News notes
Germany-based research group GfK and London media company UBM announced in late January that they had reached a settlement in an ongoing lawsuit. GfK acquired market research company NOP World from its parent UBM in May 2005. Following completion, UBM filed a court action in August 2006 against GfK AG in London to recover certain balances owed by the NOP World companies to UBM pre-completion. The result of the settlement with UBM is below the amount claimed by UBM.
San Mateo, Calif., media research company Integrated Media Measurement Inc. (IMMI) has closed a $25 million Series C financing. The financing is led by Kantar Media Research, the media research division of London-based communications group WPP. The funding will allow IMMI to continue to develop additional products and services, expand into new markets and grow its panel participant base.
Basking Ridge, N.J., research company Lightspeed Research has signed a deal to give a new incentive for completion of its questionnaires. The agreement with London-based EMI Music via Dublin-based digital content specialist the Licensing Agency will offer respondents free music and video downloads. Respondents will receive a code redeemable for a download of their choice from a library of at least 168,000 EMI tracks and videos at www.songs4surveys.com. The deal covers the U.K. and Ireland, France, Germany, Spain, Italy, Sweden and the Netherlands. The U.S. and Canada were covered in a deal previously struck between EMI and the Licensing Agency.
Research company Harris Interactive, Rochester, N.Y., will close its offices in Orem, Utah, which includes the firm’s last remaining U.S.-based phone center. During the transition, the phone center and mail services work will shift to Harris’ facilities in Canada as well as to other resources outside of North America.
Five members of U.K.-based global trade association GSM Association (GSMA), Vodafone Group, Telefonica O2 Europe, T-Mobile International, FT-Orange Group and 3, have formed a working group to define common metrics and measurement processes for mobile advertising as part of the GSMA’s Mobile Advertising Program. The working group is conducting a feasibility study, working with each company’s U.K. operating business to explore the aggregation of appropriate information on a consistent and audited basis to deliver cross-operator metrics to the media and advertising communities. Operators plan to address the needs and priorities of the media community, such as the development of mobile advertising standards, a common currency for mobile, the delivery of standardized metrics and the measurement and validation of the reach and opportunity that the mobile channel presents. A key priority is the definition of a range of metrics that will describe the mobile audience and measure the effectiveness of mobile advertising.
Kinesis Survey Technologies, Austin, Texas, has been awarded the U.S. trademark for CAMI in support of branding for its survey solution for computer-assisted mobile interviewing. The Kinesis Survey CAMI survey solution combines an SMS Messenger with support for mobile browsers, allowing respondents to access and take surveys over the wireless Web. The Kinesis CAMI solution utilizes a worldwide device library for proper rendering of browser pages to ensure a satisfactory mobile browsing experience.
The Council for Research Excellence (CRE), an independent forum of media industry research experts created by New York research group The Nielsen Company, will commission a year-long study by Ball State University’s Center for Media Design (CMD) to observe how individuals consume traditional and emerging video platforms inside and outside the home. The video consumer mapping study, to be conducted jointly by CMD and Sequent Partners, a New York brand and media metrics consultancy, is intended to establish how media, especially television and video, are consumed across multiple platforms, in order to develop best practices in the area of video media measurement.
Separately, The Nielsen Company has formed a national Hispanic/Latino Advisory Council (HLAC), a new independent advisory group established to help inform and enhance Nielsen’s efforts to recruit, measure and accurately report on Hispanic television households in the U.S. According to Nielsen, Hispanics remain the fastest-growing national segment of the population, with television households increasing by 4.4 percent in 2007 vs. the previous year.
The HLAC is comprised of industry, community, and business leaders drawn from across the U.S.:
Jenny Alonzo, executive vice president, marketing/brand of Mio.TV.
Juan Andrade, president and executive director of the United States Hispanic Leadership Institute.
David Hayes-Bautista, professor of medicine and director of the Center for the Study of Latino Health and Culture at the School of Medicine, UCLA.
Ernest W. Bromley, chairman and CEO of Bromley Communications.
Jose del Cueto, CEO of Del Cueto Media Group.
Guarione M. Diaz, president and CEO of the Cuban American National Council Inc.
Henry Flores, senior policy analyst at the William C. Velasquez Institute.
Luís A. Miranda, Jr., managing partner of The MirRam Group Inc.
Lillian Rodríguez López, president of the Hispanic Federation.
Catherine M. Pino, co-founder and principal of D&P Creative Strategies.
Susana Valdez, chief of staff to Mayor Manny Diaz, City of Miami.
Acquisitions/transactions
Outsell Inc., a Burlingame, Calif.-based research firm, has acquired the business research division of Edventures, a Boston-based higher education research and consulting company. Outsell will assume responsibility for Eduventures’ syndicated research business serving content, technology and services companies in the education industry. The companies will maintain independent consulting divisions focused on serving their respective clients; however, they will combine their resources as appropriate on custom client engagements.
Market Force Information Inc., a Boulder, Colo., research company, has acquired Certified Marketing Services Inc. (CMS), a Kinderhook, N.Y., marketing firm. The move allows Market Force Information to offer mystery shopping, direct customer feedback, on-site merchandising and analytics services from a single provider.
The management of Rotterdam-based Global Data Collection Company (GDCC) has established a majority shareholding in the company. The team increased its holding from 33 percent to 75 percent with an acquisition from fellow Rotterdam research company BBI Group for an undisclosed sum.
WPP Digital, the digital investment arm of London-based research company WPP Group (WPP), has acquired a stake in California Web analytics company NuConomy. The investment continues WPP’s effort to strengthen its capabilities in digital media and research. NuConomy is expected to work closely with Kantar Group companies.
London research company TNS has acquired Prospera Research AB of Stockholm, Sweden. The acquisition allows TNS to build further syndicated services in the finance sector and to extend these across the Nordic region and other markets in Europe.
Elmhurst, Ill., marketing firm Maddock Douglas Inc. has acquired Norwalk, Conn., marketing research firm Markitecture in a deal that will merge Markitecture’s proprietary market research capabilities into the company’s 3-2-1Launch! new product and services development division.
New York research group Nielsen Company has acquired Provo, Utah, analysis and software company Audience Analytics and its Audience Watch software. The Audience Watch software will become the primary delivery mechanism for the company’s Nielsen DigitalPlus product line, which will provide analytics on tuning and interactive television usage based on set-top box data, as well as measurement of video on demand transactions. Nielsen will develop a single platform to integrate complex and varied data sets. This includes the company’s television, Internet, mobile and consumer data, which are integrated for NielsenConnect products, and the TV/Internet convergence panel, which will provide a single-source view of the interactions between television viewing and in-home Internet usage.
Alliances/strategic partnerships
London research company TNS has established a preferred partner relationship with London data collection service provider Livra Panels to offer online access panel research services across Latin America.
El Segundo, Calif.-based satellite television service provider DIRECTV Inc. and London’s TNS Media Research are developing a national opt-in audience measurement panel of 100,000 DIRECTV subscribers. With plans to introduce TNS DIRECTView in 2008, TNS Media Research intends to measure the total viewing, including the live and time-shifted (DVR) viewing of programs and commercials at a second-by-second interval, of 100,000 representative households within DIRECTV’s national fooprint. DIRECTV has been utilizing TNS Media Research’s audience measurement capabilities to better understand its customers’ anonymous use of the interactive applications it offers. Additionally, TNS Media Research will be marketing the national panel. Using Bangalore, India-based media analysis and planning system company InfoSys, TNS Media Research will offer subscription services that are designed allow clients to directly access data to provide analyses of national viewing patterns.
Seattle software firm QL2 Software has partnered with Hendersonville, Tenn., lodging industry research firm Smith Travel Research (STR) to provide the hotel and lodging industry with a single source of market intelligence, combining STR’s hotel performance data with QL2’s real-time pricing data. This combination of historical revenue performance and forward pricing data is intended to help the industry make informed decisions on room rates, availability and future investment. The partnership will result in joint products offered to both QL2 and STR clients, combining each firm’s existing products for the travel industry.
Los Angeles research company OTX (Online Testing eXchange) has partnered with Mexican research group RVOX. The partnership of the two firms includes industry and brand tracking, product and concept testing, copy testing and other methods of quantitative and qualitative research. The two firms plan to work together on large-scale custom pan-American and global projects and jointly build a national online consumer research panel that will be made available to their clients as well as to other online research firms.
New Rochelle, N.Y., product placement and branded entertainment valuation service provider iTVX has partnered with El Dorado Hills, Calif., research company Marketing Evolution to offer clients a turnkey solution for measuring the media and marketing values of branded integration deals. The new product, designed specifically for new product launches and brand repositioning, addresses the need for a “Total Entertainment Accountability and Measurement Solution” and is identified by its acronym TEAM Solution. The main objective of TEAM Solution is to assess both the media value through iTVX’s Q-Ratio and marketing value through Marketing Evolution’s ROMO valuation product. The Renuzit brand is the first to engage TEAM Solution for a new product launch featuring the TriScents air freshener integrated on A&E and HGTV.
London-based market research company Synovate has integrated its business in Belgium, combining its research operations in Ghent with the local Synovate Censydiam practice in Antwerp.
Association/organization news
The Pharmaceutical Marketing Research Group (PMRG) has appointed Scott Lauder of Dresher, Pa., research company TVG Marketing Research & Consulting as director of its education committee.
Awards/rankings
Austin, Texas, research software company Inquisite has been honored as a “Best Solution” at the 2008 Government Technology Conference Southwest for its work with the Texas Department of Information Resources. Texas DIR used Inquisite’s survey system to facilitate statewide IT assessments.
New accounts/projects
New York research company Arbitron Inc. has announced that Bala Cynwyd, Pa.-based radio group Entercom Communications Corp. has signed a multiyear contract for Portable People Meter (PPM) radio ratings services. The agreement takes effect as the new audience ratings technology is commercialized in each of 14 markets encompassed in Arbitron’s current PPM rollout plan. The agreement covers all 64 stations owned by Entercom in the radio markets scheduled to convert to PPM measurement by the end of 2010.
Separately, the Philadelphia Phillies baseball team has signed a multiyear contract for PPM. Arbitron will generate reports of pre-, post-, in-game and total broadcast listening estimates for the Phillies 2007, 2008 and 2009 baseball seasons.
In addition, Midwest Television Inc. has signed a multiyear contract for PPM for KFMB-AM and KFMB-FM. The agreement will take effect as and when Arbitron commercializes the new audience ratings technology in San Diego.
AT&T Advertising & Publishing, a St. Louis Yellow Pages publisher, has adopted a new research strategy to improve the information provided to advertisers about the usage and value of its advertising products. AT&T has retained Irving, Texas-based M/A/R/C Research to measure usage in 275 directory areas. The markets will be supported by three types of quantifiable research: call-tracking studies, proprietary print and Internet Yellow Pages (IYP) studies. The research will measure a rolling 12-month usage average in addition to other key metrics that give a complete picture of how consumers are using AT&T Real Yellow Pages in their buying decisions.
San Mateo, Calif., marketing research company Coremetrics has been hired to replace Publishers Clearing House’s (PCH) existing Web analytics solution and is expected to provide insight into the company’s multiple Web properties. PCH aims to understand where each online visitor’s interest lies within its range of magazines, merchandise, contests and coupons and provide them with relevant offers.
London-based communications company BT has appointed London research company Kantar Group to manage its brand and customer tracking research. BT’s consumer brand and tracking research is now managed by Kantar company Millward Brown. In addition, U.K. market research company Research International has been appointed to undertake BT’s concept screening on an exclusive basis.
Interviewer Web from Montreal research software company Voxco has been selected by Paris software supplier Sage France to replace its current CAWI application.
20/20 Research Inc., a Nashville marketing research firm, has signed a long-term agreement with Harborside Sales Group (HSG) of Baltimore. HSG will license 20/20’s Qualboard research software to include in its new ClientView program. Qualboard is used for conducting online qualitative research using a bulletin-board platform. In this discussion-like format, participants respond to questions from the moderator, as well as to comments from the other participants. Harborside’s ClientView is developed to support the qualitative research needs of financial services firms.
Doylestown, Pa., data collection company Images To Data was selected by the American Red Cross to provide printing, scanning and verification services relating the REDS-II donor study. Under a multiyear agreement, Images To Data will design and print the automated REDS-II survey instrument to be completed by blood donors at several participating collection centers throughout the country. Donor surveys will be processed and the data will be validated utilizing specific business rules and error-checking software developed by Images To Data.
San Diego-based CIC Research has selected Montreal software specialist Voxco’s telephony platform.
New companies/new divisions/ relocations/ expansions
London market research company Millward Brown and Indian research company IMRB have created a joint venture in India. Millward Brown will have a majority share in the business, which will open new offices in Mumbai, Delhi and Bangalore, and the new company is to be called Millward Brown India. The joint venture has been established to market Millward Brown’s quantitative solutions. Specialist practices within the Millward Brown group, including Millward Brown Optimor, Millward Brown Precis, Millward Brown Firefly (Qualitative) and Dynamic Logic, will be set up later on and will operate independently of the joint venture.
New York market research firm Interpret LLC has opened a London office and appointed Christina Costa as European research director.
Redlands, Calif.-based geographic information system (GIS) company ESRI has opened a Sacramento, Calif., office. The new location is intended to allow ESRI to better support its users in central and northern California and Nevada.
During its restructuring, New York pharma research company P\S\L Group has appointed Paul Barnes to the new position of group president in charge of its recently-restructured research division. The division, P\S\L Research Group, comprises P\S\L Research International, P\S\L Research Europe and P\S\L Research Canada.
Dallas-based Common Knowledge Research Services has expanded its Seattle office. While the company has maintained sales capabilities in its Seattle office for the past five years, newly-added project management and quality control capabilities will provide multiple-time-zone coverage.
Company earnings reports
Harris Interactive, Rochester, N.Y., announced results for its second quarter and first half of fiscal 2008 ended December 31, 2007.
Fiscal second quarter revenue was up 13 percent. Consolidated pro forma organic revenue dropped 2 percent, mainly due to a 5 percent decline in North America. Fiscal second-quarter operating income was $3.5 million, down 39 percent when compared with operating income of $5.7 million reported for the same period in the previous year. Net income for the quarter was $2.1 million, or $0.04 per diluted share, down 42 percent when compared with the second quarter of fiscal 2007. Adjusted EBITDA, calculated by adding back $1.1 million of non-cash stock-based compensation expense, was $7.1 million or 11.3 percent of revenue, down 14 percent when compared with $8.2 million of adjusted EBITDA, or 14.7 percent of revenue reported for Q2FY07.
Fiscal first-half operating income was $5.1 million, down 24 percent when compared with operating income of $6.7 million last year. Net income for the first half was $3.2 million, or $0.06 per diluted share, down 29 percent when compared with the first half of fiscal 2007. For the half, adjusted EBITDA, adding back $2.2 million of non-cash stock-based compensation expense, was $12.1 million or 10.2 percent of revenue.
Norwalk, Conn.–based IMS Health announced fourth-quarter 2007 revenue of $605.9 million, up 11 percent or 6 percent on a constant-dollar basis, compared with revenue of $543.5 million for the fourth quarter of 2006. Operating income in the fourth quarter of 2007, including the previously announced restructuring charge of $88.7 million, was $47.0 million compared with $125.7 million in the year-earlier period. When adjusted for the restructuring charge, operating income for the 2007 fourth quarter would have been $135.7 million. Fourth-quarter 2007 diluted earnings per share was $0.09 on a GAAP basis, compared with $0.32 in the prior-year quarter. The restructuring charge of $88.7 million reduced fourth-quarter earnings per share by $0.32. When adjusted for this item, and the phasing of tax benefits and foreign exchange hedge gains and losses, earnings per share on a non-GAAP basis for this year’s fourth quarter would have been $0.43. Net income on a GAAP basis also reflects the restructuring charge and was $18.0 million in the fourth quarter, compared with $65.5 million in the year-earlier quarter. When adjusted for this item, and the phasing of tax benefits, tax provisions, and foreign exchange hedge gains and losses, net income on a non-GAAP basis for the 2007 fourth quarter would have been $83.4 million, an increase of $2.2 million.
For the 2007 full year, revenues were $2,192.6 million, up 12 percent or 8 percent constant dollar, compared with revenue of $1,958.6 million in 2006. Operating income for 2007 was $393.3 million, compared with $444.2 million in 2006. Operating income for 2007 included the $88.7 million restructuring charge taken in the fourth quarter. When adjusted for the restructuring charge, operating income for the 2007 full year would have been $482.0 million. For the 2007 full year, diluted earnings per share on a GAAP basis was $1.18, compared with $1.53 a year earlier. In addition to the restructuring charge in the fourth quarter of 2007, earnings per share for 2007 also included a tax charge in the third quarter. When adjusted for these items, on a non-GAAP basis, earnings per share for 2007 would have been $1.53, $0.12 above diluted earnings per share on a non-GAAP basis of $1.41 in 2006. Net income on a GAAP basis was $234.0 million, compared with $315.5 million in 2006. In addition to the restructuring charge in the fourth quarter of 2007, net income for 2007 also included a tax charge in the third quarter. When adjusted for these items, on a non-GAAP basis, net income for 2007 would have been $304.3 million. Preliminary net cash provided by operating activities on a GAAP basis was $467.1 million. Preliminary free cash flow on a non-GAAP basis for the full-year 2007 was $283.4 million.
Omaha, Neb.-based information firm infoUSA announced results for the fourth quarter and full fiscal year 2007 ended December 31, 2007. During the fourth quarter of 2007, infoUSA delivered record revenue of $185.8 million, which includes $67.0 million for the marketing research group that was established in December 2006 and has grown through acquisitions during 2007. Excluding the marketing research group, the company’s revenue was $118.8 million for the fourth quarter of 2007, compared to $110.5 million for the same period in 2006, an increase of 8 percent. InfoUSA’s earnings per share for the fourth quarter of 2007 were $0.22 versus $0.20 in the fourth quarter of 2006. EBITDA for the fourth quarter was $35.9 million versus $29.2 million in the fourth quarter of 2006.
InfoUSA achieved full year revenue of $688.8 million, which includes $221.5 million for the marketing research group. Excluding the marketing research group, the company’s revenue was $467.3 million for fiscal year 2007, an increase of 11 percent over revenues of $420.2 million in fiscal year 2006.
Revenue for the full year included $9.9 million received from the final settlement of a lawsuit. InfoUSA’s fourth-quarter operating income was $26.0 million, compared to $21.6 million in the fourth quarter of 2006.
For the full year, infoUSA’s operating income increased to $88.3 million, which includes $9.2 million from the Naviant lawsuit settlement, net of related expenses, from $64.6 million in 2006. For the full year, infoUSA’s earnings per share were $0.76 as compared to $0.61 in 2006. EBITDA for full year 2007 was $127.8 million, which includes $9.2 million from the Naviant settlement, as compared to $94.0 million in 2006.
Chicago-based comScore reported revenue of $25.3 million for the quarter ended December 31, 2007, an increase of 39 percent compared to the fourth quarter of 2006 and an increase of 13 percent over the third quarter of 2007. This revenue performance is at the high end of the company’s previous guidance of approximately $25.0 million to $25.3 million in revenue for the fourth quarter 2007 revenue.
Fourth-quarter 2007 GAAP net income was $12.7 million, up $10.1 million compared to $2.6 million in the fourth quarter of 2006. ComScore reported revenue of $87.2 million for the year ended December 31, 2007. Revenue rose approximately 32 percent over 2006 reflecting strong growth in the company’s subscription-based and project-based businesses, increased penetration of its existing customer base, the addition of new customers at a rapid pace and strong performance in the U.S. and in international markets. GAAP net income for the year ended December 31, 2007 climbed to $19.3 million, an increase of $13.6 million compared to $5.7 million for 2006.
Paris-based Ipsos has posted 2007 full-year revenue of EUR 927.2 million, up 8.2 percent compared to 2006 on the back of organic growth of 9.1 percent. Strong performances in Asia-Pacific, Latin America and Europe more than offset a slight decline in the group’s North American revenue. Ipsos’ marketing research operations performed strongly, with revenues of EUR 445 million and organic growth of 7 percent, against a small increase in revenues during 2006. Media research revenue increased 13.5 percent to EUR 66.7 million, of which 12 percent resulted from organic growth. Customer satisfaction research climbed 13 percent to EUR 91.9 million. Opinion and social research rose 7.5 percent to EUR 123.9 million, and advertising research increased 10 percent to EUR 199.7 million, of which 14.5 percent resulted from organic growth.
Wilton, Conn.-based Greenfield Online Inc. reported $38.4 million total net revenue for the fourth quarter of 2007, as compared with $29.5 million for the same period in the prior year, for an increase of $8.9 million, or 30.2 percent, of which approximately $1.8 million, or 6.1 percent, was due to favorable currency effects. The Internet survey solutions segment’s total net revenue was $26.7 million for the fourth quarter of 2007, including favorable currency effects, as compared with $22.4 million for the same period in the prior year for an increase of 19.2 percent. The comparison shopping segment’s total net revenue was $11.7 million for the fourth quarter of 2007, including favorable currency effects, as compared with $7.1 million for the same period in the prior year for an increase of 65.0 percent. Total gross profit was $29.7 million or 77.4 percent of revenues for the fourth quarter of 2007, as compared with $22.5 million, or 76.2 percent of revenues, for the same period in the prior year. Operating income was $6.1 million for the fourth quarter of 2007 or 15.8 percent of revenue, as compared to $5.2 million, or 17.5 percent of revenue, for the same period in the prior year. Net income for the fourth quarter of 2007 was $4.6 million as compared with a net income of $3.5 million for the same period in the prior year.
Boston research company Kadence Group reported growth of 18 percent in 2007, as its global revenue increased to $9.3 million from $8 million in 2006. The U.S. office achieved the largest rise in annual revenue (28 percent) and the U.K. and Asian regional offices also reported growth.
New York research company Arbitron Inc. has announced results for the quarter and year ended December 31, 2007. On January 31, 2008, Arbitron concluded the sale of Continental Research (Continental), its U.K. custom research business. As a result, Continental’s financial results have been reclassified as a discontinued operation for all periods presented. In 2007, Continental Research generated revenue of $13.6 million and a net loss of $0.3 million. During the fourth quarter of 2007, Continental generated a net loss of $0.5 million on revenues of $4.6 million.
Net income for the quarter was $3.7 million, or $0.13 per diluted share, compared with $4.9 million, or $0.17 per diluted share, for the fourth quarter of 2006. For the year, net income decreased 20.7 percent to $40.2 million compared with $50.7 million in 2006. Earnings per diluted share in 2007 were $1.35, compared with $1.68 per diluted share last year. Increased costs and expenses for both the quarter and full year were due to planned expenditures for Portable People Meter (PPM) ratings service panel builds. For the fourth quarter 2007, Arbitron reported revenue from continuing operations (excluding Continental) of $80.1 million, an increase of 5.4 percent over revenue of $76.0 million during the fourth quarter of 2006.
Costs and expenses for the fourth quarter increased by 10.6 percent, from $72.3 million in 2006 to $79.9 million in 2007, due to planned expenditures for the PPM ratings service panel builds.
Earnings before interest and income tax expense (EBIT) for the quarter were $6.2 million, a decrease of 41.7 percent compared with EBIT of $10.7 million for the fourth quarter of 2006. Interest expense for the quarter declined to $0.4 million from $3.2 million in 2006 due primarily to the early retirement of a $50 million outstanding senior secured note in October 2006.
Income from continuing operations for the quarter was $4.1 million or $0.14 per diluted share, compared with $4.7 million, or $0.16 per diluted share in the fourth quarter of 2006.
For the year ended December 31, 2007, revenue from continuing operations was $338.5 million, an increase of 6.0 percent over revenue of $319.3 million for 2006. PPM radio ratings panel builds contributed to an increase in costs and expenses for the year of 14.7 percent, from $243.4 million in 2006 to $279.2 million in 2007. Non-cash equity compensation in both 2007 and 2006 was $6.5 million. Equity in net income of affiliates for 2007 declined 47.6 percent, from $7.7 million in 2006 to $4.1 million in 2007 due to the formation of the Project Apollo LLC in the first quarter of 2007.
EBIT decreased 24.3 percent from $83.7 million in 2006 to $63.3 million in 2007. Interest expense for the year declined to $0.7 million from $6.1 million in 2006, again largely the result of the 2006 early retirement of the then outstanding senior note.
Income from continuing operations for 2007 decreased to $40.5 million, or $1.37 per diluted share from $50.3 million, or $1.67 per diluted share, in 2006.
Chicago software firm SPSS Inc. has announced results for the fourth quarter and fiscal year ended December 31, 2007.
SPSS reported fourth quarter revenues of $79.6 million, up 12 percent from $71.1 million in the same quarter of 2006. New license revenues were $42.1 million, up 18 percent from $35.8 million in the fourth quarter of 2006. Operating income increased 26 percent to $14.7 million, or 18 percent of total revenues, from $11.7 million, or 16 percent of total revenues, in the same quarter of 2006. These results include charges for share-based compensation of $2.2 million and $1.7 million in 2007 and 2006, respectively. Results for the fourth quarter of 2007 also include $2.7 million in charges for previously-announced organizational restructuring and research and development facilities consolidation compared with $0.9 million of similar charges in the same 2006 quarter.
Net income for the fourth quarter of 2007 was $10.0 million, or $0.50 per diluted share, compared to $2.0 million, or $0.10 per diluted share, for the same period in 2006. Results for the fourth quarter of 2006 included a non-cash, non-operating income tax charge of $6.9 million, or $0.33 per diluted share.
SPSS reported maintenance revenues in the 2007 fourth quarter of $30.5 million, up 10 percent from $27.8 million in the same quarter of 2006. Maintenance revenues in the 2007 fiscal year were $118.3 million, 41 percent of total revenues and an 8 percent increase from $109.3 million in 2006.
For the 2007 fiscal year, revenues were $291.0 million, an 11 percent increase from $261.5 million in the 2006 fiscal year. New license revenues were $144.0 million, up 15 percent from $125.0 million in 2006. Operating income for the 2007 fiscal year increased 44 percent to $49.5 million, or 17 percent of total revenues, from $34.3 million, or 13 percent of total revenues, for the 2006 fiscal year. These results include charges for share-based compensation of $7.8 million and $6.7 million in 2007 and 2006, respectively. Results for the 2007 fiscal year also include charges of $4.6 million for organizational restructuring and research and development facilities consolidation compared with similar charges in 2006 of $2.2 million, including $1.3 million for the write-off of obsolete purchased software.
Net income in 2007 was $33.7 million, or $1.65 EPS, compared to 2006 net income of $15.1 million, or $0.73 per diluted share. Fiscal year 2006 results included a non-cash, non-operating income tax charge of $6.9 million, or $0.34 per diluted share.
Cash at December 31, 2007 was $306.9 million, up from $140.2 million at December 31, 2006 and $297.1 million at September 30, 2007. Cash flow from operations in the fourth quarter of 2007 was $33.4 million compared to $22.3 million for the same quarter in 2006. For the 2007 fiscal year, cash flow from operations was $84.9 million up from $48.2 million for the 2006 fiscal year.
National Research Corporation, Lincoln, Neb., announced results for the fourth quarter and year ended December 31, 2007.
Annual revenue increased by 12 percent. Annual net income increased by 16 percent. 2007 commercial contract value increased 18 percent, and 2007 net new contracts increased 23 percent. The quarterly dividend increased to $0.14 per share.
Revenue for the quarter ended December 31, 2007, was $10.8 million, compared to $10.3 million for the same period in 2006. Net income for the quarter ended December 31, 2007, was $1.1 million, or $0.16 per diluted share, compared with net income of $1.0 million, or $0.14 per diluted share, in the prior year period.
Revenue for the year ending December 31, 2007, increased 12 percent to $48.9 million, compared to $43.8 million for the same period in 2006. Net income for 2007 increased 16 percent to $6.8 million, resulting in $1.00 per basic and $0.98 per diluted share, compared with $5.9 million, or $0.86 per basic and $0.85 per diluted share, in 2006.
Research Now, London, has announced its unaudited preliminary results for the year ended October 31, 2007. Research Now reports revenue of £25.8 million, including OpenVenue, for an increase of 168 percent compared with the previous year. Organic revenue growth was up 100 percent compared with the previous year. Adjusted profit before tax increased 79 percent to £2.5 million. Reported profit before tax was £0.3 million. Adjusted basic earnings per share increased 34 percent to £11.9 million. Basic earnings per share were (£3.2).