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. Source: By Interactive Data
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