Interactive Data looks to acquisitions to boost growth
13 February 2004 | 7703 views | 0
Fresh from its ingestion of Comstock and HyperFeed Technologies, Interactive Data Corporation is looking at further investment and acqusition opportunities after reporting 18% revenue and income growth for the year ending December 2003.
The market data technology vendor reported fourth quarter revenues of $120.4 million, reflecting revenue growth over the comparable period in 2002 of 24.8%. Net income rose 6.9% to $18.2 million, compared with $17 million in Q4 2003.
For the full year, revenues increased by 18% to $442.7 million and net income rose by 18.9% to $72.2 million.
Stuart Clark, president and chief executive officer, says: "Overall cancellation and downgrade levels decreased in the fourth quarter as compared to the third quarter although they still ran at historically high levels in areas of ComStock's non-institutionally oriented business. Clients remain focused on containing costs but, despite this, renewal rates in our institutionally oriented business remained at or above the 95% level."
The group incurred $3.2 million in charges in the final quarter, including severance charges and integration costs relating to the build-out of a new 50,000 sq. ft. data center in Boxborough, Massachusetts, which was completed at the beginning of January.
Further integration and restructuring costs, as well as Sarbanes-Oxley related costs, totalling some $6-$7 million in 2004, are likely to dent earnings in the year ahead. Clark is forecasting mid-single digit growth in net income for 2004, rising to low double-digits for 2005.
With $131.6 million in the bank and no debt, the company is well-placed to take advantage of depressed stock market valuations and acquire new business volume.
Says Clark: "Our balance sheet and cash position leave us well placed to consider acquisitions and other investment opportunities capable of accelerating the development of our business."