectors. In addition, we continued to make tangible progress with key development initiatives that are designed to further elevate our value proposition to customers worldwide, including our ongoing efforts to significantly enhance our award-winning global Global Corporate Actions service and the introduction of our new Options Analytics service.”
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