D&B’s Core revenue for the second quarter of 2010 was $397.3 million, down 3% from the prior year similar period before the effect of foreign exchange (down 2% after the effect of foreign exchange). Deferred revenue was $535.9 million, up 3% from the similar prior year period.
Operating income before non-core gains and charges for the second quarter of 2010 was $106.5 million, down 6% from the prior year similar period.
Net income attributable to D&B before non-core gains and charges for the second quarter of 2010 was $62.7 million, down 3% from the prior year similar period.
Strategic Initiatives announced in 2010: The program continues to be on pace to meet our previous estimate for total pre-tax spend during 2010 of $45 million to $55 million, with approximately 60% of the amount recognized as an increase to D&B’s non-core expenses and the remainder as capital expenditures (see attached Schedule 3 for additional detail).
During the second quarter, D&B achieved the following results regarding the milestones outlined during our 2010 Investor Day: i) opened a new application development center in Ireland that is focused on global applications development, ii) largely completed the migration of the Data Center to a new facility located in Conway, Arkansas and iii) increased the number of records in its data bases to 168 million (on track to reach our 2010 year-end goal of 175 million).
In addition, D&B is preparing for the fourth quarter 2010 release of the following: i) its ‘replatformed’ version of DNB.com to enhance the value proposition for legacy transactional customers and ii) the launch of web services for its large customers to help them configure its data to embed into their workflows.
D&B Announces Strategic Partnership: D&B has entered into an agreement for the sale of substantially all of the assets and liabilities of its North America Self Awareness Solutions business, in a deal valued at approximately $100 million. The sale is part of a strategic relationship whereby the buyer (Credibility Corporation) will operate the acquired business under the name of Dun & Bradstreet Credibility Corp., and distribute D&B-branded products to the micro customer segment. The deal is expected to reduce full-year 2010 core revenue by approximately $51 million and full-year 2009 core revenue by approximately $70 million. There will be no impact to total company operating income and our overall 2010 guidance remains unchanged. Source: D&B Q2 Earnings Release