In its 2011 earnings report D&B announced several strategic transactions:
Japan: D&B signed an exclusive reciprocal distribution agreement with TSR Japan. It sold its domestic Japanese business to TSR. D&B has a joint venture with TSR which provides value added and cross border information to Japanese customers.
China: In November 2011, D&B acquired substantially all the assets of MicoMarketing, a provider of direct marketing services to B2B customers in China for approximately $14 million. This transaction adds more than 2.5 million business records to D&B’s China data base and scales its operations in this market. Prior to the acquisition, MicroMarketing generated approximately $11 million of revenue for full-year 2011.
In December 2011, D&B divested its market research business in China, consisting of two joint venture companies, selling its equity shares in such companies to its partner for a total purchase price of $5 million. The business provides highly specialized and customized market information and has little connection to its core data assets.
Divested Non-Core Businesses in North America: Consistent with our MaxCV program, we divested two North American product lines that were sunset earlier in 2011, Purisma and a small supply management consulting business for an aggregate $3 million. These businesses were dependent on a high level of customization making them expensive to maintain and grow. Combined, these two businesses generated approximately $5 million of revenue during the full-year 2011.
Core revenue for the full year 2011 was $1,758.5 million. This result is up 5% from the prior year similar period, before the effect of foreign exchange, (up 7% after the effect of foreign exchange). Operating income before non-core gains and charges for the full year 2011 was $500.1 million, up 4% from the prior year similar period. On a GAAP basis, operating income for the full year 2011 was $424.8 million, up 4% from the prior year similar period.
Total year revenues for Risk Management Solutions grew by 6% to US$ 1,114.4 million; Sales & Marketing Solutions grew by 5% to US$ 520.8 million and Internet Solutions grew by 7% to US$ 123.4 million. Revenue growth of its North American operations was 1%. Asia-Pacific operations grew 43% and European and other markets grew by 24% (all percentage figures before effect of foreign exchange).
Following the earnings release D&B’s stock declined 4.8 percent to $80.22. On February 7th 2012. D&B shares had risen to an almost one-year high of $84.97 on Feb. 3. – According to Bloomberg news D&B’s fourth quarter results missed analyst estimates amid delays to its technology-upgrade program.
In February 2010 D&B had announced a technology program, which it calls ‘MaxCV’, with an estimated cost of $130 million. MaxCV was expected to be completed this year. The cost of the project has been revised upward to $160 million and is now expected to be completed by the second half of next year.
Outlook: The delay in its technology program is affecting negatively the real-time data supply chain project and product innovation. As a consequence D&B’s full year outlook for 2012 projects modest growth: Core revenue growth of 3 to 5%. Operating income growth of 4% to 7%.
Source: D&B Press Release