Interactive Data Declares Special Dividend, Increases Regular Quarterly Dividend, Expands Stock Repurchase Program and Updates 2
December 13 2007 - 9:00AM
Business Wire
Interactive Data Corporation (NYSE: IDC), a leading provider of
financial market data, analytics and related services to financial
institutions, active traders and individual investors, today
announced that its Board of Directors has declared a special
dividend of $0.50 per share of common stock. The special dividend
is payable on January 24, 2008 to stockholders of record on January
4, 2008. The Company�s Board of Directors also approved a 20
percent increase in the regular quarterly cash dividend to $0.15
per share, commencing with the dividend to be paid on March 31,
2008 to all shareholders of record at the close of business on
March 3, 2008. In March 2007, Interactive Data began paying a
regular quarterly dividend at a rate of $0.125 per share.
Interactive Data's Board of Directors also authorized an expansion
of its existing October 2006 stock buyback program for the
repurchase of up to an additional two million shares of its common
stock. Repurchases made under this stock buyback program will be
made in the open market or in privately negotiated transactions
from time to time, subject to market conditions and other factors
and in compliance with applicable legal requirements. Repurchases
of common stock may also be made under a Rule 10b5-1 plan, which
would permit shares to be repurchased when Interactive Data might
otherwise be precluded from doing so under insider trading laws.
Interactive Data intends to use cash on hand to fund any purchases.
The Company is not obligated to acquire any particular amount of
common stock as a result of the plan, which may be suspended or
discontinued at any time. Stuart Clark, Interactive Data�s
president and chief executive officer, stated, "Throughout 2007,
Interactive Data�s business has continued to generate tremendous
net cash provided by operating activities. Our Board of Directors
determined that we could return over $47 million to stockholders in
2008 through this special dividend, increase the regular quarterly
dividend by 20 percent and expand our ongoing stock buyback program
while still leaving ourselves with sufficient cash on hand to fund
internal and external investments.� In addition, Interactive Data
updated its revenue outlook for 2007. Interactive Data currently
expects to generate 2007 revenue growth of approximately 12% over
2006, which is at the high end of prior guidance issued on October
25, 2007. Interactive Data�s management will cover the Company�s
strategy, marketplace, products and services, technical
infrastructure, growth opportunities and financial performance at
the Company�s Investor Day event being held at the New York Stock
Exchange in New York on Friday, December 14, 2007. A live audio
webcast of the Investor Day event and presentation slides are
available at the Company's website. A web archive of the event,
including slides from the event, will be available at the same web
address following the end of the event. The actual declaration of
future quarterly dividends, and the establishment of record and
payment dates, is subject to final determination of the Board of
Directors of Interactive Data. As of December 11, 2007, there were
94.3 million outstanding shares of Interactive Data common stock.
Forward-looking and Cautionary Statements This press release
contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and federal
securities laws, and is subject to the safe-harbor created by such
Act and laws. Forward-looking statements include our statements
discussing our goals, beliefs, strategies, objectives, plans,
future financial conditions, results of operations and cash flows
or projections, including our statements about our expected revenue
growth; our statements related to any potential future stock
repurchase transactions, including our intention to repurchase
shares of our common stock from time to time under the stock
repurchase program, the source of funding for the stock repurchase
program, as well as the timing, nature and financial impact of any
such transactions related to the stock buyback program; and
statements related to potential future dividends, including the
timing, nature and financial impact of issuing any such dividends.
These statements are subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause actual
results to be materially different from those contemplated by the
forward-looking statements. Such factors include, but are not
limited to: (i) the presence of competitors with greater financial
resources than ours and their strategic response to our services
and offerings; (ii) the possibility of a prolonged outage or other
major unexpected operational difficulty at any of our key
facilities; (iii) our ability to maintain relationships with our
key suppliers and providers of financial market data; (iv) our
ability to maintain our relationships with service bureaus and
custodian banks; (v) a decline in activity levels in the securities
markets; (vi) consolidation of financial services companies, both
within an industry and across industries; (vii) the continuing
impact of cost-containment pressures across the industries we
serve; (viii) new offerings by competitors or new technologies that
could cause our offerings or services to become less competitive or
obsolete; (ix) our ability to negotiate and enter into strategic
alliances or acquisitions on favorable terms, if at all (x) our
ability to develop new and enhanced service offerings and our
ability to market and sell those new and enhanced offerings
successfully to new and existing customers; (xi) our ability to
derive the anticipated benefits from our strategic alliances or
acquisitions in the desired time frame, if at all; (xii) potential
regulatory investigations of us or our customers relating to our
services; (xiii) the regulatory requirements applicable to our
business, including our Interactive Data Pricing and Reference Data
subsidiary, which is a registered investment adviser; (xiv) our
ability to attract and retain key personnel; (xv) the ability of
our majority shareholder to exert influence over our affairs,
including the ability to approve or disapprove any corporate
actions submitted to a vote of our stockholders; (xvi) the relative
performance of the economy and the U.S. stock market as a whole;
(xvii) the market price of our common stock and other market
conditions; (xviii) the difficulty in predicting our future cash
needs; (xix) the nature of other investment opportunities available
to us from time to time; (xx) our operating cash flow; and (xxi)
other factors identified in our most recent Annual Report on Form
10-K and Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission. We undertake no obligation to update these
forward-looking statements. About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global
provider of financial market data, analytics and related services
to financial institutions, active traders and individual investors.
The Company's businesses supply time-sensitive pricing, evaluations
and reference data for more than 3.5 million securities traded
around the world, including hard-to-value instruments. Many of the
world's best-known financial service and software companies
subscribe to the Company's services in support of their trading,
analysis, portfolio management and valuation activities. Through
its businesses, Interactive Data Pricing and Reference Data,
Interactive Data Real-Time Services, Interactive Data Fixed Income
Analytics, and eSignal, the Company has approximately 2,200
employees in offices located throughout North America, Europe, Asia
and Australia. The Company is headquartered in Bedford, Mass.
Pearson plc (NYSE: PSO; LSE: PSON), an international media company,
whose businesses include the Financial Times Group, Pearson
Education, and the Penguin Group, is Interactive Data Corporation's
majority stockholder.
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