Interactive Data Corp.'s (IDC) first-quarter earnings fell 7.6%
on growth-related spending, but revenue increased amid some
strength in underlying operations.
Private-equity firms Silver Lake and Warburg Pincus recently
agreed to acquire IDC for $3.4 billion, including the 61% stake
held by U.K. publisher Pearson PLC (PSO, PSON.LN). The deal is part
of Pearson's drive to become a more education-focused company.
IDC was hurt by soft demand in 2009 though management saw signs
of stabilization as in the later half.
The company, which is widely used by banks, asset managers and
securities companies, reported a profit of $29.5 million, or 30
cents a share, down from $31.9 million, or 33 cents a share, a year
earlier. Revenue increased 5.8% to $196.9 million, and climbed 3.2%
excluding currency fluctuations and acquisitions.
Analysts polled by Thomson Reuters most recently forecast
earnings of 33 cents on revenue of $200 million.
Operating margin narrowed to 22.6% from 26% on expansion
efforts, acquisition costs and higher capital spending.
In North America, where the company does a bulk of its business,
revenue rose 5.7%. It was up 4.7% in Europe and jumped 16% in the
Asia-Pacific region.
Shares closed Friday at $32.72 and were unchanged premarket. The
takeover price is $33.86.
-By Tess Stynes and Matt Jarzemsky, Dow Jones Newswires;
212-416-2481; Tess.Stynes@dowjones.com