FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading provider of integrated global financial information and analytical applications for the investment community, announced its results for the first quarter of fiscal 2016 (quarter ending Nov. 30th 2015).  Revenues grew to $270.5 million. Included in this total was $6.0 million from acquisitions completed within the last 12 months and the effects of foreign currency. Operating income was $87.3 million compared to $80.3 million in the prior year period. Net income was $60.0 million versus $55.9 million a year ago. Diluted earnings per share were $1.43 compared to $1.32 in the same period of fiscal 2015.

“This was a significant quarter for us on all fronts,” said Phil Snow, CEO. “Our ASV growth continued to accelerate with our key client metrics rising higher, all generating a strong start to the fiscal year. We delivered solid financial performance across our product portfolios and from each geographic region. And, we made progress on key strategic initiatives, including closing the Portware acquisition and the expansion of our share repurchase program.”

Financial Highlights – First Quarter of Fiscal 2016

  • Annual Subscription Value from U.S. operations was$747 million and $362 million was related to non-U.S. operations.
  • S. revenues were$182.2 million. Excluding revenues from acquisitions completed within the past 12 months, the U.S. growth rate was 8.2%.
  • Non-U.S. revenues rose to$88.3 million. Excluding the impact of foreign currency and acquisitions completed within the past 12 months, the international growth rate was 10.6%.
  • Adjusted operating margin was 32.5%, compared to 33.1% in the year ago first quarter. The current year adjusted operating margin excludes$0.7 million of acquisition-related expenses. Portware’s operations included in FactSet’s first quarter further reduced the operating margin by 110 basis points.

Operational Highlights – First Quarter of Fiscal 2016

  • Client count rose by 30 and totaled 3,006 atNovember 30, 2015, representing the highest first quarter add in four years.
  • User count, excluding Portware, grew 13.6% to 63,169, reflecting 964 net new users.
  • Annual client retention was greater than 95% of ASV. When expressed as a percentage of clients, annual retention increased to 95%, up from 93% in the prior year first quarter. The current quarter client retention rate is FactSet’s highest ever.

Source: FactSet Earnings Release