Following several quarters of difficult trading conditions management sees a return to growth: Sara Mathew, D&B’s Chairman and CEO in announcing the company’s third quarter results stated: “We are pleased with our third quarter results and the acceleration of our financial performance. As expected, our North America business has turned the corner, driven primarily by strengthened sales execution, while International continues its double-digit revenue growth trajectory. Our strategic technology investment is progressing well and our first new products will be launched in the fourth quarter. The momentum we have generated will enable us to exit 2010 and enter 2011 on a strong note,”
Diluted EPS before non-core gains and charges is up 7%; GAAP Diluted EPS up 10%
Core revenue for the third quarter of 2010 was $396.0 million, up 4 % from the prior year similar period both before and after the effect of foreign exchange. Deferred revenue was $516.2 million, up 8% from the prior year similar period, continuing the positive trajectory that began in the fourth quarter of 2009. D&B International revenue grew by 11% of which 6% was organic growth. D&B International accounts for 25% of total revenue.
Operating income before non-core gains and charges for the third quarter of 2010 was $104.3 million, down 1% from the prior year similar period.
Free cash flow for the first nine months of 2010, excluding the impact of legacy tax matters, was $225.5 million, including approximately $15 million related to the Strategic Technology Investment, compared with $244.1 million in the prior year similar period.
D&B reaffirmed its financial guidance for the full year 2010: Core revenue growth of 1% to 3%, before the effect of foreign exchange; Operating income down 2% to up 2%, before non-core gains and charges; Diluted EPS growth of 1% to 6%, before non-core gains and charges. Free cash flow of $240 million to $270 million, excluding the impact of legacy tax matters, but including the Strategic Technology Investment.
Management also confirmed that it strategic investment program is on track. Its global database has reached 177 million records as of end of September 2010 Source: D&B Press Release
