Neustar Inc., a provider of clearinghouse services to carriers and Internet companies, today announced increases in net income and revenue for the quarter ended September 30, and updated guidance for the full year.
For the third quarter, Neustar posted net income of $28.4 million, which is up from the $25.7 million it reported for the same quarter last year.
Revenue totaled $123.8 million, an increase of 12 percent from $110.8 million in the third quarter of 2007.
The company says its year-over-year quarterly revenue growth was driven primarily by increases in infrastructure transactions under its contracts to provide telephone number portability services in the United States. Neustar also claimed revenue increases from Ultra Services and Common Short Codes.
Transactions under NeuStar's contracts to provide telephone number
portability services in the United States totaled 95.1 million for the third quarter of 2008, which was 14 percent higher than the 83.2 million transactions for the third quarter of 2007.
However, the cost of doing business increased for Neustar, with the company reporting total operating expenses of $78.6 million in the third quarter of 2008, compared to $68.9 million in the third quarter of 2007.
The company said that, as of Sept. 30, 2008, NeuStar had $157.4 million in cash, cash equivalents, short- and long-term investments, compared to $110.6 million at June 30, 2008 and $198.7 million at Dec. 31, 2007.
Neustar also updated guidance for the full year, with revenue now expected to range between $485 and $490 million, down from previous guidance was for 2008 revenue to range between $500 and $515 million.
The company now says net income will exceed $70 million, resulting in net income per diluted share in excess of $0.92 based on a diluted share total of 76 million.
Neustar noted that this 2008 net income forecast includes the goodwill impairment charge of $29.0 million recorded in the first quarter of 2008, and that, excluding the impairment charge, net income would exceed $99 million, resulting in net income per diluted share in excess of $1.30.
“In the face of tumultuous and uncertain economic times, our focus will be on growing profitability and cash flow,” said Neustar Chairman and CEO Jeff Ganek, in prepared comments.
“We believe we can accomplish this because of our strong share position in large markets with future growth potential,” he added. “We have also consistently delivered attractive margins through rigorous cost control discipline while still making sound investments in our infrastructure.”
