IMS Health announced fourth-quarter 2009 revenue of $599.2 million, up 3 percent year over year and down 3 percent constant dollar, compared with $580.9 million in the 2008 fourth quarter. Net income for the 2009 fourth quarter was $71.5 million and diluted earnings per share were $0.39 compared with net income of $98.5 million and EPS of $0.54 in the year-earlier period. After adjusting for $27.7 million of charges in the quarter related to the previously announced restructuring, certain asset impairments, merger costs and certain other items, net income on a non-GAAP basis for the fourth quarter of 2009 was $95.1 million compared with $90.6 million in the year-earlier period, and non-GAAP EPS was $0.52 compared with $0.50 in the 2008 fourth quarter.
“IMS finished the year with an improved fourth-quarter performance, reflecting solid sequential revenue growth and better demand in the second half of the year,” said David R. Carlucci, IMS chairman and CEO. “Our cost reduction plans remain on track, and we achieved exceptional cash flow results throughout the year. We continue to benefit from our industry-leading role, and are strategically positioned to help clients transform their businesses.”
Operating income in the fourth quarter of 2009 was $106.3 million compared with $126.6 million in operating income in the year-earlier period. When adjusted for the restructuring charge, merger costs and certain other items, operating income on a non-GAAP basis for this year’s fourth quarter would have been $134.0 million, compared with $136.0 million in the 2008 fourth quarter.
Preliminary net cash provided by operating activities on a GAAP basis for the fourth quarter of 2009 was $195.1 million and $542.6 million in the 2009 full year. Fourth-quarter 2009 preliminary free cash flow on a non-GAAP basis was $138.0 million, bringing the total for full-year 2009 to $543.1 million.
For the 2009 full year, revenues were $2,189.7 million, down 6 percent or 4 percent constant dollar, compared with revenues of $2,329.5 million in 2008. Net income for 2009 was $258.5 million and diluted earnings per share were $1.42 compared with net income of $311.3 million and EPS of $1.70 the year earlier. After adjusting for $159.5 million of charges in 2009 related to the previously announced restructuring, certain asset impairments, merger costs and certain other items, net income on a non-GAAP basis for the 2009 full year was $315.6 million compared with $311.7 million in 2008, and non-GAAP EPS was $1.73 compared with $1.70 a year earlier.
Including the restructuring charge, certain asset impairments, merger costs and certain other items, operating income for full-year 2009 was $270.9 million, compared with $498.3 million in 2008. When adjusted for these items, operating income on a non-GAAP basis for 2009 would have been $430.4 million, compared with $511.5 million in 2008.
Operating in more than 100 countries, IMS Health is the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries. With $2.2 billion in 2009 revenue and more than 50 years of industry experience, IMS offers leading-edge market intelligence products and services that are integral to clients’ day-to-day operations, including product and portfolio management capabilities; commercial effectiveness innovations; managed care and consumer health offerings; and consulting and services solutions that improve productivity and the delivery of quality healthcare worldwide. For more information, visit http://www.imshealth.com