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IMS Health Strategy Brings Stable Growth
Pharmaceutical research giant IMS Health has reported third-quarter revenue of $574m, up 6%, or a modest 3% year-on-year on a constant dollar basis. However, net income and EPS grew 33% and 41% respectively in the quarter.
Operating income was $124m, up 6% (1% constant dollar year-over-year) and includes a charge related to the company's Government Solutions subsidiary.
'IMS's third-quarter results demonstrate the strength of our business model in a tough economic climate,' stated Chairman & CEO David Carlucci. 'In a slower growth environment, we are closely managing our costs and expenses, driving focused execution and maintaining financial flexibility - to ensure that we continue to innovate for clients and deliver value to shareholders. Our strong balance sheet and liquidity position provide a solid foundation for the long term.'
For the first nine months of 2008, revenues were $1,749m, up 10% (4% constant dollar year-over-year). Operating income for the same period was $372m, up 7% on a reported basis and flat constant dollar, compared with $346m in the year-earlier period.
When adjusted for the Government Solutions charge, operating income on a non-GAAP basis for the nine months would have grown to $376m, up 8%, or 1% at constant dollar.
For the same period, diluted earnings per share on a GAAP basis were $1.16, compared with $1.08 in the prior-year period. After adjusting for the German tax provision in 2007, the Government Solutions charge in 2008, the phasing of foreign exchange hedge gains and losses, and the phasing of tax benefits, earnings per share for the first nine months on a non-GAAP basis would have grown $0.10 year-over-year to $1.20.
IMS Health recently acquired Russian pharma market firm RMBC.
Web site: www.imshealth.com .
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