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IHS Q1 profit falls on charges, but boosts FY outlook

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IHS (NYSE:IHS) reported a decline in its first quarter profits on Tuesday, reflecting higher restructuring and compensation-related charges, though the company raised its full year outlook.

For the full year ending November 30, 2012, the information and analytics provider said it now expects revenues between $1.525 billion and $1.575 billion, with adjusted earnings in the range of $3.84 to $4.01 per share.

Analysts polled by Thomson Reuters are expecting $3.97 per share, on $1.54 billion in revenues.

For the three months ended February 29, the company, which provides a wide variety of analytic and forecasting softwares, posted net income of $23.5 million, or $0.35 per share, down 26 percent from $31.9 million, or $0.49 per share, a year ago.

Adjusted for certain one-time items, earnings rose four percent to $0.77 per share.

Those special items included a $0.33 per share charge related to stock-based compensation, a $0.07 per share restructuring charge, and a $0.01 per share charge related to acquisition-related costs.

Total revenues for the quarter rose 17 percent to $342.7 million, driven mainly by four percent organic growth, and 14 percent growth from acquisitions. In the same period last year, the company reported $293.1 million in revenues.

Analysts had expected $0.81 per share in earnings, on $356.68 million in revenues.

IHS CEO Jerre Stead said: "The first quarter marked significant continued investment in and implementation of many of the scalable platforms we have been building over the last few years.

"We are making great progress with these important investments which will help us deliver profitable growth for many years to come."

Both subscription and non-subscription-based revenues increased 17 percent, to $273.4 million and to $69.4 million, respectively.

Revenues from the sale of IHS' products increased 14 percent to $298.0 million, while service revenues rose 38 percent to $44.8 million.

In the Americas, revenues were up 15 percent year-over-year, to $206.9 million. In the Europe, Middle East and Africa region, revenues rose 18 percent to $99.4 million, while revenues rose 24 percent in the Asia-Pacific region, to $36.4 million.

In New York, shares of the Englewood, Colorado-based company fell 4.33 percent to $93.42, as of 2:28 pm EDT. So far this year, IHS' stock has gained 8.34 percent.

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NYSE:IHS
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