* Revenues grew 5% to $154 million  * ASV declined $8 million to $615 million  * Operating margins rose to 34.5%  * EPS was $0.79, including income tax benefits of $0.06 per share  * EPS grew 22% including 10% related to income tax benefits  * Free cash flow was $64 million, up 39%  * Q4 EPS guidance is $0.73 to $0.75, a 10% increase at the midpoint    of the guidance 

NORWALK, Conn., June 16, 2009 (GLOBE NEWSWIRE) -- FactSet Research Systems Inc. (NYSE:FDS) (Nasdaq:FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced its results for the third quarter of fiscal 2009.

For the quarter ended May 31, 2009, revenues increased to $154.4 million, up 5% compared to the prior year. Operating income for the third quarter rose to $53.3 million, an increase of 11% from $47.9 million in the same period of fiscal 2008. Operating margins advanced to 34.5%. Net income rose to $38.5 million as compared to $32.5 million a year ago. Diluted earnings per share increased to $0.79 from $0.65 in the same period of fiscal 2008. Included in this quarter's EPS was an income tax benefit of $0.06 per share related to finalizing prior years' tax returns and repatriating foreign earnings to the U.S.

    Consolidated Statements of Income  -------------------------------------------------------------------  (Condensed and   Unaudited)     Three Months Ended         Nine Months Ended                        May 31,                    May 31,                  ---------------------------------------------------  (In thousands,   except per   share data)       2009     2008    Change   2009     2008   Change  ------------       ----     ----    ------   ----     ----   ------  Revenues         $154,387 $147,399    4.7% $466,561 $421,812   10.6%  Operating income   53,306   47,919   11.2%  156,671  133,656   17.2%  Other income          181      852 (78.8)%      996    4,325 (77.0)%  Provision for   income taxes      14,951   16,229  (7.9)%   48,992   46,548    5.3%  Net income        $38,536  $32,542   18.4% $108,675  $91,433   18.9%  Earnings per   share              $0.79    $0.65   21.5%    $2.23    $1.82   22.5%  Weighted average   common shares     48,836   49,821           48,773   50,218  ------------------------------------------------------------------- 

Philip A. Hadley, Chairman and CEO said, "Against the backdrop of a difficult selling environment, FactSet again delivered double-digit EPS growth while continuing to invest for the future. I'm pleased that our fiscal 2009 plan forecasts headcount growth of more than 20%, which we believe will position the Company to be even stronger coming out of this global recession."

Annual Subscription Value ("ASV")

ASV decreased $8 million during the third quarter and included a $1 million benefit from foreign exchange. An already difficult selling environment was amplified by weakening equity markets in 2009 through mid-March. Users declined 1,600 to 37,100 and were driven by adjustments from sell-side firms. ASV was $615 million at May 31, 2009. Of this total, 81% of ASV is from buy-side clients and the remainder is from the sell-side firms who perform M&A advisory work and equity research. ASV at any given point in time represents the forward-looking revenues for the next 12 months from all annual subscription services currently being supplied to clients.

FactSet Fundamentals

Revenues from FactSet Fundamentals were $1.3 million. The quarterly operating loss from FactSet Fundamentals decreased 38% to $1.6 million from $2.6 million last quarter. The investment in FactSet Fundamentals diluted EPS by $0.02. The build-out of FactSet's content collection operation continues ahead of schedule.

Free Cash Flow and Cash Balance

Free cash flow for the third quarter of fiscal 2009 was $64 million, a 39% increase compared to the same period of 2008. Free cash flow generated over the last 12 months was $161 million. Cash, cash equivalents and investments in marketable securities were $191 million at May 31, 2009, up 44% during the quarter compared to $132 million at February 28, 2009.

Income Taxes

Included in this quarter's diluted EPS were income tax benefits of $3.0 million or $0.06 per share. The effective tax rate for the quarter was 28.0%. The components of the effective tax rate are 33.6% for the full fiscal 2009 year partially offset by income tax benefits of 5.6% related to finalizing prior years' tax returns and repatriating foreign earnings to the U.S.

Operational Highlights

    * ASV from FactSet's U.S. operations was $419 million, and $196    million related to international operations.  * U.S. revenues were $105 million, up 3% from the year ago quarter.  * Non-U.S. revenues increased 8% to $49 million.  * Client count was 2,033 at May 31, 2009, a net aggregate decrease of    34 clients during the quarter.  * Annual client retention rate was greater than 95% of ASV and 88% of    clients.  * PA 2.0 was deployed by 647 clients representing 5,600 users. PA    users decreased by 180 during the quarter, while the number of PA    clients decreased by five.  * Employee count at May 31, 2009 was 2,550, up 400 employees during    the quarter.  The increase in headcount was driven by expansion of    FactSet's proprietary content operation including the FactSet    Fundamentals collection team.  * Capital expenditures were $1.2 million, net of landlord    contributions for construction of $1.9 million. Approximately 70%    of capital expenditures were for computer equipment and the    remainder covered office space expansion.  * The quarterly dividend increased 11% from $0.18 to $0.20 per share.  * Common shares outstanding at May 31, 2009 were 47.1 million.  The    Company repurchased 200,000 shares during the quarter and $134    million remains authorized for future repurchases.  * FactSet Europe was named one of UK's 50 best places to work.  * Wall Street Journal partnered with FactSet to calculate its annual    ranking of the best equity analysts. 

Business Outlook

The following forward-looking statements reflect FactSet's expectations as of June 16, 2009.