In presenting D&B’s second quarter results D&B’s CEO Sara Mathew stated: “Our second quarter results were largely in-line with expectations, and we remain on pace to achieve our full-year 2011 guidance. While the early sunset of low profit legacy products is pressuring near-term revenue growth, our top line trajectory is expected to improve during the second half of the year as we gain traction on new products. The Strategic Technology Investment is proceeding according to plan and we are committed to meeting our 2012 financial targets.”

Total revenue for the second quarter of 2011 was $416.8 million, up 3% before the effect of foreign exchange (up 5% after the effect of foreign exchange), as compared to the prior year similar period. As a reminder, total revenue for the second quarter of 2010 included the results of our North American Self Awareness Solutions business which we divested in the third quarter of 2010.

Operating income before non-core gains and charges for the second quarter of 2011 was $108.4 million, up 2% from the prior year similar period. On a GAAP basis, operating income was $89.7 million, down 1% from the prior year similar period, due to restructuring charges and expenses related to the Strategic Technology Investment.

Net income attributable to D&B before non-core gains and charges for the second quarter of 2011 was $67.1 million, up 7% from the prior year similar period. On a GAAP basis, net income attributable to D&B for the second quarter of 2011 was $58.5 million, up 5% from the prior year similar period.

North American core revenue was US$ 288.3 million, up 1%.  International core revenue was US$ 128.5 million, up 33%.

US$ (millions)
North America
Europe & Other
Asia-Pacific
Total By Services Segments
Risk Management Solutions
177.8
52.6
44
274.4
Sales & Marketing Solutions
80.7
8.8
22.3
111.8
Internet Solutions
29.8
.5
.3
30.6
Total by Geography
288.3
61.9
66.6
416.8

Management stated that its strategic IT investment program is on track and on budget.  It is concentrating on increasing its data assets in North America expecting to reach 30 million records.  It will launch a new CRM platform and new releases for DNBi.

In response to a question concerning heightened competition, especially from Experian (BusinessIQ), Equifax and Cortera, management stated that they had not experienced any revenue erosion.  Management expressed the view that D&B had more value added to offer and that the  introduction of Experian’s BusinessIQ was more a conversion of existing customers rather than gaining new ones.  DNBi was still a better platform and new releases were pending.  With the improvement in D&B’s data supply chain, more data assets and a higher match rate, D&B was well equipped to compete effectively in lower market segments.

D&B reaffirmed its guidance for the full year 2011: Core revenue growth of 5% to 8%, before the effect of foreign exchange.

Source:  D&B Earnings Release