IMS Health Continues Steady Progress

IMS Health has announced second-quarter revenue up 12% (4% at constant currencies) to $600.7m. Operating income rose 11% (1% at constant currencies) to $131.4m. Net income on a GAAP basis was $77.7m, compared with $73.4m in the year-earlier quarter, an increase of 6%.

Adjusted net income on a non-GAAP basis for the 2008 second quarter would have been $73.5m, compared with $78.8m in the year-earlier quarter. Diluted GAAP EPS was up 17% year on year to $0.42 and adjusted non-GAAP EPS up $0.01 to $0.40.

Chairman and CEO David R. Carlucci says the company delivered 'a very solid quarter', led by 26% growth in the Consulting and Services business and accelerating results in the emerging markets. He adds: 'In this dynamic healthcare environment, demand remains strong for our offerings designed to help clients improve their commercial productivity. In addition, our continued focus on cost and expense management contributed to an improved operating income and cash flow performance.'

First half revenues were up 12% year-on-year (5% constant currencies) to $1,174.9m and first-half operating income was $247.8m, up 8% on a reported basis and down 1% at constant currencies. GAAP net income fell from $159.0m to $136.9m but the adjusted, non-GAAP figure shows a smaller fall from $149.3m to $141.6m.

In January, the firm announced 'aggressive' restructuring actions which would cut staff numbers by 10% during 2008.

Web site: www.imshealth.com .