Interactive Data announces half-year results

Interactive Data Corporation (Nasdaq NM: IDCO), formerly Data Broadcasting Corporation (Nasdaq NM: DBCC), today announced results for the second quarter ended June 30, 2001.

This is the company's fifth full reporting period since the completion of the Interactive Data (now known as FT Interactive Data) merger with Data Broadcasting on March 1, 2000.

On a pro forma basis, reported as if the merged businesses had been combined on January 1, 2000 and excluding the financial results from the Federal News Service and MarketWatch.com businesses that were sold in January 2001, revenues for the second quarter of 2001 increased by 5.5% to $84.4 million from $80.1 million in the comparable period in 2000. Pro forma EBITDA for the second quarter of 2001 increased by 32.2% to $27.7 million, or $0.30 per share, from $21.0 million, or $0.23 per share, in the same period in 2000. Pro forma net income for the quarter totaled $1.4 million, or $0.01 per share, compared to a loss of $7.0 million, or $0.08 per share, in last year's second quarter.

Stuart Clark, president and chief executive officer, commented, "We are very pleased to report our second quarter of strong performance in 2001. Our institutional business, which represents 86% of our revenues, had a particularly strong quarter, growing 11.1% before the effect of foreign exchange. All three of the geographic business areas for our institutional business - North America, Europe and Asia - contributed double digit growth through a combination of increased business with existing customers and the attainment of new customers."

Mr. Clark continued, "The growth of our institutional business is being driven by a number of positive factors. The stronger product and content set we have built as we integrated the TFSM businesses acquired from Thompson Financial has been a factor in North America. In Europe and Asia, our ability to provide "mark to market" pricing and related data for traded and illiquid securities has helped differentiate our service and allowed customers in some markets to meet new regulatory requirements. These factors, combined with the long-term trends of growth in funds under management and securitization of assets, help underpin our future and are reflected in our healthy pipeline of new business."

Mr. Clark added, "At CMS, we have established alliances with two electronic communications networks (ECNs) that will give BondEdge customers access to online fixed income trading. In addition, we are about to launch the multi-currency version of BondEdge, which will be attractive to international bond portfolio managers around the world."

Mr. Clark concluded, "Although Interactive Data's retail segment, which provides 14% of our revenues, continued to feel the effect of the downturn in online trading, the business is being managed very effectively through this difficult period. eSignal is not only EBITDA positive, but actually exceeded its EBITDA target for the first half of 2001. This business is the leader in its market segment and is well positioned to take advantage of an upturn when it eventually occurs. In the meantime, it will benefit from the recent launch of eSignal Turbofeed, a real time service that offers companies and web sites access to speedy and reliable market data and is already winning new customers for Interactive Data." Financial Results Actual

For the quarter ended June 30, 2001, Interactive Data reported revenues of $84.4 million versus $81.1 million for the second quarter of 2000. EBITDA totaled $27.7 million, or $0.30 per share, for the second quarter of 2001 versus $21.1 million, or $0.23 per share, for the same period in 2000. Net income totaled $1.4 million, or $0.01 per share, versus a loss of $18.8 million, or $0.21 per share, in the second quarter of 2000.

For the six months ended June 30, 2001, Interactive Data reported revenues totaling $168.2 million versus $145.6 million for the first six months of 2000. EBITDA totaled $52.3 million compared to $39.8 million for the same period last year. Net income totaled $1.5 million, or $0.02 per share, versus a loss of $24.1 million, or $0.30 per share, for the first half of 2000. Pro Forma

On a pro forma basis, for the six months ended June 30, 2001, revenues increased 5.2% to $168.2 million from $159.8 million in the same period in 2000. EBITDA increased by 29.1% to $52.3 million from $40.5 million for the same period last year. Net income for the period totaled $1.5 million, compared to a loss of $13 million for the first six months of 2000.

As of June 30, 2001, the company had no outstanding debt and had cash of $83.2 million. Conference Call Information

Interactive Data Corporation's management will conduct a conference call today at 11:00 a.m. Eastern Time to discuss the second quarter 2001 results. The dial-in number for the call is 212-346-6456; no access code is required. Investors and interested parties may also listen to the call via a live web broadcast available through the Investor Relations section of the Company's web site at www.interactivedatacorp.com and through www.StreetEvents.com. To listen, please register and download audio software at the site at least 15 minutes prior to the call. A replay will be available on both web sites shortly after the call. In addition, a telephone replay will be available for seven days beginning at 1:00 p.m. ET on July 26, 2001. To access the replay, please dial 800-633-8284 or 858-812-6440 and request reservation #19212344. 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 is subject to the safe-harbor created by such Act. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: (i) the presence of competitors with greater financial resources than the Company's and their strategic response to the Company's services and products; (ii) changes in technology, which could affect the competitiveness of the Company's products and services; (iii) a decline in activity levels in the securities markets, which could lower demand for the Company's products and services; (iv) consolidation of financial services, both within an industry and across industries, which could lower demand for the Company's products and services; (v) the loss of key employees assigned to work associated with the integration of the recently acquired businesses of the Company and other delays in integration; (vi) prolonged outage at one of the Company's data centers; (vii) the acceptance of the Internet as a reliable real-time distribution platform by institutional customers; (viii) the ability of the Company to broaden its subscriber base by adding more individual investors outside of the Company's traditional "active-trader" market; (ix) the potential obsolescence of the Company's services due to the introduction of new technologies; and (x) other trends in competitive or economic conditions affecting the Company's financial condition or results of operations not presently contemplated. The Company undertakes no obligation to update these forward-looking statements. About Interactive Data Corporation

Interactive Data Corporation is a leading global provider of securities pricing, financial information, and analytic tools to institutional and individual investors. The company supplies time-sensitive pricing, dividend, corporate action, and descriptive information for more than 3.5 million securities traded around the world, including hard-to-value, unlisted fixed income instruments. The company links to most of the world's best-known financial service and software companies for trading, analysis, portfolio management, and valuation.

Interactive Data Corporation is headquartered in Bedford, Massachusetts. Through its branded businesses, FT Interactive Data, CMS BondEdge, and eSignal, Interactive Data Corporation has approximately 1,600 employees in 22 offices in North America, Europe, Asia, and Australia. Pearson plc (NYSE: PSO), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, is a majority shareholder of Interactive Data Corporation.

INTERACTIVE DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands expect per share data)
  Three Months Ended
June
Six Months Ended
June
  2001 2000 2001 2000





REVENUES        
Institutional 72,647 67,547 143,732 127,567
Retail        
-eSignal 9,011 7,877 18,268 9,571
-Broadcast 2,781 5,724 6,214 8,455
         
Total 84,439 81,148 168,214 145,593
         
COSTS & EXPENSES        
Cost of Services 25,705 29,183 52,256 51,110
Selling, general & administrative 31,013 30,856 63,706 54,689
         
EBITDA 27,721 21,109 52,252 39,794
         
Depreciation 3,015 3,386 6,102 5,549
Amortization 20,875 21,246 42,340 36,514
         
Total costs & expenses 80,608 84,671 164,404 147,862
       
INCOME (LOSS) FROM OPERATIONS 3,831 (3,523) 3,810 (2,269)
         
Equity in loss from Marketwatch.com, Inc. - (20,018) - (26,400)
Other income, net 791 230 1,449 363
         
INCOME (LOSS) BEFORE INCOME TAXES 4,622 (23,311) 5,259 (28,306)
Provision (Benefit) for Income Taxes 3,267 (4,478) 3,747 (4,251)
         
NET INCOME (LOSS) 1,355 (18,833) 1,512 (24,055)
         
NET INCOME (LOSS) PER SHARE        
Basic 0.01 (0.21) 0.02 (0.30)
Diluted 0.01 (0.21) 0.02 (0.30)
         
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING        
Basic 91,253 91,200 91,232 79,917
Diluted 92,032 91,200 91,818 79,917

 

INTERACTIVE DATA CORPORATION AND SUBSIDIARIES PROFORMA SELECTED FINANCIAL DATA (Unaudited)
(In thousands expect per share data)
  Three Months Ended
June
 
  2001 2000 Change




REVENUES      
Institutional 72,647 66,467 9.3%
Retail      
-eSignal 9,011 7,877 14.4%
-Broadcast 2,781 5,725 -51.4%
Total 84,439 80,069 5.5%
       
COSTS & EXPENSES      
Cost of Services 25,705 28,448 -9.6%
Selling, general & administrative 31,013 30,651 1.2%
       
EBITDA 27,721 20,970 32.2%
       
Depreciation 3,015 3,446 -12.5%
Amortization 20,875 21,246 -1.7%
       
Total costs & expenses 80,608 83,791 -3.8%
       
INCOME (LOSS) FROM OPERATIONS 3,831 (3,722) 202.9%
       
Equity in loss from      
Marketwatch.com, Inc. - -  
Other income, net 791 230 243.9%
       
INCOME (LOSS) BEFORE INCOME TAXES 4,622 (3,492) 232.4%
Provision (Benefit) for Income Taxes 3,267 3,495 6.5%
       
NET INCOME (LOSS) 1,355 (6,987) 119.4%
       
NET INCOME (LOSS) PER SHARE      
Basic 0.01 (0.08)  
Diluted 0.01 (0.08)  
       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      
Basic 91,253 91,200  
Diluted 92,032 91,200  

 

INTERACTIVE DATA CORPORATION AND SUBSIDIARIES PROFORMA SELECTED FINANCIAL DATA (Unaudited)
(In thousands expect per share data)
  Six Months Ended
June
 
  2001 2000 Change




REVENUES      
Institutional 143,732 131,907 9.0%
Retail      
-eSignal 18,268 14,695 24.3%
-Broadcast 6,214 13,235 -53.0%
       
Total 168,214 159,837 5.2%
       
COSTS & EXPENSES      
Cost of Services 52,256 57,732 -9.5%
Selling, general & administrative 63,706 61,634 3.4%
       
EBITDA 52,252 40,471 29.1%
       
Depreciation 6,102 6,549 -6.8%
Amortization 42,340 42,488 0.3%
       
Total costs & expenses 164,404 168,403 -2.4%
       
INCOME (LOSS) FROM OPERATIONS 3,810 (8,566) 144.5%
       
Equity in loss from      
Marketwatch.com, Inc. - -  
Other income, net 1,449 731 98.2%
       
INCOME (LOSS) BEFORE INCOME TAXES 5,259 (7,835) 167.1%
Provision (Benefit) for Income Taxes 3,747 5,124 26.9%
       
NET INCOME (LOSS) 1,512 (12,959) 111.7%
       
NET INCOME (LOSS) PER SHARE      
Basic 0.02 (0.14)  
Diluted 0.02 (0.14)  
       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      
Basic 91,232 91,200  
Diluted 91,818 91,200  
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