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Iron Mountain Earnings Fall

Margins narrow.

Information protection and storage services company

Iron Mountain

(IRM) - Get Iron Mountain, Inc. Report

said its third-quarter earnings were down 27% from the year-ago period, hurt by lower operating margin.

The Boston, MA.-based company earned $26.6 million, or 20 cents a share, in the quarter, compared with $36.4 million, or 27 cents a share, a year ago. Third-quarter results include expense of $1 million, or less than 1 cent a share, related to the early extinguishment of debt. Analysts polled by Thomson First Call were expecting earnings of 21 cents a share for the quarter.

Third-quarter revenue rose 13% to $596 million. Analysts had expected a revenue of $593.5 million for the quarter.

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The company expects fourth-quarter revenue of $594 to $609 million. Analysts were expecting reveue of $603.6 million in the fourth quarter. For the full year 2006 revenue is expected to be $2.34 billion to $2.35 billion, compared with $2.30 billion to $2.35 billion forecast earlier. Analysts are expecting revenue of $2.34 billion for the full year.

Operating income for the quarter fell 5% from a year ago to $97 million and operating margin declined 300 basis points to 16%.

By segment, storage revenues grew 14% to $338.3 million and service revenues grew 12% to $257.3 million.

"We are confident that our on-going growth and productivity investments, which are designed to enhance our ability to drive long-term, increasingly profitable growth and ultimately higher shareholder value, will generate similar succes," the company said.

Shares of the company were trading down a dime at $43.22.

This story was created through a joint venture between TheStreet.com and IRIS.