Bedford, Mass. - Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related services to financial institutions, active traders and individual investors, today announced that its Board of Directors has declared a special dividend of $0.50 per share of common stock. The special dividend is payable on January 24, 2008 to stockholders of record on January 4, 2008.
The Company's Board of Directors also approved a 20 percent increase in the regular quarterly cash dividend to $0.15 per share, commencing with the dividend to be paid on March 31, 2008 to all shareholders of record at the close of business on March 3, 2008. In March 2007, Interactive Data began paying a regular quarterly dividend at a rate of $0.125 per share.
Interactive Data's Board of Directors also authorized an expansion of its existing October 2006 stock buyback program for the repurchase of up to an additional two million shares of its common stock. Repurchases made under this stock buyback program will be made in the open market or in privately negotiated transactions from time to time, subject to market conditions and other factors and in compliance with applicable legal requirements. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when Interactive Data might otherwise be precluded from doing so under insider trading laws. Interactive Data intends to use cash on hand to fund any purchases. The Company is not obligated to acquire any particular amount of common stock as a result of the plan, which may be suspended or discontinued at any time.
Stuart Clark, Interactive Data's president and chief executive officer, stated, "Throughout 2007, Interactive Data's business has continued to generate tremendous net cash provided by operating activities. Our Board of Directors determined that we could return over $47 million to stockholders in 2008 through this special dividend, increase the regular quarterly dividend by 20 percent and expand our ongoing stock buyback program while still leaving ourselves with sufficient cash on hand to fund internal and external investments."
In addition, Interactive Data updated its revenue outlook for 2007. Interactive Data currently expects to generate 2007 revenue growth of approximately 12% over 2006, which is at the high end of prior guidance issued on October 25, 2007.
Interactive Data's management will cover the Company's strategy, marketplace, products and services, technical infrastructure, growth opportunities and financial performance at the Company's Investor Day event being held at the New York Stock Exchange in New York on Friday, December 14, 2007. A live audio webcast of the Investor Day event and presentation slides are available at the Company's website. A web archive of the event, including slides from the event, will be available at the same web address following the end of the event.
The actual declaration of future quarterly dividends, and the establishment of record and payment dates, is subject to final determination of the Board of Directors of Interactive Data. As of December 11, 2007, there were 94.3 million outstanding shares of Interactive Data common stock.
Forward-looking and Cautionary Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include our statements discussing our goals, beliefs, strategies, objectives, plans, future financial conditions, results of operations and cash flows or projections, including our statements about our expected revenue growth; our statements related to any potential future stock repurchase transactions, including our intention to repurchase shares of our common stock from time to time under the stock repurchase program, the source of funding for the stock repurchase program, as well as the timing, nature and financial impact of any such transactions related to the stock buyback program; and statements related to potential future dividends, including the timing, nature and financial impact of issuing any such dividends. These statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include, but are not limited to: (i) the presence of competitors with greater financial resources than ours and their strategic response to our services and offerings; (ii) the possibility of a prolonged outage or other major unexpected operational difficulty at any of our key facilities; (iii) our ability to maintain relationships with our key suppliers and providers of financial market data; (iv) our ability to maintain our relationships with service bureaus and custodian banks; (v) a decline in activity levels in the securities markets; (vi) consolidation of financial services companies, both within an industry and across industries; (vii) the continuing impact of cost-containment pressures across the industries we serve; (viii) new offerings by competitors or new technologies that could cause our offerings or services to become less competitive or obsolete; (ix) our ability to negotiate and enter into strategic alliances or acquisitions on favorable terms, if at all (x) our ability to develop new and enhanced service offerings and our ability to market and sell those new and enhanced offerings successfully to new and existing customers; (xi) our ability to derive the anticipated benefits from our strategic alliances or acquisitions in the desired time frame, if at all; (xii) potential regulatory investigations of us or our customers relating to our services; (xiii) the regulatory requirements applicable to our business, including our Interactive Data Pricing and Reference Data subsidiary, which is a registered investment adviser; (xiv) our ability to attract and retain key personnel; (xv) the ability of our majority shareholder to exert influence over our affairs, including the ability to approve or disapprove any corporate actions submitted to a vote of our stockholders; (xvi) the relative performance of the economy and the U.S. stock market as a whole; (xvii) the market price of our common stock and other market conditions; (xviii) the difficulty in predicting our future cash needs; (xix) the nature of other investment opportunities available to us from time to time; (xx) our operating cash flow; and (xxi) other factors identified in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements.
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company's businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world's best-known financial service and software companies subscribe to the Company's services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia. The Company is headquartered in Bedford, Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, is Interactive Data Corporation's majority stockholder.
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