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Neustar Posts Results for Second Quarter 2014 [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) Neustar has reported results for the quarter ended June 30, and reaffirmed its guidance for 2014. In its release on July 23, the company noted results for second quarter 2014 compared to second quarter 2013 -Revenue increased 8 percent to $237.5 million -Revenue from Marketing Services increased 19 percent to $35.0 million -Revenue from Security Services increased 28 percent to $34.4 million -Net income decreased 15 percent to $36.8 million -Net income per share decreased 6 percent to $0.61 Non-GAAP Results for Second Quarter 2014 Compared to Second Quarter 2013 -Adjusted net income increased 1 percent to $57.6 million, representing a 24 percent margin -Adjusted net income per share increased 12 percent to $0.95 "In the second quarter, we continued to build on and strengthen our position in attractive, high-growth markets in the Information Services and Analytics space," said Lisa Hook, Neustar's President and CEO. "This quarter's results reflect the ongoing benefits of a thoughtful strategy, disciplined investments and focused execution. We are confident that we will sustain our momentum and drive value for our shareholders going forward." Paul Lalljie, Neustar's CFO, added, "Our Information Services business continues to deliver strong results. In particular, our Marketing and Security Services, when combined, delivered year-over- year revenue growth of 23 percent and are approaching one-third of total revenue. Led by this strong momentum, we are confident in our outlook for the year. While we are reaffirming our full-year revenue and adjusted net income guidance, we will be targeting the top end of the revenue range." Discussion of Second Quarter Results According to the company, revenue totaled $237.5 million, an 8 percent increase from $220.4 million in 2013. Marketing Services revenue of $35.0 million grew 19 percent driven by higher demand for the company's workflow solutions. Security Services revenue of $34.4 million increased 28 percent driven by revenue from the acquisition of .CO Internet S.A.S. and increased demand for DDoS protection services. NPAC Services revenue of $118.7 million grew 6 percent driven by an increase in the fixed fee established under the contracts to provide local number portability services. Data Services revenue of $49.4 million declined 6 percent due to lower revenue from caller identification services and common short codes. Operating expense totaled $172.7 million, a 19 percent increase from $145.6 million in the second quarter of 2013. This $27.1 million increase was primarily driven by the addition of $11.9 million in operating expense from the company's recent acquisitions, as it continues to diversify and strengthen its information services and analytics portfolio. Of the remaining $15.2 million increase, personnel and personnel-related expense increased $3.5 million driven by additional stock-based compensation. In addition, costs related to information technology and systems increased $3.4 million, and professional and marketing expenses associated with the NPAC vendor selection process increased $3.3 million. As of June 30, cash and cash equivalents totaled $245.9 million, compared to $223.3 million as of December 31, 2013. At June 30, the company's outstanding debt under its term facilities and 4.5 percent senior notes was $787.3 million. During the second quarter, the company closed on the acquisition of .CO Internet S.A.S. for total cash consideration of $106.8 million, after taking into account cash acquired of $6.9 million. In addition, the company purchased approximately 3.7 million shares at an average price of $26.48 per share, for approximately $99.1 million. Business Outlook for 2014 The company noted that it reaffirmed its revenue and adjusted net income guidance provided on January 29,: -Revenue to range from $945 million to $970 million, or growth of 5 percent to 8 percent -Adjusted net income to range from $233 million to $243 million, or flat to 4 percent growth, and on a per share basis $3.88 to $4.05, or growth of 10 percent to 15 percent Neustar is a real-time provider of cloud-based information services and data analytics. More information: neustar.biz ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |