NORWALK, Conn.–(BUSINESS WIRE)– IMS Health (NYSE: RX), announced fourth-quarter 2008 net income of $98.5 million and diluted earnings per share of $0.54, compared with net income of $18.0 million and EPS of $0.09 in the fourth quarter of 2007. After adjusting for a 2007 restructuring charge and certain other items, net income on a non-GAAP basis for the fourth quarter of 2008 rose 9 percent and EPS on a non-GAAP basis was up 16 percent year over year (See below and Note c to the financial tables). Total revenue for the fourth quarter of 2008 was $580.9 million, a 4 percent decrease or flat constant dollar from the fourth quarter of 2007.
For the 2008 full year, revenues were $2,329.5 million, up 6 percent or 3 percent constant dollar, compared with revenue of $2,192.6 million in 2007. Operating income for 2008 was $498.3 million, compared with $393.3 million in the year-earlier period, up 27 percent and 18 percent constant dollar. After adjusting for a 2008 charge related to the company’s Government Solutions subsidiary and 2008 non-cash asset write-downs, operating income on a non-GAAP basis for the 2008 full year was $511.5 million, up 6 percent or flat on a constant-dollar basis compared with operating income on a non-GAAP basis of $482.0 million in 2007, which reflects an adjustment for the 2007 restructuring charge (See Note c to the financial tables).
For the 2008 full year, diluted earnings per share on a GAAP basis was $1.70, compared with $1.18 a year earlier. After adjusting for certain items, earnings per share for 2008 on a non-GAAP basis was $1.70, $0.17 above diluted earnings per share on a non-GAAP basis of $1.53 in 2007 (See Note c to the financial tables). Net income on a GAAP basis was $311.3 million, compared with $234.0 million in 2007. When adjusted for certain items, net income for 2008 on a non-GAAP basis was $311.7 million, compared with $304.3 million in the year-earlier period (See Note c to the financial tables).
The company also announced its financial guidance for the 2009 full year. Constant-dollar revenue growth is expected to be flat to 3 percent this year, and diluted earnings per share is expected to be in the $1.70 – $1.77 range.
