Information Services Corp (TSE:ISV) revealed third-quarter results on Thursday that showed a 6.6% jump in revenue, with the company’s services business the primary driver of growth.
The Regina, Saskatchewan-headquartered business provides solutions to manage, secure and administer information. The company has a host of diversified, yet complementary revenue streams through its three service offering segments: Registry Operations, Services and Technology Solutions.
For the nine months ended September 30, the Canadian company posted a 6.6% jump in revenue to $32.2 million, compared to $30.2 million in the same period a year earlier.
The Services segment contributed $12.9 million in revenue, up $2.5 million compared to the same quarter in 2018. On the other hand, the Registry Operations segment contributed $17.6 million in revenue, down $0.3 million compared to the same period a year earlier.
Meanwhile, the Technology Solutions segment contributed $5.1 million in revenue, compared to $5.5 million in the same period in 2018.
In a statement accompanying the company’s latest numbers, CEO Jeff Stusek said: “Our performance in the third quarter was as expected and we remain a strong free cash flow business.”
The company works with both governments and private sector organizations seeking information management services.
“Registry operations continues to be challenged by the effects of economic conditions but is delivering robust results,” pointed out Stusek.
Services business is growth engine
“The primary driver of growth continues to come from our services business, largely through the continued expansion of our customer base in collateral management and Know Your Customer,” he added.
The Information Services Corp boss said the company remained on track to meet its guidance for 2019.
“We will continue to source new business development opportunities as well as accretive acquisition targets,” said Stusek.
Information Services posted a net income of $3.3 million or $0.19 per share, compared to $7.8 million or $0.44 per share in the same quarter in 2018.
The company explained that the year-over-year decrease is due to a gain in 2018 from an adjustment to the fair value estimate of the contingent associated with its AVS acquisition ($2.8 million), and one-time costs of $1.4 million linked to the closure of three of its regional offices.
The company had $19.3 million in cash compared to $28.7 million on December 31, 2018.
In a positive, the company cut debt to $18.5 million compared to $20 million on December 31, 2018.
Secures major contract
Meanwhile, the company said that its wholly-owned Irish subsidiary, Enterprise Registry Solutions Limited, inked a pact with the Irish Aviation Authority to implement and support its new Safety Regulation System.
According to the company, the total value of the implementation contract is approximately $7 million, with a subsequent agreement expected for system support and maintenance. The new system is expected to go live in 2021.
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